2018-11-09 q3 conference call final...nov 09, 2018 · • q3 recovery of 80% (despite 75% in july)...

Q3 Conference Call – November 9, 2018

Doris Mine and Plant

Caution Regarding Forward-Looking Information

Listeners are encouraged to read our Management Discussion andAnalysis for the third quarter ended September 30, 2018 togetherwith our Financial Statements for the same period to understandthe risks inherent in the forward-looking comments we will bemaking.

Q3 2018 Conference Call

Participants

Jason NealPresident & Chief Executive Officer

Gil LawsonChief Operating Officer

Maarten TheunissenChief Financial Officer

Ann WilkinsonVice President Investor Relations


Highlights – Building Momentum

31

• Continued Plant improvement• Throughput of 1,385 tpd for Q3 and 1,900 tpd in October• Q3 recovery of 80% (despite 75% in July) and 82% in October• Gravity concentrator installation nearing completion

• Continued mine improvement• Mine production of 1,125 tpd in Q3 and 1,975 tpd in October• Development in Q3 to generate three production areas for Q4 –

Doris Hinge, Doris BTD, Doris Crown Pillar and one development area in Doris Connector

• Ministerial acceptance of NIRB recommendation that Madrid-Boston Project proceed and completion of Nunavut Water Board final hearing

• Completion of C$90 million equity offering


Improving Plant Performance

32


Successful Ramp Up of Plant

33


Expansion of Gravity Effort

Grind/FlotationFeedSurgebins(2)

RemovecleanerJigs

MoveSpinners toCrushingCircuit

FalconSB1350(2)

KnelsonXD20(2)

ReplaceRegrindCyclones(2)


34

FalconC2000(2)

• Mine will be bottleneck soon – is ramping up to targets• High grade Hinge, BTD and Doris Crown Pillar important to NTM plan• Doris BTD underexplored but very prospective – drilling platforms being established with

exploration plan• Additional underground mining equipment arrived on sealift

Ramp Up Doris Mine

Mining Area Timing

Doris NorthHinge

Q4-18 toQ2-19

Doris NorthCrown Pillar Q4-18

Doris NorthBTD

Q4-18Onward

DorisConnector

Q4-18 toQ4-20

DorisCentral

Q4-19 toQ4-21

Doris BTD Connector

2019 Exploration

Doris BTDCentral

2020 Exploration

Doris North Doris Connector Doris Central

Extension

East Limb

BTD Connector BTD Central250 m

NHinge Crown Pillar

Doris North BTD

Planned Development

Existing Development

5


Key Operating Metrics

6

Q2 2018 Q3 2018 October 2018

Processing

Throughput (t) 88,300(970 tpd)

127,400(1,385 tpd)

58,885(1,900 tpd)

Processed Grade (g/t) 10.0 10.1 6.7

Recovery (%) 82 80 82

Gold produced (ounces) 23,140 33,100 10,470

Gold poured (ounces) 25,970 33,460 10,540

Mining

Ore(1) (t) 71,400 103,300 61,200

Waste (t) 78,100 72,100 25,800

Total (t) 149,500 175,400 87,000

Average grade (g/t) 9.6 8.4 7.3


(1) Q2 2018 includes 68,900 tonnes at 9.8 g/t and Incremental Ore of 2,500 tonnes at 3.7 g/t; Q3 2018 includes 92,300 tonnes at 9.0 g/t and Incremental Ore of 11,000 tonnes at 3.1 g/t; Oct. 2018 includes 55,900 tonnes at 7.8 g/t and Incremental Ore of 5,400 tonnes at 3.0 g/t

Key Financial Metrics

37


(2) Excludes the impact of the net proceeds of $88.0M from equity issue closed October 3, 2018 and the payments on October 31, 2018 to reduce debt from US$160M to US$125.8M

Q2 2018 Q3 2018

Gold Sold (ounces) 25,760 32,140

Revenue (C$ millions) 43.3 50.3

Realized Gold Price (US$/oz) 1,300 1,201

Cash Costs (US$/oz) 928 825

AISC (US$/oz) 1,642 1,456

Cash flow from Operating Activities (C$ millions) 14.6 6.1

EBITDA (C$ millions) 4.9 15.7

Capital Expenditures (C$ millions) 27.1 28.4

Ending Unrestricted Cash Balance(2) (C$ millions) 24.2 13.6

Debt(2) (C$ millions) 205.2 202.2

2018 Cash Costs and AISC (US$/oz)

Q1 2018 Q2 2018 Q3 2018Ounces Sold 19,540 25,760 32,140Cash Costs $1,049 $928 $825Less: Inventory NRV Adjustment(3) (-) (12) (47)Cash Costs excluding NRV adjustment $1,049 $916 $778Corporate general and administration costs 169 132 103Underground development 215 198 149Site Infrastructure projects 174 104 139All-in sustaining costs before the following $1,607 $1,350 $1,169South dam 190 256 19Marine outfall pipeline 10 20 131Gravity concentrator project - 4 90Add back: Inventory NRV Adjustment(3) - 12 47AISC $1,807 $1,642 $1,456


38(3)The net realisable value adjustment on ore stockpiles is a non-recurring adjustment. Refer to the management discussion and analysis for the third quarter of 2018 for further details.

Gold Production and Costs

9


(4) AISC excluding the south dam, marine outfall pipeline, gravity concentrator project and inventory NRV adjustments - Cash Cost excluding inventory NRV adjustments

(4)(4)

10

• Complete gravity enhancement in Plant and deliver 90% recovery• Continue to build on successes of increasing plant throughput

• Feed the Plant

• Take advantage of three production areas and one development area to continue ramp up of Doris mine production

• Deliver plan for development of Madrid, including 2019 ore• Scope tactical 2019 exploration plan to support near-term production

and ongoing belt-wide development

• Secure Madrid-Boston Project Certificate by Q4 2018 and Water Licences by Q1 2019

• Advance analysis of optimized Hope Bay Belt development

Near-Term PrioritiesQ3 2018 Conference Call

2018-11-09 q3 conference call final...nov 09, 2018 · • q3 recovery of 80% (despite 75% in july)...

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