Detour Gold Corp DRGDF

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Detour Gold Reports Third Quarter 2017 Results

October 25, 2017

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TORONTO, Oct. 25, 2017 (GLOBE NEWSWIRE) -- Detour Gold Corporation (TSX:DGC) (“Detour Gold” or the “Company”) reports its operational and financial results for the third quarter of 2017. This release should be read in conjunction with the Company’s third quarter 2017 Financial Statements and MD&A on the Company’s website or on SEDAR. All amounts are in U.S. dollars unless otherwise indicated.

In this news release, the Company uses the following non-IFRS measures: total cash costs, all-in sustaining costs (“AISC”), realized gold price, average realized margin, adjusted earnings (loss), and adjusted earnings (loss) per basic share. Refer to the Company’s MD&A and at the end of this news release for an explanation and discussion of these non-IFRS measures.

Highlights
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• Gold production of 139,861 ounces for the quarter and 421,417 ounces year to date
• Record mill throughput of 61,548 tpd and mining rate of 283,000 tpd
• Total cash costs of $668 per ounce sold and AISC of $1,032 per ounce sold
• Revenues of $164.0 million on gold sales of 128,498 ounces at an average realized price of $1,273 per ounce
• Earnings from mine operations of $46.7 million
• Net earnings of $41.1 million ($0.24 per basic share) and adjusted earnings of $37.4 million($0.21 per basic share)
• Cash and cash equivalents of $113.7 million at September 30, 2017
• Closed $500 million bank debt facility; drew down $300 million from the facility and placed $329.3 million in escrow to repurchase convertible notes maturing in November 2017
• Signed amended Impact Benefit Agreement with Taykwa Tagamou Nation to include West Detour project

      
“Detour Lake operation continued to improve with record mining and milling rates, although gold production was at the lower end of our projections for the quarter. We expect a strong fourth quarter gold production to meet the mid-range of our annual guidance,” said Paul Martin, President and CEO. “With a strong balance sheet and having generated approximately $60 millionof free cash flow before financing activities in the first nine months of the year, the Company now has the flexibility of further reducing debt in the fourth quarter.”

Q3 2017 Summary Operational Results
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• Gold production totaled 139,861 ounces for the third quarter, mainly reflecting a lower than projected head grade.
   
• Mill throughput averaged a record 5.7 million tonnes (Mt) during the third quarter. Head grade was 0.86 grams per tonne (g/t), mainly impacted by unfavorable grade reconciliation in the central  portion of the orebody and higher mining dilution. Mill recoveries averaged 90%.
   
• A total of 26.1 Mt (ore and waste) was mined in the third quarter (equivalent to mining rates of 283,000 tpd). Both Phase 1 (including the Campbell pit area) and Phase 2 mining are on track with the mine plan to achieve a total of 100 Mt this year.

 

Detour Lake Mine Statistics