Detour Gold Reports Third Quarter Financial Results

TORONTO, ONTARIO--(Marketwired - Nov 7, 2013) - Detour Gold Corporation (DGC.TO) ("Detour Gold" or the "Company") reports its financial results for the third quarter ended September 30, 2013. All amounts are in U.S. dollars unless otherwise stated.

The Company will host a conference call and webcast tomorrow at 10:00 a.m. Eastern Time (details below). This press release should be read in conjunction with Detour Gold's interim consolidated Financial Statements for the three and nine month periods ended September 30, 2013 and September 30, 2012 and related Management's Discussion and Analysis (MD&A), which can be found on the Company's website www.detourgold.com under the Investor Centre section or on SEDAR www.sedar.com.

Q3 2013 Highlights

  • Commercial production at Detour Lake declared on September 1

  • Gold production of 75,672 ounces (80,765 ounces poured)1 for the quarter

  • Gold sales of $33.1 million in September (first month of commercial production) at an average realized price of $1,340 per ounce2

  • Total cash costs of $1,214 per gold ounce2 and average realized margin2 of $126 per ounce

  • Net loss of $11.8 million or $0.09 per share

  • Cash and short-term investment balance of $156.0 million at end of quarter

1 Includes 24,021 of commercial production gold ounces produced at Detour Lake.

2 Refer to the section on Non-IFRS Financial Performance Measures at end of the press release. Reconciliation of these measures is described in the MD&A on page 10.

Subsequent to Quarter-End

  • Litigation with North America Construction (1993) Ltd. settled for Cdn$24.3 million

  • October gold production of 29,541 ounces

Gerald Panneton, President and CEO commented, "We continue to make good progress on the ramp-up of the Detour Lake mine, having declared commercial production on September 1. We have demonstrated the viability of the design as throughput rates continue to improve towards +50,000 tonnes per day. Our cost performance for the first month of commercial production was in-line with our projections as we are still in the ramp-up period. Improvements in unit costs are expected from quarter to quarter as our on-going efforts to optimize the operation succeed. It has been challenging to provide production guidance during a ramp-up year as there are so many factors that come into play. Even though throughput rates and recoveries are improving and we have started to mine higher grades from Domain #2, we do not anticipate to substantially increase the mill feed to levels that would have permitted us to reach our prior guidance of 270,000 ounces. We have lowered the 2013 production guidance to 240,000 to 260,000 ounces of gold."