Slide 1: Corporate Presentation June 2015
Corporate Presentation June 2015
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: OceanaGold Today (OGC: TSX/ASX/NZX)
OceanaGold Today (OGC: TSX/ASX/NZX) Market Capitalisation1 Avg. 90-Day Daily Liquidity1 Shares Outstanding1 Indices TSX Composite, ASX300, C$860m 2.0m shares 303m GDXJ, GDX Didipio Gold Copper LOM: 2030 Gold Standard Paco Ventures Waihi (pending) Gold El Dorado Silver LOM: 2018+ Vancouver Reefton Go
Slide 4: Experienced Management Team
Experienced Management Team Mick Wilkes Managing Director & Chief Executive Officer • Over 30 years industry experience • Developed major projects in Australia & SE Asia • Strong Operations background in hard rock mining • Strong in Community and Government relations • Extensive SE Asian experience
Slide 5: OceanaGold Vision & Strategy
OceanaGold Vision & Strategy We will be a mid-tier, multinational gold producer delivering superior shareholder returns in a safe and sustainable manner by developing and operating high quality assets. We will be the partner, employer and mining company of choice. Unwavering commitment to the enviro
Slide 6: OceanaGold Value Proposition
OceanaGold Value Proposition Consistent delivery of positive results under pins strong free cash flow generation Strong production from high Sector leading free cash flow quality assets generation First quartile AISC Strong balance sheet Over 24 years of operations & Dividend paying development expe
Slide 7: Peer Comparative
Peer Comparative Compelling metrics further demonstrates the OceanaGold investment appeal Fully Loaded All-In Sustaining Costs1 2015 Free Cash Flow Yield ($/oz) Comparative 1,200 15% Source: Scotiabank Research (12 Jun 2015) Source: Macquarie Research (14 June 2015) 1,100 10% 1,000 5% 900 0% 800 -5%
Slide 8: Recent Highlights
Recent Highlights Waihi Gold Mine – New Zealand Gold Standard Ventures • Signed definitive acquisition agreement • Strategic investment made in Gold with Newmont to acquire Waihi Standard Ventures (GSV.TSXV) • Transaction cost of $101m cash • Acquired a 14.9% equity stake for C$16.2m • Economic inte
Slide 9: Q1 2015 Results
Q1 2015 Results Strong operational performance continues across the business Consolidated Didipio New Zealand Consolidated 2015 Guidance Q1 2015 Q1 2015 Q1 2015 Gold production oz 295,000 to 335,000 35,122 56,024 91,146 Copper production t 21,000 to 23,000 6,102 – 6,102 Cash costs $/oz 450 to 5301 (
Slide 10: Financial Position (as at 31 Mar 2015)
Financial Position (as at 31 Mar 2015) Dividend payment made on 30 April 2015 in aggregate of US$12m – 11% pay-out Mar 31 2015 LIQUIDITY Total debt at end of 2014 Cash $60m $118 million (interest paid: $12m) Undrawn Revolving Credit Facility* $97m TOTAL LIQUIDITY $157m Total debt at end of 2013 DEBT
Slide 11: OceanaGold Corporation Innovation Performance Growth
11 OceanaGold Corporation Innovation Performance Growth
Slide 12: Waihi Transaction Overview
Waihi Transaction Overview Waihi represents a high-grade, low-cost asset in a stable, well-known jurisdiction Municipality Signed Definitive Acquisition Agreement with Newmont for US$101m OGC operation Auckland OGC project New asset Waihi Purchase price to be funded from existing cash and increased
Slide 13: Investment Highlights
Investment Highlights Transaction strongly aligns with OceanaGold’s value creation strategy High-grade, low-cost, meaningful Invest in high-quality assets production Substantial free cash flow generation Immediate cash flow generation Accretive transaction EPS and CFPS Synergistic with existin
Slide 14: Waihi – Asset Overview
Waihi – Asset Overview Comprises all mine facilities and highly prospective tenements Experienced workforce Magazine Newmont Head Office MacMahon Office Conventional CIL plant with 1.3 Mtpa capacity Crusher and Stamilers UG Portal Favona Vents Reserves = 2 Mt @ 5.52 g/t for 360 koz gold1 Mill Polish
Slide 15: Recent Historical Production and Reserves
Recent Historical Production and Reserves Waihi has a track record of reserve replenishment over its 27 year history Waihi Historical Production, Year End Reserves and Cumulative Production since 2007 1,000 1,00 0 900 864 900 800 732 800 700 622 700 555 500 600 600 460 458 500 410 350 500 360 360 36
Slide 16: Waihi’s Significant Exploration Upside
Waihi’s Significant Exploration Upside Interests in three groups of highly prospective tenement packages Regional Group (22-75 km from Waihi) • Historical production of 11.3 Moz Au and 53 Moz Ag from 50 epithermal deposits • 4 exploration permits • Includes 150 koz of gold resources in the Ohui regi
Slide 17: Gold Standard Ventures
Gold Standard Ventures Strategic investment in one of the most prolific gold regions globally Private placement for 14.9% of common shares for C$16.2m Technical representation and anti-dilution provision with right to increase equity stake to 19.9%1 GSV holds 2nd largest land package in the Carlin t
Slide 18: OceanaGold Corporation Innovation Performance Growth
18 OceanaGold Corporation Innovation Performance Growth
Slide 19: New Zealand Overview
New Zealand Overview Over 7 million ounces in resource1 provides strong optionality Municipality 2015 Guidance1 OGC operation Gold Production .……..……… 195,000 – 215,000 oz OGC project New asset AISC ….…………………………. $1,090 – $1,140 / oz Auckland Cash Costs …………………………. $850 – $900 / oz Waihi Guidance As
Slide 20: New Zealand Highlights
New Zealand Highlights New economic conditions have increased profitability, organic growth in NZ Mine life at Frasers Underground extended to 2016+ New Zealand dollar continues to weaken (NZD:USD 0.83 in 2014 vs. current 0.70) Strong profit margins from Reefton due to reduced material mined New Zea
Slide 21: Expanding New Zealand
Expanding New Zealand New exploration program initiated at Macraes targeting mine life extensions Current Drilling Future Drilling Exploration program includes surface and North of Macraes underground drilling NZ$8m spend over next two years on exploration at Macraes Goldfield South of Macraes 12 su
Slide 22: Organic Growth in New Zealand
Organic Growth in New Zealand Organic growth demonstrates potential for increased value from NZ asset base Blackwater Project Macraes Gold-Tungsten Project Near Reefton At Macraes • PEA completed with robust financials • Scoping study complete • Currently reviewing mining method; • Advancing feasibi
Slide 23: Strong Standalone Business in NZ
Strong Standalone Business in NZ OGC’s New Zealand assets with Waihi demonstrate clear value compared to producing peers ASX-Listed TSX-Listed NZ Company NZ Portfolio Northern Star Saracen Lake Shore Klondex Richmont + Waihi Market Cap. US$m 1,043 289 416 326 192 Enterprise Value US$m 970 265 451 31
Slide 24: OceanaGold Corporation Innovation Performance Growth
24 OceanaGold Corporation Innovation Performance Growth
Slide 25: Didipio Mine
Didipio Mine Significant cash flow generation from one of the lowest cost gold mines globally Island of 2015 Guidance Luzon Gold Production .……..……. 100,000 – 120,000 oz Copper Production ……….…….. 21,000 – 23,000 t San Fernando (Port) DIDIPIO – 2030 AISC1 ….……………….……………. $200 – $250 / oz Far Southea
Slide 26: Didipio Underground
Didipio Underground Early access to high grade underground ore enhances cash flow profile After Tax Cash Flow Profile1 (USDm) 150 133 135 123 123 After-tax cash flow: US$944m (2015 to 2028) Underground development 100 62 78 84 69 88 72 87 commenced 60 66 50 37 0 -1 -23 -19 -15 -7 -8 -6 -9 -6 -4 Firs
Slide 27: FTAA Exploration Opportunities
FTAA Exploration Opportunities Drilling Highlights (MetEx): 31m @ 0.35 g/t Au & 0.85% Cu 28m @ 0.65 g/t Au & 0.27% Cu 13m @ 0.75 g/t Au & 0.25% Cu Cabinwangan Mogambos 7m @ 1.16 g/t Au & 0.57% Cu 1.6 KM Rock Sampling Highlights: 8.09 g/t Au & 4.21% Cu 1 KM 3.20 g/t Au & 1.73% Cu 2.86 g/t Au & 2.09%
Slide 28: Paco Exploration
Paco Exploration Geophysical surveying commenced at Paco tenements in Mindanao Adjacent to Boyongan and Bayugo copper-gold porphyry deposits (Salangan - Philex) Commenced geophysical survey to identify drill targets Bayugo Deposit: 125M tonnes at 0.60% Cu and 0.66 g/t Au (M&I) Kalayaan Exploration P
Slide 29: Sustainability
Sustainability Unwavering commitment to our Focused on building capacity, communities & environment not dependency Achieved ISO14001 certification Industry best rehabilitation for Didipio programs 29 OceanaGold Corporation Innovation Performance Growth
Slide 30: Investing in Our Local Communities
Investing in Our Local Communities Working together with our communities to leave a positive, long lasting legacy Community Investment Composition INFRASTRUCTURE EDUCATION COMMUNITY INVESTMENT CAPACITY DEVELOPMENT ENTERPRISE DEV’MENT Infrastructure Education Enterprise Development Health & Nutrition
Slide 31: Sound Environmental Management
Sound Environmental Management An unwavering commitment to the environment today, for tomorrow Agroforestry Environment Rehabilitation • Planting one million trees • ISO14001 EMS at Didipio • Restoring lands to match area • Commercial plantations • Reducing GhG emissions • Supporting agriculture Wat
Slide 32: El Salvador
El Salvador Continuing to work collaboratively with stakeholders from El Salvador Investing in Infrastructure Investing in Social Programs Building Capacity Building Collaborative Relationships 32 OceanaGold Corporation Innovation Performance Growth
Slide 33: Looking Ahead
Looking Ahead Continue to produce positive results from effective execution Another consecutive year of strong free cash Significant free cash flow generation generation Didipio • Underground progressing well • Power grid connection in Q4 2015 Low cost base; positioned well in low New Zealand gold p
Slide 34: oceanagold.com
oceanagold.com Innovation Performance Growth
Slide 35: 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 36: Q1 2015 Consolidated Financial Results
Q1 2015 Consolidated Financial Results Consolidated Financial Results (USDm) Q1 2015 Q4 2014 Q1 2014 Gold sales (ounces) 86,234 88,386 94,050 Copper sales (tonnes) 6,245 6,271 7,752 Gold price received ($ per ounce) 1,195 1,201 1,311 Copper price received ($ per pound) 2.241 3.00 3.15 Income Stateme
Slide 37: Q1 2015 Consolidated Cash Flows
Q1 2015 Consolidated Cash Flows USDm Q1 2015 Q4 2014 Q1 2014 Opening cash balance 51.2 46.8 24.8 Operating cash inflows 43.2 60.7 73.3 Investing expenditure (23.8) (26.5) (24.1) Free cash flow 19.4 34.2 49.2 Financing cash outflows (13.3) (35.5) (25.2) Foreign exchange effect 2.3 5.7 (6.7) Net cash
Slide 38: El Salvador Overview
El Salvador Overview Nominal investment in a high quality resource w/ significant upside potential M&I Resources1 Belize Guatemala Honduras Gold: 1.30 Moz Silver: 9.48 Moz Inferred Resources1 El Salvador Nicaragua Gold: 0.30 Moz Silver: 1.9 Moz Costa Rica M&I Average Grade1 Panama Gold: 9.42 g/t Sil
Slide 39: Financial or Technical Assistance Agreement
Financial or Technical Assistance Agreement • Capital Recovery Period • 5 years from date of commercial production (April 1, 2013) to recover pre-operating expenses and other allowable items dating back to 1994 (when FTAA was signed) • Residual capital (capital unrecovered within 5 years) amortised
Slide 40: Mineral Resources and Reserves (as at 31 Dec 2014)
Mineral Resources and Reserves (as at 31 Dec 2014) RESOURCES MEASURED INDICATED MEASURED & INDICATED INFERRED RESOURCE Au Au Ag Ag Cu Cu Au Au Ag Ag Cu Cu Au Au Ag Ag Cu Cu Au Au Ag Ag Cu Cu AREA Mt g/t Moz g/t Moz % Mt Mt g/t Moz g/t Moz % Mt Mt g/t Moz g/t Moz % Mt Mt g/t Moz g/t Moz % Mt MACRAES