Detour meets upper end of gold output guidance for 2019

13th January 2020 By: Marleny Arnoldi - Deputy Editor Online

TSX-listed Detour Gold delivered in the top quartile of its upwardly-revised guidance range, producing 601 566 oz of gold in 2019, compared with the 621 128 oz produced in 2018.

President and CEO Mick McMullen on Friday noted that Detour’s cash generation had also been excellent.

The company improved from a net debt position of $117-million at the end of 2018 to a net cash position of $114-million at the end of 2019, representing total cash generation of $231-million over the year.

McMullen also confirmed that the Detour Lake Mine orebody had performed well, with 24.9% more tonnes mined at a slightly lower grade of 0.92 g/t gold, compared with a grade of 1.04 g/t gold in 2018.  

He said the lower-grade material around the periphery of the deposit was still economic and the material was being processed as ore.

Meanwhile, Kirkland Lake Gold’s proposed acquisition of all the issued and outstanding common shares of Detour had not yet closed.

The Detour board in December recommended that shareholders vote in favour of the transaction during a January 28 shareholders meeting.

At least two-thirds of shareholders will have to approve of the transaction if it is to proceed.