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.

Detour Gold (CNW Group/Detour Gold)
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
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