Detour Gold Reports First Quarter 2019 Results
Press Release
TORONTO, May 2, 2019 – Detour Gold Corporation (TSX: DGC) (“Detour Gold” or the “Company”) reports its operational and financial results for the first quarter of 2019. All amounts are in U.S. dollars unless otherwise indicated.
This release should be read in conjunction with the Company’s first quarter 2019 Financial Statements and MD&A on the Company’s website or on SEDAR. All references to non-IFRS measures are denoted with the superscript “0” and are discussed at the end of this news release.
Q1 2019 Highlights
- Gold production of 154,709 ounces
- Total cash costso of $739 per ounce sold
- All-in sustaining costso (“AISC”) of $1,044 per ounce sold
- Revenues of $206.1 million on gold sales of 157,723 ounces at an average realized priceo of $1,304 per ounce
- Cash and cash equivalents of $201.1 million at March 31, 2019, an increase of $69.2 million from December 31, 2018
- Net earnings of $38.9 million ($0.22 per basic share) and adjusted net earningso of $18.3 million ($0.10 per basic share)
Subsequent Events
- Appointment of Michael (Mick) McMullen as President and Chief Executive Officer and a Director of Detour Gold effective May 1, 2019
- Bill Williams, who served as Interim Chief Executive Officer of Detour Gold since January 2019, will continue to serve on the Board as a Director.
Mick Mullen, President and Chief Executive Officer, stated: “I am excited to start working with the team at Detour Gold as we continue to turn around the operations and deliver improvements in production and costs. There are still many opportunities to be realized and I look forward to engaging with our stakeholders to determine the optimal way to create shareholder value going forward.”
Frazer Bourchier, Chief Operating Officer, commented on the first quarter operational results: “We are continuing to progress positively on stabilizing the operation as seen by another quarter of strong operational results. This has been by far the best performing ‘first quarter’ the Company has ever had since start of operations. I would expect that by year-end we start achieving predictable and consistent operational results and shift towards the optimization phase. We are tracking well to achieve our annual guidance and execute on our 2018 life of mine plan.”
Q1 2019 Operational Results
- Gold production totaled 154,709 ounces in the first quarter.
- Mill throughput was on plan at 5.2 million tonnes (Mt) despite cold winter conditions.
- Head grade averaged 1.00 grams per tonne (g/t) with recoveries improving to 92.2%.
- Ongoing mill capital projects and modifications to maintenance and operating practices are resulting in improvements to plant reliability, operating time, and recovery.
- Unit costs for milling in the first quarter included a portion of the costs associated with the second planned shutdown of the year that started on April 1. The Company’s planned mill shutdowns occur every 10 weeks.
- A total of 26.6 Mt (ore and waste) was mined in the first quarter (equivalent to mining rates of 296,000 tpd), representing the Company’s best ever first quarter on record.
- Progress continues with improving maintenance and operating practices, including drill and blast and improving road conditions.
- Unit costs for mining in the first quarter reflected slightly lower mine output than planned.
- Run-of-mine stockpiles stood at 5.5 Mt grading 0.62 g/t (approximately 110,000 ounces) at end of first quarter, unchanged from year-end.
- Unit costs for site G&A and other in the first quarter were in line with plan, reflecting higher budgeted First Nations’ payments than the prior year.
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