Post on 16-Jul-2015
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CANADA’S INTERMEDIATE GOLD PRODUCER
Corporate Presentation (1-1 Meetings)
March 11, 2015
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Forward Looking Information This presentation contains certain forward-looking information and statements as defined in applicable securities law (referred to herein as
“forward-looking statements”). Forward-looking statements include, but are not limited to, statements with respect to Detour Gold’s future
financial or operating performance; guidance for production, total cash costs, all-in sustaining costs, capital costs, deferred stripping costs,
exploration costs; expected throughput, mining and recovery rates; expected future production and mining activities; opportunities to
optimize the mine operation; the mine plan and economic analysis of the Detour Lake mine including, but not limited to, the life of mine plan,
the waste to ore ratio, processing and production rates, grades, metallurgical recovery rates, operating and sustaining capital costs, and the
projected life of mine, opportunities to optimize the mine operation; the success and continuation of exploration activities, the future price of
gold, reclamation obligations, government regulations and environmental risks.
Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual results, performance
or achievements to be materially different from any of its future results, performance or achievements expressed or implied by forward-
looking statements. These risks, uncertainties and other factors include, but are not limited to, assumptions and parameters underlying the
life of mine update not being realized, a decrease in the future gold price, discrepancies between actual and estimated production, changes
in costs (including labour, supplies, fuel and equipment), changes to tax rates; environmental compliance and changes in environmental
legislation and regulation, exchange rate fluctuations, general economic conditions and other risks involved in the gold exploration and
development industry, as well as those risk factors discussed in the section entitled “Description of Business - Risk Factors” in Detour
Gold’s 2013 AIF and in the continuous disclosure documents filed by Detour Gold on and available on SEDAR at www.sedar.com.
Such forward-looking statements are also based on a number of assumptions which may prove to be incorrect, including, but not limited to,
assumptions about the following: the availability of financing for exploration and development activities; operating and sustaining capital
costs; the Company’s ability to attract and retain skilled staff; sensitivity to metal prices and other sensitivities; the supply and demand for,
and the level and volatility of the price of, gold; the supply and availability of consumables and services; the exchange rates of the Canadian
dollar to the U.S. dollar; energy and fuel costs; the accuracy of reserve and resource estimates and the assumptions on which the reserve
and resource estimates are based; market competition; ongoing relations with employees and impacted communities and general business
and economic conditions. Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking
statements contained herein are made as of the date hereof, or such other date or dates specified in such statements.
All forward-looking statements in this presentation are necessarily based on opinions and estimates made as of the date such statements
are made and are subject to important risk factors and uncertainties, many of which cannot be controlled or predicted. Detour Gold and the
Qualified Persons who authored the associated Technical Report undertake no obligation to update publicly or otherwise revise any
forward-looking statements contained herein whether as a result of new information or future events or otherwise, except as may be
required by law.
3
Notes to Investors
The mineral reserve and resource estimates reported in this presentation were prepared in accordance with Canadian National Instrument 43-101 Standards of
Disclosure for Mineral Projects (“NI 43-101”), as required by Canadian securities regulatory authorities. For United States reporting purposes, the United States
Securities and Exchange Commission (“SEC”) applies different standards in order to classify mineralization as a reserve. In particular, while the terms “measured,”
“indicated” and “inferred” mineral resources are required pursuant to NI 43-101, the SEC does not recognize such terms. Canadian standards differ significantly from
the requirements of the SEC. Investors are cautioned not to assume that any part or all of the mineral deposits in these categories constitute or will ever be
converted into reserves. In addition, “inferred” mineral resources have a great amount of uncertainty as to their existence and great uncertainty as to their economic
and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian securities
laws, issuers must not make any disclosure of results of an economic analysis that includes inferred mineral resources, except in rare cases.
On February 4, 2014, Detour Gold announced an updated life of mine plan for the Detour Lake mine. The NI 43-101 compliant Technical Report for this update was
filed on SEDAR on February 4, 2014. The following QPs participated in this update: BBA Inc., under the direction of André Allaire, Eng., Acting President and CEO
and Patrice Live, Eng., Director Mining; SGS Canada Inc., under the direction of Yann Camus, Eng., Project Engineer, and Maxime Dupéré, P.Geo., Senior
Geologist; and AMEC Environment & Infrastructure, a Division of AMEC Americas Limited, David G. Ritchie M.Eng., P.Eng, Senior Associate Geotechnical Engineer
and Geotechnical Engineering Group Manager.
The scientific and technical content of this presentation has been reviewed, verified and approved by Drew Anwyll, P.Eng., Senior Vice President Technical
Services, a Qualified Person as defined by Canadian Securities Administrators National Instrument
43-101 “Standards of Disclosure for Mineral Projects”.
Information Containing Estimates of Mineral Reserves and Resources
Non-IFRS Financial Performance Measures The Company has included non-IFRS measures in this presentation: total cash costs and all-in sustaining costs. The Company believes that these measures, in
addition to conventional measures prepared in accordance with IFRS, provide investors an improved ability to evaluate the underlying performance of the Company.
The non-IFRS measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance
prepared in accordance with IFRS. These measures do not have any standardized meaning prescribed under IFRS, and therefore may not be comparable to other
issuers. Other companies may calculate these measure differently.
Detour Gold reports total cash costs on a sales basis. Total cash costs per gold ounce include production costs such as mining, processing, refining and site
administration, less non-cash share-based compensation and net of silver sales divided by gold ounces sold to arrive at total cash costs per gold ounce sold.
Production costs are exclusive of depreciation and depletion. Production costs include the costs associated with providing the royalty in kind ounces.
Starting in 2015, the Company will report “all-in sustaining costs”. The Company believes this measure more fully defines the total costs associated with producing
gold. The Company calculates all-in sustaining costs per ounce of gold sold as the aggregate of total cash costs (as described above), share-based compensation,
corporate general and administrative expense, exploration and evaluation expenses that are sustaining in nature, reclamation cost accretion, sustaining capital and
deferred stripping costs.
The following items are excluded from all-in sustaining costs: non-sustaining capital expenditures and exploration costs that are expected to materially increase
production, financing costs and tax expense. Consequently, this measure is not representative of all of the Company’s cash expenditures. In addition, the
Company’s calculation of all-in sustaining costs does not include depletion and depreciation expense.
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Unique Investment Opportunity
Large-scale, long mine life
Largest gold producing mine not
controlled by a senior producer
Growing cash flow profile
Production growth opportunities
Favourable exposure to
Canadian Dollar
DOMINANT
GOLD PRODUCER
IN CANADA
Mining-friendly jurisdiction
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2015 Production Guidance (Koz)
#2 in Production and #1 in Reserves
DGC Detour Lake
AEM/YRI Canadian
Malartic
AEM Meadowbank
G Red Lake
Canadian Intermediate Gold Producer
400-
425
560 475-
525 400
Gold Reserves (Moz)
DGC Detour Lake
AEM/YRI Canadian
Malartic
AEM Meadowbank
G Red Lake
2.1
15.0
8.7
1.2
6
Near doubling of gold production with
21% decrease in total cash costs
Year-end cash position of US$135 M
Debt reduced by US$57 million
Successful preliminary results on
processing enriched portion of low-
grade stockpile
Encouraging high-grade drilling results
at Lower Detour
$1,182
$928
$300
$500
$700
$900
$1,100
$1,300
$1,500
0
50
100
150
200
250
300
350
400
450
500
457 232 ■ Total Cash Costs (US$/oz sold)1
■ Gold Production (K oz)
2013 2014
232 457
1. Refer to the section on Non-IFRS Performance Measures on slide 3 of this presentation.
2014 Highlights
Delivered on production, cost, and capex
Detour Lake Mine
7
475-525 THOUSAND oz gold
US$780-850 TCC per oz sold
(1)
US$1,050-1,150 All-in sustaining costs
AISC per oz sold
(1)
Estimated production
Estimated costs
Total cash costs
Cost Assumptions (US$) Gold price of $1,200/oz, diesel fuel price of $0.82 per litre; power cost of $0.04 per
kilowatt hour; and exchange rate of $1.00US:$1.15Cdn.
1. Refer to the section on Non-IFRS Performance Measures on slide 3 of this presentation.
2015 Guidance
third year
of operation
2015
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2015 Key Targets
PLAN FOR MILL
~54,000 tpd mill throughput
(milling rates of ~2,600 tpoh
at 87% availability)
2
Improve mill availability
Improve recovery
PLAN FOR MINE
238,000 tpd average mining rate
(approx. 87 Mt total mined)
1
Improve drilling performance
Increase shovel productivity
Strong focus on optimization and efficiency
FOCUS: FOCUS:
9
Improve mining rates
2015 Plan for Mine
0
40
80
120
160
200
240
280
10 5 20
Q1 Q2 Q4 Q3
PHASE I
2015 Projected Mining Rates (Ktpd)
PHASE II
Targets for
improvement
222 222 222 222
16 16 16 16
280
240
200
160
120
80
40
0
Higher mining rates
= Higher feed grade
30
Budget 222,000 tpd for Phase 1 mining rates
Target 250,000 tpd for Phase 1 by year-end
10
200
160
120
80
40
0
Improve mining rates
2015 Plan for Mine
0
20
40
60
80
100
120
140
160
180
200
H H H
H
2015 Estimated Production (Koz)
L
L L L
SP
Higher mining rates
= Lower unit costs
Q1 Q2 Q4 Q3
Work towards bringing Q4 ounces into Q3 (i.e. Q4 ROM
stockpile of 1.8 Mt at 0.80 g/t)
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Improve availability
2015 Guidance Mid-point
2015 Plan for Mill
Targeting an average of 87% for mill availability
Improve recovery with 2nd oxygen plan
MT ore milled
3.5:1 WASTE:ORE strip ratio
0.86 G/T AU head grade
91.5 % gold recovery
19.7
Targeting 55,000 tpd
Q2-Q4
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~80% of costs in Cdn$
2015 Operating Costs
Maintenance
Labour &
Contractors
Power
Fuel
G&A and
other
Consumables
30%
15%
33%
7%
11%
4%
Forecast (C$)
Mining ($/t mined) $2.60
Processing ($/t milled) $9.87
G&A ($/t milled) $3.05
Electricity contract in place to
Dec 2019
› Charges not to exceed
C$0.05/kWh
› Extension request for +3 years
Forecast Breakdown
of 2015 Operating Costs
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Breakdown of 2015
Sustaining Capital (US$):
Mine
$30 M
TMA
$34 M
Other
$13 M
Mill
$9 M
Water Management
$10 M
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2015 All-in Sustaining Costs (AISC)
Forecast (US$)
Total Cash Costs (TCC) $780-850/oz sold1
Sustaining Capital $90-100 M
Capitalized Stripping $20-25 M
Corporate G&A $20 M
Exploration $2 M
AISC $1,050-1,150/oz sold1
Overall timing of expenditures weighted in Q2 & Q3
Capitalized stripping costs to be incurred within the first 9 months
~90% of costs in Cdn$
1. Refer to the section on Non-IFRS Performance Measures on slide 3 of this presentation.
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Upside for lower costs (US$ M)
Now 1.25 vs
1.15 budget
If 2015 avg rate
is same as 2014
If 10% lower than
budget US$0.82/L
Up to
$35 M
LOWER
CANADIAN
DOLLAR
COST
REDUCTION
PROGRAM
ELECTRICITY
CONTRACT
BENEFIT
LOWER
DIESEL
PRICE
Consumables
and contractors
$4 M
Probability factor of 50% = approx. $30 M reduction
Up to Up to
$20 M $7 M
2015 Potential Cost Reductions
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Targeting 3,000 tpd
(or 0.5 Mt) for H2 2015
No capital injection
Mining costs already paid
for; rehandling only
2015 Start Realizing on Opportunities
Potential 15,000 - 25,000 oz/yr
at low cost
Potential to increase production and reduce costs
1 PROCESSING OF FINES
Low-grade stockpile (avg. grade 0.44 g/t)
Natural segregation of
fines from unloading truck
Test #1: avg. grade of fines ~0.65 g/t
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Economic review underway
< US$2 M for prototype
Use barren pebbles for road
or tailings dam construction
2015 Start Realizing on Opportunities
Up to 1 Mt/yr incremental
mill throughput = savings
Potential to increase production and reduce costs
2 PEBBLE EXTRACTION
Mobile feeder
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Evaluate best economics for Detour Lake
Trade off studies:
› Tonnage rationalization study
Include processing of fines and
pebble extraction
Timing for second feed source
from Block A (2 Moz M&I
resource)1
Review of cost estimates
Optimizing Economic Returns
3 LOM PLAN UPDATE
1. Refer to February 2014 Technical Report: Measured: 1.5 Mt @ 1.21 g/t (57,000 oz);
Indicated: 52.5 Mt @ 1.15 g/t (1.93 M oz).
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Goal: Strengthen balance sheet and financial flexibility
Solid Financial Position
No debt
maturities
until Nov.
2017
Repaid in
Q1 2015 &
2014
(US$ M)
Towards repaying convertible notes 1
CREDIT FACILITY 2 Restructure credit & lease facilities
SURPLUS CASH
$57
$124
Revolver +
CAT Lease
$500
Convertible
Notes
19
Balanced risk management strategy (US$)
Prudent Financial Management
DIESEL CURRENCY
Currency exchange
contracts
Looking at hedging
diesel in 2015
GOLD
Hedge up to 50% of
2015 gold production
Forward sales on
110,000 oz @
$1,250/oz (Mar. 6)
Zero-cost collars for
$90 M with a ceiling
of 1.20 (Mar. 6)
Forward contracts
for $50 M at 1.26
11% of operating
costs
$50/oz change =
~$25 M
$0.01 change = ~$4 M
10% change = ~$4 M
Impact on cash position
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Guidancemidpoint
at $1200 /oz Au at $1250 /oz Au Guidancemidpoint
at 1.25 f/x at $1250 /oz Au
2015 Cash Flow Projections
Guidance
midpoint
@ $1,250/oz
F/X 1.25
@ $1,200/oz
F/X 1.25
~$40
~$10
~$65 ~$170
~$140
~$195
Goal: US$100 M surplus cash towards convertible notes
Pro-Forma Net Cash Flow 2015 Yr-end Cash Balance
(US$ M)
Note: Guidance at gold price of $1,200/oz, F/X rate of 1.15 and capex of $123 M
(sustaining + deferred stripping).
Guidance
midpoint
@ $1,250/oz
F/X 1.25
@ $1,200/oz
F/X 1.25
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Lower Detour Area
630 km2
Q1 2015 Drilling: Lower Detour
Block A
Resource
Detour Lake
OP Mine
22
Completed 3,500 m drilling program
Lower Detour area approx.
6-7 km south of mill
Test depth extension of
high-grade intersections
in Zone 58N
All 5 holes completed
intersected mineralized
zone at 150 to 200 metres
below last year’s drill holes
Assays are pending
Note: Refer to press release June 2, 2014 for the winter
2014 drill results.
Q1 2015 Drilling: Lower Detour
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PRODUCTION GROWTH /
DECLINING UNIT COSTS
REALIZE VALUE-ENHANCING
OPPORTUNITIES
MATERIAL INPUTS TRENDING
FAVOURABLY
GROWING CASH FLOW
A GREAT TIME TO BE A
GOLD PRODUCER!
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ADDITIONAL information
Analyst Coverage
Shareholder Information
Corporate Responsibility
2014 Operational Statistics
Detour Lake & Block A
Management & Directors
Contact Information
25
Initiating
Research Firm Analyst Target Price at
March 11, 2015
07.06.11 Haywood Kerry Smith $14.00
07.07.09 Paradigm Don Blyth/Don MacLean $14.50
07.08.07 Raymond James Phil Russo $17.50
07.11.26 National Bank Steve Parsons $15.25
07.12.20 Macquarie Mike Siperco $20.00
08.01.14 Canaccord Rahul Paul $15.00
08.07.14 TD Dan Earle $17.50
08.09.04 RBC Dan Rollins $16.00
08.11.06 BMO NB Brian Quast $15.50
09.06.17 Laurentian Killian Charles Under review
10.05.19 CIBC World Markets Cosmos Chiu $16.50
10.07.22 Credit Suisse Anita Soni $15.00
13.04.16 Scotiabank Trevor Turnbull $20.00
13.08.14 Desjardins Michael Parkin $16.50
13.11.12 Beacon Securities Michael Curran $13.00
13.12.09 GMP Securities Ian Parkinson $10.20
14.02.06 Cormark Securities Richard Gray/Tyron Breytenbach $18.00
14.04.22 Goldman Sachs Andrew Quail $12.00
14.06.17 Dundee Capital Markets Joseph Fazzini $16.50
14.09.03 Morgan Stanley Brad Humphrey $13.75
Average target C$15.62
Analyst Coverage (20)
26
1. Conversion price for the Notes is US$38.50.
2. Cash and short-term investments at December 31, 2014.
Shareholder Information
Paulson & Co.
>80% INSTITUTIONS TOTAL 10.2 M Share options
13.0 M Convertible notes 1
193.7 M FULLY DILUTED
170.6 M Issued & outstanding
Share Structure (03/31/2014) Top Shareholders
13%
C$1.6 BILLION market cap US$135.3 MILLION
cash position2
Share Structure (February 28, 2015) Top Shareholders
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Responsible mining is more than a commitment
- It’s what we do every day
Our commitments to
community benefits are
being realized and will
grow as the mine matures
Steady state operations
allows us to report on our
operational, environmental,
and social impacts.
Our first CSR update has been published and is available on
our website
Our Life Saving Rules help raise the visibility of safety to
ensure everyone on our site goes home safely
Corporate Responsibility
MAINTENANCE
LABOUR
18%
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2014 Operational Statistics
Q1 Q2 Q3 Q4 2014
Ore mined (Mt) 4.88 2.89 4.20 4.30 16.28
Waste mined (Mt) 14.29 16.11 14.71 15.39 60.49
Total mined (Mt) 19.17 19.00 18.91 19.69 76.77
Strip ratio (waste:ore) 2.9 5.6 3.5 3.6 3.7
Mining rate (tpd) 213,000 209,000 206,000 214,000 210,000
Ore milled (Mt) 4.08 4.42 4.53 4.70 17.73
Mill grade (g/t Au) 0.90 0.91 0.88 0.85 0.88
Recovery (%) 91 91 90 91 91
Mill throughput (tpd) 45,282 48,569 49,186 51,142 48,563
Mill availability (%) 80 83 81 83 81
Ounces produced (oz) 107,154 117,366 115,344 116,770 456,634
Ounces sold (oz) 84,560 107,206 106,334 124,913 423,013
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Effective December 31, 2014 Tonnes (Mt) Grade (g/t Au) Contained Gold (koz)
Reserves
(1,2,3,4,5)
Detour Lake Mine Proven 94.2 1.25 3,795
Probable 364.6 0.95 11,146
P&P 458.8 1.01 14,941
Stockpiles 0.7 0.74 16
Total P&P 459.4 1.01 14,957
Resources (1,3,4,5)
Detour Lake Mine Measured (M) 16.4 1.37 725
Indicated (I) 65.9 1.01 2,150
M+I 82.4 1.09 2,874
Block A Measured (M) 1.5 1.21 57
Indicated (I) 52.5 1.15 1,934
M+I 53.9 1.15 1,991
Total M+I 136.3 1.11 4,866
Detour Lake Mine Inferred 19.1 0.75 463
Block A Inferred 2.5 1.23 99
Total Inferred 21.6 0.81 562
Detour Gold: Reserves & Resources
1. Mineral reserves calculated using a gold price of US$1,000/oz; mineral resources calculated using US$1,200/oz. Foreign exchange
rate of C$1.03 to US$1.00 (refer to the “Detour Lake Mine NI 43-101 Technical Report dated February 4, 2014).
2. Mineral reserves estimated using a 4% dilution at 0.20 g/t Au and 5% ore loss.
3. Based on an elevated cut-off grade of 0.5 g/t Au for Detour Lake and cut-off grade of 0.6 g/t Au for Block A.
4. Mineral resources are exclusive of mineral reserves. Mineral resources that are not mineral reserves do not have demonstrated
economic viability. Mineral reserves and resources are compliant with CIM definitions.
5. Totals may not add due to rounding.
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Detour Lake & Block A
US$1,000/oz
US$1,200/oz
15.5 Moz
@ 1.02 g/t Au P+P
2.0 Moz
@ 1.15 g/t Au M+I
~5.5 km
Current
North
Pit
Note: Mineral reserves and resources as of December 31, 2013. Refer to February 2014 Technical Report.
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Paul Martin President and CEO
Pierre Beaudoin COO
James Mavor CFO
Drew Anwyll Sr VP Technical Services
Julie Galloway Sr VP General Counsel &
Corporate Secretary
Derek Teevan Sr VP Corporate &
Aboriginal Affairs
Jean-Francois Metail VP Mineral Resource
Management
Rachel Pineault VP HR & Aboriginal Affairs
Jim Robertson VP Environment &
Sustainability
Charles Hennessey Mine General Manager
Andrew Croal Director Technical Services
Laurie Gaborit Director Investor Relations
Alberto Heredia Controller
Bill Snelling Director Corporate Systems & Controls
Rickardo Welyhorsky Director Mineral Processing
Lisa Colnett
Louis Dionne
Robert E. Doyle
André Falzon
Alex G. Morrison
Jonathan Rubenstein
Graham Wozniak
Ingrid Hibbard
Michael Kenyon
Paul Martin
Management & Directors
Management
Directors
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Laurie Gaborit Director Investor Relations
Email: lgaborit@detourgold.com
Phone: 416.304.0581
Paul Martin President and Chief Executive Officer
Email: pmartin@detourgold.com
Phone: 416.304.0800
www.detourgold.com
Contact Information