Detour Gold Reports Q4 and FY 2019 Production Results
TORONTO--(BUSINESS WIRE)--Jan 9, 2020--
Detour Gold Corporation (TSX: DGC) (“Detour Gold” or the “Company”) reports its fourth quarter and full year 2019 production results, delivering in the top quartile of the Company’s 2019 guidance range.
All amounts are in U.S. dollars unless otherwise indicated. All references to non-IFRS measures are denoted with the superscript “0” and are discussed at the end of this news release. All 2019 figures are preliminary, unaudited and subject to final adjustment.
Mick McMullen, President and Chief Executive Officer, stated: “ I’m very pleased to see a substantial reduction in our injury rate over the past year, which reflects all of the hard work that’s being put in by our employees and contractors to keep our people safe.
That great safety result was matched by strong production for the year, where, at 601,566 ounces, Detour Gold delivered in the top quartile of our upwardly-revised guidance range for ounces of gold production. Our cash generation was excellent as well. We improved from a net debt position of $117 million at the end of 2018 to a net cash position of $114 million at the end of 2019. That represents a total cash generation of $231 million over the year.
Our Detour Lake Mine orebody continues to perform strongly, with 24.9% more tonnes and slightly lower grade (minus 4.4%) for 19.3% more ounces in 2019 relative to the mineral reserves. We are seeing more lower grade material around the periphery of the deposit which is still economic and this material is being processed as ore.
We are continuing to work hard to deliver on the operational improvements that we initiated in 2019, with a view to setting up the Detour Lake Mine for continued success.”
2019 Fourth Quarter and Full Year Operational Statistics
The table below contains the key operating metrics for the Detour Lake Mine by quarter for 2019:
Ore mined (Mt)
Waste mined (Mt)
Total mined (Mt)
Strip ratio (waste:ore)
Mining rate (k tpd)
Ore milled (Mt)
Head grade (g/t Au)
Mill throughput (tpd)
Ounces produced (oz)
Ounces sold (oz)
Note: Totals may not add due to rounding
Kirkland Lake Transaction Update
On November 25, 2019, Detour Gold announced that it has entered into a definitive agreement whereby Kirkland Lake Gold Ltd. (“Kirkland Lake Gold”) has agreed to acquire all of the issued and outstanding common shares of Detour Gold pursuant to a plan of arrangement (the “Transaction”).
The Detour Gold Board of Directors, with the recommendation of a special committee, unanimously recommends that Detour Gold shareholders vote FOR the Transaction. The terms of the Transaction and the potential benefits to the Company’s shareholders are further described in the management information circular (the “Circular”) filed with the Canadian securities regulatory authorities on December 23, 2019.
For Detour Gold, completion of the Transaction is subject to, among other things, the approval by at least 66 2/3 percent of the votes cast by its shareholders either voting in person or represented by proxy at a special meeting of shareholders, which is scheduled to be held on January 28, 2020, at 10:00 AM (Toronto time) at Commerce Court West, Suite 5300, 199 Bay Street, Toronto, Ontario. The Circular is available on the Investor Relations section of Detour Gold’s website, www.detourgold.com/investors/ and under Detour Gold’s profile on SEDAR at www.sedar.com.
Detour Gold shareholders may contact Laurel Hill Advisory Group, the Company’s proxy solicitation agent, for questions and assistance in voting their shares:
Laurel Hill Advisory Group
North America Toll Free: 1-877-452-7184
Collect Calls outside North America: 1-416-304-0211
The scientific and technical content of this news release was reviewed, verified and approved by David Londono, Mine General Manager, a Qualified Person as defined by Canadian Securities Administrators National Instrument 43-101 “Standards of Disclosure for Mineral Projects”.
About Detour Gold
Detour Gold is a mid-tier gold producer in Canada that holds a 100% interest in the Detour Lake mine, a long-life, large-scale, open-pit operation. Detour Gold’s shares trade on the Toronto Stock Exchange under the trading symbol “DGC”.
Detour Gold Corporation, Commerce Court West, 199 Bay Street, Suite 4100, P.O. Box 121, Toronto, Ontario M5L 1E2
Non-IFRS Financial Performance Measures
The Company has included certain Non-IFRS measures in this document with no standard meaning under International Financial Reporting Standards (“IFRS”). Refer to Non-IFRS Financial Performance Measures in the Company’s latest MD&A for further information. 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. The 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.
Net cash is comprised of the face value of the Company’s long-term debt less cash and cash equivalents. The Company believes that, in addition to conventional measures prepared in accordance with IFRS, certain investors use this information to evaluate the Company’s financial position and its ability to take on new debt in the future, purchase new assets or withstand adverse economic conditions.
Cautionary Note regarding Forward-Looking Information
This news release contains certain forward-looking information and forward-looking statements, as defined in applicable securities laws (collectively referred to herein as “forward-looking statements”). Forward-looking statements reflect current expectations or beliefs regarding future events or the Company’s future performance. All statements other than statements of historical fact are forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “continues”, “forecasts”, “projects”, “predicts”, “intends”, “anticipates”, “targets” or “believes”, or variations of, or the negatives of, such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “should”, “might” or “will” be taken, occur or be achieved.
Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the Company’s actual results, performance or achievements to differ materially from those expressed or implied by such forward-looking statements. All forward-looking statements, including those herein are qualified by this cautionary statement. Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements in this news release speak only as of the date of this news release or as of the date or dates specified in such statements.
Specifically, this news release contains forward-looking statements regarding items including, but not limited to: the continued strong performance of the Detour Lake Mine orebody; expectations regarding timing of the Special Meeting; whether the proposed Transaction will be consummated; and the expected potential benefits of the Transaction.
Inherent in forward-looking statements are risks, uncertainties and other factors beyond the Company’s ability to predict or control. These risks, uncertainties and other factors include, but are not limited to, the results of the life of mine plan (“2018 LOM Plan”), 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, support of the Company’s Indigenous communities, interest rate and exchange rate fluctuations, the ability to consummate the Transaction; the ability to obtain requisite court, regulatory and shareholder approvals and the satisfaction of other conditions to the consummation of the Transaction on the proposed terms and schedule; the ability of Kirkland Lake Gold and Detour Gold to successfully integrate their respective operations and employees and realize synergies and cost savings at the times, and to the extent, anticipated; the potential impact of the Transaction on exploration activities; the potential impact of the announcement or consummation of the Transaction on relationships, including with regulatory bodies, employees, suppliers, customers and competitors; general economic conditions and other risks involved in the gold exploration, development and production industry, as well as those risk factors listed in the sections entitled ‘‘Part I — The Arrangement — Risk Factors Related to the Arrangement’’, ‘‘Part I — The Arrangement — Risk Factors Related to the Operations of the Combined Company’’, Appendix G, “Information Concerning Detour Gold — Risk Factors”, Part I — The Arrangement — Certain Canadian Federal Income Tax Considerations” and “Part I — The Arrangement — Certain United States Federal Income Tax Considerations to U.S. Holders” in Detour’s management information circular dated December 20, 2019 and in the continuous disclosure documents filed by Detour Gold on and available on SEDAR at www.sedar.com. Readers are cautioned that the foregoing list of factors is not exhaustive of the factors that may affect forward-looking statements. Actual results and developments and the results of the 2018 LOM Plan are likely to differ, and may differ materially or materially and adversely, from those expressed or implied by forward-looking statements, including those contained in this news release. Such statements are 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; results of operations; the Company’s available cash resources; the Company’s ability to attract and retain skilled staff; the mine development and production schedule and related costs; dilution control; 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 timing and results of consultations with the Company’s Indigenous partners; the supply and availability of consumables and services; the exchange rates of the Canadian dollar to the U.S. dollar; energy and fuel costs; required capital investments; estimates of net present value and internal rate of returns; the accuracy of mineral reserve and mineral resource estimates, production estimates and capital and operating cost estimates and the assumptions on which such estimates are based; market competition; ongoing relations with employees and impacted communities and general business and economic conditions.
The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements 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.
View source version on businesswire.com:https://www.businesswire.com/news/home/20200109005794/en/
CONTACT: Mick McMullen, President & CEO
Tel: 416-304-0800Jaco Crouse, CFO
KEYWORD: NORTH AMERICA CANADA
INDUSTRY KEYWORD: MINING/MINERALS NATURAL RESOURCES
SOURCE: Detour Gold Corporation
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PUB: 01/09/2020 05:00 PM/DISC: 01/09/2020 05:01 PM