Detour Gold presented at the BMO Global Metals & Mining Conference in February 2014. The presentation provided an overview of Detour Gold's flagship Detour Lake Mine in Ontario, Canada, including a summary of its first year of operation, 2014 guidance, capital plan, operating plan, and updated 21-year life of mine plan. Detour Gold aims to increase production and decrease costs in 2014 while optimizing operations over the first five years of the mine plan. The presentation also highlighted organic growth opportunities through exploration on its large land package.
2. 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 forwardlooking 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 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 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.
2
3. Notes to Investors
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.
Information Containing Estimates of Mineral Reserves and Resources
The mineral reserve and resource estimates reported in this presentation were prepared in accordance with Canadian National Instrument 43101Standards 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”.
3
4. Invest in Detour Gold
A premier intermediate Canadian gold producer
and long-term investment opportunity
15.5 MILLION
oz of gold
in proven and
probable reserves
4
+ 21YEAR
mine life
in mining-friendly
Ontario, Canada
~ 600 THOUSAND
oz / year
average annual gold
production over next 10 years
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 (15.5 M oz in
reserves)
ONTARIO
DETOUR LAKE MINE
Timmins
Toronto
5
› Significant potential for production
growth
› Exploration upside for high-grade
mineralization
7. Detour Lake: 1st Year of Operation
2013
Production (Koz)
Gold production
2013 GOLD PRODUCTION
80
60
40
Key statistics
2013 gold production of 232,287 oz
Total cash costs of US$1,162/oz sold1
in Q4 2013
Capital expenditures of C$196 M
incurred
20
0
Q1
Q2
Q3
Q4
Significant milestones
First gold pour in February 2013
Commercial production declared on
September 1, 2013
Discovery of high grade mineralization
at Lower Detour
1. Refer to the section on Non-IFRS Financial Performance Measures on slide 3 of this presentation.
7
8. Detour Lake: 1st Year of Operation
2013
Actual grade
vs forecast (g/t Au)
Ore shortage
Stockpiled HG
Higher Dilution
0.84
0.05 0.02
0.02 0.75
Planned
8
Actual
Positive reconciliation to reserve model
High degree of confidence with block
model
Improving dilution trend (5.6% in Q4)
Actual feed grade lower than planned
mainly due to scheduling issues
Robust process plant design
Milling rates proven at design levels
Plant availability has been below
expectations
Gold recovery exceeded design levels
10. 2014 Finance Objectives
Realize opportunities to
improve liquidity:
Secured long-term power
contract for estimated savings
of C$20 M/yr for 6 yrs
Finalizing discussion to amend
the equipment lease facility
Closing C$150 M financing in
March1
Giving opportunity to
deleverage balance sheet
1. Subject to closing the bought deal offering on or about March 7, 2014.
10
11. 2014 Guidance
450-500 THOUSAND
oz
estimated gold production
US$800-900
estimated total cash costs
US$131
MILLION 3
capex
estimated capital expenditures
2014
second year
of operation
Other
US$19 M Corporate G&A
US$3 M Exploration program
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.
11
TCC 1, 2
per oz sold
12. 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
12
BREAKDOWN OF 2014
SUSTAINING CAPITAL
Mill
US$18 M
TMA
Deferred
Stripping
US$40 M
US$35 M
Mine
US$33 M
Other
US$5 M
13. 2014 Operating Plan
Steady state production & optimization
Targets:
19 MT milled
ore
G/T AU
0.87 head grade
92 % recovery
gold
3.3:1 WASTE:ORE
strip ratio
(1)
1. Includes 7% dilution at 0.20 g/t.
PRODUCTION
13
2014 gold production (oz)
H1 2014
H2 2014
450,000-500,000
200,000-225,000
250,000-275,000
50% of overall mill feed from higher
grade ore zones
Mill throughput rates gradually increase
to 55,000 tpd in Q4
14. 2014 Success Factors
Targets:
THOUSAND
252 tpd mining rate
52 THOUSAND
tpd throughput
14
Steady state production & optimization
Mining and milling unit costs to decrease
– ‘economies of scale’
Reach mill design operating rates by
year-end
Increase process plant operating time
› Improve planned shutdowns
scheduling
› Operating experience gained will
further reduce unplanned shutdowns
Improve shovel productivity and
management of overburden removal
16. LOM Summary
Main objective: Optimize first 5 years
02/2014 Update
Proven & Probable Reserves (M oz) 1
15.5
Average gold grade (g/t)
1.02
Strip ratio (waste:ore)
3.5
Estimated gold recovery (%)
92
Mine life (years)
Average annual gold production (oz)
21.7
660,000
Average total cash costs (TCC) (C$/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.
16
17. Gold Production/Cost Profile
Gold Production
(‘000 oz)
598,000 oz
C$759/oz
800
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$639/oz
1.16 g/t
TCC1
(C$/oz sold)
900
700
850
600
800
500
750
400
700
300
650
200
600,000 oz/yr for first 10 yrs
600
100
550
0
500
17
1. Refer to the section on Non-IFRS Financial Performance Measures on
slide 3 of this presentation.
18. LOM Operating Costs
09/12
C$/t
milled
C$/t
milled
02/14
C$/t
mined
11.65
11.55
2.56
Processing costs
7.83
7.82
266
G&A
Total cash
operating costs
1.86
2.44
83
21.34
21.81
741
Operating Costs
Mining costs
C$/oz
sold 2
392
2014 Costs
Labour &
Contractors
Maintenance
20%
26%
30%
11%
Diesel
7%
6%
Power
Consumables
Other adjustments 1
(18)
Total cash costs
G&A and
other
723
80% of costs in Cdn$
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.
18
18
19. LOM Sustaining Capital
Description
Sustaining
Capital LOM
(C$ M)
5 years
2014 -2018
(C$ M)
5 years
2019- 2023
(C$ M)
5 years
7 years
2024-2028 2029-2035
(C$ M)
(C$ M)
Mining
535
168 1
69
255
43
Process Plant
TMA
126
454
71 2
24
114
20
70
11
67
8
5
1
203 3
14
G&A
28
Total
1,143
456
215
350
122
614
225
366
23
-
Deferred Stripping
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
19
70
50% of sustaining
capital costs in Cdn$
20. LOM Opportunities
Targets:
2015
2016
2017
THOUSAND
55 tpd
THOUSAND
58 tpd
61 THOUSAND
tpd
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
20
21. LOM Opportunities
Medium to long-term
Improve LOM gold profile with Block A
~5.5 km
P+P
15.5 Moz
@ 1.02 g/t Au
US$1,200/oz
M+I
2.0 Moz
@ 1.15 g/t Au
US$1,000/oz
21
22. Organic Growth Opportunities
Strategy: Find and develop a
high-grade deposit to take
advantage of existing
infrastructure
22
Long-term growth of reserve base to
+20 M oz
› 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 m
› Up to 8,000 m drilling program in
Q1 2014
24. 2014 Exploration Focus
Lower Detour Area: 6,000 - 8,000 m of drilling in Q1 2014
*Proposed drill locations subject to change
pending initial drill results.
24
25. Detour vs. Peers: Dec. 31, 2013
Consensus P/NAV
P / 2015 CF
African Barrick
0.95x
Allied Nevada
0.92x
Alamos
0.89x
New Gold
0.84x
Allied Nevada
18.7x
Alamos
12.7x
Eldorado
9.3x
Argonaut
7.6x
7.6x
Osisko
0.81x
Alacer
Alacer
0.80x
Osisko
B2Gold
0.77x
AuRico
0.73x
6.9x
AuRico
6.2x
New Gold
6.0x
Eldorado
0.69x
African Barrick
5.0x
Argonaut
0.69x
B2Gold
4.7x
IAMGOLD
Detour
0.50x
0.32x
Source: Bloomberg, Factset and select Street Research
Note: Market data updated to December 31, 2013
25
Detour
3.6x
IAMGOLD
3.4x
DGC: C$4.10
26. Detour vs. Peers: February 14, 2014
Consensus P/NAV
P / 2015 CF
Allied Nevada
1.48x
African Barrick
1.35x
Alamos
21.3x
Eldorado
12.3x
New Gold
1.14x
Alacer
11.3x
Alacer
1.12x
Argonaut
11.2x
Osisko
1.11x
Osisko
10.2x
B2Gold
1.11x
AuRico
10.0x
AuRico
1.07x
New Gold
9.2x
9.1x
Argonaut
0.93x
Allied Nevada
Eldorado
0.93x
B2Gold
7.9x
African Barrick
7.7x
Alamos
0.86x
Detour
0.74x
Detour
IAMGOLD
0.71x
IAMGOLD
Source: Bloomberg, Factset and select Street Research
Note: Market data updated to February 14, 2014
26
6.2x
5.2x
DGC: C$9.89
27. Invest in Detour Gold
A premier intermediate Canadian gold producer
and long-term investment opportunity
15.5 MILLION
oz of gold
in proven and
probable reserves
27
+ 21YEAR
mine life
in mining-friendly
Ontario, Canada
~ 600 THOUSAND
oz / year
average annual gold
production over next 10 years
29. Shareholder Information
Share Structure1
Top Shareholders
138.2 M
10.5 M
15%
>80%
13.0 M
161.7 M
Issued & outstanding
Options & FN share commitments
INSTITUTIONS TOTAL
Cash position and share structure at Dec 31, 2013.
1. Bought deal announced on Feb. 18, 2014: 16.22 M sh. + overallotment of 2.43 M sh. @ C$9.25/sh. Closing expected on or
about March 7, 2014.
2. Conversion price for the Notes is US$38.50.
Convertible notes 2
FULLY DILUTED
C$96
Paulson & Co
C$1.3
MILLION
cash position
BILLION
market cap
Research Coverage
29
Bank of America Merrill Lynch
Beacon Securities
BMO Capital Markets
Canaccord Genuity
CIBC World Markets
Cormark Securities
Credit Suisse Securities
Desjardins Capital Markets
GMP Securities
Haywood Securities
Laurentian Bank Securities
Macquarie Capital Markets
National Bank Financial
Paradigm Securities
Raymond James
RBC Capital Markets
Scotia Capital
TD Securities
30. Corporate Responsibility
Focus on health and safety of our employees, the well-being of
our community and the protection of the natural environment
Hiring in the region, giving priority to local Aboriginal communities:
637 full-time employees*
WORKFORCE ORIGIN
92% of workforce from region
24% are Aboriginals
Cochrane
Cochrane
Scholarship and job training
Area
23%
31%
Supporting local communities
Business opportunities
Participation in municipal development
Corporate philanthropy
* As of January 31, 2014.
30
Northern
Ontario
38%
Rest of
Ontario
4%
Other
3%
31. Detour Lake Mine: 2013 Results
Q1
Q2
Q3
Q4
2013
Ore tonnes mined (Mt)
1.29
2.70
4.16
4.08
12.24
Tonnes milled (Mt)
1.02
2.87
3.88
3.40
11.18
Mill grade (g/t Au)
0.64
0.76
0.72
0.81
0.75
Recovery (%)
80
83
85
92
86
Availability (%)
66
68
78
66
71
16,841
57,897
75,672
81,877
232,287
Ounces produced (oz) (1)
1. During the commercial period (September 1 to year-end), the Detour Lake mine produced 105,898 oz of gold.
31
32. Detour Lake Mine: LOM Update
Detour Lake
Update
(02/2014)
Ore milled (Mt)
476.4
Waste mined (Mt)
1,676
Strip ratio (waste:ore)
3.5
Average gold grade (g/t)
1.02
Total contained gold (M oz)
92
Total recovered gold (M oz) 1
14.3
Mine life (yrs)
Gold price (US$/oz)
FX rate (US$/Cdn$)
Electricity (C$/kWhr)
Fuel price (US$/barrel)
Diesel fuel (C$/l)
Income/mining tax rate (%)
Net Smelter Royalty (%)
15.5
Estimated gold recovery (%)
Assumptions
21.7
Avg. annual gold production in first 5 yrs (oz)
598,000
Avg. annual gold production over LOM (oz)
660,000
1.
2.
3.
4.
32
Includes approximately 58,000 ounces to be recovered from stockpiles as of December 31, 2013.
Exchange rate of 1.05 for 2014, 1.07 for 2015, and 1.08 for 2016, and 1.10 for 2017 onwards.
Cdn$0.05/kWh for 2014-19 and Cdn$0.08/kWh for 2020 onwards.
2% royalty is assumed to be paid in-kind.
$1,200
1.10 2
0.05/0.08 3
100
0.95
25/10
2.0 4
33. Detour Gold: Reserves & Resources
Tonnes (Mt)
Grade (g/t Au)
Contained Gold
(koz)
Proven
94.4
1.29
3,901
Probable
379.7
0.95
11,585
P&P
474.0
1.02
15,486
2.4
0.82
63
476.4
1.02
15,549
Measured (M)
16.4
1.37
725
Indicated (I)
65.9
1.01
2,150
M+I
82.4
1.09
2,874
Measured (M)
1.5
1.21
57
Indicated (I)
52.5
1.15
1,934
M+I
53.9
1.15
1,991
136.3
1.11
4,866
Effective December 31, 2013
Reserves
Detour Lake Mine
(1,2,3,4)
Stockpiles
Total P&P
Resources
Detour Lake Mine
(3,4)
Block A
Total M+I
Detour Lake Mine
Inferred
19.2
0.75
465
Block A
Inferred
2.5
1.23
99
21.7
0.81
564
Total Inferred
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.
33
34. Debt Repayment Schedule
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%
Monthly
Quarterly
Semi-annually
n/a
n/a
$38.50
At Dec 31, 2013
Payable
Conversion Price
Payment schedule
Principal
Interest
Principal + Interest
Principal
Interest
Total
(US$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
-
$70
$5.0
Total (US$M)
$128.3
$500
$110.0
$4.1
$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.
34
35. Management & Directors
Management
Michael Kenyon
Executive Chairman
Paul Martin
Pierre Beaudoin
James Mavor
Julie Galloway
Derek Teevan
Sr VP Corporate &
Aboriginal Affairs
Rachel Pineault
James Robertson
Andrew Croal
Drew Anwyll
Mark McCallion
Chief Geologist
Director Investor Relations
Alberto Heredia
Joshua Hurrell
Technical Services Superintendent
Director Technical Services
Charles Hennessey
Process Plant Maintenance Manager
and Deputy Mine General Manager
Laurie Gaborit
Rickardo Welyhorski
Director Mineral Processing
VP Environment &
Sustainability
Sr VP General Counsel &
Corporate Secretary
VP HR & Aboriginal Affairs
CFO
Jean-Francois Metail
Bill Snelling
Director Corporate Systems & Controls
VP Reserves and Resources
COO
VP Corporate Development
President and CEO
Pat Donovan
Mike Papadakis
Process Plant Manager
Controller
Craig Rintoul
Open Pit Manager
MGM/VP Operations
Directors
35
Peter Crossgrove
Louis Dionne
Robert E. Doyle
André Falzon
Ingrid Hibbard
Michael Kenyon
Paul Martin
Alex G. Morrison
Jonathan Rubenstein
Graham Wozniak
36. Contact Information
Paul Martin
President and Chief Executive Officer
Email: pmartin@detourgold.com
Phone: 416.304.0800
Laurie Gaborit
Director Investor Relations
Email: lgaborit@detourgold.com
Phone: 416.304.0800
www.detourgold.com
36