Oceanagold Corporation · TSX:OGC
Oceanagold — Investor Day (July 2012)
88 slides from Oceanagold's investor day presentation, Jul 3, 2012
Slide 1: Analyst Day Presentation
Analyst Day Presentation July 3/4 2012
Slide 2: Cautionary Notes
Cautionary Notes Cautionary Notes - Information Purposes Only The information contained in this presentation is provided by OceanaGold Corporation (“OGC”) for informational purposes only and does not constitute an offer to issue or arrange to issue, or the solicitation of an offer to issue, securiti
Slide 3: Welcome
Welcome AGENDA Company Strategy Mick Wilkes, CEO & MD Operations Overview Mark Cadzow, COO Exploration Strategy Mike Roache, Head of Exploration Didipio Community & Operational Readiness Brennan Lang, GM Didipio Ops Philippines Overview & Bus Dev Strategy Darren Klinck, Head of Bus Dev Project Devel
Slide 4: Objective
Objective • High level overview of OceanaGold’s Strategy • Update on our NZ Operations and Progress at Didipio • Provide an opportunity to meet key members of our team from NZ & Philippines • We will not be discussing finer points on Q2/H1 2012 operational results • FY2012 Production Guidance of 230
Slide 5: OceanaGold Vision 2016
OceanaGold Vision 2016 Our Values: Respect Integrity Teamwork Innovation Action Accountability • High performing, growth orientated, Asia Pacific gold company • Explore, develop and operate quality assets in a safe & sustainable manner Our Vision 2016 Enablers • Annual production of 600koz gold • In
Slide 6: Three-Pronged Strategy
Three-Pronged Strategy 2016 SUPERIOR RETURN TO SHAREHOLDERS Production Development Growth Steady Didipio Acquisition operations Commission & in New & Exploration Zealand Expansion ~250koz ~150koz ~200koz SUSTAINABLE DEVELOPMENT Respect Teamwork Action Integrity Innovation Accountability 6 OceanaGold
Slide 7: Experienced Management Team
Experienced Management Team Mick Wilkes MD & Chief Executive Officer • 27 years industry experience • Developed major projects in Australia and SE Asia • Strong Operations background in hard rock mining • Strong in Community and Government relations • Extensive SE Asian experience Mark Chamberlain C
Slide 8: Experienced Management Team continued
Experienced Management Team ......continued Brennan Lang David Bickerton General Manager – Didipio Operations Project Manager – Didipio Project • 25 years experience as a mining engineer in • 12 years industry experience Canada, PNG, Laos. • BHP Billiton (Construction Superintendent), 100M • Has hel
Slide 9: Board of Directors
Board of Directors Jim Askew (Chairman) – Mr. Askew is a mining engineer with over 35 years broad international experience as a Director/CEO for a wide range of international publicly listed mining, mining finance, and other mining related companies. He has served on the board of numerous resource p
Slide 10: Operations
Operations Mark Cadzow, Chief Operating Officer 10 OceanaGold Corporation
Slide 11: OceanaGold Today
OceanaGold Today EXPERIENCED GOLD PRODUCER ORGANIC GROWTH STRATEGY ASIA PACIFIC FOCUS Three Operating Mines in Luzon Didipio New Zealand Philippines Baguio Didipio Stage II • Macraes – Commissioned Manila in 1990 Originally 7yrs mine life @ 1.5 Mtpa • Reefton – Commissioned in 2007 with 7 yrs mine l
Slide 12: Current Producing Assets
Current Producing Assets Successful long term presence in New Zealand MACRAES FRASERS REEFTON Macraes Frasers Reefton NZ Total Mine Type Open Pit Underground Open Pit 1 Au Resources Moz 4.6 1.2 1.2 6.9 1 Au Reserves Moz 1.4 0.2 0.4 2.0 Ore Milled Mtpa 5.0 0.9 1.6 7.5 Head grade g/t 0.9 – 1.1 1.8 – 2
Slide 13: Macraes Open Pit Mine
Macraes Open Pit Mine Open Pit Total Movement Mtpa 40 to 55 Mining Cost USD/t 1.50 to 1.80 Processing Thru’put Mtpa 4.8 to 5.0 Processing Cost USD/t 9 to 10 Sustaining Capital USD/annum 30M to 40M • Still large untapped low grade deposit 1.4Moz in Inferred Resource – significant portion at the margi
Slide 14: Frasers Underground Mine
Frasers Underground Mine Underground Total Movement Mtpa 1 to 1.2 Mining Cost USD/t 40 to 50 Processing Mtpa 0.8 to 0.9 Thru’put Processing Cost USD/t 9 to 10 Sustaining Capital USD/annum 5M to 10M • Mining focused on the higher grade hanging wall • Drilling from dedicated exploration drive is ongoi
Slide 15: Reefton Open Pit Mine
Reefton Open Pit Mine Open Pit Total Movement Mtpa 17 to 21 Mining Cost USD/t 2.40 to 2.60 Processing Mtpa 1.4 to 1.6 Thru’put Processing Cost USD/t 15 to 16 Sustaining Capital USD/annum 15M to 20M • Globe Deeps drilling completed; awaiting assays • Historical U/G workings, open at depth. Prospectiv
Slide 16: Didipio Project
Didipio Project Long Life Asset DIDIPIO ORE BODY TAILINGS STORAGE FACILITY PROCESS PLANT Open Pit Underground Total 1 Au Resources Moz 1.9 0.7 2.6 1 Au Reserves Moz 1.3 0.4 1.7 1 Cu Resources Kt 310 50 360 1 Cu Reserves Kt 210 30 240 Estimated mine life 2012 to 2026 2021 to 2028 1. As at December 31
Slide 17: Didipio Open Pit and Underground Mine
Didipio Open Pit and Underground Mine Open Pit Total Movement Mtpa 20 to 23 Mining Cost USD/t 2.00 to 2.20 Sustaining Capex USD/annum 10M to 20M Underground • Open pit operation commenced Jan Total Movement Mtpa 1 to 1.2 2012 • Full fleet commissioned by End of Mining Cost USD/t 30 to 35 Sept Develo
Slide 18: Didipio Process Plant
Didipio Process Plant Process Plant Processing Mtpa 2.5 to 3.5 Thru’put Processing Cost USD/t 11 to 13 Gold Production Oz per ~ 100,000 annum Copper Production t per annum ~14,000 Gold as Bullion % 25 to 30 Copper Grade % 24 to 26 • Grind/Gravity/Float/Concentrate – Ship • Simple Plant – OGC has ext
Slide 19: Exploration Strategy
Exploration Strategy Michael Roache, Head of Exploration 19 OceanaGold Corporation
Slide 20: Exploration – Macraes
Exploration – Macraes • Mineralisation comprises ‘pod-like bodies’ within a >25km long shear zone (Macraes Shear) • Continuing to expand the Frasers Underground (FRUG) resource through underground drilling and conversion of inferred to indicated. • Macraes is a relatively mature terrane with signifi
Slide 21: FRUG – Conversion of Inferred to Indicated
FRUG – Conversion of Inferred to Indicated 2008 - 2012 21 OceanaGold Corporation
Slide 22: Exploration - Reefton
Exploration - Reefton • District with historic gold production of around 10Moz of which 2Moz from hard rock sources • Exploration to date has demonstrated that external to the Reefton mine area, mineralisation comprises small, structurally controlled and disrupted high- grade shoots. • Developing an
Slide 23: Reefton Globe Deeps – oblique view down towards north
Reefton Globe Deeps – oblique view down towards north GS10 Pit Design Limit Modelled resource (amber) Drilled pierce points (dots) • 10 open pit infill holes completed (green) – assays pending • 7 Globe Deeps drill holes completed (blue) – assays pending 23 OceanaGold Corporation
Slide 24: Blackwater Reef - Potential for >650Koz Au at 21g/t
Blackwater Reef - Potential for >650Koz Au at 21g/t • Mined 1907 - 51 to 750m. • Quartz reef 0.61m wide, average grade 21.3g/t (14.2 g/t recovered for 740 Koz) • 4 holes to ascertain grade continuity with depth. • Historical 1000oz / vertical metre. WA11 intercept 280m below old workings (1996) WA21
Slide 25: OceanaGold's Philippine Tenements
OceanaGold’s Philippine Tenements • Tenements in highly prospective volcanic arcs • Philippines in total: − FTAA (1), EPs (6), EPAs (9) for a total area of 87,896 hectares (includes Didipio FTAA and associated tenements of 33,911 hectares) • Focus on Didipio FTAA, located in the NE alkalic porphyry-
Slide 26: FTAA Exploration Areas
FTAA Exploration Areas • 5 areas with significant coincident Au-Cu anomalism defined by soil samples and mapping • Scout drilling of Au-Cu anomalies when FTAA renewal granted 26 OceanaGold Corporation
Slide 27: Mineral Resources and Reserves
Mineral Resources and Reserves RESOURCE MEASURED INDICATED MEASURED & INDICATED INFERRED RESOURCE Au Au Au Au AREA Mt Au g/t Cu % Cu Mt Mt Au g/t Cu % Cu Mt Mt Au g/t Cu % Cu Mt Mt Au g/t Cu % Cu Mt Moz Moz Moz Moz MACRAES TOTAL 26.29 1.41 1.19 . . 76.76 1.10 2.71 . 103.04 1.18 3.90 . . 49.4 1.2 1.8
Slide 28: Summary
Summary New Zealand • Frasers Underground – upgrade & expand Inferred resources at depth • Macraes – focused on resource to reserve conversion. Strongly leveraged to gold price. • Blackwater drilling completed by year end → Underground drill-out. • Reefton focusing on discovery of Blackwater-like de
Slide 29: Didipio Community & Operational Readiness
Didipio Community & Operational Readiness Brennan Lang, General Manager - Didipio Operations 29 OceanaGold Corporation
Slide 30: Operational Readiness Focus Areas
Operational Readiness Focus Areas • Engaging with Community and Managing Government Expectations • Recruitment • Training • Development of Systems, Plans, and Procedures • Mine Operations (Ore Delivery, Rock Delivery to TSF construction) 30 OceanaGold Corporation
Slide 31: Community Relations Key Programs
Community Relations Key Programs Social Development Management Program • Renewed every 5 years • Funded through 1.5% of Operating Costs • Other MOA Commitments (infrastructure projects, scholarships) • National Greening Program • Grievance Management Program • Didipio Community Development Corporati
Slide 32: Social Development Management Program Components
Social Development Management Program Components 1. Human Resource Development and Institutional Building 2. Enterprise Development and Networking 3. Assistance to Infrastructure Development and Support Services 4. Access to Education and Educational Support Programs 5. Access to Health Services, He
Slide 33: SDMP Fund Utilization and Distribution MOA Signing
SDMP Fund Utilization and Distribution MOA Signing December 17, 2011, Didipio Project Site SDMP Fund Distribution Host Community (1) 45% Neighboring Communities (9) 45% Municipality of Kasibu 4% Municipality of Cabarroguis 4% Common Fund 2% 33 OceanaGold Corporation
Slide 34: SDMP Accomplishments
SDMP Accomplishments • Infrastructure: Road works, bridges, water supply systems, classrooms, farm to market roads, multi purpose buildings • Education: 153 university scholarships, funding of teachers in Didipio, day care centres, post graduate training of teachers, funding school activities, purch
Slide 35: Development of Sustainable Local Business
Development of Sustainable Local Business • Didipio Community Development Corporation (DiCorp) established in 2011 to become a significant sustainable corporation that would participate in long- term contracts at Didipio • Modelled on indigenous corporations in Canada and Papua New Guinea • Sharehol
Slide 36: Human Resourcing
Human Resourcing • 500 Operations employees and contractors currently hired of a total 850 needed during production Employees by Point of Hire Operations Contractors by Point of Hire Overseas 0% Overseas 8% Didipio 37% Other Places Didipio 38% Philippines 31% 48% Quirino 14% Other Nueva Vizcaya Bara
Slide 37: Employment Opportunities for Local Residents
Employment Opportunities for Local Residents • The Memorandum of Agreement with our host community sets out the following priorities for hiring 1. Didipio 2. Adjacent Barangays 3. Kasibu 4. Nueva Vizcaya 5. Rest of Philippines • To make the local residents more employable, OGPI has funded skills tra
Slide 38: Strategies to Recruit Filipino Employees
Strategies to Recruit Filipino Employees • All employees not from Didipio live in camp with food and accommodation provided • Reduces pressure on infrastructure in surrounding communities • 14 day on / 7 day off roster is very attractive to Filipinos compared to longer rosters in other mines. • Abov
Slide 39: Proximity to Mining Centre of Baguio
Proximity to Mining Centre of Baguio Victoria, Teresa, (Lepanto) Runruno Acupan (Benguet) Didipio Padcal (Philex) 20 km 39 OceanaGold Corporation
Slide 40: Training
Training • Training programs already underway by Delta Earthmoving to train local residents to drive haul trucks • Supervisors and trainers have already been recruited for the process plant and start work in July. Training packages have been prepared. • Recruitment of experienced operators and mill
Slide 41: Operational Readiness Team
Operational Readiness Team GM Didipio Ops Brennan Lang Ops Readiness Consultant Momentum Partners • Planning support to functional leads Commercial Supply Chain HR Maintenance • Preparation of Russell Clive Christie Rhodora Paul Stasch tools and Graham Songayab templates Processing • Development of
Slide 42: Functional Plans
Functional Plans Operational Readiness Plan Dunedin Technical External Experts Team Training & Grade Control & Social Mine Production Employee Reconciliation Development Management Plan Development Plan Management Plan Management Plan Concentrate/Fuel Maintenance Processing Environmental Asset Prote
Slide 43: Mining
Mining • Mining of waste rock for tailings dam construction commenced in January • Currently moving 400,000 BCM of waste per month with construction sized equipment • Mining fleet has started to arrive in Didipio. • Mining of oxide mineralization commenced in June at the top of Didipio Hill. First o
Slide 44: Delta Mining Fleet Arrival
Delta Mining Fleet Arrival May June July August September October November PC1250 Build Deliver Commission On time PC1250 Build Deliver Commission On time HD785 Build Deliver Commission In Didipio On time HD785 Build Deliver Commission On a ship On Time HD785 Build/Deliver Commission On a ship 1 mon
Slide 45: Didipio Operations
Didipio Operations • On schedule for commissioning Q4 2012 • Nearly 60% of employees and permanent contractors recruited. Processing Department recruitment is well advanced and training will commence in August • Mining Contractor meeting targets for rock delivery to construct TSF. Ore stockpiling co
Slide 46: Philippines Overview & Bus. Development
Philippines Overview & Bus. Development Darren Klinck, Head of Business Development 46 OceanaGold Corporation
Slide 47: Overview of the Philippines
Overview of the Philippines Demographics • 12th most populous nation with 103 million people (2011 est.) • 95% Christian, 5% Muslim • Median Age of 22.9 years (37.1 years in Australia) • Literacy Rate of 92.6% (same as Singapore) Government • US based system (President, House of Representatives, Sen
Slide 48: Philippines Projected Growth
Philippines Projected Growth Size of Economy in 2050 1 30000 25000 Bn Constant 2000, USD 20000 15000 2 Estimated to be the 3rd fast growing economy 10000 3 5000 0 Source: HSBC Global Research: The World In 2050 – January 2012 48 OceanaGold Corporation
Slide 49: Long History of Mining in The Philippines
Long History of Mining in The Philippines • The Philippines is highly mineralised with substantial mineral deposits including copper, gold, nickel, chromite and limestone • Long, well established history of major production from its mines, dating back to Spanish colonial times • Ranked among the wor
Slide 50: Mining in the Philippines today
Mining in the Philippines today • The Philippines is one of the world’s most highly mineralized countries − Estimated mineral wealth of US$840bn(1) and ~7.1 billion tonnes of mineral reserves(2) − Greatest number of proven mineral deposits in southeast Asia(2) − Home to some of the world’s largest c
Slide 51: Key Mining Projects in The Philippines
Key Mining Projects in The Philippines Philippine Sea PHILEX Padcal Copper LUZON Santiago City OCEANAGOLD Baguio District Didipio Copper-Gold RUSINA Baguio City Nickel Laterite and Acoje Chromite METALS EXPLORATION Runruno Manila Gold-molybdenum Olongapo City PRIVATE GROUP Camarines Norte District R
Slide 52: Top Mineral Producing Countries in Asia Pacific
Top Mineral Producing Countries in Asia Pacific Gold (Moz) 11.1 8.4 3.9 2.2 1.3 0.4 0.2 0.2 0.2 0.2 China Australia Indonesia Papua New Philippines New Japan Mongolia Laos Thailand Guinea Zealand Copper (Kt) 1,200 872 870 160 126 58 33 18 12 12 China Indonesia Australia Papua New Mongolia Philippine
Slide 53: Mining in The Philippines Continues to Grow
Mining in The Philippines Continues to Grow Gross Production Value in Mining Total Export of Minerals and Mineral Products 2.00 8.00 1.60 Billions (US$) 6.00 Billions (US$) 1.20 4.00 0.80 0.40 2.00 0.00 2003 2004 2005 2006 2007 2008 2009 2010 0.00 2003 2004 2005 2006 2007 2008 2009 2010 2011 Large-S
Slide 54: The Government's Attitude Towards Mining
The Government’s Attitude Towards Mining • The Philippines’ Government has been actively reviving and promoting the mining industry in recent times • Existing mining laws are attractive to investors and allows for: − Historically, mining in The Philippines by foreign controlled entities has been und
Slide 55: Large Corporations Present in The Philippines
Large Corporations Present in The Philippines Company Market cap Project Commodity US$211bn Malampaya (45%) Natural gas US$202bn Malampaya (45%) Natural gas US$97bn Exploration Gold / Copper US$42bn Tampakan Project (62.5%) Gold / Copper US$17bn Coral Bay Nickel (54%) Nickel US$10bn Far South East P
Slide 56: Major Resource Projects in The Philippines
Major Resource Projects in The Philippines Operator Project Commodity Reserves / Resources Production First Capacity (pa) production Tampakan Gold / copper 17.9Moz Au resources 360koz Au 2016 15.0Mt Cu resources 375kt Cu Far Gold / copper 30 – 50Moz Aueq ? 2019/20? Southeast King-king Gold / copper
Slide 57: The Right Place at the Right Time
The Right Place at the Right Time • Steady growth projected for the Philippine mining sector • Continued and growing interest from large multi-national resource companies • Didipio represents a “calling card” as the first project developed under the “FTAA” • Strategically located within the Asian re
Slide 58: Business Development Strategy
Business Development Strategy Three Key Attributes that Drive Superior Value for Shareholders: 1. Resource and Reserve Growth 2. Production Growth 3. Declining Cash Costs increasing cash flows increasing returns to shareholders OGC is 110% focused on successfully bringing on Didipio. • Contribut
Slide 59: Business Development Strategy continued
Business Development Strategy …continued Expanding beyond the current portfolio of assets we will look to leverage our strengths: • Gold Focused • Operating experience managing challenging ore bodies • In house project development experience • Cashflow from current operations 2013 onwards Type of
Slide 60: Global Exploration Expenditure (2011)
Global Exploration Expenditure (2011) 60 OceanaGold Corporation
Slide 61: Summary
Summary Our Vision 2016 Business Dev. Strategy • Annual production of 600koz gold • External asset(s) for development • Superior returns to our shareholders • Reserves, Growth, Cash flows • Pipeline of growth projects • Early stage opportunities in prospective regions • Reputation as a gold producer
Slide 62: Project Development Strategy
Project Development Strategy Mark Cadzow, Chief Operations Officer 62 OceanaGold Corporation
Slide 63: Project Development Team
Project Development Team • Key Leg of OGC Growth Strategy - Maintain and Develop – Corporate Project Systems on the back of the Didipio experience. - Retain and Consolidate – our collective Corporate experience in NZ, Didipio and abroad - Strategy to have core team internal with a pool of external c
Slide 64: Potential Project Schedule
Potential Project Schedule 2012 2013 2014 2015 2016 BLACKWATER PROJECT Drilling Feasibility Study Permits Access and Mining infrastructure Reserve Drilling Ore Production DIDIPIO STAGE II Feasibility Study Design and Construction Ore Production 64 OceanaGold Corporation
Slide 65: Blackwater Feasibility (Reefton)
Blackwater Feasibility (Reefton) • Favourable results from initial drilling with potential for up to 650koz Au • Feasibility study early 2013 • Potential to produce ~ 50 koz p.a. @ <US$600 per oz. • Mechanised mining • Ore sorting • 80% gravity gold • Over 95% recovery 65 OceanaGold Corporation
Slide 66: Didipio Stage II Concept
Didipio Stage II Concept 6 300 • Increase plant capacity 5 250 by more than 40% from 3.5 Mtpa to 5 Throughput Mtpa 4 200 Gold '000 oz 3 150 Mtpa 2 100 • Increased production: 1 50 0 0 • 150 koz Gold 2013E 2014E 2015E 2016E • 20 kt Copper Throughput Gold Production Total Gold Equivalent Production •
Slide 67: Project Execution Strategy
Project Execution Strategy David Bickerton, Project Manager - Didipio 67 OceanaGold Corporation
Slide 68: Project Structure – Why It Works
Project Structure – Why It Works • Owners Team with complete capacity to manage all Design, Procurement, Contracts, Controls, Quality Assurance, Construction and Commissioning. • Project personnel hand picked and remuneration can be very competitive to secure high performers. • Owners Team Model gre
Slide 69: Project Structure
Project Structure 69 OceanaGold Corporation
Slide 70: How to Build Didipio – Planning for Success
How to Build Didipio – Planning for Success • Plan was developed from Day 1 to meet the target for Q4, 2012 commissioning. • Design Milestones – Set Milestones for design deliverables which provided enough time to tender Lump Sum Contract packages. • Procurement of Major equipment – All Packages wer
Slide 71: Engineering & Design Management
Engineering & Design Management • Process Plant and Tailings Dam design completed March 2012 • Ancillary design for Power Lines, Mine Service and General Infrastructure completed June 2012. • Design houses selected by OGPI based on capability and understanding of Didipio requirements. • OGPI directl
Slide 72: Project Schedule
Project Schedule • Construction on schedule for first ore in the mill Q4, 2012. Critical path activity for the Process Plant is the construction of the Conveying System. • Project critical path is the construction of the Tailings Facility – on target to meet commissioning. • Initial Construction wor
Slide 73: Project Key Milestones
Project Key Milestones 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Task Name 2011 2011 2011 2011 2012 2012 2012 2012 Process Plant Design TSF Design Infrastructure Design Major Equipment Procurement Construction Camps Mine Services Area Tailings St
Slide 74: Commissioning Plan
Commissioning Plan • Commissioning managed by Owners Team utilising core construction personnel and supplemented with specialist consultants and NZ operations personnel. • Over Resource to ensure smooth commissioning. • Team members have a vested interest in delivering the project for OGC as they wo
Slide 75: Updated Photos of Didipio
Updated Photos of Didipio Sag Mill Shell Erection Grinding Cyclone Cluster Erection Flotation Structural & Mechanical Erection in Progress Raw Water Tank & Mechanical Tailings Thickener & Structural Primary Crusher Erection in Progress Erection in Progress 75 OceanaGold Corporation
Slide 76: Updated Photos of Didipio
Updated Photos of Didipio Construction Pumps - TSF Tailings Dam OceanaGold Corporation Process Plant 76
Slide 77: Capital Management Strategy
Capital Management Strategy Mick Wilkes, CEO & Managing Director 77 OceanaGold Corporation
Slide 78: Funding Requirements/ Strategy
Funding Requirements/ Strategy • Major Funding Requirements within the next 24 months − Completion of Didipio − Convertible notes Dec 2012 - A$58m − Convertible notes Dec 2013 - A$110m • Cash available at end of the 1st Quarter 2012 – US$123m • Funding Strategy − Primarily focused on a revolving cre
Slide 79: Cash Flows – 2013 / 2014
Cash Flows – 2013 / 2014 • Strong operating cash flows with Didipio proceeding to commercial production − Average US$180M to $230M p.a. Free cashflows. − Assumptions 2013/2014: Gold Price/oz: $1,600 Copper price/lb: US$3.60 MOPS diesel/barrel: US$130 − After Capex, pre-strip and exploration 79
Slide 80: Tax Considerations
Tax Considerations • Company is not expecting to pay cash income taxes in the next 4 to 5 years − Availability of tax losses in all jurisdictions to offset future taxable income − 6 years tax holiday granted by the Board of Investment in Philippines • Utilisation of tax losses in New Zealand is subj
Slide 81: Capital Management Strategy
Capital Management Strategy • Balance funding for future growth with return to shareholders in the medium to long term • Begin evaluating capacity in late 2013/2014 for dividends • As part of capital management, OGC closely monitors the following: − Movements in exchange rates, interest rates and co
Slide 82: FTAA (Financial and Technical Assistance Agreement)
FTAA (Financial and Technical Assistance Agreement) • Executed by the President of the Philippines in 1994 -first such agreement (FTAA) in the Philippines – will be first such agreement to go into operation • Cannot be amended unilaterally – subject to international arbitration • FTAA grants title,
Slide 83: FTAA (Financial and Technical Assistance Agreement)
FTAA (Financial and Technical Assistance Agreement) Net Revenue Calculation 1. Revenue 2. Less Operating costs 3. Less Depreciation of post development capex (excluding Underground development) 4. Less Underground mine development = Net Revenue (Up to 5 years +3 years amortising to recover the initi
Slide 84: Looking Forward
Looking Forward Mick Wilkes, CEO & Managing Director 84 OceanaGold Corporation
Slide 85: An International Mid-Tier Gold Producer
An International Mid-Tier Gold Producer Revisiting the Strategy • Steady Production in NZ generating cash flow • Successfully build and expand Didipio • Look for other opportunities to leverage our strengths Committed to becoming a Gold Producer of Choice • Focus on sustainable development • Attract
Slide 86: A Focus on Cash Flow in the Gold Sector
A Focus on Cash Flow in the Gold Sector Price/Cash flow per share (FY2013E) 12 10 8 6 4 2 0 Osisko Silver Wheaton Primero Alamos Aura OceanaGold B2Gold Goldcorp AuRico IAMGOLD Kinross Alacer Agnico Eagle SEMAFO Perseus Timmins Gold Corp. Argonaut Gold Eldorado Golden Star Troy Resources Allied Nevad
Slide 87: Thank you for Attending
Thank you for Attending Please Join us for a Drink and Casual Conversation 87 OceanaGold Corporation
Slide 88: OceanaGold
4) OCEANAGOLD oceanagold.com PC Innovation Performance Growth