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Detour Gold had a successful Q4 and full 2018 year thanks to operational improvements and a record total for tonnes mined.
Detour Gold (TSX:DGC) had a record-setting 2018, surpassing its production target for the year and setting a quarterly production record in Q4, the company announced on Tuesday (January 15).
During the fourth quarter, the miner produced 158,200 ounces of gold, bringing total gold production for the year to 621,128 ounces — an increase of 9 percent from 2017.
“We surpassed our production target for 2018 with a strong finish to the year. The fourth quarter represented our third successive quarter with overall operational improvement with record total tonnes mined and gold production,” said Frazer Bourchier, COO.
The results are in line with the company’s revised guidance of 595,000 to 635,000 ounces as well as its original 2018 guidance of 600,000 to 650,000 ounces.
During Q4, Detour’s mill processed 5.6 million tonnes at a grade of 0.89 grams per tonne, with recoveries of 90.9 percent. For the entirety of 2018, the mill processed 20.7 million tonnes of ore at a grade of 1.04 grams per tonne, with recoveries of 90.1 percent.
The miner revealed that advancements in fixed maintenance procedures, along with progressing the plant capital projects, led to increased plant operating time and higher recoveries during Q4.
Additionally, Detour reported that a total of 28 million tonnes of ore and waste were mined during Q4, the equivalent of 305,000 tonnes per day. This is the highest level of tonnes that the company has mined in a quarter since the commencement of operations.
Detour addressed the the gains made last year, saying they can be attributed to operational changes that were made throughout 2018.
“These recent results provide confirmation that the operational changes made throughout the year have had a positive impact,” noted Bill Williams, interim CEO.
Williams was named interim CEO at the beginning of January following a proxy battle between Detour and John Paulson’s hedge fund. The tussle resulted in an overhaul of the miner’s board, as well as the removal of Michael Kenyon from his position of CEO.
Looking forward, Detour plans to focus on meeting all of its targets for 2019 and, like most companies in the gold space, regaining investor interest.
As of 10:40 a.m. EST on Wednesday (January 16), Detour was up 3.72 percent, trading at C$12.28.
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Securities Disclosure: I, Nicole Rashotte, hold no direct investment interest in any company mentioned in this article.
