Detour Gold Provides Guidance for 2019
Detour Gold Provides Guidance for 2019 |
[22-January-2019] |
TORONTO, Jan. 22, 2019 /CNW/ - Detour Gold Corporation (TSX: DGC) ("Detour Gold" or the "Company") provides guidance for 2019. Overall, it is in line with the Detour Lake operation's life of mine plan released in June 2018. The Company will host a conference call on Wednesday, January 23, 2019 at 11:00 AM ET.
All amounts are in U.S. dollars unless otherwise indicated. Refer to the end of this news release for an explanation and discussion of the non-IFRS measures total cash costs and all-in sustaining costs ("AISC"). 2019 Guidance
"The Company will continue to execute on its operational strategy for 2019 with the goal of stabilizing the operations by year-end," said Bill Williams, Interim CEO. "The operational initiatives that Frazer Bourchier, COO, put in place during 2018 have produced positive results. We are building on this momentum to further improve efficiencies that will lead to steady-state operations and position the Company towards a strong future." 2019 Guidance Review
Principal assumptions used for the 2019 guidance include:
Sensitivity Analysis for changes affecting full year:
2019 Operational Focus and Initiatives
2019 Financial Risk Management
Conference Call The Company will host a conference call on Wednesday, January 23, 2019 at 11:00 AM ET. Access to the conference call is as follows:
A playback will be available until February 23, 2019 by dialing 604-674-8052 or 1-855-669-9658 within Canada and the United States, using pass code 2910. 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, Senior Manager Mining, a Qualified Person as defined by Canadian Securities Administrators National Instrument 43-101 "Standards of Disclosure for Mineral Projects." About Detour Gold Detour Gold is an intermediate 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:
Detour Gold Corporation, Commerce Court West, 199 Bay Street, Suite 4100, P.O. Box 121, Toronto, Ontario M5L 1E2 Non-IFRS Financial Performance Measures 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 Total cash costs 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. Cautionary Note regarding Forward-Looking Information 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 2019 gold production of between 570,000 and 605,000 ounces, total cash costs of between $790 and $840 per ounce sold and AISC of between $1,175 and $1,250 per ounce sold; the Company continuing to execute on its operational strategy in 2019 with the goal of stabilizing the operations by year-end; further improving efficiencies that will lead to steady-state operations and position the Company towards a strong future; mining 115 Mt from the Detour Lake pit, mill throughput of between 21.5 and 22.0 Mt, head grade of between 0.90 to 1.00 g/t, with the lowest grade projected during the second quarter, mill recoveries of between 90.5% and 91.5%, AISC being above the yearly guidance in the second and third quarter of the year, capital expenditures of between $190 to $210 million and the use and classification of such expenditures, higher sustaining capital for accelerating the construction of Cell 2 of the tailings facility, exploration activities, corporate general and administrative expenses of $21 million (excluding share-based compensation), an interest expense of approximately $15 million, and a depreciation expense of approximately $300 per ounce of gold sold; further embedding critical initiatives commenced in 2018 to progress process plant capital and to introduce value-added business improvement plans; and increasing production efficiencies while targeting the life of mine plan's benchmark production and cost metrics. 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 released in June 2018, gold price volatility, changes in debt and equity markets, the uncertainties involved in interpreting geological data, increases in costs, the 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 2017 Annual Information Form ("AIF") and in the continuous disclosure documents filed by Detour Gold 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 life of mine plan released in June 2018 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 | ||||||||||||||||||||||||||||||||||||||
Company Codes: Toronto:DGC |
© 2019 PR Newswire. All Rights Reserved.