detour gold corporate presentation

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1 CANADA’S NEXT INTERMEDIATE GOLD PRODUCER Corporate Presentation March 27, 2013

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Page 1: Detour Gold Corporate Presentation

1

CANADA’S NEXT INTERMEDIATE GOLD PRODUCER

Corporate Presentation

March 27, 2013

Page 2: Detour Gold Corporate Presentation

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 commissioning of

the second production line, commencement of commercial production, completing a pre-feasibility study on Block A, reserve

and resource estimates, ore grade, expected mine life, anticipated gold production, gold recovery, cash operating costs and

other costs, capital costs, sensitivity to metal prices and other sensitivities, ramp-up of operations, future operating plans,

potential expansion opportunities, and plans for organic growth. 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

2011 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 supply and demand for gold, and the level and volatility of the price of gold;

the availability of financing for exploration and development activities; the estimated timeline for the development of the Detour

Lake gold project; the expected mine life; anticipated gold production; gold recovery; the development schedule; cash

operating costs and other costs; the financial analysis for the project; capital costs; sensitivity to metal prices and other

sensitivities; the accuracy of reserve and resource estimates and the assumptions on which the reserve and resource

estimates are based; the receipt of necessary permits; 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.

Page 3: Detour Gold Corporate Presentation

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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.

NI-43 101 Disclosure

Information Containing Estimates of Mineral Reserves and Resources

Page 4: Detour Gold Corporate Presentation

4

Focus and Discipline

Leverage to gold price

Optimize operation

Organic growth

Safe jurisdiction

Per Share Value Creation

Free cash flow growth

Limit share dilution

Return on capital

Invest in Detour Gold

Our Vision

Page 5: Detour Gold Corporate Presentation

5

Note: Cash position at December 31, 2012 and share data at February 28, 2013.

Share Capital

FULLY DILUTED

139.8 M

OPTIONS & FN SHARE

COMMITMENTS

8.9 M

CONVERTIBLE

NOTES

13.0 M

ISSUED AND

OUTSTANDING

117.9M C$2.4 B

C$236 M

TOP SHAREHOLDERS

MARKET CAP

CASH POSITION

(YR-END)

PAULSON & CO: 15%

CARMIGNAC GESTION: 5%

INSTITUTIONS TOTAL: >80%

Page 6: Detour Gold Corporate Presentation

6

Focused on One Core Asset

Detour Lake - Ontario, Canada

Low-risk, mining friendly

jurisdiction

Large prospective land

package of 566 km2 on Abitibi

Greenstone Belt

In production: Detour Lake

open pit mine

15.6 M oz in reserves

In progress: Block A pre-

feasibility study

Exploration: Targeting

high-grade mineralization

Page 7: Detour Gold Corporate Presentation

7

PRODUCTION 2013

Record Timing from “Discovery” to Production

Detour Lake in 6 years

ACQUISITION /DISCOVERY

PRE-FEASIBILITY STUDY

FEASIBILITY STUDY & PERMITTING

DEVELOPMENT PRODUCTION

2007 2009 2010 2011-12 2013

From Core to Pour

Page 8: Detour Gold Corporate Presentation

8

Detour Lake Mine in 6 Years

Consistently Delivered Results

Focused on execution

Built strong management team with track record of success

Increased resource growth by 750% since acquisition at <$5/oz

Completed positive economic studies over a 2-year period

Raised over $2 billion while limiting share dilution

Completed mine construction within time frame (27 months)

Obtained strong community and Aboriginal support

Page 9: Detour Gold Corporate Presentation

9

H1 2013

First gold pour in February

Securing $90 million credit facility

Commissioning of second production line

20,000 m drilling program targeting high-grade gold mineralization

H2 2013

Achieving commercial production

Gold production target of +350,000 ounces for the year

Completing pre-feasibility study on Block A

Advancing evaluation of mine expansion scenarios

Year-end mineral resources/reserves update

2013 Objectives

Page 10: Detour Gold Corporate Presentation

10

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:

95% of workforce from region

25% are Aboriginals

Scholarship and job training

Supporting local communities

Business opportunities

Participation in municipal development

Corporate philanthropy

NORTHERN

ONTARIO

43%

COCHRANE

25%

COCHRANE

AREA

26%

REST OF

ONTARIO

3%

2% OTHER

Corporate Responsibility

WORKFORCE ORIGIN

Page 11: Detour Gold Corporate Presentation

11

Production Start 02/ 2013

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) 657,000

Initial capex (C$ B) 1.5

Sustaining capex (C$ B) 1.2

Detour Lake Mine

Page 12: Detour Gold Corporate Presentation

12

MAINTENANCE

LABOUR POWER

DIESEL

G&A

ROYALTY+

OTHER

(2% NSR)

CONSUMABLES

29%

22%

18% 12%

8%

5%

6%

Breakdown of 2013-14 TCC

Operating Costs (LOM) C$/t milled C$/t mined C$/oz

Mining costs 11.65 2.49 388

Processing cost 7.83 -- 260

G&A 1.86 -- 62

Cash operating costs 21.34 -- 710

Royalty (2%) and other 1.26 -- 42

Refining 0.12 -- 4

Silver credit (0.20) -- (7)

Total cash costs (TCC) 22.52 -- 749

A 10% change in:

Diesel or power costs = $9/oz change in TCC

Cdn$ FX rate = $63/oz in TCC

Projected LOM Operating Costs

Page 13: Detour Gold Corporate Presentation

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2013 Guidance

Total production: 350,000 oz to

400,000 oz of gold

Post commercial production (Q3):

Total cash costs of C$800/oz to

C$900/oz based on 200,000 oz to

250,000 oz sold

Sustaining capital: C$180 M

(<$80 M in H1)

Commercial production target in Q3

NOTE: Commercial production to be declared after 60

consecutive days of operating at >75% of throughput

(55,000 tpd x 75% = 41,250 tpd)

Page 14: Detour Gold Corporate Presentation

14

2013 Ramp Up

Mining

Current stockpiles:

1.3 Mt @ 0.8 g/t; 1.0 Mt @ 0.6 g/t;

and 1.0 Mt @ 0.4 g/t

Mining rates to ~200,000 tpd by

year-end

Mining fleet of 20 haul trucks &

4 shovels

Processing Plant

55,000 tpd conventional gravity and

CIP processing plant with two

production lines

Line 1 & 2 in operation

Optimize and improve efficiencies

Page 15: Detour Gold Corporate Presentation

15

PLANT SITE

CAMPBELL

PIT

APPROX. PIT SHELL

AT END OF LOM

CURRENT

PIT SHAPE

MINERALIZED

ZONE

Satellite image dated July 2012

NORTH WASTE

DUMP

Mining Production

Page 16: Detour Gold Corporate Presentation

16

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

Page 17: Detour Gold Corporate Presentation

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Development

Grow reserve base to +20 M oz

Complete Block A pre-feasibility

study in 2013

Evaluate Detour Lake expansion

Exploration

Large prospective land position of

566 km2

Test gold targets on structure south

of Detour Lake: 20,000 m in H1

Inferred M&I P&P

10M oz

20M oz

30M oz

15.6 14.9

11.4

8.8

Organic Growth Opportunities

Page 18: Detour Gold Corporate Presentation

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Development – Block A

Block A pre-feasibility study underway

Evaluate potential expansion options

Page 19: Detour Gold Corporate Presentation

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*Note: Excludes drilling around Detour Lake and M zone (Block A).

20,000 m in H1 2013

15.6 M oz in Reserves

Exploration – South Structure

Existing DDH Gold occurrence (OGS)

DDH intersection >1g/2m DDH intersection >1g/10m

Page 20: Detour Gold Corporate Presentation

20

Focus and Discipline

Leverage to gold price

Optimize operation

Organic growth

Safe jurisdiction

Per Share Value Creation

Free cash flow growth

Limit share dilution

Return on capital

Invest in Detour Gold

Our Vision

Page 21: Detour Gold Corporate Presentation

21

ADDITIONAL INFORMATION

Page 22: Detour Gold Corporate Presentation

22

Source: Bloomberg, company filings, select Street Research

Note: Market data updated to February 14, 2013.

1. Alamos shown pro-forma Aurizon acquisition announced January 14, 2013.

2. Shown based on gold only reserves on an attributable basis.

3. Calculated as US$1,000 divided by fully diluted market capitalization multiplied by total attributable gold only reserves.

Current Valuation vs. Peers Consensus P/NAV(1) Share of Au Reserves per

$1000(1)(3) EV / Reserves(1)(2)

1.6

2.5

2.9

3.7

3.8

4.9

5.9

6.0

6.1

8.7

New Gold

Alamos

AuRico

IAMGOLD

Osisko

Alacer

Allied Nevada

Centerra

Detour

African Barrick

0.47x

0.54x

0.57x

0.62x

0.65x

0.73x

0.74x

0.75x

0.87x

0.96x

Centerra

IAMGOLD

Allied Nevada

Alacer

Detour

African Barrick

Alamos

Osisko

AuRico

New Gold

$88

$152

$166

$169

$170

$216

$274

$293

$351

$642

African Barrick

Centerra

Alacer

Detour

Allied Nevada

IAMGOLD

Osisko

AuRico

Alamos

New Gold

Page 23: Detour Gold Corporate Presentation

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Detour Lake Profile Detour Lake

Sept. 2012

Mine Plan(3)

Gold price (US$/oz) (1) 1,200

Foreign exchange rate (US$/Cdn$) 1.00

Assumptions Fuel price (US$/barrel) 100

Income/mining tax rate (%) 25/10

Net Smelter Royalty (%) 2

Ore milled (Mt) 470.0

Waste mined (Mt) (4) 1,734

Mine Strip ratio (waste:ore) 3.7

Parameters Avg. gold grade (g/t) 1.03

Total contained gold (M oz) 15.6

Estimated gold recovery (%) 91.0

Total recovered gold (M oz) 14.1

Mine life (years) 21.5

Avg. annual gold production (oz) 657,000

1. US$1,600/oz for 2013, US$1,500/oz for 2014, and US$1,400/oz for 2015.

2. Press release Jan. 31, 2011 with Technical Report dated Mar. 15, 2011.

3. Press release Sept. 4, 2012 with Technical Report dated Oct. 18, 2012.

4. Includes low-grade stockpile.

1.0 g/t Au

0.5 - 1.0 g/t Au

<0.5 g/t Au

20,600E

16,500E

700 m

Open pit

@ 0.5 g/t cut-off

Page 24: Detour Gold Corporate Presentation

24

800

700

600

500

400

300

200

100

0

Gold Production (‘000 oz)

900

850

800

750

700

650

600

550

500

Total Cash Costs (C$/oz)

Gold Production/Cost/Grade Profile

Note: Excludes stripping adjustments.

Avg. C$749/oz

1.6

1.4

1.2

1.0

0.8

0.6

0.4

0.2

0

Grade (g/t Au)

Avg. 657,000 oz/yr

Page 25: Detour Gold Corporate Presentation

25

Bench

6264m

Bench

6252m

Grade Control: First 2 Benches

DDH Block model 40x40m drill spacing

DDH Block model 40x40m drill spacing RC Grade Control 20x10m & 10X10 m drill

spacing

RC Grade Control 20X10m & 10X10m drill

spacing

Page 26: Detour Gold Corporate Presentation

26

@ US$850/oz Tonnes

(millions)

Grade

(g/t)

Contained Gold

(‘000 oz)

Reserves (1)

Proven 101.6 1.29 4,222

Probable 368.4 0.96 11,351

P&P 470.0 1.03 15,573

Resources (2)

Measured 124.5 1.36 5,424

Indicated 554.3 1.00 17,836

M&I 678.8 1.07 23,261

Inferred 208.5 0.86 5,785

1. After a 95% mining recovery rate; Mining dilution factor of 15.5%.

2. Inclusive of mineral reserves.

Detour Lake Reserves & Resources

As at December 31, 2011

Page 27: Detour Gold Corporate Presentation

27

2012 DH

2012 extension DH

Historical DH

Block A near-surface resource

Detour Lake

2011 year-end reserves = 15.6 M oz

Detour Lake & Block A

DH included in 2011 year-end reserves

DH not included in 2011 year-end reserves

Page 28: Detour Gold Corporate Presentation

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Gerald Panneton Founder, President & CEO

Director

Michael Kenyon Executive Chairman

Paul Martin CFO

Pierre Beaudoin Chief Operating Officer

Julie Galloway Sr VP General Counsel &

Corporate Secretary

Derek Teevan Sr VP External &

Aboriginal Affairs

Pat Donovan VP Corporate Development

James Mavor VP Finance

Rachel Pineault VP HR & Northern Affairs

James Robertson VP Environment &

Sustainability

Eric Josipovic Controller

Drew Anwyll Director of Operations

Andrew Croal Director Technical Services

Laurie Gaborit Director Investor Relations

Jean-Francois Metail Director Reserves and Resources

Greg Miazga Director Construction & Engineering

Bill Snelling Director Corporate Systems & Controls

Christian Brousseau Project Manager

Patrik Gillerstedt Mine Manager

Peter Crossgrove

Louis Dionne

Robert E. Doyle

Ingrid Hibbard

Jonathan Rubenstein

Graham Wozniak

Michael Kenyon

Alex G. Morrison

Gerald Panneton

Management & Directors

Management

Directors

Page 29: Detour Gold Corporate Presentation

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Gerald Panneton President & CEO

Email: [email protected]

Phone: 416.304.0800

Laurie Gaborit Director Investor Relations

Email: [email protected]

Phone: 416.304.0800

www.detourgold.com

Contact Information