Oceanagold Corporation · TSX:OGC
Oceanagold — Investor Presentation (June 2013)
36 slides from Oceanagold's investor presentation, June 2013
Slide 1: Corporate Presentation
Corporate Presentation June 2013
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
OceanaGold Today Markets: OGC Luzon Didipio TSX, ASX, NZX Philippines Baguio D’Beau D Beau Manila Market Capitalisation $520m1 Mindanao Daily Average Liquidity HQ A kl d Auckland New Zealand 1.6 M shares1 Reefton Open Pit Wellington Blackwater Shares Outstanding Christchurch Macraes Open Pit 293 M F
Slide 4: OceanaGold Vision
OceanaGold Vision We will be a mid-tier, multi-national gold producer delivering superior shareholder returns in a safe and sustainable manner by discovering, acquiring, developing and operating high quality gold assets. assets We will be the partner partner, employer and gold company of choice. cho
Slide 5: Experienced Management Team
Experienced Management Team Mick Wilkes Mark Chamberlain Managing Director & Chief Executive Officer Chief Financial Officer • 28 years industry experience • >30 years financial experience • Developed major projects in Australia & SE Asia • Capital markets • Strong Operations background in hard rock
Slide 6: 2013 Guidance
2013 Guidance Philippines New Zealand Total Company 2013E 2013E 2013E 2012A GOLD PRODUCTION 50 – 70 235 – 255 285 – 325 233 (‘000 ounces) COPPER PRODUCTION 15 – 18 – 15 – 18 – (‘000 ttonnes)) CASH COSTS (US$ / ounce) $(370)–$(50)* $880 – $950 $650 – $800* $940 * 2013 cash costs are net of copper by-
Slide 7: Financial Overview (as at 31 Mar 2013)
Financial Overview (as at 31 Mar 2013) Corporate debt (US$) Cash and bank facilities (US$) Convertible note $112m Undrawn term facility $112m Term facility $60m Available credit facilities $55m Revolving credit facilities $20m Cash $27m • Convertible note – A$110m @ 7.0% coupon – Matures in December
Slide 8: Philippines Operations
Philippines Phili i Operations 8 OceanaGold Corporation Innovation Performance Growth
Slide 9: Didipio Mine
Didipio Mine Commissioned: April 1 2013 LOM Nominal Production Gold: 100 100,000 000 oz Copper: 14 14,000 000 t Reserves1 Gold: 1 69 Moz 1.69 Copper: 240 kt Measured & Indicated Resources1 Gold: 2.11 Moz Copper: 290 kt Inferred Resources1 Gold: 0.40 Moz Copper: pp 50 kt Average Grade Gold: 1.0 g g/t
Slide 10: Didipio Commissioning – Completed
Didipio Commissioning – Completed Commissioning Milestones Didipio Concentrate Production Profile (Dry Tonnes) Commence commissioning Q4 2012 8,000 Commence milling Nov 2012 7,000 6,000 Produce first concentrate Dec 2012 5,000 Truck first concentrate Jan 2013 4,000 3,000 First sale of concen
Slide 11: Didipio Ramp-up & Optimisation
Didipio Ramp-up & Optimisation 4.00 250 3.50 200 oughput Mtpa 3.00 old '000 oz 2.50 150 2.00 100 Go 1 50 1.50 Thro 1.00 50 0.50 0.00 0 2013E 2014E 2015E Throughput Gold Production Total Gold Equivalent (at current spot prices) • Optimisation study underway to unlock maximum value from Didipio • Stud
Slide 12: Didipio Underground
Didipio Underground NW SE Hole: Production Commences DDDH83 2019 of s Zone o Capital Cost $100m over four years wo Dogs hearing Hole DDDH83 Mining Rate Tw Sh 471 m @ 4 7 g/t Au & 4.7 0.7% Cu 1.0 Mtpa Includes 124 m @ 14.8 g g/t Au & 1.2% Cu Mining Type BUFU UNDERGROUND Sub-level open stoping SYENITE
Slide 13: Philippines Exploration Update
Philippines Exploration Update • Several Se eral significant areas of Runruno Au-Mo High Cu-Au in rocks anomalous Au-Cu TNN Cu-Au±Mo Mogambos Cu-Au-Ag grid soil Cabinwangan EP-02-03 4 holes, 1200m for scout Cu-Au EPA-02-67 drilling geochemistry EP-02-07 MMB EP 02 06 EP-02-06 Cu-Au • 2013 exploration
Slide 14: Morning Star
Morning Star MSDH211 • Drilling commenced MDDH39 • 700 metres southwest of the Didipio Open Pit MSDH212 MDDH40 MDDH7 Diorite Mineralized Porphyry >200 ppb Au 1,100 ppm Cu contour 0 100m > 90 ppb Au 600 ppm Cu contour Ongoing Drillhole Ongoing drillhole > 50 ppb Au (with proposed Length) Previous dri
Slide 15: D’Beau Prospect
D’Beau Prospect • Located ~1.0 km south of 3.81 3 81 g/t Au and 0.09% Cu Didipio 35.6 g/t Au 2.41 g/t Au and 4.12 % Cu and 0.06 % Cu 1.82 g/t Au • Artisanal miners mining and 0.63 % Cu gold from near-surface near surface • High grade dykes to be 2.23 g/t Au and 0.78% Cu tested at depth for more cohe
Slide 16: New Zealand Operations
New Zealand Operations 16 OceanaGold Corporation Innovation Performance Growth
Slide 17: Macraes Open Pit
Macraes Open Pit Commissioned: 1990 Annual Gold Production 125 000 – 145,000 125,000 145 000 ounces Reserves1 1 47 Moz 1.47 Resources1 Measured & Indicated Inferred 2.99 Moz 1.4 Moz Average Grade 0.9 – 1.1 g/t Ore Mined 5.0 Mt / year Mine Life 2020 1) Complete Reserve & Resource Table on page 36 17
Slide 18: Frasers Underground
Frasers Underground Commissioned: 2008 Annual Gold Production 40 000 – 50,000 40,000 50 000 ounces Reserves1 0 18 Moz 0.18 Resources1 Measured & Indicated Inferred 0.92 Moz 0.5 Moz Average Grade 1.9 – 2.2 g/t Ore Mined 0.8 Mt / year Mine Life 2017 1) Complete Reserve & Resource Table on page 36 18 O
Slide 19: Reefton Open Pit
Reefton Open Pit Commissioned: 2007 Annual Gold Production 55 000 – 70,000 55,000 70 000 ounces Reserves1 0.30 Moz Resources1 Measured & Indicated Inferred2 0.71 Moz 0.80 Moz Average Grade 1.5 – 1.8 g/t Ore Mined 1.6 Mt / year Mine Life ~2015 – 2017 19 1) Complete Reserve & Resource Table on page 36
Slide 20: Blackwater
Blackwater Selected Drill Results* D Depth h True T G d Grade Drill # (m) Width (m) (g/t Au) Historic 0 – 700 0.7 14.6 WA11 980 0.5 24.5 WA21A 1,316 0.5 23.3 WA22C 1 632 1,632 05 0.5 15 6 15.6 WA22D 1,625 1.0 85.2 WA25 1,134 0.3 62.4 WA25A 1,137 0.5 134.0 • Drill program tested for continuity below
Slide 21: Social Responsibility
Social Responsibility 21 OceanaGold Corporation Innovation Performance Growth
Slide 22: Investment In Our Local Communities
Investment In Our Local Communities EDUCATION INFRASTRUCTURE HEALTH PROGRAMS NT EVELOPMEN MANAGEMENT PLANN SOCIAL DE 1 5% of operating costs (approximately US$1 1.5% US$1.5m 5m / yr) DiCORP AGROFORESTRY AGROFORESTRY DIDIPIO TRAINING ACADEMY CAPACITY D C ENT DEVELOPME Building capacity and developing
Slide 23: Sustainable Development Beyond LOM
Sustainable Development Beyond LOM COMMUNICATING WITH OUR HIRING LOCALLY FIRST SPONSORING LOCAL EVENTS STAKEHOLDERS EHOLDER MANAGGEMENT STAKE Our stakeholders are the cornerstone of our success and exist as a platform of support from which to grow REDUCING GREENHOUSE REHABILITATING WITH THE AGROFORE
Slide 24: Philippines Growth Potential
Philippines Growth Potential • Fastest g growing y in Asia in Q1 20131 g economy Strong economic drivers 2013 Q1 GDP Growth 7 8%2 7.8% 2012 GDP Growth 6.6%3 Expected annual GDP growth over next 5 years 6.5%4 Credit rating – recently upgraded BBB-5 Expected rank of Philippines economy by 2050 16th gl
Slide 25: Gold Miners’ Comparatives: Price to Cash Flow
25 0 2 4 6 8 10 12 14 Kingsg gate Consolid dated Resolute Mining M Centamin Egypt E OceanaGold Corporation Oceana aGold Golde en Star Resou urces Overall Average Alacer Gold Source: Bank of Montreal (BMO) (11-June-2013) Rio o Alto Perseus Mining M IAMG GOLD SEM MAFO (FY2013E) Gold Miners’ Comparativ
Slide 26: Gold Miners’ Comparatives: Total Shareholder Return
26 ‐80% 70% ‐70% ‐60% ‐50% ‐40% ‐30% ‐20% ‐10% 0% 10% 20% Archipelago Resources G‐Resources OceanaGold Corporation Argon naut Gold 1. Bloomberg (31-May-13) Regis Resources Market Vectors Junior Gold ETF Beadell Resources B2Gold Oce eanaGold Dundee Preciou us Metals SEMAFO Perseu us Mining S&P/TSX CO
Slide 27: OceanaGold Transformation
OceanaGold Transformation Social Operations Financial Organic Growth Responsibility Continued Multi-national Increasing free Didipio community producer p cash flow optimisation p i investments t t 25% to 40% Strengthen Human Rights increase in Blackwater b l balance sheet h t l d hi leadership produ
Slide 28: 2013 Upcoming Events
2013 Upcoming Events Didipio optimisation study H2 Blackwater technical study y H2 Second quarter 2013 results July 25 Diggers & Dealers – Kalgoorlie, Australia Aug 5 – 7 Denver Gold Forum – Denver, USA Sep p 22 – 25 28 OceanaGold Corporation Innovation Performance Growth
Slide 29: OceanaGold
4) OCEANAGOLD oceanagold.com ee Innovation Performance Growth
Slide 30: 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 31: First Quarter 2013 Operating Results
First Quarter 2013 Operating Results Total T t l Didipio Macraes Reefton Company Gold Production 6,877 48,139 12,447 67,463 (ounces) Copper C Production 3,663 - - 3,663 (tonnes) Gold Ounces Sold - 48,489 10,096 58,585* (ounces) Cash Operating Costs $687* ((US$ / ounce)) * New Zealand only 31 OceanaG
Slide 32: Q1 2013 Pro Forma Net Cash Flow
Q1 2013 Pro Forma Net Cash Flow Per ounce Au sold Q1 2013 Q4 2012 Q1 2012 Average gold price received $1,632 $1,706 $1,708 Cash cost reported $687 $638 $1,126 Capitalised cash mining expenditure* $430 $233 $267 Total cost/oz (including capitalised mining) $1,117 $871 $1,393 Pro forma net cash flow $
Slide 33: Group Results Q1 2013
Group Results Q1 2013 USDm Q1 2013 Q4 2012 Q1 2012 Revenue 95.6 119.0 88.6 Operating costs1 (48.5) (51.9) (65.3) EBITDA2 47 1 47.1 67 1 67.1 23 3 23.3 Depreciation & Amortisation (29.5) (27.6) (21.8) Net interest & Finance Costs (6.4) (7.7) (4.0) Earnings before tax2 11.2 31.8 (2.5) Income tax (4.7)
Slide 34: Cash Flows for Q1 2013
Cash Flows for Q1 2013 USDm Q1 2013 Q4 2012 Q1 2012 Opening cash balance 96.5 24.2 170.0 Operating cash inflows 21 4 21.4 60 2 60.2 24 1 24.1 Capital expenditure (65.0) (91.4) (68.4) Financing cash inflows/(outflows) (25.7) 110.3 (3.6) Forex effect 0.2 (6.8) 1.2 Net cash (decrease)/increase (69.1) 7
Slide 35: Cash Flows for Q1 2013
Cash Flows for Q1 2013 • Operating cash flows were lower than in Q4 2012 mainly due to fewer ounces of gold sold • Investing g cash flows: USDm New Zealand Philippines Pre-stripping Pre stripping & capitalised mining 25 2 25.2 - Capitalised development and - 30.4 operating costs g capex Sustaining p
Slide 36: Mineral Resources and Reserves (as at Dec 31, 2012)
Mineral Resources and Reserves (as at Dec 31, 2012) 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 M Moz M Moz M Moz M MACRAES TOTAL 28.7 1.38 1.27 . . 73.1 1.12 2.64 . 101.8