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TD Securities Mining Conference, Toronto
January 28-29, 2014
CANADA’S INTERMEDIATE GOLD PRODUCER
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Forward Looking Information This presentation contains certain forward-looking information as defined in applicable securities laws (referred to herein as “forward-looking
statements”). Specifically, this presentation contains forward-looking statements regarding gold production and cash costs guidance,
sustaining capital expenditures for 2014, reserve estimates, ore grade, expected mine life, average annual gold production, gold recovery,
strip ratio, cash operating costs and other costs, ramp-up of operations, throughput and mining rates, future operating plans, potential
expansion opportunities, and plans for organic growth which includes growing mineral reserves to more than 20 million ounces. Forward-
looking statements involve known and unknown risks, uncertainties and other factors which are beyond Detour Gold’s ability to predict or
control and may cause Detour Gold’s 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, gold price volatility, changes in debt and equity markets, the uncertainties involved in interpreting geological data,
increases in costs, environmental compliance and changes in environmental legislation and regulation, interest rate and 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 2012 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 capital costs; the Company’s ability to attract and retain skilled staff; the
mine development schedule; sensitivity to metal prices and other sensitivities; the supply and demand for, and the level and volatility of the
price of, gold; timing of the receipt of regulatory and governmental approvals for development projects and other operations; 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. Detour Gold undertakes 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. If the Company does update one or more forward-looking statements, no inference should be drawn that it will make
additional updates with respect to those or other forward-looking statements.
3
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 September 4, 2012, Detour Gold announced an updated mine production plan for the Detour Lake project. The NI 43-101 compliant
Technical Report for this update was filed on SEDAR on October 18, 2012. The following QPs participated in this update: BBA Inc., under
the direction of André Allaire, Eng., Vice-President, Markets – Mining and Metals and Patrice Live, Eng., Mining Manager; SGS Canada Inc.,
under the direction of Michel Dagbert, Eng., Senior Geostatistician 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.
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 a non-IFRS measure in this press release: “total cash cost per ounce of gold sold”. The Company believes that
this measure, 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.
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. Other companies may calculate this measure differently. .
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Invest in Detour Gold
15.6 MILLION oz of gold
in proven and
probable reserves
600 average annual gold
production over next five years
~ THOUSAND oz / year 21
in mining-friendly
Ontario, Canada
+ YEAR mine life
A premier intermediate Canadian gold producer
and long-term investment opportunity
5
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 (15.6 M oz in
reserves)
› Significant potential for production
growth
› Exploration upside for high-grade
mineralization
ONTARIO
Toronto
Timmins
DETOUR LAKE MINE
6 Oct. 2, 2013
Detour Lake: 1st Year of Operation
7
80
60
40
20
0 Q2 Q1 Q4 Q3
Pro
du
cti
on
(K
oz)
2013 GOLD PRODUCTION
Detour Lake: 1st Year of Operation
Gold production 2013 Key statistics
2013 gold production of 232,287 oz
Total cash costs expected to be
$1,100/oz during commercial period
(September to December)
Capital expenditures of C$196 M
incurred
Significant milestones
First gold pour in February 2013
Commercial production declared on
September 1, 2013
Discovery of high grade mineralization
at Lower Detour
8
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: 1st Year of Operation
9
2013 Mine performance
Exiting 2013 with average mining
rates close to 2014 planned rates
Access to multiple ore zones in pit,
including higher grade Domain #2
Improvement in shovel productivity
and haul truck cycle
Continuous improvement in dilution
control
Year-end stockpiles of 2.4 Mt at
0.82 g/t providing operation flexibility
Detour Lake: 1st Year of Operation
203 THOUSAND tpd
222 THOUSAND tpd
Q4
DEC
Mining rates:
10
2013 Mill Performance
Milling rates proven at design levels
(2,500 tpoh)
Availability below expectations as a
result of unplanned shutdowns
Main shutdown: 15 days in December due to
structural damage to the torque cage of the
pre-leach thickener
Gold recovery has exceeded design
levels
Modifications to secondary and pebble
crushers completed
Detour Lake: 1st Year of Operation
45 THOUSAND
tpd
47 THOUSAND tpd
OCT
NOV
Best months:
11
2014
INCREASE production
DECREASE costs
PRODUCTION
12
Realize immediate opportunities to improve liquidity:
Have secured long-term
power contract
Finalizing discussion to
refresh mine equipment
lease to US$150 M
Ramp up to full nameplate capacity (55,000 tpd) by year-end
Achieve financial and production guidance targets
Confirm high-grade mineralization through 2014 drilling program
at Lower Detour
2014 Corporate Objectives
C$20 MIILLION per yr for 6 yrs
Estimated cost savings
C$40 MILLION for 2014
Extra borrowing capacity
UP TO
13
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
14
2014 Capital Plan
Sustaining Capital: US$131 M
Mine
› Mobile fleet purchase
(1 truck, 1 shovel)
› Capitalize maintenance
Mill
› Plant improvements
TMA
› 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
$US5 M
Mill
US$18 M
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Targets:
2014 Operating Plan
Steady state production & optimization
H2 gold production will be ~20% higher
than H1 as throughput rates are
projected to gradually increase to
55,000 tpd in Q4
Higher grade ore from Domain
2 and 11 will represent up to
50% of overall mill feed
Mining rates to average
+250,000 tpd
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 Operating Plan
Steady state production & optimization
Mining and milling unit costs to decrease
– ‘economy of scale’
Reach design operating rates by
year-end
Increase availability
› Improve maintenance schedule
to reduce downtime
Tailing facility costs reduced with
construction change to “center-line”
design
52 THOUSAND tpd throughput
87 % availability
Targets:
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Increase throughput to 61,000 tpd/
94% availability for 2017
Operations Outlook Beyond 2014
58 THOUSAND tpd
61 THOUSAND tpd
2016
Debottlenecking exercise starting in
2014
› Modification of primary crusher
conveyor
› Installation of 1 cyanide detox
tank and 1 additional oxygen plant
Gold recovery improvement
Secondary crushers optimization
2017
Targets:
55 THOUSAND tpd 2015
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Discovery of Zone 75 with
17.33 g/t over 4.4
Organic Growth Opportunities
Long-term growth of reserve base to
+20 M oz
› Reserve/resource update for
Detour Lake mine and Block A
Large prospective land position of
630 km2
› Focus on high-grade gold
targets:
›
› Up to 8,000 m drilling program in
Q1 2014
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*Note: Excludes drilling around Detour Lake mine and Block A.
Lower Detour Area
15.6 M oz in Reserves
Organic Growth Opportunities
630 km2
20
Organic Growth Opportunities 8,000 m of proposed
drilling in Q1 2014
*Proposed
drill locations
subject to
change
pending initial
drill results.
21
Invest in Detour Gold
15.6 MILLION oz of gold
in proven and
probable reserves
600 average annual gold
production over next five years
~ THOUSAND oz / year 21
in mining-friendly
Ontario, Canada
+ YEAR mine life
A premier intermediate Canadian gold producer
and long-term investment opportunity
22
ADDITIONAL information
Shareholder Information
Corporate Responsibility
Detour Lake Mine at a Glance
Conventional Milling Process
Q3 2013 Financial Highlights
Debt Repayment Schedule
Management & Directors
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Shareholder Information
Paulson & Co
>80% INSTITUTIONS TOTAL
Research Coverage
Bank of America Merrill Lynch
Beacon Securities
BMO Capital Markets
Canaccord Genuity
CIBC World Markets
Credit Suisse Securities
Desjardins Capital Markets
GMP Securities
Haywood Securities
Laurentian Bank Securities
Macquarie Capital Markets
National Bank Financial
Paradigm Securities
Raymond James
RBC Capital Markets
Scotia Capital
TD Securities
10.5 M Options & FN share commitments
13.0 M Convertible notes (1)
161.7 M FULLY DILUTED
138.2 M Issued & outsanding
Share Structure Top Shareholders
Cash position and share structure at Dec 31, 2013.
1. Conversion price for the Notes is US$38.50.
15%
C$850 MILLION market cap C$96 MILLION
cash position
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Focus on health and safety of our employees, the well-being of
our community and the protection of the natural environment
Hiring in the region, giving priority to local Aboriginal communities:
625 full-time employees*
93% of workforce from region
25% are Aboriginals
Scholarship and job training
Supporting local communities
Business opportunities
Participation in municipal development
Corporate philanthropy
Northern
Ontario
38%
Cochrane
24%
Cochrane
Area
31%
Rest of
Ontario
3%
4% Other
Corporate Responsibility
WORKFORCE ORIGIN
* As of December 31, 2013.
25
Key Statistics Sept 2012 (1)
OP reserves (M oz) 15.6
Mill throughput (tpd) 55,000
Strip ratio (waste:ore) 3.7
Gold recoveries 91%
Average grade (g/t) 1.03
Estimated mine life (yrs) 21.5
Avg. production (oz/yr) (2) 657,000
Initial capex (C$ B) 1.5
Sustaining capex (C$ B) 1.2
Detour Lake Mine at a Glance
1. Based on September 2012 Mine Plan (October 2012 Technical Report).
2. Includes expansion from 55,000 tpd to 61,000 tpd.
Commercial production declared
on September 1, 2013
26
Conventional Milling Process
Primary Crusher 90,000 tpd
Mine Trucks
Secondary Crushers (2) 67,000 tpd
Pebble Crushers (2) 73,000 tpd
Gold Doré Bars
Gold Furnace
Gold Electrowinning
Carbon Stripping
To Gravity Circuit
To Gravity Circuit
Stockpile SAG Mills (2) 55,000 tpd
Ball Mills (2) 55,000 tpd
CIP
Leach
Tailings
Pre-Leach Thickener
27
Q3 2013 Financial Highlights
1. All sales prior to commercial production were credited against capitalized project costs.
Income Statement Q3 2013
Revenues 1 $33.1 M
Cost of sales
Production costs $30.4 M
Depreciation and depletion $2.9 M
Loss from mine operations $0.2 M
G&A $6.9 M
Exploration and evaluation $1.0 M
Net finance costs $3.7 M
Net loss for the period $11.8 M
28
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.
29
Michael Kenyon Executive Chairman
Paul Martin Interim Chief Executive Officer
Pierre Beaudoin Chief Operating Officer
James Mavor Interim Chief Financial Officer
Julie Galloway Sr VP General Counsel &
Corporate Secretary
Derek Teevan Sr VP Corporate &
Aboriginal Affairs
Drew Anwyll MGM/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 Welyhorski Director Mineral Processing
Charles Hennessey Process Plant Maintenance Manager
and Deputy Mine General Manager
Joshua Hurrell Acting Mine Manager - Chief Geologist
Mike Papadakis Process Plant Manager
Peter Crossgrove
Louis Dionne
Robert E. Doyle
André Falzon
Jonathan Rubenstein
Graham Wozniak
Ingrid Hibbard
Michael Kenyon
Alex G. Morrison
Management & Directors
Management
Directors
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Paul Martin Interim 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