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1
Scotiabank Mining Conference, Toronto
December 3-4, 2013
CANADA’S NEXT INTERMEDIATE GOLD PRODUCER
2
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 for
2013 and 2014, reserve and resource estimates, ore grade, expected mine life, average annual gold production, gold recovery, cash
operating costs and other costs, sensitivities, ramp-up of operations, mining rates reaching approximately 250,000 tpd by year-end 2013,
mining of Domain #2 representing approximately 20% of the total feed for the fourth quarter, future operating plans, providing 2014
guidance in January 2014 and reporting an updated mine plan for Detour Lake in the first quarter of 2014, 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
43-101 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 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., Director 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
4
Invest in Detour Gold
Our Vision
Become a leading intermediate gold producer and
premier investment opportunity
Execution Discipline Focus
5
Focused on One Core Asset
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
Note: Cash position at September 30, 2013 and share data at October 31, 2013. Conversion price for the Notes is US$38.50.
Share Capital
FULLY DILUTED
161.5 M
OPTIONS & FN SHARE
COMMITMENTS
10.3 M
CONVERTIBLE
NOTES
13.0 M
ISSUED AND
OUTSTANDING
138.2 M C$543 M
US$156 M
TOP SHAREHOLDERS
MARKET CAP
CASH POSITION
PAULSON & CO: 15%
INSTITUTIONS TOTAL: >80%
7
Execution = Detour Lake in 6 Years
2013
Built Detour Lake on schedule
Started gold production in February
Reached commercial production in August
ACQUISITION /DISCOVERY
2007
PRE-FEASIBILITY STUDY
2009
FEASIBILITY STUDY & PERMITTING
2010
DEVELOPMENT
2011-12
PRODUCTION
2013
8
Strategy = Focused on Profitability
Objectives:
Deliver on operational performance
Generate positive cash flows
Use cash flow to fund future organic
growth
Provide return on capital
9
First gold pour in February
Secured $90 million credit facility
Commissioned second production line
25,000 m drilling program targeting high-grade
gold mineralization
Reached commercial production in August
Produced approximately 180,000 ounces of gold
in first 10 months
Looking Ahead
Gold production target of between 240,000 and
260,000 oz for the year
Updated mine plan and year-end mineral
resources/reserves in Q1 2014
2013 To Date
10
Source: Bloomberg, company filings, Thomson and select Street Research
Note: Market data updated to November 14, 2013
Undervalued vs. Peers
Consensus P/NAV P / 2014 CF
0.33x
0.64x
0.65x
0.67x
0.82x
0.82x
0.82x
0.85x
0.92x
0.98x
1.15x
Detour
IAMGOLD
Allied Nevada
Argonaut
Osisko
AuRico
B2Gold
Alacer
New Gold
Alamos
African Barrick
5.1x
5.7x
5.8x
6.1x
6.2x
7.8x
8.0x
8.2x
9.2x
10.1x
16.9x
Detour
African Barrick
IAMGOLD
Allied Nevada
Alacer
New Gold
Osisko
B2Gold
AuRico
Argonaut
Alamos
11
Key Statistics (1)
OP reserves (M oz) 15.6
Mill throughput (tpd) 55,000
Strip ratio (waste:ore) 3.7
Gold recoveries 91%
Average grade (g/t) 1.03
Estimated mine life (yrs) 21.5
Avg. production (oz/yr) (2) 657,000
Initial capex (C$ B) 1.5
Sustaining capex (C$ B) 1.2
Detour Lake Mine at a Glance
Commercial production declared
on September 1, 2013
1. Based on September 2012 Mine Plan (October 2012 Technical Report).
2. Includes expansion from 55,000 tpd to 61,000 tpd.
12
Processing Plant
55,000 tpd conventional gravity and
CIP processing plant with two
production lines
Primary crusher (90,000 tpd capacity)
Each line has 1 secondary crusher,
1 pebble crusher, 1 SAG and 1 ball mill
Mine Operations
Mining rates averaged 205,000 tpd in
October
Current mining fleet of 20 haul trucks &
5 shovels (incl. 2 rope shovels)
Stockpile availability
Detour Lake Mine Ramp Up
13
2013 Q1 Q2 Q3
Ore tonnes mined (Mt) 1.29 2.70 4.16
Tonnes milled (Mt) 1.02 2.87 3.88
Mill grade (g/t Au) 0.64 0.76 0.72
Recovery (%) 80 82 85
Availability (%) 66 68 78
Gold produced (oz)1,2 16,841 57,897 75,672
Q1-Q3 2013 – Operation Statistics
1. Q3 = 80,765 oz poured (the inventory was reduced from 23,189 to 17,998 oz).
2. During September, the first month of commercial production, the Detour Lake mine
produced 24,021 oz gold.
14
Q3 2013 – Mine Development
Q3 Mine Performance:
Mining rates averaged 180,222 tpd
› 201,000 tpd average in September; 252,000 t record day
Increased blasted inventory: 2.3 Mt at end of September
Improvement in shovel productivity
Improvement in haul truck cycle
› Haul road and pit floor quality
› Pit de-watering
2013 Ore
(Mt)
Waste
(Mt)
Overburden
(Mt)(1)
Total
Mined
(Mt)
Strip
Ratio
Q3 4.16 12.4 4.16 16.6 3.0
Q2 2.70 10.0 4.0 12.7 3.7
Q1 1.29 8.5 4.4 10.4 6.6
1. Overburden is included in the waste figure.
15
Calcite
Zone
Domain 2
Domain 5 Current OB
removal by
contractor
Waste rock
Q3 2013 – Mine Development
Oct. 2, 2013
16
2013
Tonnes
Milled
(Mt)
Availability
(%)
Tonnes per
Operating day
Tonnes per
Calendar day
Q3 3.88 78 53,821 42,142
Q2 2.87 68 46,500 31,500
Q1 1.02 66 16,837 11,112
Q3 2013 – Mill Ramp-up
Q3 Mill Performance:
Mill processing rates averaged 42,142 tpd
› Record day at 58,000 tonnes
› 12 days in September above 50,000 tpd
Planned shutdown for 6 days in September for SAG mills liner
change
Further adjustment and modifications to secondary crushers
17
Q4 2013 – Mine Development
Objective: Increase Gold Production Levels
Progressively increase mining rates to 250,000 tpd
Mining higher grade Domain #2 (~20% of total feed)
Start operating 5th shovel (CAT 6060) in November
Preparation for 2014 Mine Plan:
Accelerating pre-stripping with contractor: 2 Mt of OB removal
underway for construction of south haul road
South haul road to be completed by year-end
Next Focus: Lowering Costs Production Growth
18
Current
OB removal
by contractor
Q4 2013 – Start Mining Domain #2
Oct. 2, 2013
19
Q4 2013 – Mill Ramp-up
Objective: Increase Gold Production Levels
Target throughput of +50,000 tpd
› Improve availability to +85%
› Increase utilization rates
Improve recovery to +87%
› Improve use of gravity circuit
› Continue leach circuit optimization
Key catalyst to reach nameplate capacity (55,000 tpd):
Finalize modifications to both pebble and secondary crushers
Further reduce unplanned shutdowns (8% in September)
Next Focus: Lowering Costs Production Growth
20
Best month to date:
Gold production of 29,541 oz (32,043 oz poured)
Mill processed 1.4 Mt at an average grade of 0.72 g/t
Metallurgical recoveries averaged 91.6%, (higher than projected
levels in the feasibility study)
Average throughput rate of 44,937 tpd, with 15 days > 50,000 tpd
Availability improved to 83%
Mining rates averaged 205,000 tpd
October Preliminary Production Results
21
Near-term Results: Free Cash Flow
Cost Reductions:
Mining and milling unit costs to improve with increased volume and
efficiency - economy of scale
Reduce current Tailings Facility costs - construction change from
“downstream” to approved “center line” design
Opportunity to reduce power costs with Ontario provincial program
Next Focus: Lowering Costs Production Growth
22
Looking at 2014 and Beyond
In Progress:
Budget and detailed mine production plan for 2014
› Preliminary 2014 guidance of between 440,000 oz and
500,000 oz of gold produced at total cash costs+capex of
US$1,150/oz to US$1,250/oz
Year-end reserve and resource update
› New pit shell for Detour Lake (2011 drilling)
› Reserve estimate at US$1,000/oz and cut-off grade of
0.5 g/t (unchanged)
› Block A in resource category (2012 drilling)
Optimize 5-year production schedule
Evaluate potential expansion from 55,000 to 61,000 tpd
23
Inferred M&I P&P
10M oz
20M oz
30M oz
15.6 14.9
11.4
8.8
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:
›
Discovery of Zone 75 with
17.33 g/t over 4.4
24
*Note: Excludes drilling around Detour Lake and M zone (Block A).
Lower Detour Area
15.6 M oz in Reserves
Organic Growth Opportunities
630 km2
25
Organic Growth Opportunities 25,000 m of drilling
in Q1 2013
17.33/4.4
26
Long Section across Zone 75
Organic Growth Opportunities
27
Organic Growth Opportunities
Near-term objectives (1-3 years):
Detour Lake reserve/resource update (open pit west expansion)
Evaluation of potential expansion options
28
Invest in Detour Gold
Our Vision
Become a leading intermediate gold producer and
premier investment opportunity
Execution Discipline Focus
29
ADDITIONAL INFORMATION
30
Q3 2013 – Highlights
1. For reconciliation of these measures, refer to Non-IFRS Financial Performance Measures slides 41 & 42
of this presentation.
2. All sales prior to commercial production were credited against capitalized project costs.
Income Statement Q3 2013
Revenues 2 $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
Sustaining capex spent: C$136 M
(2013 budget: C$192 M)
Commercial Production period
(September):
24,700 oz sold during commercial
production period
Total cash costs of US$1,214/oz
gold sold 1
Average realized price of
US$1,340/oz 1
Average realized margin of
US$126/oz 1
31
Conventional Milling Process
Primary Crusher 90,000 tpd
Mine Trucks
Secondary Crushers (2) 67,000 tpd
Pebble Crushers (2) 73,000 tpd
To Market
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
32
Grade Control DDH Block model 40x40m drill spacing RC GC 20X10m & 10X10m drill spacing
< 0.3
< 0.5
< 0.8
< 2.0
> = 2.0
Block Gold Grade (g/t)
Be
nc
h 6
25
2m
B
en
ch
62
40
m
Pit Contour at July 31, 2013
Grade Control Data Limit
33
Grade Control DDH Block model 40x40m drill spacing RC GC 20X10m & 10X10m drill spacing
Be
nc
h 6
22
8m
< 0.3
< 0.5
< 0.8
< 2.0
> = 2.0
Block Gold Grade (g/t)
Pit Contour at July 31, 2013
Grade Control Data Limit
RC 40X10m
34
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:
604 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 September 30, 2013.
35
Analyst Coverage (16)
Initiating
Research Firm Analyst
07.06.11 Haywood Securities Kerry Smith
07.07.09 Paradigm Securities Don Blyth/Don MacLean
07.08.07 Raymond James Phil Russo
07.11.26 National Bank Financial Steve Parsons
07.12.20 Macquarie Capital Markets Mike Siperco
08.01.14 Canaccord Genuity Rahul Paul
08.07.14 TD Securities Dan Earle
08.09.04 RBC Capital Markets Dan Rollins
08.11.06 BMO Capital Markets John Hayes
09.06.17 Laurentian Bank Securities Eric Lemieux
10.05.19 CIBC World Markets Cosmos Chiu
10.07.22 Credit Suisse Securities Anita Soni
11.07.15 Bank of America Merrill Lynch TBA
13.04.16 Scotia Capital Leily Omoumi
13.08.14 Desjardins Capital Markets Michael Parkin
13.11.12 Beacon Securities Michael Curran
36
Total cash costs per gold ounce sold Total cash costs per gold ounce is a common financial performance measure in the gold mining industry but with
no standard meaning under IFRS. Detour Gold reports total cash costs on a sales basis. The Company believes
that, in addition to conventional measures prepared in accordance with IFRS, such as sales, certain investors use
this information to evaluate the Company’s performance and ability to generate operating earnings and cash flow
from its mining operations. Management utilizes this metric as an important tool to monitor cost performance.
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.
Gold ounces sold exclude pre-commercial production ounces (prior to September 1, 2013) as these are credited
against capitalized project costs.
Non-IFRS Financial Performance Measures
2013 2012 2013 2012
Production costs 30,363$ -$ 30,363 -
Share-based compensation (377) - (377) -
Silver sales - - - -
Total cash costs 29,986$ -$ 29,986$ -$
Gold ounces sold 24,700 - 24,700 -
Total cash costs per gold ounce sold 1,214$ -$ 1,214$ -
Three months ended
September 30
Nine months ended
September 30
37
Average Realized Price and Average Realized Margin Average realized price and average realized margin per ounce sold are financial measures with no standard
meaning under IFRS. Management and investors use these measures to better understand the gold price and
margin realized throughout a period. Average realized margin represents average realized price per gold ounce
less total cash costs per ounce.
Average realized price and average realized margin is intended to provide additional information to investors and
does not have any standardized definition under IFRS and should not be considered in isolation or as a substitute
for measures of performance prepared in accordance with IFRS. Other companies may calculate this measure
differently.
Non-IFRS Financial Performance Measures
2013 2012 2013 2012
Revenues from gold sales 33,088$ -$ 33,088 -
Gold ounces sold 24,700 - 24,700 -
Average realized price 1,340$ -$ 1,340$ -$
Less: Total cash costs per gold ounce sold (1,214) - (1,214) -
Average realized margin per gold ounce sold 126$ -$ 126$ -$
Three months ended
September 30
Nine months ended
September 30
38
Michael Kenyon Executive Chairman
Paul Martin Interim Chief Executive Officer
James Mavor Interim Chief Financial Officer
Pierre Beaudoin Chief Operating Officer
Julie Galloway Sr VP General Counsel &
Corporate Secretary
Derek Teevan Sr VP Corporate &
Aboriginal Affairs
Pat Donovan VP Corporate Development
Rachel Pineault VP HR & Aboriginal Affairs
James Robertson VP Environment &
Sustainability
Drew Anwyll MGM/Director of Operations
Andrew Croal Director Technical Services
Laurie Gaborit Director Investor Relations
Alberto Heredia Controller
Jean-Francois Metail Director Reserves and Resources
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
39
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