Canadian midtier gold producer Detour Gold on Thursday reported weaker adjusted full-year earnings and announced that James Gowans had resigned as chairperson with immediate effect.
The miner, which recently emerged from a proxy battle with Paulson & Co, said Gowans had resigned to focus on other professional commitments. He was originally appointed to the board in August last year, and was named chairperson subsequent to the December 2018 proxy vote.
Dawn Whittaker, a current director of the company, had been appointed interim chairperson and would hold office until the annual general meeting on June 5.
Meanwhile, Detour reported a drop in adjusted earnings for the year to $64.2-million, from $75.1-million in 2017.
Revenue totalled $776-million on the sale of 610 672 oz of gold, at an average realised price of $1 268/oz, compared with $1 256/oz in 2017.
Earnings from mine operations for the year totalled $145.7-million, and net loss for 2018 was $1-million.
All-in sustaining costs increased by 9% to $1 158/oz sold in 2018, but remained below the company’s guidance of between $1 200/oz and $1 280/oz.
This, Detour advised, was owing to the delay in sustaining capital expenditures, which were mainly as a result of delays in the construction of Cell 2 of the tailings facility, deferral of other discretionary capital, and a weaker-than-budgeted Canadian dollar.
Sustaining capital expenditures in 2018 amounted to $180-million, including $84.5-million for mining, $65.6-million for the ongoing construction of the tailings facility, $16.1-million for the processing plant, and $13.9-million for site infrastructure.
Deferred stripping costs totalled $47.5-million for the year.
Total cash costs increased to $742/oz sold, up from $716/oz in 2017, mainly owing to higher diesel fuel costs and rope shovel repairs during the first half of the year.
Detour Gold also incurred higher milling costs in the first half of the year owing to the maintenance and installation of a new mantle which necessitated contractor ore crushing costs to maintain mill throughput.