Detour Gold Reports Third Quarter 2018 Results
Press Release
TORONTO, Oct. 24, 2018- Detour Gold Corporation (TSX: DGC) (“Detour Gold” or the “Company”) reports its operational and financial results for the third quarter of 2018.
This release should be read in conjunction with the Company’s third quarter 2018 Financial Statements and MD&A on the Company’s website or on SEDAR. All amounts are in U.S. dollars unless otherwise indicated. All references to non-IFRS measures are denoted with “o” and are discussed at the end of this news release.
Q3 2018 Highlights
- Gold production of 151,402 ounces
- Mill throughput of 59,219 tpd and mining rate of 304,000 tpd
- Total cash costso (“TCC”) of $798 per ounce sold and all-in sustaining costso (“AISC”) of $1,377 per ounce sold
- Revenues of $170.0 million on gold sales of 139,821 ounces at an average realized priceo of 1,214 per ounce
- Earnings from mine operations of $15.0 million
- Net earnings of $12.7 million ($0.07 per basic share) and adjusted net losso of $1.5 million ($0.01 per basic share)
- Cash and cash equivalents of $156.3 million at September 30, 2018
- Company’s revolving credit facility extended by one year from July 2021 to July 2022
- 2018 guidance unchanged
Frazer Bourchier, Chief Operating Officer, commented on the third quarter operational results: “The mine and mill performance highlight progressive quarterly improvements throughout the year, with the highest mining rates achieved over a quarter since operations commenced. The operational results in the third quarter reflect in part the progress we are making on our key strategic focus areas and associated action plans. We anticipate efficiency improvements with sustainable benefits to continue over the next 18 to 24 months.”
Q3 Update on Operational Improvement Strategy
The Company continues to advance on several key strategic operational improvements with the objective of facilitating the execution of the 2018 life of mine plan (“2018 LOM Plan”) over the near term. Progress in the third quarter included:
- Appointment of Mine General Manager
- Hired additional technically experienced senior site leaders
- Completed in-depth audit of process plant operations, maintenance and mining
- Continuing audit of contractor management and project management
- Commenced required mill capital projects
- Introduced a business improvement site-based division
- Ongoing organizational structure evaluation
- Progressed improvements in operating procedures
- Developed mine to mill interface business optimization process changes
- Operating systems skills training and support personnel planning
Q3 2018 Results
Operational results
- Gold production totaled 151,402 ounces in the third quarter.
- Mill throughput was 5.4 million tonnes (Mt) at a head grade of 0.97 grams per tonne (g/t) and average recoveries of 89.3%.Improvements to plant reliability and operating time are being addressed by the ongoing capital projects and by modifications to maintenance and operating practices.
- A total of 28.0 Mt (ore and waste) was mined in the third quarter (equivalent to mining rates of 304,000 tpd), in line with plan and representing the most tonnes mined in a quarter since commencement of operations. The progress during the quarter highlights improving maintenance and operating practices.
- As part of the operating plan, run-of-mine stockpiles decreased to 5.8 Mt grading 0.62 g/t (approximately 115,000 ounces) during the third quarter.
IBF4
