TORONTO, May 2, 2019 /CNW/ - 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.
Detour Lake Operation Statistics
|
Q1
2019
|
Q4 2018
|
Q3
2018
|
Q2
2018
|
Q1
2018
|
Ore mined
(Mt)
|
5.3
|
5.3
|
4.3
|
4.9
|
5.8
|
Waste mined
(Mt)
|
21.3
|
22.7
|
23.7
|
21.4
|
16.7
|
Total mined
(Mt)
|
26.6
|
28.0
|
28.0
|
26.3
|
22.5
|
Strip ratio
(waste:ore)
|
4.1
|
4.3
|
5.6
|
4.4
|
2.9
|
Mining rate (k
tpd)
|
296
|
305
|
304
|
289
|
250
|
|
|
|
|
|
|
Ore milled
(Mt)
|
5.2
|
5.6
|
5.4
|
5.1
|
4.6
|
Head grade (g/t
Au)
|
1.00
|
0.98
|
0.97
|
1.06
|
1.17
|
Recovery
(%)
|
92.2
|
90.9
|
89.3
|
88.9
|
91.1
|
Mill throughput
(tpd)
|
57,880
|
60,300
|
59,219
|
55,825
|
50,860
|
|
|
|
|
|
|
Ounces produced
(oz)
|
154,709
|
158,200
|
151,402
|
154,385
|
157,141
|
Ounces sold
(oz)
|
157,723
|
172,935
|
139,821
|
146,856
|
151,060
|
|
|
|
|
|
|
Average realized
priceo ($/oz)
|
$1,304
|
$1,228
|
$1,214
|
$1,305
|
$1,330
|
Total cash
costso ($/oz sold)
|
$739
|
$712
|
$798
|
$723
|
$744
|
AISCo ($/oz sold)
|
$1,044
|
$1,102
|
$1,377
|
$1,104
|
$1,072
|
|
|
|
|
|
|
Miningo,1 (Cdn$/t
mined)
|
$3.05
|
$2.92
|
$3.01
|
$3.25
|
$3.75
|
Millingo (Cdn$/t milled)
|
$10.60
|
$9.65
|
$9.74
|
$12.50
|
$11.60
|
G&A and
othero,2 (Cdn$/t milled)
|
$4.11
|
$3.60
|
$3.48
|
$3.96
|
$4.61
|
1.
|
Includes capitalized
stripping in excess of the average strip ratio of 3.4 in current
LOM plan.
|
2.
|
Includes costs
related to agreements with Indigenous communities.
|
Note: Totals may not
add due to rounding.
|
Q1 2019 Update on Operational Focus Areas
The Company continues to advance its key strategic operational
objectives for 2019. Progress in the first quarter included:
- Embed Condition-Based Maintenance (CBM) – reliability team
staffed, CBM nearly fully integrated with proactive planned and
scheduled maintenance approach to increase equipment reliability,
completion expected in Q4 2019.
- Establish Business Improvement Team (focus on efficiencies) –
main focus on drill and blast, haul truck cycle efficiencies,
loading practices, mobile fleet management, and mill throughput
improvements.
- Contractor management and Projects management – progressing on
resourcing expertise and implementing better systems.
- Automation and data analytics – tele-remote drills now
operating and real-time remote operational data capture with
effective reports and dashboards near completion for effective
short interval operational control.
- Processing plant capital projects – approximately 60% completed
(started in Q1 2018).
- TMA Cell 2 construction – new leadership, mostly on schedule
with new earthworks operating practices and project management
reporting.
- HR recruitment and retention strategy – progressing on
recruitment, performance management, pay for performance and talent
review strategies, including succession planning.
- Mine planning enhancements – added expertise to mine Technical
Services department, advancing work on grade control model for
better gold grade predictions by accounting for the positive block
model reconciliation since start of production.
Q1 2019 Financial Review
- Revenues for the first quarter were $206.1 million on the sale of 157,723 ounces of
gold at an average realized priceo of $1,304 per ounce.
- Cost of sales for the first quarter totaled $162.3 million, including $45.2 million of depreciation.
- Total cash costso were $739 per ounce sold in the first quarter.
- AISCo were $1,044 per
ounce sold in the first quarter, mainly reflecting lower sustaining
capital expenditures than projected for the quarter. Sustaining
capital expenditures are expected to progressively increase over
the remainder of the year with the construction of Cell 2 of the
tailings facility.
- Sustaining capital expenditures totaled $40.3 million for the first quarter, including
$9.3 million of deferred stripping.
The expenditures included $12.7
million for mining (mainly for major component replacements
for the mobile fleet), $7.7 million
for the ongoing construction of the tailings facility, $6.9 million for the processing plant, and
$3.7 million for site
infrastructure.
- Earnings from mine operations for the first quarter totaled
$43.8 million.
- Net earnings for the first quarter were $38.9 million ($0.22 per basic share). Adjusted net
earningso in the first quarter amounted to $18.3 million ($0.10 per basic share).
Liquidity and Capital Resources
- As at March 31, 2019, the Company
had $201.1 million of cash and cash
equivalents, approximately $220
million available from its bank credit facility, and net
debto of approximately $49
million.
Financial Risk Management
The Company has established financial risk management programs
for its 2019 gold sales, Canadian dollar expenditures, and diesel
fuel requirements. These programs are in place to reduce a portion
of the Company's exposure to volatile markets and to lock-in known
rates for budgeting purposes. As at March
31, 2019, the Company has the following positions:
- 204,000 gold ounces of gold collars on 45% to 50% of the
Company's remaining 2019 gold sales at an average floor price of
$1,250 per ounce and participation up
to an average ceiling price of $1,425
per ounce. These collars mature relatively evenly over 2019.
- $325 million of zero-cost collars
whereby it can sell U.S. dollars at an average rate of 1.28 and can
participate up to an average rate of 1.35. These collars mature
relatively evenly over 2019 and represent a hedge coverage ratio of
approximately 70% of the Company's estimated 2019 Canadian dollar requirements for the
remainder of the year. In April, the Company added $80 million of zero-cost collars protecting an
average floor price of 1.30 and allowing participation up to an
average ceiling price of 1.37 for the first half of 2020.
- 25 million litres of diesel fuel contracts at an average rate
of C$0.85 per litre, which settle on
a net basis. These contracts represent approximately 40% of the
Company's diesel fuel requirements for the remainder of 2019.
Selected Financial Information
(in $ millions unless
specified)
|
Q1
2019
|
Q4
2018
|
Q3
2018
|
Q2
2018
|
Q1
2018
|
Metal
sales
|
206.1
|
212.8
|
170.0
|
191.8
|
201.4
|
Production
costs
|
117.1
|
125.9
|
112.2
|
106.7
|
112.9
|
Depreciation
|
45.2
|
53.7
|
42.8
|
38.6
|
37.5
|
Cost of
sales
|
162.3
|
179.6
|
155.0
|
145.3
|
150.4
|
Earnings from mine
operations
|
43.8
|
33.2
|
15.0
|
46.5
|
51.0
|
|
|
|
|
|
|
Net earnings
(loss)
|
38.9
|
(32.4)
|
12.7
|
8.8
|
9.9
|
Net earnings (loss)
per share (basic)
|
0.22
|
(0.19)
|
0.07
|
0.05
|
0.06
|
Adjusted net earnings
(loss)o
|
18.3
|
17.0
|
(1.5)
|
21.3
|
28.2
|
Adjusted net earnings
(loss) per shareo
|
0.10
|
0.10
|
(0.01)
|
0.12
|
0.16
|
Note: Totals may not
add up due to rounding.
|
Exploration Activities
- In the first quarter of 2019, the Company completed its winter
drilling program with 7,502 metres in 26 holes testing the western
extension of Zone 58N and several exploration targets east and
northeast of Zone 58N. The drilling program west of Zone 58N was
successful in delineating gold mineralization 150 metres west of
the current mineral resource. Further drilling east and up to 1
kilometres northeast of Zone 58N did not intersect significant gold
mineralization.
- The Company completed 50 line-kilometres of geophysical surveys
in the Lower Detour area (Zone 58N area and Hopper Lake area,
located 11 kilometres west of Zone 58N). This work will assist in
identifying additional targets for a summer drilling program.
2019 Guidance
The guidance for 2019 remains
unchanged.
|
2019
Guidance
|
Gold production
(oz)
|
570,000-605,000
|
Total cash costs
($/oz sold)
|
$790-$840
|
AISC ($/oz
sold)
|
$1,175-$1,250
|
Total capital
expenditures (millions)
|
$190-210
|
Conference Call
The Company will host a
conference call and webcast at 10:00 AM E.T.
on Friday, May 3, 2019. Access to the conference call is as
follows:
- Via webcast, go to www.detourgold.com and click on the "Q1 2019
Results Conference Call and Webcast" link on the home page
- By phone toll free in North
America 1-800-319-4610
- By phone Toronto local and
internationally 416-915-3239
A playback will be available until June
3, 2019 by dialing 604-674-8052 or 1-855-669-9658 within
Canada and the United States, using pass code 3113. The
webcast and presentation slides will be archived on the Company's
website.
Technical Information
The scientific and technical
content of this news release was reviewed, verified and approved by
David Londono, Operations Manager, a
Qualified Person as defined by Canadian Securities Administrators
National Instrument 43-101 "Standards of Disclosure for Mineral
Projects."
Annual and Special Meeting of Shareholders
Detour
Gold's Annual and Special Meeting of Shareholders will be held on
June 5, 2019 at 2:00 PM E.T. in the St. Andrew's Lounge
(27th Floor) of Vantage Venues at 150 King Street West
in Toronto, Ontario.
About Detour Gold
Detour Gold is a mid-tier gold
producer in Canada that holds a
100% interest in the Detour Lake mine, a long life large-scale open
pit operation. Detour Gold's shares trade on the Toronto Stock
Exchange under the trading symbol DGC.
For further information, please contact:
Mick McMullen,
President & CEO
|
Laurie Gaborit, VP
Investor Relations
|
Tel:
416-304-0800
|
Tel:
416-304-0581
|
|
|
Detour Gold
Corporation, Commerce Court West, 199 Bay Street, Suite 4100, P.O.
Box 121, Toronto, Ontario M5L 1E
|
Non-IFRS Financial Performance Measures
(o)
The Company has included certain
Non-IFRS measures in this document with no standard meaning under
International Financial Reporting Standards ("IFRS"): total cash
costs, all-in sustaining costs, unit costs, average realized gold
price, adjusted net earnings and adjusted net earnings per basic
share. Refer to Non-IFRS Financial Performance Measures in the
Company's 2018 MD&A for further information.
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.
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 as
the sum of total cash costs (as described below), share-based
compensation, corporate general and administrative expense,
exploration and evaluation expenses that are sustaining in nature,
reclamation cost accretion, sustaining capital including deferred
stripping, realized gains and losses on hedges due to operating and
capital costs, but excluding proxy contest costs, all divided by
the total gold ounces sold to arrive at a per ounce figure.
Total cash costs
Detour Gold
reports total cash costs on a sales basis. Total cash costs include
production costs such as mining, processing, refining and site
administration, agreements with Indigenous communities, less
share-based compensation and net of silver sales divided by gold
ounces sold to arrive at total cash costs per gold ounce sold. The
measure also includes other mine related costs incurred such as
mine standby costs and current inventory write downs. Production
costs are exclusive of depreciation and depletion. Production costs
include the costs associated with providing the royalty in-kind
ounces.
All-in sustaining costs and total cash costs do not have any
standardized meaning whether under IFRS or otherwise and therefore
may not be comparable to other issuers. Accordingly, other
companies may calculate these measures differently as a result of
differences in underlying principles and policies applied.
Differences may also arise to a different definition of sustaining
versus non-sustaining capital. These 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.
|
Three months
ended
|
|
|
March 31
|
In millions of
dollars, except where noted
|
2019
|
2018
|
|
|
|
Gold ounces
sold
|
157,723
|
151,060
|
|
|
|
Total Cash Costs
Reconciliation
|
|
|
Production
costs
|
$
|
117.1
|
$
|
112.9
|
Less: Share-based
compensation
|
-
|
-
|
Less: Silver
sales
|
(0.5)
|
(0.5)
|
Total cash
costs
|
$
|
116.6
|
$
|
112.4
|
Total cash costs per
ounce sold
|
$
|
739
|
$
|
744
|
|
|
|
All-in Sustaining
Costs Reconciliation
|
|
|
Total cash
costs
|
$
|
116.6
|
$
|
112.4
|
Sustaining capital
expenditures1
|
40.3
|
45.0
|
Sustaining
leases5
|
0.6
|
-
|
Accretion on
decommissioning and restoration provision
|
0.1
|
-
|
Share-based
compensation
|
-
|
-
|
Realized (gain) loss
on operating hedges2
|
0.1
|
(0.1)
|
Corporate
administration expense3
|
6.5
|
4.4
|
Sustaining
exploration expenditures4
|
0.5
|
0.3
|
Total all-in
sustaining costs
|
$
|
164.7
|
$
|
162.0
|
All-in sustaining
costs per ounce sold
|
$
|
1,044
|
$
|
1,072
|
1Based on
property, plant and equipment additions per the cash flow
statement, which includes deferred stripping. Non-sustaining
capital expenditures included in the cash flow statement have been
excluded. Sustaining capital expenditures include the value of
commissioned assets with deferred payments. Non-sustaining capital
expenditures primarily relate to the West Detour
project.
|
|
2Includes
realized gains and losses on derivative instruments related to
operating hedges (foreign exchange and diesel hedges only) as
disclosed in the "Derivative instruments" section of this document.
These balances are included in the statement of comprehensive
earnings, within caption "net finance cost".
|
|
3Includes
the sum of corporate administration expense, which includes
share-based compensation, per the statement of comprehensive
earnings, excluding depreciation and selected non-sustaining
activities within those figures.
|
|
4Includes
the sum of sustaining exploration and evaluation expense, which
includes share-based compensation, per the statement of
comprehensive earnings, excluding depreciation within those
figures. Non-sustaining exploration and evaluation expense
primarily relates to costs associated with Zone 58N, regional
exploration, and Burntbush property.
|
|
5Includes
the sum of principal and interest charges on Right-of-Use Assets
identified during IFRS 16 adoption. These principal charges were
previously treated as production costs and corporate administration
expenses before the adoption of IFRS 16 on January 1,
2019.
|
Unit costs
Detour Gold reports the following
unit costs:
Mining unit costs: calculated as mining costs divided by total
tonnes mined (ore+waste).
Processing unit costs: calculated as processing costs (including
bullion delivery and refining) divided by total tonnes milled.
G&A unit costs: calculated as site G&A costs, including
costs related to agreements with Indigenous communities divided by
total tonnes milled.
Average realized price and Average realized
margin
Average realized price and average realized
margin per ounce sold are used by management and investors use
these measures to better understand the gold price and margin
realized throughout a period.
Average realized price is calculated as metal sales per the
statement of comprehensive earnings (loss) and includes realized
gains and losses on gold derivatives, less silver sales. Average
realized margin represents average realized price per gold ounce
sold less total cash costs per ounce sold.
|
|
Three months
ended
|
|
March 31
|
In millions of
dollars, except where noted
|
2019
|
2018
|
|
|
|
Metal
sales
|
$
|
206.1
|
$
|
201.4
|
Realized (gain) loss
on gold contracts
|
-
|
-
|
Silver
sales
|
(0.5)
|
(0.5)
|
Revenues from gold
sales
|
$
|
205.6
|
$
|
200.9
|
Gold ounces
sold
|
157,723
|
151,060
|
Average realized
price per gold ounce sold
|
$
|
1,304
|
$
|
1,330
|
Less: Total cash
costs per gold ounce sold
|
(739)
|
(744)
|
Average realized
margin per gold ounce sold
|
$
|
565
|
$
|
586
|
Adjusted net earnings (loss) and Adjusted basic net
earnings (loss) per share
Adjusted net earnings (loss)
and adjusted basic net earnings (loss) per share are used by
management and investors to measure the underlying operating
performance of the Company. Presenting these measures from period
to period helps management and investors evaluate earnings trends
more readily in comparison with results from prior periods.
Adjusted net earnings (loss) is defined as net earnings (loss)
adjusted to exclude specific items that are significant, but not
reflective of the underlying operations of the Company, including:
the impact of foreign exchange gains and losses, unrealized and
non-cash fair value gains and losses of financial instruments,
accretion on long-term debt, impairment provisions and reversals
thereof, and other unusual or non-recurring items (such as proxy
contest costs). The tax effect of adjustments, as well as the
impact of foreign exchange translation on non-monetary assets
related to deferred taxes, is presented in the income and mining
tax adjustments line.
Adjusted basic net earnings (loss) per share is calculated using
the weighted average number of shares outstanding under the basic
method of earnings per share as determined under IFRS.
|
|
Three months
ended
|
|
|
March 31
|
In millions of
dollars and shares, except where noted
|
2019
|
2018
|
|
|
|
Basic weighted
average shares outstanding
|
175.6
|
174.9
|
|
|
|
Adjusted net
earnings and Adjusted basic net earnings per share
reconciliation
|
|
|
|
|
|
Earnings before
taxes
|
$
|
40.4
|
$
|
38.6
|
Adjusted
for:
|
|
|
Accretion on
debt1
|
0.2
|
0.8
|
Non-cash unrealized
(gain) loss on derivative instruments2
|
(7.3)
|
2.1
|
Foreign exchange (gain)
loss1
|
(1.0)
|
1.2
|
Adjusted earnings
before taxes
|
$
|
32.3
|
$
|
42.7
|
|
|
|
Income and mining taxes
(expense) recovery
|
(1.5)
|
(28.7)
|
Income and mining tax
adjustments
|
(12.5)
|
14.2
|
Adjusted income
and mining tax expense
|
$
|
(14.0)
|
$
|
(14.5)
|
|
|
|
Adjusted net
earnings
|
$
|
18.3
|
$
|
28.2
|
Adjusted basic net
earnings per share
|
$
|
0.10
|
$
|
0.16
|
1Balance
included in the statement of comprehensive earnings caption "Net
finance cost". The related financial statements include a detailed
breakdown of "Net finance cost".
|
|
2Includes
unrealized gains and losses on derivative instruments as disclosed
in the "Derivative Instruments" note in the related financial
statements. The balance is grouped with "Net finance cost" on the
statement of comprehensive earnings.
|
|
3Includes
proxy contest costs and vesting of RSUs, PSUs and options as a
result of the deemed Change of Control.
|
Net debt
Net debt is comprised of the face
value of the Company's long-term debt less cash and cash
equivalents. The Company believes that, in addition to conventional
measures prepared in accordance with IFRS, are used to evaluate the
Company's financial position and its ability to take on new debt in
the future, purchase new assets or withstand adverse economic
conditions.
Additional IFRS Financial Performance Measures
The
Company has included the additional IFRS measure "Earnings from
mine operations" in the news release. The Company believes that
this measure provides useful information to investors as an
indication of the Company's principal business activities before
consideration of how those activities are financed, sustaining
capital expenditures, corporate administration expense, exploration
and evaluation expenses, loss on disposal of assets, finance income
and costs, and taxation.
Cautionary Note regarding Forward-Looking Information
This news release contains certain forward-looking information and
forward-looking statements, as defined in applicable securities
laws (collectively referred to herein as "forward-looking
statements"). Forward-looking statements reflect current
expectations or beliefs regarding future events or the Company's
future performance. All statements other than statements of
historical fact are forward-looking statements. Often, but
not always, forward-looking statements can be identified by the use
of words such as "plans", "expects", "is expected", "budget",
"scheduled", "estimates", "continues", "forecasts", "projects",
"predicts", "intends", "anticipates", "targets" or "believes", or
variations of, or the negatives of, such words and phrases or state
that certain actions, events or results "may", "could", "would",
"should", "might" or "will" be taken, occur or be achieved.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the Company's
actual results, performance or achievements to differ materially
from those expressed or implied by such forward-looking statements.
All forward-looking statements, including those herein are
qualified by this cautionary statement. Accordingly, readers
should not place undue reliance on forward-looking statements. The
forward-looking statements in this news release speak only as of
the date of this news release or as of the date or dates specified
in such statements.
Specifically, this press release contains forward-looking
statements regarding future opportunities to be realized and the
creation of shareholder value; achieving predictable and consistent
operational results and shift towards the optimization phase by
year-end 2019; the Company's ability to achieve and progress
towards its 2019 annual guidance and the 2018 LOM Plan (as defined
below); fourth quarter 2019 expected completion to embed
Condition-Based Maintenance; sustaining capital expenditures
expected to progressively increase over the remainder of the year
with the construction of Cell 2 of the tailings facility, 2019 gold
production of between 570,000 and 605,000 ounces; 2019 total cash
costs of between $790 and
$840 per ounce sold; AISC of between
$1,175 and $1,250 per ounce sold; and 2019 total capital
expenditures of between $190 to
$210 million.
Inherent in forward-looking statements are risks, uncertainties
and other factors beyond the Company's ability to predict or
control. These risks, uncertainties and other factors
include, but are not limited to, the results of the life of mine
plan ("2018 LOM Plan"), 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, support of
the Company's Indigenous communities, interest rate and exchange
rate fluctuations, general economic conditions and other risks
involved in the gold exploration, development and production
industry, as well as those risk factors listed in the section
entitled "Description of Business - Risk Factors" in Detour Gold's
2018 Annual Information Form ("AIF") and in the continuous
disclosure documents filed by Detour Gold on and available on SEDAR
at www.sedar.com. Readers are cautioned that the foregoing list of
factors is not exhaustive of the factors that may affect
forward-looking statements. Actual results and developments and the
results of the 2018 LOM Plan are likely to differ, and may differ
materially or materially and adversely, from those expressed or
implied by forward-looking statements, including those contained in
this news release. Such statements are 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
capital costs; results of operations; the Company's available cash
resources; the Company's ability to attract and retain skilled
staff; the mine development and production schedule and related
costs; dilution control; sensitivity to metal prices and other
sensitivities; the supply and demand for, and the level and
volatility of the price of, gold; timing of the receipt of
regulatory and governmental approvals for development projects and
other operations; the timing and results of consultations with the
Company's Indigenous partners; the supply and availability of
consumables and services; the exchange rates of the Canadian dollar
to the U.S. dollar; energy and fuel costs; required capital
investments; estimates of net present value and internal rate of
returns; the accuracy of mineral reserve and mineral resource
estimates, production estimates and capital and operating cost
estimates and the assumptions on which such estimates are based;
market competition; ongoing relations with employees and impacted
communities and general business and economic conditions; and
general business and economic conditions.
The Company undertakes no obligation to update publicly or
otherwise revise any forward-looking statements 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.
SOURCE Detour Gold