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    Corporate Presentation Corporate Presentation Presentation Transcript

    • BUILDINGCANADA’SLARGESTGOLD MINEProduction Early 2013 Corporate Presentation November 20-23, 2012 1
    • 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 the 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, financial analysis of the project, commencement of operations, 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.2
    • NI-43 101 Disclosure Information Containing Estimates of Mineral Reserves and Resources 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.3
    • Invest in Detour Gold Our Vision  Focus on a world-class asset – Detour Lake  Canada’s largest pure gold play with 15.6 M oz in reserves  Construction progressing on schedule (95% as of October 31)  One of the best cash flow/share opportunities  Gold production starting in Q1 2013  Average annual gold production of 657,000 oz  Excellent organic growth potential (5 year plan)  Potential expansion of mill throughput4
    • Share Capital OPTIONS & FN SHARE COMMITMENTS ISSUED AND 8.5 M OUTSTANDING FULLY DILUTED CONVERTIBLE 113.1 M 134.6 M NOTES 13.0 M  Market cap: C$3.1 billion  Cash position: C$348 million  Major shareholders:  Paulson & Co. 15%  Fidelity Mgmt 8%  Detour Gold Mgmt <2%  Institutions total >90% Note: Share data at October 31, 2012 and cash position at September 30, 2012.5
    • Share Capital 1000% Share Issuance vs. Performance 900% DGC 08/11 800% 660% total return since IPO Jan. 2007 to Present Total Return 700% DGC DGC 01/12 600% 07/10 500% DGC 04/08 400% Randgold DGC 300% 11/09 DGC 200% 07/09 Eldorado Osisko Buenaventura AGI (239%) 100% Aurizon G IMG Newcrest Yamana IPO NEM ABX AEM Great Basin 0% Anglo Gold Ashanti Hecla AuRico (209%) CG Goldfields Kinross Gabriel Eco Oro GSC Andina Source: BMO, Aug. 2012 -100% 0 50 100 150 200 Jan. 2007 to Present % Change in Shares Outstanding Note: Date of DGC equity financings6
    • Successful Focused Approach Record Timing from “Discovery” to Projected Production Detour Lake in 6 years 2007 2009 2010 2011-12 2013 PRODUCTION 2013 ACQUISITION PRE-FEASIBILITY FEASIBILITY DEVELOPMENT PRODUCTION /DISCOVERY STUDY STUDY & PERMITTING7
    • Detour Gold 2012 Objectives • Mineral reserves/resources update for 2011 year-end • Top up of $277 million to complete the project and working capital • Second 45 km segment of transmission line complete • 230 kV transmission line connection in Q3 • Phase 1 drilling (49,000m) for Block A pre-feasibility study  Updated mine plan & operational forecast in Q3  Meeting employment ramp up schedule (396 full-time employees at site and Cochrane)  Commissioning mills in Q4  Ore stockpile of 2.3 Mt available in Q4 for processing  2012 year-end = 20 haul trucks + 4 shovels8
    • Growing Reserve/Resource Base Resource Growth Exceeding 750% Since IPO Date Accumulative Resources/Reserves (M oz) DGC Drilling Inferred M&I 2P 10M 20M 30M 2005-05 Estimated by Pelangio 2006-09 DGC due diligence 2007-12 50,000m 2008-06 123,000m 2009-09 249,000m 8.8 2010-06 334,000m $850/oz 11.4 2011-01 430,000m $850/oz 14.9 2012-01 523,000m $850/oz 15.69
    • Detour Lake Profile September Detour Lake 2012 Mine Plan Open pit @ 0.5 g/t cut-off 20,600E Production Start Q1 2013 OP Reserves (M oz) 15.6 Mill throughput (tpd) 55,000 Strip Ratio (waste:ore) 3.7 16,500E Gold recoveries 91% Average grade (g/t) 1.03 Estimated mine life (yrs) 21.5700 m 1.0 g/t Au Avg. Production (oz/yr) 657,000 0.5 - 1.0 g/t Au <0.5 g/t Au Cash operating costs (C$/oz) $710 Total cash costs (C$/oz) $749 Initial Capex (C$ B) 1.45 Note: Gold price assumptions: US$1,600/oz for 2013, US$1,500/oz for 2014, and US$1,400/oz for 2015. 10
    • Updated LOM Gold ProductionGold Production (‘000 oz) Grade (g/t Au)800 1.6 Avg. 657,000 oz/yr700 1.4600 1.2500 1.0400 0.8300 0.6200 0.4100 0.2 0 011
    • Updated Operating Costs Breakdown of 2013-14 TCC Operating Costs (LOM) C$/t milled C$/t mined C$/oz Mining costs 11.65 2.49 388 LABOUR Processing cost 7.83 -- 260 18% POWER G&A 1.86 -- 62 12% DIESEL Cash operating costs 21.34 -- 710 MAINTENANCE 8% Royalty (2%) and other 1.26 -- 42 22% G&A Refining 0.12 -- 4 5% Silver credit (0.20) -- (7) CONSUMABLES ROYALTY+ OTHER Total cash costs (TCC) 22.52 -- 749 29% (2% NSR) 6%  2013 TCC estimated between C$800/oz and C$900/oz (on commercial production of 200,000 oz to 250,000 oz sold)  10% change in diesel or power = $9/oz change in TCC  10% change in Cdn$ FX rate = $63/oz in TCC12
    • Capex & Sustaining Capital Spent PCE Capital Expenditures (C$ M) 09/30/2012 11/2011 Mining Fleet and Facilities 180 203 Crushing and Processing (P&E) 548 565 Tailings and Water Mgmt 33 65 Infrastructure and Power line 146 156 Other Indirect 191 310 EPCM 89 101 12-10-22 Contingency - 50 Total (pre-production) 1,187 1,450  Expected to finish within 3% i.e. between $1.46 and $1.5 billion  Estimated LOM sustaining capital of C$1.2 billion:  2013 = C$180 M  2014 = C$140 M Note: As of September 30, 2012, the Company has approximately $348 million in cash and short-term investments sufficient to fully finance the remaining project expenditures ($270-$310 million).13
    • Financial Analysis Base Case Assumptions  Gold - US$1,200/oz (1)  Power Cdn $0.065/kwh  F/X - $Cdn/$US = 1.00  Diesel US$100/barrel (WTI) Base Case (1) US$ Billions Undiscounted (0%) 5.0% Pre-tax cash flow 4.3 1.7 Net cash flow after tax 3.0 1.1 Pre-tax IRR 14.4% 1. Gold price US$1,600/oz for 2013, US$1,500/oz for 2014, and US$1,400/oz for 2015. @ US$1,600/oz US$ Billions Undiscounted (0%) 5.0% Pre-tax cash flow 9.4 4.4 Net cash flow after tax 6.6 3.0 Pre-tax IRR 24.6%14 49
    • DETOUR LAKEDEVELOPMENT 15Progressing on Schedule
    • Detour Lake: We are on Schedule Gold Production Projected in Q1 2013 2010 2011 2012 2013 Construction Schedule Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Award of Engineering Contract Award of PCM Contract Detailed Engineering Construction Camp (1,200 people) Power line (Phase 1&2) - Electrification 1 2 Equipment purchase/delivery/assembly Pre-production stripping Process Plant - Commissioning start-up Tailings Dam Construction (first cell) Provincial Permits/Aboriginal IBAs Federal Permits Start production and ramp up16
    • Mining is Ramping Up 2012 Pre-Stripping Status (10/31/2012) Overburden/Till 12.8 Mt Waste 5.7 Mt Low Grade (0.3-0.5 g/t) 0.7 Mt ORE WASTE Ore 1.1 Mt Total 20.3 Mt 12-08-20 Ore ready to be processed by Q4 2012  Plan to have 2.3 Mt @ 0.81 g/t stockpiled  Average mining rates of +100,000 tpd in last two months  4 crews working on 2 shifts operating 8 haul trucks (CAT 795F) and 2 hydraulic shovels (CAT6060- 34m3 electric and 28 m3 diesel)17
    • Mining is Ramping Up NORTH WASTE MINERALIZED DUMP PLANT SITE ZONE CAMPBELL PIT CURRENT PIT SHAPE APPROX. PIT SHELL AT END OF 2014 Satellite image dated July 201218
    • 2013 Mine Plan Based on January 2013 Startup  Total gold production estimate of 407,000 oz (1)  Pre-commercial production = 144,000 oz  Commercial production = 250,000 oz (excludes 12,715 oz locked in circuit load)  Management guidance: 350,000 to 400,000 oz  Total cash costs between C$800/oz and C$900/oz 1. 2013 production of 394,000 ounces of saleable gold plus 12,715 ounces locked in circuit load.19
    • DETOUR LAKE20 CONSTRUCTION Progressing on Schedule
    • Overview Detour Lake Facilities PROCESSING PLANT STOCKPILE RECLAIM TRUCK SHOP & WAREHOUSE TRUCK WASH MINE OFFICES 12-10-2221
    • Overview Detour Lake Facilities SECONDARY CRUSHERS STOCKPILE RECLAIM GEODESIC DOME PRIMARY CRUSHER 12-10-2222
    • Primary Crusher (up to 100,000 tpd capacity) Gyro is 12-10-02 9 m high 35 m to surface23
    • Stockpile Reclaim 12-10-2224
    • Secondary & Pebble Crushers 12-10-10 12-09-07 12-09-08 12-09-0825
    • Processing Plant Building  Conventional gravity and CIP plant  55,000 tpd (=92% availability of 60,000 tpd capacity)  2 parallel lines (each with 1 secondary cone crusher + 1 SAG & 1 ball mill) SAG MILLS BALL MILLS 12-10-2226
    • Processing Plant Building  Estimated gravity recovery: 30-40%  Estimated overall gold recovery: 91.0%  Leach time 29 hours; leach feed size 80% passing 95 μm CIP TANKS PUMPS 12-10-2227
    • Simple Process Plant @ 92% Availability StockpileGyratory 12 h live capacitycrusher:60” x 113”90,000 tpd Secondary crushers: 2 X XL-1100 Ball mills: SAG mills: 2 X 26’ x 40’6’’, 15MW 67,000 tpd 2 X 36’ x 20’, 15MW 55,000 tpd Pebble crushers: 55,000 tpd 2 X XL-1100 To 73,000 tpd leaching circuit To gravity circuit Circ. load Circ. load From 28 % Leach circuit: 250 % gravity circuit  55,000 tpd + 15% contingency in piping capacity 28
    • Detour Lake Employees & Contractors Construction Phase Operation Phase (Starting 2013) +1,400 workers (at Oct. 31, 2012)  400-500 employees Ramping up DGC team (396)  Rotation 1 week in/out  New modern camp facilities with 400 en-suite rooms completed 29
    • Focus: Hiring Local First On track with ramp up schedule: 396 employees as of October 31, 2012* DIVISION OF LABOUR WORKFORCE ORIGIN COCHRANE FRONT LINE AREA COCHRANE 81% 26% 25% REST OF PROFESSIONAL ONTARIO NORTHERN 19% ONTARIO 3% 44% OTHER 2%  Professional are: MGMT, Eng., Geo., Supt.  Front Line are: Operators, Admin, Support  Continuing focus on hiring local/regional * Excludes Corporate office.  25% of employees are Aboriginal30
    • PLANNING FOR31 ORGANIC GROWTH Under-Explored Greenstone Belt
    • Planning for Organic Growth 5 Year Plan for Successful Organic Growth Large prospective land position of approx. 540 km2 • Two main gold structures with total strike length of >80km • Continue focus on Detour Lake deposit extension (northern structure i.e. Block A) • Test targets on structure south of Detour Lake Future objectives  Grow reserve base to +20 M oz (@ US$850/oz)  Increase mill throughput to above 75,000 tpd for gold production output of +800,000 oz/yr  Find high-grade ore near-surface within trucking distance to supplement mill32
    • Priority #1 – Block A Target Block A Pre-feasibility  Detour Lake deposit open to the west and at depth  Block A Pre-feasibility underway: Phase 1 drilling (49,000 m) completed *Not updated with TWD Dec. 30th PR. On Dec. 1, 2011, Detour Gold announced the acquisition of TWD.33
    • Priority # 1 - Block A Target Priority #1 – Block A TargetBlock A near-surface resource 2012 proposed DH 2012 extension DH Detour Lake DH included in 2011 year-end reserves 2011 year-end reserves = 15.6 M oz DH not included in 2011 year-end reserves Historical DH 34
    • Priority #2 – South Structure +80 km of favourable geology Sunday Lake Option 15.6 M oz in Reserves MMI Survey Coverage MMI Au Anomaly Existing DDH *Note: Excludes drilling around Detour Lake and M zone (Block A). Gold occurrence (OGS) DDH intersection >1g/2m DDH intersection >1g/10m35
    • Evaluating Expansion Opportunities  Best scenario is throughput increase 55,000 to 2012 75,000 tpd @ US$1,200/oz  Start pre-feasibility on block A  Complete feasibility study and assess technical feasibility and 2013 resultant project economics  At >US$1,000/oz and after successful commercial 2014 production is achieved, proceed with plant expansion  Complete expansion within 2 years36
    • Invest in Detour Gold Our Vision  Focus on a world-class asset – Detour Lake  Canada’s largest pure gold play with 15.6 M oz in reserves  Construction progressing on schedule (95% as of October 31)  One of the best cash flow/share opportunities  Gold production starting in Q1 2013  Average annual gold production of 657,000 oz  Excellent organic growth potential (5 year plan)  Potential expansion of mill throughput37
    • ADDITIONALINFORMATION 38
    • Detour Lake Profile January 2011 September 2012 Detour Lake Update (2) Mine Plan(3) Gold price (US$/oz) (1) 850 1,200 Foreign exchange rate (US$/Cdn$) 1.10 1.00 Assumptions Fuel price (US$/barrel) 80 100 Income/mining tax rate (%) 25/10 25/10 Net Smelter Royalty (%) 2 2 Ore milled (Mt) 449.6 470.0 Waste mined (Mt) (4) 1,654 1,734 Mine Strip ratio (waste:ore) 3.9 3.7 Parameters Average gold grade (g/t) 1.03 1.03 Total contained gold (M oz) 14.9 15.6 Estimated gold recovery (%) 91.0 91.0 Total recovered gold (M oz) 13.5 14.1 Mine life (years) 21 21.5 Average annual gold production (oz) 657,000 657,000 1. US$1,600/oz for 2013, US$1,500/oz for 2014, and US$1,400/oz for 2015. 2. Press release Jan. 31, 2011 with Technical Report dated Mar. 15, 2011. 3. Press release Sept. 4, 2012 with Technical Report dated Oct. 18, 2012. 4. Includes low-grade stockpile.39
    • Gold Production/Cost ProfileGold Production (‘000 oz) Total Cash Costs (C$/oz)800 Avg. C$749/oz 900700 850600 800500 750400 700300 650200 600100 550 0 500 Note: Excludes stripping adjustments.40
    • Detour Lake Reserves & Resources As at December 31, 2011 Tonnes Grade Contained Gold @ US$850/oz (millions) (g/t) (‘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.41
    • Block Model – Gold Distribution Approx. 3 M oz between 0.3-0.5 g/t Au 1,600 Stockpile over LOM OK (oz Au) 0.3-0.5 g/t material ID3 (oz Au) 1,400 1,200 Ounces (000’s) 1,000 800 600 400 200 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 2.0 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 3.0 Cut-off BINs42
    • Grade Control DDH RC G/C Bench 6264m DDH RC G/C Bench 6252m43
    • Management & Directors Management  Gerald Panneton  James Mavor  Andrew Croal Founder, President & CEO VP Finance Director Technical Services Director  Rachel Pineault  Laurie Gaborit  Michael Kenyon VP HR & Northern Affairs Director Investor Relations Chairman  James Robertson  Jean-Francois Metail  Paul Martin VP Environment & Director Reserves and Resources CFO Sustainability  Greg Miazga  Pierre Beaudoin  Derek Teevan Director Construction & Engineering Sr. VP Capital Projects VP Aboriginal &  Bill Snelling  Pat Donovan Government Affairs Director Corporate Systems & Controls VP Corporate Development  Eric Josipovic  Christian Brousseau  Julie Galloway Controller Project Manager VP General Counsel &  Drew Anwyll Corporate Secretary Director of Operations  Patrik Gillerstedt Mine Manager Directors  Peter Crossgrove  Michael Kenyon  Jonathan Rubenstein  Louis Dionne  Alex G. Morrison  Graham Wozniak  Robert E. Doyle  Gerald Panneton  Ingrid Hibbard44
    • Contact Information Gerald Panneton President & CEO Email: gpanneton@detourgold.com Phone: 416.304.0800 Laurie Gaborit Director Investor Relations Email: lgaborit@detourgold.com Phone: 416.304.0800 www.detourgold.com45