2. 2
Forward Looking Information
This presentation contains certain forward-looking information and statements as defined in applicable securities law (referred to herein as
“forward-looking statements”). Forward-looking statements include, but are not limited to, statements with respect to Detour Gold’s future
financial or operating performance; guidance for production, total cash costs, all-in sustaining costs, capital costs, deferred stripping costs,
exploration costs; expected throughput, mining and recovery rates; expected future production and mining activities; opportunities to
optimize the mine operation; the mine plan and economic analysis of the Detour Lake mine including, but not limited to, the life of mine plan,
the waste to ore ratio, processing and production rates, grades, metallurgical recovery rates, operating and sustaining capital costs, and the
projected life of mine, opportunities to optimize the mine operation; the success and continuation of exploration activities, the future price of
gold, reclamation obligations, government regulations and environmental risks.
Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause 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, assumptions and parameters underlying the
life of mine update not being realized, a decrease in the future gold price, discrepancies between actual and estimated production, changes
in costs (including labour, supplies, fuel and equipment), changes to tax rates; environmental compliance and changes in environmental
legislation and regulation, 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 2013 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 availability of financing for exploration and development activities; operating and sustaining capital
costs; the Company’s ability to attract and retain skilled staff; sensitivity to metal prices and other sensitivities; the supply and demand for,
and the level and volatility of the price of, gold; the supply and availability of consumables and services; the exchange rates of the Canadian
dollar to the U.S. dollar; energy and fuel costs; the accuracy of reserve and resource estimates and the assumptions on which the reserve
and resource estimates are based; 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.
All forward-looking statements in this presentation are necessarily based on opinions and estimates made as of the date such statements
are made and are subject to important risk factors and uncertainties, many of which cannot be controlled or predicted. Detour Gold and the
Qualified Persons who authored the associated Technical Report undertake 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.
3. 3
Notes to Investors
The mineral reserve and resource estimates reported in this presentation were prepared in accordance with Canadian National Instrument 43-101 Standards 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 February 4, 2014, Detour Gold announced an updated life of mine plan for the Detour Lake mine. The NI 43-101 compliant Technical Report for this update was
filed on SEDAR on February 4, 2014. The following QPs participated in this update: BBA Inc., under the direction of André Allaire, Eng., Acting President and CEO
and Patrice Live, Eng., Director Mining; SGS Canada Inc., under the direction of Yann Camus, Eng., Project Engineer, 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
and Geotechnical Engineering Group Manager.
The scientific and technical content of this presentation has been reviewed, verified and approved by Drew Anwyll, P.Eng., Senior Vice President Technical
Services, a Qualified Person as defined by Canadian Securities Administrators National Instrument
43-101 “Standards of Disclosure for Mineral Projects”.
Information Containing Estimates of Mineral Reserves and Resources
Non-IFRS Financial Performance Measures
The Company has included non-IFRS measures in this presentation: total cash costs and all-in sustaining costs. 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. Other companies may calculate these measure differently.
Detour Gold reports total cash costs on a sales basis. Total cash costs per gold ounce include production costs such as mining, processing, refining and site
administration, less non-cash share-based compensation and net of silver sales divided by gold ounces sold to arrive at total cash costs per gold ounce sold.
Production costs are exclusive of depreciation and depletion. Production costs include the costs associated with providing the royalty in kind ounces.
Starting in 2015, the Company will report “all-in sustaining costs”. The Company believes this measure more fully defines the total costs associated with producing
gold. The Company calculates all-in sustaining costs per ounce of gold sold as the aggregate of total cash costs (as described above), share-based compensation,
corporate general and administrative expense, exploration and evaluation expenses that are sustaining in nature, reclamation cost accretion, sustaining capital and
deferred stripping costs.
The following items are excluded from all-in sustaining costs: non-sustaining capital expenditures and exploration costs that are expected to materially increase
production, financing costs and tax expense. Consequently, this measure is not representative of all of the Company’s cash expenditures. In addition, the
Company’s calculation of all-in sustaining costs does not include depletion and depreciation expense.
5. 5
2015 Production Guidance (Koz)
Mining friendly jurisdiction
DGC
Detour Lake
AEM/YRI
Canadian
Malartic
AEM
Meadowbank
G
Red Lake
Canadian Intermediate Gold Producer
DOMINANT GOLD
PRODUCER IN CANADA
400-
425
560
475-
525 400
6. 6
Gold Reserves (Moz)
DGC
Detour Lake
(Yr-end 2013)
AEM/YRI
Canadian
Malartic
AEM
Meadowbank
G
Red Lake
Canadian Intermediate Gold Producer
LARGEST RESERVES OF
CANADIAN PRODUCERS
2.1
15.5
8.7
1.2
#1 in Canada
8. 8
VALUE ENHANCEMENTS
Processing fines
Pebble extraction
Increase gold production
Strengthen our balance sheet
EXECUTION OF PLAN
Significant leverage to gold
price and CDN dollar
Low power and declining
diesel costs
ADDED BENEFITS
2015 Drivers to Success
9. 9
third year
of operation
2015
1. Refer to the section on Non-IFRS Performance Measures on slide 3 of this presentation.
2015 Guidance
TCC1
$780-
$850
AISC/oz sold1
$1,050-$1,150
Cost Assumptions (US$)
Gold price of $1,200/oz, diesel fuel price of $0.82 per litre; power cost of $0.04 per
kilowatt hour; and exchange rate of $1.00US:$1.15Cdn.
ACHIEVABLE
475,000 -
525,000
Gold ounces
ESTIMATED
COSTS
ESTIMATED
PRODUCTION
10. 10
2015 Key Targets
PLAN FOR MILL
~54,000 tpd mill throughput
(milling rates of ~2,600 tpoh
at 87% availability)
2
Improve mill availability
and recovery
PLAN FOR MINE
238,000 tpd average mining rate
(approx. 87 Mt total mined)
1
Improve drilling performance
and increase shovel
productivity
FOCUS:FOCUS:
Strong focus on optimization and efficiency
12. 12
200
160
120
80
40
0
Improve mining rates
2015 Mine Plan Upside
0
20
40
60
80
100
120
140
160
180
200
H H H
H
2015 Estimated Production (Koz)
Work towards bringing Q4 stockpiled (SP) ounces into Q3
L
L LL
SP
Higher mining rates
= Lower unit costs
Q1 Q2 Q4Q3
13. 13
Potential to increase production and reduce costs
Targeting 3,000 tpd
(or 0.5 Mt) for H2 2015
No capital required
Re-handling costs only
2015 Start Realizing on Opportunities
Potential 15,000-25,000 oz/yr
at low cost
Economic review underway
< US$2 M for prototype
Use barren pebbles for road
or tailings dam construction
Up to 1 Mt/yr incremental
mill throughput = savings
1PROCESSING OF FINES
2 PEBBLE EXTRACTION
14. 14
Upside for lower costs (US$ M)
2015 Added Benefits vs. Plan
Now 1.25 vs
1.15 budget
If 2015 avg rate
is same as 2014
If 10% lower than
budget US$0.82/L
Up to
$35 M
LOWER
CANADIAN
DOLLAR
COST
REDUCTION
PROGRAM
ELECTRICITY
CONTRACT
BENEFIT
LOWER
DIESEL
PRICE
Consumables
and contractors
$4 M
Probability factor of 50% = approx. $30 M reduction
Up toUp to
$20 M $7 M
15. 15
Goal: Strengthen balance sheet and financial flexibility
Solid Financial Position
No debt
maturities
until Nov.
2017
Short-term
debt to be
repaid in
Q1’15
(US$ M)
Towards repaying convertible notes
1
CREDIT FACILITY
2 Restructure credit & lease facilities
SURPLUS CASH
$57Repaid in
2014
$124
Revolver +
CAT Lease
$500
Convertible
Notes
16. 16
11% of operating costs
LOOK AT HEDGING
DIESEL IN 2015
Prudent Financial Management
Forward sales on 140,000 oz
@ US$1,249/oz
Zero-cost collars for US$115 M
or 30% of opex with a ceiling
of 1.19
CURRENCY EXCHANGE
CONTRACTS
HEDGE UP TO 50% OF
2015 GOLD PRODUCTION
17. 17
Guidance
midpoint
at $1200 /oz Au at $1250 /oz Au Guidance
midpoint
at 1.25 f/x at $1250 /oz Au
2015 Cash Flow Projections
Guidance
midpoint
@ $1,250/oz
F/X 1.25
@ $1,200/oz
F/X 1.25
~$40
~$10
~$65 ~$170
~$140
~$195
Goal: US$100 M surplus cash towards convertible notes
Pro-Forma Net Cash Flow 2015 Yr-end Cash Balance
(US$ M)
Note: Guidance at gold price of $1,200/oz, F/X rate of 1.15 and capex of $123 M
(sustaining + deferred stripping).
Guidance
midpoint
@ $1,250/oz
F/X 1.25
@ $1,200/oz
F/X 1.25
18. 18
Block A (2 Moz M&I resource)1
Processing of fines and
pebble extraction
INCLUDE NEW
OPPORTUNITIES
Tonnage rationalization study
Re-evaluate cut-off grade
Based on current operational
experience
REVIEW OF COST
ESTIMATES
Optimizing Economic Returns
TRADE OFF STUDIES
1. Refer to February 2014 Technical Report: Measured: 1.5 Mt @ 1.21 g/t (57,000 oz);
Indicated: 52.5 Mt @ 1.15 g/t (1.93 M oz).
LOM PLAN
UPDATE IN
H2 2015
19. 19
Continue surface exploration
activities (i.e. geophysical
surveys)
REGIONAL POTENTIAL
Q1’15 DRILLING PROGRAM
Promising Exploration on 630 km2
With purchase of remaining
50% of Sunday Lake
CONSOLIDATED
PROPERTY
3,000 m started at Lower
Detour
Test depth extension of
high-grade mineralization
discovered last year
21. 21
PRODUCTION GROWTH / DECLINING UNIT COSTS
REALIZE VALUE-ENHANCING OPPORTUNITIES
MATERIAL INPUTS TRENDING FAVOURABLY
GROWING CASH FLOW
A GREAT TIME TO BE A
GOLD PRODUCER
