Dgc 14 07_30 _ q2 2014 results

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Q2 2014 Results

Conference Call & Webcast – July 30, 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 are statements that are not historical facts and are generally, but not always,

identified by the use of forward-looking terminology such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”,

“intends”, “anticipates”, “projects”, “potential”, “believes” or variations of such words and phrases or statements that certain actions, events

or results “may”, “could”, “would”, “should”, “might” or “will be taken”, “occur” or “be achieved” or the negative connotation of such terms.

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, capital costs, exploration costs; expected throughput, mining and recovery rates;

expected future production and mining activities; and opportunities to optimize the mine operation.

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)” , “Average realized gold price” and “Adjusted net loss” 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, as calculations may differ. Reconciliation of these measures is described in the MD&A for the second quarter ended June 30, 2014.

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Management Participants

Paul Martin President and

Chief Executive Officer

Pierre Beaudoin Chief Operating Officer

James Mavor Chief Financial Officer

Second Quarter 2014

Operational & Financial Results

Conference Call

and Webcast

All monetary amounts are in U.S. dollars unless otherwise stated.

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Detour Lake mine ramp-up progressing in the right direction

Q2 2014 Highlights

1. Refer to the section on Non-IFRS Performance Measures on slide 3. Reconciliation of these measures is

described in the MD&A for the second quarter ended June 30, 2014.

$138.2 MILLION cash and short-term

investments

$139 MILLION revenues

107,206 OZ GOLD sales

from

$35.0 net loss MILLION

or $0.23 per share

$17.4 adjusted net loss1 MILLION

or $0.12 per share

117,366 OZ GOLD production

$941 / OZ SOLD total cash costs

High grade gold intersections

reported from Lower Detour area

6

76 82

107

117

0

20

40

60

80

100

120

140

$1,214 $1,174

$976 $941

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

Ramp-up Progression

Gold Production (‘000 oz)

Q3’132 Q4’13 Q2’14 Q1’14

Total Cash Costs ($/oz sold)1

Q3’132 Q4’13 Q2’14 Q1’14

Quarter to quarter improvements:

Steady production growth since commercial production

Operations costs per ounce continue to trend lower with ramp-up

progress

1. Refer to the section on Non-IFRS Performance Measures on slide 3. Reconciliation of these measures is described in the MD&A for the

second quarter ended June 30, 2014.

2. Commercial production declared on September 1, 2013. TCC reported is for the month of September 2013.

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Guidance Update

2014 Guidance

H1 A Prior Revised

Mill throughput avg (Ktpd) 46.9 52.0 49.0

Mine output (Ktpd) 211 252 230-235

Gold production (oz) 224,520 450,000-500,000 450-000-480,000

TCC ($/oz sold)1 $956 $800-900 $900-975

Sustaining capital ($ M) $45* $96 $95-$100

Deferred stripping ($ M) $15 $35 $30-$35

Debt reduction ($ M) $40 $80-100 Max. $80

H1 2014 Scorecard:

Higher end of gold production achieved, mainly driven by higher grades

Lower mining and milling rates than planned

Operating cost per ounce trend decreasing at slower rate than projected

*Note: $19.4 M incurred in 2013 and includes payment of $2.5 M to NAC.

1. Refer to the section on Non-IFRS Performance Measures on slide 3. Reconciliation of these measures is described in the MD&A

for the second quarter ended June 30, 2014.

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Q2 2014 Operating Results

0

1

2

3

4

5

Q2'13 Q3'13 Q4'13 Q1'14 Q2'14

1.0

0.8

0.2

0.0

0.4

0.6

To

nn

es

Mille

d (

Mt)

Q2’13 Q3’13 Q4’13 Q2’14

1’14

Q1’14

82 85 92 91 91

Mill production

Hea

d G

rad

e (

g/t

Au

) Recovery %

0.91 G/T GOLD head grade 4.42 MILLION

tonnes milled 91 % GOLD recovery

Q2’14 Performance:

Gold production of 117,366 ounces

4.4 Mt of ore processed: 65% direct

feed and 35% run-of-mine stockpiles

Head grade of 0.91 g/t, above model

Recovery rates as expected

Dilution reduced to <3%, well below

2014 budget of 7%

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Q2 2014 Operating Results - Mine


2.9 Mt ore mined; strip ratio 5.6

Total of 19.0 Mt mined

Avg. mining rates of 209,000 tpd vs

230,000 tpd in plan

Shortfall due to reduced productivity:

› in mining overburden and till

› in removing old infrastructure

around the former Campbell pit

ROM stockpiles total 1.3 Mt @ 0.76 g/t

at end of Q2, net decrease of 1.5 Mt

from end of Q1

Q2 2014 Mining Rates (Ktpd)

Q1’13 Q2’13 Q3’13 Q1’14 Q4’13

18 3

0

50

100

150

200

250

Overburden

Till

Production

Removal

of Old

Infrastructure

Ta

rge

t

Ou

tco

me

230

209

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H2 2014 Focus - Mine

Plans for H2:

Reduction in overburden and till

removal

› Total of approx. 4.6 Mt

Completion of southwall pushback

in Q3

Removal of old infrastructure near

Campbell pit

Continue improving availability of

large shovels

Annual mining tonnage of 82 Mt

Q1’13 Q2’13 Q3’13 Q1’14 Q4’13

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Q2 2014 Operating Results - Mill


Plant throughput rates averaging

48,569 tpd

Availability at 83%, slightly lower than

forecast

Optimization and efficiencies focused on

› Secondary crushers availability and

utilization

› Dome stockpile management and

mill drive system

› Maintenance improvement plan

Recovery rates as planned; gravity

recovery at 24%

Th

rou

gh

pu

t (K

tpd

)

0

10

20

30

40

50

60

Q2'13 Q3'13 Q4'13 Q1'14 Q2'14

Availability % 1

Q2’13 Q3’13 Q4’13 Q2’14 Q1’14

Mill productivity

83 80 66 78 68

1. Availability = capital utilization.

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H2 2014 Focus - Mill

Plans for H2:

Ramping up from 83 to 89% by year-end

Q3 Schedule:

› SAG pulp lifter liner change

completed in July

› Further optimization of dome

feeding system

Q4 Schedule:

› Ball mills liner change

› Pre-leach thickener rake inspection

Reach 55,000 tpd by year-end

Q3-Q4’14:

Implement next phase of

maintenance improvement plan

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$0

$2

$4

$6

$0

$4

$8

$12

Mining (C$/t mined):

Processing (C$/t milled):

G&A (C$/t milled):

Q2 2014 Operating Results - Costs

H2 Forecast:

Downward trend to continue with throughput and production increase

$0

$2

$4

$2.87/t $2.60/t $2.87/t

Q2 Progress:

Higher mining costs due to:

› Shortfall in total tonnes mined

› Higher equipment maintenance

costs

Higher milling costs due to

› Higher maintenance costs and

lower mill throughput

› Partially offset by lower

consumables and reagent

consumption

$11.13/t $11.75/t $11.25/t

$3.68/t $3.46/t $4.13/t

Q2’14 Q1’14 Q4’13

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Near-term Opportunities (2-5 yrs) Current Status

1. Increase throughput to 61,000 tpd for 2017

Starts in 2014 with installation of 1 cyanide (CN)

detox tank and 1 additional oxygen plant

CN detox to be

operational in Q3 and

2nd oxygen plant in Q4

2.

Block A project

Bring to pre-feasibility study for reserve

definition in Q1 2015

In progress

3.

Low-grade material (not in reserves)

Heap leach

Segregation of fines

Heap leach test

underway

4. Pebble circuit removal

Pebbles appear to be barren Testing continuing

5. Increase exploration activities on 630 km2

prospective property Planning in progress

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Revenues & Total Cash Costs:

Q2 2014 Financial Review

Q4’13 Q1’14 Q2’14

Gold sales $120.5 M $110.0 M $139.0 M

Ounces sold 95,000 oz 84,560 oz 107,206 oz

Avg realized price1, 2 $1,269/oz $1,301/oz $1,293/oz

TCC/ oz sold2 $1,174/oz $976/oz $941/oz

1. These amounts exclude realized gains from the Company’s gold sales risk management program which are separately disclosed in

net finance income and costs.

2. Refer to the section on Non-IFRS Performance Measures on slide 3. Reconciliation of these measures is described in the MD&A for

the second quarter ended June 30, 2014.

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Income Statement:

($ millions, except per share amount) Q2’14 H1’14

Revenues $ 139.0 $ 249.0

Cost of Sales

- Production costs

- Depreciation and depletion

(98.1)

(38.3)

(181.3)

(68.9)

Earnings (Loss) from Mine Operations $ 2.6 $ (1.2)

Exploration and evaluation expense (1.5) (2.8)

Corporate and administrative expense (7.9) (15.3)

Loss from Operations $ (6.8) $ (19.3)

Net finance income (cost) (28.2) (70.7)

Earnings (Loss) for the Period $ (35.0) $ (90.0)

Basic Earnings (Loss) per Share $ (0.23) $ (0.57)


Note: Totals may not add up due to rounding.

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Adjusted net earnings (loss) per share: is calculated using the weighted average

number of share outstanding under the basic method of earnings (loss) per share as determined under IFRS.

($ millions, except per share amount) Q2’14 H1’14

Net Earnings (Loss) $ (35.0) $ (90.0)

Adjusted for:

Fair value (gain) loss of the convertible notes 15.1 31.6

Foreign exchange (gain) loss (1.0) (0.9)

Non-cash unrealized (gain) loss on derivative

instruments

1.2 5.5

Accretion on convertible notes 6.2 12.1

Unwinding of discount on decommissioning and

restoration provisions

0.1 0.2

Electricity rebate (3.9) (3.9)

Adjusted Net Earnings (Loss)1 $ (17.4) $ (45.4)

Adjusted Basic Earnings (Loss) per Share1 $ (0.12) $ (0.29)


1. Refer to the section on Non-IFRS Performance Measures on slide 3. Reconciliation of these measures is described in the MD&A for

the second quarter ended June 30, 2014.


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Cash Flows:

($ millions) Q2’14 Q1’14

Operations $ 38.8 $ 17.9

Working capital Items 7.5 (50.0)

Operating activities $ 46.3 $ (32.1)

Investing activities (42.1) (22.0)

Financing activities (11.4) 110.4

Effects of exchange rate changes 0.1 (1.0)

Changes in cash and cash equivalents $ (7.1) $ 56.3

Cash and cash equivalents – beginning of financial period 143.4 88.1

Cash and cash equivalents – end of financial period $ 136.3 $ 143.4


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Updates at end of Q2:

Under the electricity contract, Company has received $16 M of its

$26.4 M rebate for 2013 and H1 2014 (see Note 4 of financial

statements)

Credit facility amended to give an extension to May 31, 2015 to

pass the Completion Test (see Note 15 of financial statements)

2014 total cash costs guidance revision to $900-$975/oz sold:

› High production range narrowed to 480,000 oz

› Projected H2 2014 costs increase of up to 8%

› Less mining costs allocated to deferred stripping or ore

inventories


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ONTARIO

Toronto

DETOUR LAKE MINE

A Unique Investment Opportunity

Low-risk, safe mining jurisdiction

High-quality asset with long mine life

Production growth opportunities

Strong cash flow growth following ramp-up

completion

Leverage to gold price & Canadian dollar

Strong exploration upside on 100% owned

land package of 630 km2 on Greenstone Belt

Invest in Detour Gold

Documents

Dgc 14 07_30 _ q2 2014 results