1
Scotiabank GBM 2014: Mining for Margin
April 23, 2014
CANADA’S INTERMEDIATE GOLD PRODUCER
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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 the updated 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, the projected life of mine, the net present
value, 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.
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Notes to Investors
The mineral reserve and resource estimates reported in this presentation were prepared in accordance with Canadian National Instrument 43-
101Standards 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., Vice President of
Operations, 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 “Total cash cost per gold ounce sold (TCC)” and “Total cash cost plus total capital per gold ounce sold (TCC plus Total
Capital)” in this presentation which are non-IFRS measures. 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 and its ability to
generate operating earnings and cash flow from its mining operations.
Detour Gold reports total cash costs on a sales basis. Total cash costs per gold ounce sold include production costs such as mining, processing,
refining, site administration, costs associated with providing royalty in-kind ounces, and costs for agreements with Aboriginal communities, but are
exclusive of depreciation and depletion, reclamation, non-cash share-based compensation and deferred stripping. Total cash costs are reduced by
silver sales and divided by gold ounces sold to arrive at total cash costs per gold ounce sold. Total cash costs plus total capital per gold ounce sold
includes TCC as calculated above plus sustaining capital and deferred stripping divided by gold ounces sold. These 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 this measure differently.
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Invest in Detour Gold
15.5 MILLION oz of gold
in proven and
probable reserves
600 average annual gold
production over next 10 years
~ THOUSAND oz / year 21
in mining-friendly
Ontario, Canada
+ YEAR mine life
A premier intermediate Canadian gold producer
and long-term investment opportunity
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Flagship Operation in Canada
DETOUR LAKE – ONTARIO, CANADA
Low-risk, safe mining jurisdiction
100% owned large prospective land package
of 630 km2 on Abitibi Greenstone Belt
› High quality, long life producing
open pit mine (15.5 M oz in
reserves)
› Significant potential for production
growth
› Exploration upside for high-grade
mineralization
ONTARIO
Toronto
Timmins
DETOUR LAKE MINE
6
2014
INCREASE production
DECREASE costs
PRODUCTION
7
2014 Guidance
450-500 estimated gold production
THOUSAND oz
US$800-900 estimated total cash costs
TCC per oz sold
US$131 estimated capital expenditures
MILLION capex
Other
US$19 M Corporate G&A
US$3 M Exploration program
3
1. Refer to the section on Non-IFRS Financial Performance Measures on slide 3 of this presentation.
2. The following price and cost assumptions were used to forecast 2014 production and costs: diesel fuel price of
C$0.95 per litre; power cost of C$0.05 per kilowatt hour; and exchange rate of $1US:$1.05C.
3. Includes deferred stripping costs of US$35 M.
1, 2
second year
of operation
2014
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2014 Capital Plan
Sustaining Capital: US$131 M
Mine
Mining fleet purchase
(1 truck, 1 shovel)
Ancillary mobile equipment
Mill
Start of debottlenecking exercise
(plant improvements)
TMA
Implementing “center-line”
construction design
Raise dam of Cell 1 by 6 m
Commence Cell 3 footprint
Mine
US$33 M
TMA
US$40 M Deferred
Stripping
US$35 M
BREAKDOWN OF 2014 SUSTAINING CAPITAL
Other
US$5 M
Mill
US$18 M
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Targets:
2014 Operating Plan
Steady state production & optimization
50% of overall mill feed from higher
grade ore zones
Mill throughput rates gradually increase
to 55,000 tpd in Q4
19 MT ore milled
3.3:1 WASTE:ORE strip ratio
0.87 G/T AU head grade
92 % gold recovery
2014 gold production (oz) 450,000-500,000
H1 2014 200,000-225,000
H2 2014 250,000-275,000 (1)
1. Includes 7% dilution at 0.20 g/t.
PRODUCTION
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2014 Finance Objectives
Realize opportunities to
improve liquidity:
Secured long-term power
contract for estimated savings
of C$20 M/yr for 6 yrs
Closed C$173 M equity
financing
Giving opportunity to
deleverage balance sheet
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2014 Success Factors
Steady state production & optimization
Mining and milling unit costs to decrease
– ‘economies of scale’
Reach mill design operating rates by
year-end
Increase process plant operating time
› Improve planned shutdowns
scheduling
› Operating experience gained will
further reduce unplanned shutdowns
Improve shovel productivity and
management of overburden removal
52 THOUSAND tpd throughput
252 THOUSAND tpd mining rate
Targets:
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2014- LIFE OF MINE Updated plan – 02/04/2014 2035
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LOM Summary
02/2014 Update
Proven & Probable Reserves (M oz) 1 15.5
Average gold grade (g/t) 1.02
Strip ratio (waste:ore) 3.5
Estimated gold recovery (%) 92
Mine life (years) 21.7
Average annual gold production (oz) 660,000
Average total cash costs (TCC) (C$/oz sold) 2 $723
Average TCC + capex (C$/oz sold) 2 $848
1. Estimated using a gold price of US$1,000/oz (refer to slide 32). Includes stockpiles as of December 31, 2013.
2. Refer to the section on Non-IFRS Performance Measures on slide 3. Capex = sustaining capital expenditures + deferred stripping.
Main objective: Optimize first 5 years
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TCC1
(C$/oz sold)
800
700
600
500
400
300
200
100
0
Gold Production
(‘000 oz)
Gold Production/Cost Profile
900
850
800
750
700
650
600
550
500
598,000 oz
C$759/oz
0.96 g/t
596,000 oz
C$762/oz
0.91 g/t
659,000 oz
C$778/oz
1.00 g/t
765,000 oz
C$639/oz
1.16 g/t
1. Refer to the section on Non-IFRS Financial Performance Measures on
slide 3 of this presentation.
600,000 oz/yr for first 10 yrs
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09/12 02/14
Operating Costs C$/t
milled
C$/t
milled
C$/t
mined
C$/oz
sold 2
Mining costs 11.65 11.55 2.56 392
Processing costs 7.83 7.82 266
G&A 1.86 2.44 83
Total cash
operating costs 21.34 21.81 741
Other adjustments 1 (18)
Total cash costs 723
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LOM Operating Costs
1. Other adjustments include costs for deferred stripping, agreements with Aboriginal communities, refining charges and are net
of silver by-product credits.
2. Refer to the section on Non-IFRS Financial Performance Measures on slide 3 of this presentation.
Maintenance Labour &
Contractors
Power
Diesel
G&A and
other Consumables
30%
20% 26%
7%
11%
6%
2014 Costs
80% of costs in Cdn$
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LOM Sustaining Capital
Description
5 years
2014 -2018
(C$ M)
Sustaining
Capital LOM
(C$ M)
Mining 168 1 535
Process Plant 71 2 126
TMA 203 3 454
G&A 14 28
Total 456 1,143
Deferred Stripping 225 614
Mine Closure 70
Higher capital in first 5 years:
1. Ramp-up to 38 trucks
2. Complete plant debottlenecking exercise
3. Prepare TMA foundation for 2nd and 3rd cell
50% of sustaining
capital costs in Cdn$
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LOM Opportunities
58 THOUSAND tpd
61 THOUSAND tpd
2016
Increase throughput to 61,000 tpd/
94% availability for 2017
Debottlenecking exercise starting in
2014
› Modification of primary crusher conveyor
› Installation of 1 cyanide detox tank and 1
additional oxygen plant
Other opportunities to realize:
Increase mill feed grade
› Improve mine production
› Reduce dilution
› Reduce internal waste
Increase plant recovery with further
optimization
2017
Targets:
55 THOUSAND tpd 2015
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LOM Opportunities
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
Medium to long-term
Improve LOM gold profile with Block A
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Long-term growth of reserve base
to +20 M oz
› Detour Lake mine and Block A
Focus on high-grade gold targets within
large prospective land position of 630 km2
Lower Detour Area:
› Discovery of 17.33 g/t over 4.4 m
in Zone 75
› 14,874 m drilling completed 2014 to date
Organic Growth Opportunities
Strategy
Find and develop a high-grade
deposit to take advantage of
existing infrastructure
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Lower Detour Area
15.5 M oz in Reserves
630 km2
2014 Exploration Focus
21
Lower Detour Area: 14,874 m of drilling completed 2014 to date
*Proposed drill locations shown are not accurate, and
may have changed during the drilling program.
2014 Exploration Focus
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Source: Bloomberg, Factset and select Street Research
Note: Market data updated to December 31, 2013
Detour vs. Peers: Dec. 31, 2013 Consensus P/NAV P / 2015 CF
0.32x
0.50x
0.69x
0.69x
0.73x
0.77x
0.80x
0.81x
0.84x
0.89x
0.92x
0.95x
Detour
IAMGOLD
Argonaut
Eldorado
AuRico
B2Gold
Alacer
Osisko
New Gold
Alamos
Allied Nevada
African Barrick
3.4x
3.6x
4.7x
5.0x
6.0x
6.2x
6.9x
7.6x
7.6x
9.3x
12.7x
18.7x
IAMGOLD
Detour
B2Gold
African Barrick
New Gold
AuRico
Osisko
Alacer
Argonaut
Eldorado
Alamos
Allied Nevada
DGC: C$4.10
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Source: Bloomberg, Factset and select Street Research
Note: Market data updated to March 14, 2014
Detour vs. Peers – March 14, 2014 Consensus P/NAV P / 2015 CF
0.82x
0.83x
0.94x
0.94x
0.96x
1.06x
1.11x
1.18x
1.25x
1.30x
1.37x
1.76x
Detour
Argonaut
Alamos
Eldorado
IAMGOLD
AuRico
African Barrick
New Gold
B2Gold
Osisko
Alacer
Allied Nevada
5.3x
7.2x
7.6x
8.1x
9.6x
9.7x
9.8x
10.2x
12.3x
13.9x
14.6x
22.6x
IAMGOLD
African Barrick
Detour
B2Gold
New Gold
Allied Nevada
AuRico
Argonaut
Osisko
Alacer
Eldorado
Alamos
DGC: C$12.15
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Invest in Detour Gold
15.5 MILLION oz of gold
in proven and
probable reserves
600 average annual gold
production over next 10 years
~ THOUSAND oz / year 21
in mining-friendly
Ontario, Canada
+ YEAR mine life
A premier intermediate Canadian gold producer
and long-term investment opportunity
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ADDITIONAL information
Shareholder Information
Analyst Coverage
Corporate Responsibility
Detour Lake Mine: 2013
Results
Detour Lake Mine: LOM Update
Detour Gold: Reserves &
Resources
Debt Repayment Schedule
Management & Directors
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Shareholder Information
Paulson & Co
>80% INSTITUTIONS TOTAL 10.8 M Share options
13.0 M Convertible notes 4
181.2 M FULLY DILUTED
157.4 M Issued & outstanding
Share Structure1,3 Top Shareholders
1. Share structure as at March 10, 2014.
2. Cash and short-tem investments at Dec. 31, 2013.
3. Bought deal financing closed on March 7, 2014: 18.65 M sh.
@ C$9.25/sh for gross proceeds of C$173 M.
4. Conversion price for the Notes is US$38.50.
15%
C$1.6 BILLION market cap C$96 MILLION
cash position
2,3
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Analyst Coverage Initiating
Research Firm Analyst Target Target Date
07.06.11 Haywood Kerry Smith $12.50 14.03.06
07.07.09 Paradigm Don Blyth/Don MacLean $14.50 14.04.16
07.08.07 Raymond James Phil Russo $14.00 14.03.11
07.11.26 National Bank Steve Parsons $14.00 14.03.10
07.12.20 Macquarie Mike Siperco $16.00 14.02.14
08.01.14 Canaccord Rahul Paul $11.00 hold 14.02.25
08.07.14 TD Dan Earle $13.50 14.03.07
08.09.04 RBC Dan Rollins $14.00 14.03.07
08.11.06 BMO NB John Hayes $13.50 14.03.07
09.06.17 Laurentian Eric Lemieux $10.75 14.02.06
10.05.19 CIBC World Markets Cosmos Chiu $12.50 14.03.11
10.07.22 Credit Suisse Anita Soni $12.00 14.03.18
11.07.15 Bank of America Merrill Lynch TBA Under review
13.04.16 Scotiabank Trevor Turnbull $15.00 14.04.03
13.08.14 Desjardins Michael Parkin $15.00 14.03.20
13.11.12 Beacon Securities Michael Curran $12.25 14.03.12
13.12.09 GMP Securities Ian Parkinson $11.50 14.02.14
14.02.06 Cormark Securities Richard Gray $15.00 14.03.11
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Focus on health and safety of our employees, the well-being of
our community and the protection of the natural environment
Hiring in the region, giving priority to local Aboriginal communities:
665 full-time employees*
93% of workforce from region
25% are Aboriginals
Scholarship and job training
Supporting local communities
Business opportunities
Participation in municipal development
Corporate philanthropy
Northern
Ontario
40%
Cochrane
23%
Cochrane
Area
30%
Rest of
Ontario
4%
3% Other
Corporate Responsibility
WORKFORCE ORIGIN
* As of March 14, 2014.
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Q1 Q2 Q3 Q4 2013
Ore tonnes mined (Mt) 1.29 2.70 4.16 4.08 12.24
Tonnes milled (Mt) 1.02 2.87 3.88 3.40 11.18
Mill grade (g/t Au) 0.64 0.76 0.72 0.81 0.75
Recovery (%) 80 83 85 92 86
Availability (%) 66 68 78 66 71
Ounces produced (oz) (1) 16,841 57,897 75,672 81,877 232,287
1. During the commercial period (September 1 to year-end), the Detour Lake mine produced 105,898 oz of gold.
Detour Lake Mine: 2013 Results
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Detour Lake Mine: LOM Update
Detour Lake Update
(02/2014)
Ore milled (Mt) 476.4
Waste mined (Mt) 1,676
Strip ratio (waste:ore) 3.5
Average gold grade (g/t) 1.02
Total contained gold (M oz) 15.5
Estimated gold recovery (%) 92
Total recovered gold (M oz) 1 14.3
Mine life (yrs) 21.7
Avg. annual gold production in first 5 yrs (oz) 598,000
Avg. annual gold production over LOM (oz) 660,000
Assumptions
Gold price (US$/oz) $1,200
FX rate (US$/Cdn$) 1.10 2
Electricity (C$/kWhr) 0.05/0.08 3
Fuel price (US$/barrel) 100
Diesel fuel (C$/l) 0.95
Income/mining tax rate (%) 25/10
Net Smelter Royalty (%) 2.0 4
1. Includes approximately 58,000 ounces to be recovered from stockpiles as of December 31, 2013.
2. Exchange rate of 1.05 for 2014, 1.07 for 2015, and 1.08 for 2016, and 1.10 for 2017 onwards.
3. Cdn$0.05/kWh for 2014-19 and Cdn$0.08/kWh for 2020 onwards.
4. 2% royalty is assumed to be paid in-kind.
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Effective December 31, 2013 Tonnes (Mt) Grade (g/t Au) Contained Gold
(koz)
Reserves
(1,2,3,4)
Detour Lake Mine Proven 94.4 1.29 3,901
Probable 379.7 0.95 11,585
P&P 474.0 1.02 15,486
Stockpiles 2.4 0.82 63
Total P&P 476.4 1.02 15,549
Resources (3,4)
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 19.2 0.75 465
Block A Inferred 2.5 1.23 99
Total Inferred 21.7 0.81 564
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.
2. Mineral reserves estimated using a 4% dilution at 0.20 g/t Au (7% at 0.20 g/t Au for 2014) 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.
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Debt Repayment Schedule
At Dec 31, 2013 Revolving Credit
Facility (1) CAT Finance Lease Convertible Notes
Face Value US$70 M (1) US$150 M US$500 M
Maturity March 2016 Jan 2017-Jan 2019 (2) November 30, 2017
Interest Rate LIBOR + 3% LIBOR + 4% 5.5%
Payable Monthly Quarterly Semi-annually
Conversion Price n/a n/a $38.50
Payment schedule Principal Interest Principal + Interest Principal Interest Total
(US$M)
2014 - $2.3 $33.7 - $27.5 $63.5
2015 - $2.3 $34.2 - $27.5 $64.0
2016 $70 $0.4 $32.3 - $27.5 $130.2
2017 - - $24.0 $500 $27.5 $551.5
Thereafter - - $4.1 - - $4.1
Total (US$M) $70 $5.0 $128.3 $500 $110.0 $813.3
1. The Revolving Credit Facility provides for borrowings of up to C$90 M. Subject to a completion tests prior to September 30, 2014.
2. Includes multiple leases with maturities of 5 yrs from lease date.
33
Michael Kenyon Executive Chairman
Paul Martin President and CEO
Pierre Beaudoin COO
James Mavor CFO
Julie Galloway Sr VP General Counsel &
Corporate Secretary
Derek Teevan Sr VP Corporate &
Aboriginal Affairs
Drew Anwyll VP Operations
Pat Donovan VP Corporate Development
Jean-Francois Metail VP Reserves and Resources
Rachel Pineault VP HR & Aboriginal Affairs
James Robertson VP Environment &
Sustainability
Andrew Croal Director Technical Services
Laurie Gaborit Director Investor Relations
Alberto Heredia Controller
Bill Snelling Director Corporate Systems & Controls
Rickardo Welyhorsky Director Mineral Processing
Charles Hennessey General Manager Operations
Peter Crossgrove
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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Paul Martin President and Chief Executive Officer
Email: [email protected]
Phone: 416.304.0800
Laurie Gaborit Director Investor Relations
Email: [email protected]
Phone: 416.304.0800
www.detourgold.com
Contact Information
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