Detour Gold Reports Second Quarter 2019 Results
Press Release
TORONTO, July 30, 2019 – Detour Gold Corporation (TSX: DGC) (“Detour Gold” or the “Company”) reports its operational and financial results for the second quarter of 2019. All amounts are in U.S. dollars unless otherwise indicated.
This release should be read in conjunction with the Company’s second 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.
Q2 2019 Highlights
- Safety metrics improving with a decline in the total recordable injury frequency rate (“TRIFR”) to 1.66 for both employees and contractors
- Gold production of 150,079 ounces
- Block model continues to show strong positive reconciliation from ore mined to mineral reserves for the last 18 months
- Total cash costso of $793 per ounce sold
- All-in sustaining costso (“AISC”) of $1,143 per ounce sold
- Revenues of $202.0 million on gold sales of 153,748 ounces at an average realized priceo of $1,309 per ounce
- Debt repayment of $50 million
- Net earnings of $16.0 million ($0.09 per basic share) and adjusted net earningso of $11.3 million ($0.06 per basic share)
- Cash and cash equivalents of $203.4 million at June 30, 2019
- Free cash flowo of $51.6 million
- Net casho of $3.4 million
- Closure Plan amendment for Detour Lake mine submitted to the government in June 2019
- TMA Cell 2 construction continues according to plan
Mick McMullen, President and Chief Executive Officer, stated: “The second quarter was a good operational quarter for the Company where we continued to deliver on guidance and look for improvements within the business. The full impact of the recent rise in the gold price had a limited impact on the Company’s financials for the second quarter and yet we delivered solid cash flows for our shareholders.
The continuing strongly positive block model reconciliation trend has provided additional flexibility, which is to slow down mining rates as more waste tonnes are converted to mill feed while still able to maintain the mill at current maximum capacity. We are currently working towards assessing the long-term potential benefit of this positive trend seen over the last 18 months.
We welcomed Jaco Crouse as our new Chief Financial Officer and have promoted David Londono as our new Mine General Manager. Along with the appointment of Patrice Merrin as Board Chair, our team is now positioned to provide strong leadership and governance going forward.”
Q2 2019 Operational Results
- Safety metrics improving with a decline in the TRIFR to 1.66 for both employees and contractors. The Company has launched a Learning Management system to support the operating departments and re-deployed key support personnel to improve training and safety in the field.
- Gold production totaled 150,079 ounces in the second quarter.
- Mill throughput was 5.4 million tonnes (Mt) despite two planned shutdowns in April and June (only quarter with two planned shutdowns).
- Head grade averaged 0.93 grams per tonne (g/t) with recoveries improving to 92.8%. The significant improvement in recovery is the result of completed and ongoing capital projects at the processing plant combined with better operating practices and a more uniform feed from fragmentation work in the pit.
- A total of 26.9 Mt (ore and waste) was mined in the second quarter (equivalent to mining rates of 296,000 tpd). As a result of the positive block model reconciliation, which has resulted in approximately 20% more ore tonnes at slightly higher grade mined than the mineral reserves in the first half of 2019, there is no need to move as many waste tonnes. In early July, the Company parked one of its CAT 6060 shovels and now plans to mine between 105 to 108 Mt for the year with no negative impact on gold production.
- Run-of-mine stockpiles of 5.2 Mt grading 0.64 g/t (approximately 107,000 ounces) at the end of the second quarter, relatively unchanged from the prior quarter.
IBF4
