Slide 1: 2012 Results Conference Call Presentation
2012 Results Conference Call Presentation 15 February 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 Luzon DIDIPIO Didipio Philippines Baguio Didipio Stage II Manila REEFTON Mindanao HQ Auckland New Zealand Reefton Open Pit /FRASERS MACRAES Wellington Blackwater Christchurch Macraes Open Pit Frasers Underground Dunedin Note: All amounts in the presentation stated in USD unless othe
Slide 4: 2012 Operating Results
2012 Operating Results FY2012 2012 Guidance Production 232,909 225,000 – 230,000 (oz) Gold Sales 230,119 – (oz) Cash Costs $940 $1,000 – $1,050 (US$/oz) • Exceeded 2012 production and cash cost guidance • Solid fourth quarter 2012 results: – Production: 76,844 ounces of gold – Cash Costs: US$638 per
Slide 5: 2013 Production and Cash Cost Guidance
2013 Production and Cash Cost Guidance 2013 Production Guidance Philippines New Zealand Total Company Gold 50,000 – 70,000 235,000 – 255,000 285,000 – 325,000 (oz) Copper 15,000 – 18,000 – 15,000 – 18,000 (t) 2013 Cash Cost Guidance Philippines New Zealand Total Company US$/oz ($370) – ($50)* $880 –
Slide 6: Didipio Commissioning
Didipio Commissioning • Commissioning progress better than expected with higher than expected throughputs and recoveries – Throughput rates have approached 2.5Mtpa – Gold recoveries of 80% and Copper recoveries of 85% • First saleable copper-gold concentrate produced in December • First batch of cop
Slide 7: 2012 Financial Highlights
2012 Financial Highlights Cash Margins Cash operating cost $/oz Cash operating margin $/oz Gold price rec'd (ave) $ /oz 1,800 1,600 1,400 1,200 1,000 800 600 400 200 - Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2008 2009 2010 2011 2012 Q4 2012 FY 2012 Revenue $m $119 $385 Average go
Slide 8: Cash Cost Analysis
Cash Cost Analysis Cash Cost Analysis: Q4 vs. Q3 Cash Cost Analysis: FY12 vs. FY11 1200 1200 1000 1000 800 (184) 800 15 (89) US$/oz 68 US$/oz (173) 71 600 600 1081 (93) 7 400 875 400 940 638 200 200 0 0 • As expected and guided, Q4 cash costs decreased significantly from Q3 – Increase in gold ounces
Slide 9: Pro Forma Net Cash Flow
Pro Forma Net Cash Flow Per ounce Au sold Q4 2012 Q3 2012 Q4 2011 FY2012 FY2011 FY2010 Average gold price received $1,706 $1,665 $1,705 $1,675 $1,587 $1,140 Cash cost reported $638 $1,081 $890 $940 $875 $570 Pre strip cash expenditure $188 $203 $121 $200 $172 $234 capitalised to Balance Sheet Total
Slide 10: Operations Summary
Operations Summary 10 OceanaGold Corporation
Slide 11: FY 2012 Operational Summary
FY 2012 Operational Summary Safety Q4 2012 Q3 2012 FY 2012 FY 2011 LTIs 1 9 13 5 • Safety of employees and general public is paramount for the Company Production Q4 2012 Q3 2012 FY 2012 FY 2011 Gold ounces produced 76,844 49,514 232,909 252,499 • Quarterly increase in production attributable to: – H
Slide 12: Macraes (Open Pit & Underground)
Macraes (Open Pit & Underground) Macraes Goldfield Q4 2012 Q3 2012 Q4 2011 FY2012 FY2011 FY2010 Gold sales(oz) 56,113 37,570 41,866 170,215 171,678 182,499 Gold produced (oz) 58,872 36,874 44,451 169,609 174,851 182,759 Open pit ore mined (Mt) 1.61 1.17 1.65 4.83 5.74 5.45 Underground ore mined (Mt)
Slide 13: Macraes 2013 Production Update
Macraes 2013 Production Update • As previously reported, quarterly production variability is expected in 2013 due mainly to: – Scheduled autoclave maintenance in Q1 – Mine production scheduling – Wall movement event • Re-scheduling of movements as a result of the event and negative impact to Q2 prod
Slide 14: Reefton
Reefton Reefton Goldfield Q4 2012 Q3 2012 Q4 2011 FY2012 FY2011 FY2010 Gold sales (oz) 13,648 17,180 20,649 59,904 77,583 85,588 Gold produced (oz) 17,792 12,640 21,299 63,300 77,648 85,843 Total ore mined (Mt) 0.40 0.32 0.42 1.31 1.51 1.54 Mill feed (Mt) 0.37 0.42 0.43 1.64 1.77 1.62 Mill feed grad
Slide 15: Blackwater Exploration
Blackwater Exploration Depth1 True Width Grade Drill # (m) (m) (g/t Au) Historic 0 - 700 0.7 14.6 WA11 321 0.5 24.5 WA21A 430 0.5 23.3 WA22C 680 0.5 15.65 WA22D 670 1.0 85.2 WA25 245 TBD TBD • Final drill hole (WA25) underway • Drill results expected in H1 2013 • Feasibility study to commence in H1
Slide 16: Didipio Summary
Didipio Summary 16 OceanaGold Corporation
Slide 17: Didipio Commissioning
Didipio Commissioning Process plant brought back online in early February Key Commissioning Milestones • Throughput rates approaching 2.5Mtpa and Milling commences November ahead of ramp-up Construction completed December schedule Produce first concentrate December • Recovery rates increasing,
Slide 18: Plant Site Overview
Plant Site Overview 18 OceanaGold Corporation
Slide 19: Completed Process Plant
Completed Process Plant 19 OceanaGold Corporation
Slide 20: OceanaGold's AgroForestry Program
OceanaGold’s AgroForestry Program OceanaGold Sustainable AgroForestry Inc. (OGSAI) • OceanaGold’s agroforestry program consists of initiatives to support: – President Aquino’s National Greening Program – Mining Forestry Program • Investing into valuable initiatives – Additional employment opportunit
Slide 21: Select Sustainability Programs
Select Sustainability Programs Medical supplies given in Road improvement to main Didipio road support of Typhoon Pablo relief Scholarship Recipients Christmas gifts for local children 21 OceanaGold Corporation
Slide 22: Philippines Growth Opportunities
Philippines Growth Opportunities Didipio Expansion Concept Exploration Tenements in our FTAA 1. Didipio expansion opportunity: 3.5 Mtpa 5 Mtpa – Commencing feasibility study on Didipio expansion in H1 2013 2. Company objective to spend US$10M in FY2013 on near- Didipio exploration targets – Severa
Slide 23: Financial Summary
Financial Summary 23 OceanaGold Corporation
Slide 24: Group Results FY & Q4 2012
Group Results FY & Q4 2012 USDm Q4 2012 Q3 2012 Q4 2011 2012 2011 2010 Revenue 119.0 91.2 106.6 385.4 395.6 305.6 Operating costs1 (51.9) (62.6) (62.9) (240.8) (231.7) (166.1) EBITDA2 67.1 28.6 43.7 144.6 163.9 139.5 Depreciation & Amortisation (27.6) (21.9) (21.5) (91.4) (85.8) (69.3) Net interest
Slide 25: Cash Flows December 31, 2012
Cash Flows December 31, 2012 USDm Q4 2012 Q3 2012 Q4 2011 2012 2011 2010 Opening cash balance 24.2 73.1 163.4 170.0 181.3 42.4 Operating cash inflows 60.2 13.3 56.0 115.3 154.6 52.3 Capital expenditure (91.4) (68.7) (47.7) (294.5) (146.6) (107.8) Financing cash inflows/(outflows) 110.3 6.8 (4.6) 108
Slide 26: Q4 2012 Cash Flows
Q4 2012 Cash Flows • Q4 higher than in Q3 Operating – Higher gold ounces sold and increase in average Cash Flows gold price received – Decrease in cost of sales • Q4 higher than Q3 – Didipio Project construction & commissioning: Investing $54m Cash Flows – Pre-stripping capex: $19m – Sustaining cape
Slide 27: December Equity Raising
December Equity Raising • Successfully completed a “bought deal” for C$93.3m in December 2012 • Settlement completed in late December 2012 • Net proceeds to be used to reduce outstanding debt and to provide balance sheet and operating flexibility • Company is focused on maintaining more prudent gear
Slide 28: OceanaGold Transformation
OceanaGold Transformation With Didipio, the transformation is underway Social Operations Financial Organic Growth Responsibility Significant Strong Multi-national Didipio increase in free community producer Expansion cash flow investments 25% to 40% Improved Human Rights increase in Blackwater lever
Slide 29: Looking Ahead
Looking Ahead Updated Reserve & Resource Statement Mar 2013 Ramp-up of Didipio towards operations handover H1 2013 Technical Commence technical study of Didipio Expansion H1 2013 Events Blackwater final drill results H1 2013 Commence technical study on Blackwater H1 2013 BMO Metals and Mining Confer
Slide 30: OceanaGold
i a 4) OCEANAGOLD oceanagold.com PC Innovation Performance Growth