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.

Detour Gold (CNW Group/Detour Gold)
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
2019 Guidance Gold production (oz) 570,000-605,000
Total cash costs ($/oz sold) $790-$840
AISC ($/oz sold) $1,175-$1,250

2019 Guidance Review
•Full year projected gold production of between 570,000 and 605,000 ounces.
•The mine plan calls for approximately 115 Mt to be mined from the Detour Lake pit in 2019.
•Mill throughput is expected to range between 21.5 and 22.0 Mt for 2019. Head grade is projected to range between 0.90 and 1.00 g/t, with the lowest grade projected during the second quarter. Mill recoveries are expected to range between 90.5% and 91.5%.
•2019 AISC are expected to range from $1,175 to $1,250 per ounce sold, with total cash costs of $790 to $840 per ounce sold. The AISC are forecast to be above the yearly guidance in the second and third quarter of the year, mainly due to the timing of capital expenditures for the tailings facility construction.
•Capital expenditures are estimated to range between $190 and $210 million. Higher sustaining capital is anticipated for accelerating the construction of Cell 2 of the tailings facility mainly due to slower progress than planned in 2018.

Capital Expenditures ($ millions)
Sustaining expenditures Mining $55
Processing $12
Tailings Management Area $80-90
Site infrastructure, G&A & other $8
Total sustaining expenditures $155-165

Capitalized stripping $35-40
Non-sustaining expenditures $3
Total capital expenditures $190-$210

•Exploration budget of approximately $5 million to focus mainly on drilling and geophysical surveys at a number of key targets on the Detour Lake property. The Company plans to complete approximately 2,500 metres of drilling to better define the northeast and western extensions of Zone 58N. In addition, the Company plans to complete an internal scoping study this year to assess the viability of pursuing an underground exploration and bulk sampling program.
•Corporate general and administrative expense estimated at $21 million and excludes share-based compensation.
•Interest expense estimated at approximately $15 million.
•Depreciation expense expected to be approximately $300 per ounce of gold sold, subject to the Company completing its 2018 year-end reserve and resource estimate.


Principal assumptions used for the 2019 guidance include:
Gold price: $1,250/oz CAD vs US FX rate: 1.28
Diesel fuel price: CAD$0.95 per litre Power cost: CAD$35 per megawatt hour

Sensitivity Analysis for changes affecting full year:
•A $50/oz change in the gold price impacts closing cash by approximately $30 million.
•A $0.05 change in the CAD vs US exchange rate impacts closing cash by approximately $20 million.


2019 Operational Focus and Initiatives
•We expect to further embed critical initiatives commenced in 2018 during the year to progress process plant capital projects and to introduce value-added business improvement plans. The focus remains on increasing production efficiencies while targeting the life of mine plan's benchmark production and cost metrics. Top focus areas for 2019 include:
•Employee retention and performance management
•Tailings dam earthworks construction for Cell 2 including improved project management
•Drill, blast and truck cycle efficiencies including fleet management
•Condition-based maintenance processes for mine and plant
•Business mine planning cycles together with data analytics and short interval controls
•Cost controls including contractor management
•Critical risk awareness and mitigation controls


2019 Financial Risk Management
•The Company has established financial risk management programs for its gold sales, Canadian dollar expenditures, and diesel fuel exposures. These programs are to reduce a portion of the Company's exposure to volatile markets and to lock-in known rates for budgeting purposes.
•As of January 22, 2019, the Company has the following positions:
•120,000 gold ounces of collars have been added giving protection on gold sales at $1,250/oz and participation up to $1,400/oz. These collars mature evenly over 2019.
•$315 million of collars are in place that allow the Company to sell US dollars at no worse than 1.27 and have upside to 1.35. These collars mature relatively evenly over 2019. These contracts along with other spot transactions completed to date in January have secured prices for approximately 60% of the Company's estimated 2019 Canadian dollar requirements.
•35 million litres of diesel fuel contracts at an average rate of CAD$0.85/litre, which settle on a net basis. These contracts are predominantly weighted in the first nine months of 2019 and represent approximately 45% of the Company's 2019 diesel fuel requirements.


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:
•Via webcast, go to www.detourgold.com and click on the "2019 Guidance 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