2. 2
Forward Looking Information
This presentation contains certain forward-looking information and statements as defined in applicable securities law (referred to herein as
âforward-looking statementsâ). 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 âplansâ, âexpectsâ, âis expectedâ, âbudgetâ, âscheduledâ, âestimatesâ, âforecastsâ,
âintendsâ, âanticipatesâ, âprojectsâ, âpotentialâ, âbelievesâ or variations of such words and phrases or statements that certain actions, events
or results âmayâ, âcouldâ, âwouldâ, âshouldâ, âmightâ or âwill be takenâ, âoccurâ or âbe achievedâ or the negative connotation of such terms.
Forward-looking statements include, but are not limited to, statements with respect to Detour Goldâs 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 âDescription of Business - Risk Factorsâ in Detour
Goldâs 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 Companyâs 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.
4. 4
Management Participants
Paul Martin
President and
Chief Executive Officer
Pierre Beaudoin
Chief Operating Officer
James Mavor
Chief Financial Officer
First Quarter 2014
Operational & Financial Results
Conference Call
and Webcast
All monetary amounts are in U.S. dollars unless otherwise stated.
5. 5
Q1 2014 Highlights
Ramp-up Progressing Well
ï§ Gold production of 107,154 ounces
ï§ Revenues of $110 million on sales of 84,560 oz
ï§ Total cash costs of $976 per gold ounce sold1
ï§ Net loss of $54.9 million or $0.38 per share
ï§ Adjusted net loss of $28.1 M or $0.20 per share1
ï§ Signed a 6-yr fixed rate electricity contract at Cdn$0.05/kWh
ï§ Closed equity financing for net proceeds of $149 million
ï§ Repaid $40 million of debt
ï§ Cash and short-term investment balance of $145.2 million at March 31,
2014
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
first quarter ended March 31, 2014.
6. 6
Q1 2014 Operating Results
0
1
2
3
4
5
Q1'13 Q2'13 Q3'13 Q4'13 Q1'14
1.0
0.8
0.2
0.0
0.4
0.6
TonnesMilled(Mt)
Q1â13 Q2â13 Q3â13 Q1â14
1â14
Q4â13
80 82 85 92 91
Mill production
HeadGrade(g/tAu)
Recovery %
0.90G/T GOLD
mill grade4.07 MILLION
tonnes milled 91% GOLD
recovery
Q1â14 Performance:
ï§ Positive ramp-up progress
ï§ Gold production of 107,154 ounces
met expectations
ï§ 4.1 Mt of ore processed:
ï§ Head grade in-line with model
ï§ Recovery rates as expected
ï§ Dilution reduced to 4.6% below 2014
budget of 7%
7. 7
Q1 2014 Operating Results - Mine
Q1â14 Performance:
ï§ 4.9 Mt ore mined; strip ratio 2.9:1
ï§ Total of 19.2 Mt mined vs 20.9 Mt
planned; shortfall of 1.7 Mt due to:
âș In-pit rehandling to advance
southwall pushback & complete
optimal south ramp access
âș Shovel allocation to process HG
stockpile
ï§ Avg. mining rates of 213,000 tpd
ï§ Increase of 500,000 t to ROM stockpile
= 2.8 Mt @ 0.78 g/t at end of Q1
Mining Rates (K tpd)
Q1â13 Q2â13 Q3â13 Q1â14Q4â13
Ex-Pit
In-linewith
Budget
0
50
100
150
200
250
In-pit
rehandling
Shovel
test
231513
213
8. 8
Q1 2014 Operating Results - Mine
Next steps:
ï§ Moving one 6060 shovel from
overburden to rock
ï§ Improving availability of large
shovels
ï§ Mining rates to average approx.
230,000 tpd in Q2
ï§ Complete southwall pushback and
final south ramp access this
summer to provide better exposure
to higher grade ore for H2 mining
Q1â13 Q2â13 Q3â13 Q1â14Q4â13
9. 9
Q1 2014 Operating Results - Mill
Q1â14 Performance:
ï§ Plant throughput rates at 45,282 tpd
âș Optimize secondary crushers and
liner profiles
âș Last 68 days averaged 49,750 tpd
ï§ Mill availability 80% vs 82%
âș Slower start up following December
shutdown
âș March availability in-line with plan
Next steps:
ï§ Further improve mill availability
ï§ Increase milling rate to 2,500 tpoh
Throughput(Ktpd)
0
10
20
30
40
50
Q1'13 Q2'13 Q3'13 Q4'13 Q1'14
Availability %
Q1â13 Q2â13 Q3â13 Q1â14Q4â13
Mill productivity
8066786866
10. 10
Q1 2014 Operating Results - Costs
Total Cash Costs:
Q1â14 Q4â13
Production costs $83.1 M $98.0 M
Total cash costs $82.5 M $111.5 M
Gold oz sold 84,560 oz 95,000 oz
TCC/ oz sold1 $976/oz $1,174/oz
Q1 Progress:
ï§ Higher mining costs as a result of ex-pit tonnes shortfall
ï§ Processing costs improving with lower reagents consumption
Next steps:
ï§ Downward trend to continue with throughput and production increase
$-
$5
$10
$15
$20
$25
$30
Q1-14 Q4-13
Unit Costs (C$/t milled)
G&A $3.57/t G&A $4.13/t
Processing
$11.13/t
Processing
$11.75/t
Mining
$2.87/t
mined
Mining
$2.60/t
mined
$28.22/t $29.15/t
Q4â13Q1â14
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 first quarter ended March 31, 2014 or year-ended December 31, 2013.
$0
11. 11
Q1 2014 Financial Review
Revenues:
Q1â14 Q4â13
Ounces sold 84,560 oz 95,000 oz
Gold sales $110.0 M $120.8 M
Avg realized price1 $1,301/oz $1,269/oz
9,929
1,945 10,720
0
20,000
40,000
60,000
80,000
100,000
120,000
Circuit
inventory
re-build Unsold
finished
metal &
adjustments,
including
carbon fines
2% royalty
in-kindGoldProduction
GoldSales
107,154
84,560
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 first quarter ended March 31, 2014.
Q1â14 Gold Ounces
Produced vs Sold
12. 12
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.
2014 2013
Net earnings (loss) $(54,943) $23,413
Adjusted for:
Fair value (gain) loss of the convertible notes 16,479 (38,635)
Foreign exchange (gain) loss 73 2,283
Non-cash unrealized (gain) loss on derivative instruments 4,252 -
Accretion on convertible notes 5,953 -
Unwinding of discount on decommissioning and restoration provisions 94 31
Adjusted net earnings (loss)1 $(28,092) $(12,908)
Adjusted basic earnings (loss) per share1 $(0.20) $(0.11)
Three months ended
March 31
Q1 2014 Financial Review
1. Refer to the section on Non-IFRS Performance Measures on slide 3. Reconciliation of these measures is described in the MD&A for the
first quarter ended March 31, 2014.
13. 13
Q1 2014 Financial Review
Cash Flows:
Cash Flow US$â000 2014 2013
Operating Activities (32,090) (6,912)
Investing Activities (22,002) (130,046)
Financing Activities 110,353 92,720
Changes in cash and cash equivalents 56,261
Effects of exchange rate changes (985) (2,962)
Cash and cash equivalents â beginning of financial period 88,130 197,807
Cash and cash equivalents â end of financial period 143,406 150,607
Three months ended
March 31
14. 14
Maintaining 2014 Guidance
450-500
estimated gold production
THOUSAND
oz
$800-900
estimated total cash costs
TCC
per oz sold
$131
estimated capital expenditures
MILLION
capex
Other
ï§ $19 M Corporate G&A
ï§ $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 $35 M.
1, 2
second year
of operation
2014