Oceanagold Corporation · TSX:OGC
Oceanagold — Investor Presentation (August 2012)
36 slides from Oceanagold's investor presentation, August 2012
Slide 1: Corporate Presentation
Corporate Presentation August 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: Corporate Overview
Corporate Overview Market Overview (as of Aug 24, 2012) Incorporated Vancouver, Canada Market Capitalisation ~US$700M Shares Outstanding 262.9M Non-listed Options 6.4M Average Daily Trading Volume (last 90 days) 0.95M Cash (as at June 30, 2012) US$73M Convertible Bonds 5.75% (Maturity – Dec 2012) A$
Slide 4: Recent Updates
Recent Updates Continued focus on delivering Didipio & maintaining steady NZ operations $225M revolving credit facility in place Copper Off-take Agreement Secured • Finalized agreements syndicate of • Heads of Agreement signed with banks to provide US$225M Trafigura based on benchmark revolving cred
Slide 5: Corporate Strategy
Corporate Strategy SUPERIOR RETURNS 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 5 OceanaGold Corpora
Slide 6: 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 • Innovative team culture • Annual prod
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: OceanaGold Today
OceanaGold Today EXPERIENCED GOLD PRODUCER ORGANIC GROWTH STRATEGY ASIA PACIFIC FOCUS FY2012 Guidance Production: 230,000 – 250,000 oz Au Cash Costs: US$900 - $980/oz • Solid production growth with declining cash cost profile Luzon Didipio Philippines Baguio Didipio Stage II • High grade gold - copp
Slide 9: New Zealand Production Assets
New Zealand Production Assets Steady production and good cash flow from New Zealand assets 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
Slide 10: Blackwater Underground (Reefton)
Blackwater Underground (Reefton) Favourable results from initial drilling with potential for 750koz Au • Testing continuity below historic workings. • Quartz reef intersected 391m vertically below old stopes – 0.5m of 23.3 g/t Au • 4 holes planned. WA11 and 21 completed. WA22 in progress. • Feasibil
Slide 11: Philippines – Didipio Project
Philippines – Didipio Project Transforms OGC into multi-national, lower cost gold producer with growth Didipio Project Location Northern Luzon Lepanto / Goldfields Annual Gold: 100 koz production Copper: 14 kt (LOM avg.) Type of Mine Open pit: 2012 to 2026 San Fernando Underground: 2021 to 2028 (Por
Slide 12: Didipio Project Overview
Didipio Project Overview Project is fully financed and on-schedule for Q4 2012 commissioning • Open pit – 44 Mt ore mined over 16 years • U/G – 7 Mt ore mined over 8 years commencing 2019 • Total ore inventory 65 Mt – including economic inferred mineralisation • Open pit mining well underway with or
Slide 13: Didipio Project Schedule
Didipio Project Schedule Project 78% complete and on-schedule for Q4 commissioning Completed 2011 2012 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Site access road • First ore in mills • Commissioning Construction camp complete Operations village Mining infrastructure Tailings Storage Facility Storage Sheds Powe
Slide 14: Process Plant Site Overview
Process Plant Site Overview 14 OceanaGold Corporation
Slide 15: Primary Crusher to Conveyor
Primary Crusher to Conveyor 15 OceanaGold Corporation
Slide 16: Conveyor to Mills
Conveyor to Mills 16 OceanaGold Corporation
Slide 17: Grinding Circuit Works
Grinding Circuit Works 17 OceanaGold Corporation
Slide 18: Flotation Tanks
Flotation Tanks 18 OceanaGold Corporation
Slide 19: Concentrate Handling Tank
Concentrate Handling Tank 19 OceanaGold Corporation
Slide 20: Tailings Storage Facility
Tailings Storage Facility 20 OceanaGold Corporation
Slide 21: Sediment Pond Spillway
Sediment Pond Spillway 21 OceanaGold Corporation
Slide 22: Didipio Stage II Concept
Didipio Stage II Concept 6 300 5 250 • Increase plant Throughput Mtpa 4 200 capacity by more Gold '000 oz 3 150 than 40% from 3.5 2 100 Mtpa to 5 Mtpa • Increased production: 1 50 0 0 2013E 2014E 2015E 2016E – 150 koz Gold Throughput Gold Production Total Gold Equivalent Production – 20 kt Copper •
Slide 23: Philippines Exploration Opportunities
Philippines Exploration Opportunities Significant near-mine exploration Au-Cu targets in the Philippines Mogambos • Several significant areas of anomalous Au-Cu grid • Exploration team established in soil geochemistry. country; permit renewal expected late • Potential for additional porphyry mineral
Slide 24: Sustainability Update
Sustainability Update Recognized for our commitment to and support of our communities • Continued commitment to sustainability beyond life of mine • >20 years community and environmental track record in New Zealand • Recently received commendation award from the Commission for Human Rights Q2 2012 •
Slide 25: Sustainability & Community Engagement
Sustainability & Community Engagement Delivering long term sustainable benefits to local communities • Through our FTAA, 1.5% of operating costs to the Social and Development Management Plan - approximately US$1.5 million per year of spend on SDMP projects. – Projects in areas that include health, e
Slide 26: Didipio Community Development Corporation
Didipio Community Development Corporation Strategy to invest in and enable the community to build capacity • Didipio Community Development Corporation (DiCorp) shareholders are long-term residents of Didipio • DiCorp modelled on similar successful community corporations in Papua New Guinea and north
Slide 27: Philippines Mining Reform – EO79
Philippines Mining Reform – EO79 Recent Government announcement signals continued support for mining • Executive Order 79 – Philippines mining policy framework – In consultation with various stakeholders – Improved transparency of mining industry – Regulation to control small scale mining • Existing
Slide 28: Share Price Performance
Share Price Performance Focused on Delivering on Our Commitments Share Price Performance (12 Months ending 10-Aug-2012) 20% 10% 0% -10% % Change -20% -30% -40% -50% -60% Goldcorp Allied Nevada Gold Barrick Gold AuRico Gold Alamos Gold Timmins Gold Corp Kirkland Lake Gold IAMGOLD OceanaGold Corp. Ala
Slide 29: Gold Miners’ Multiples
Gold Miners’ Multiples Price to Cash Flow per Share Multiples (FY2013E) 10 9 8 7 P/CFPS 6 5 4 3 2 1 0 IAMGOLD Perseus OceanaGold Osisko Eldorado Primero AuRico Aura Argonaut Gold B2Gold Alamos Golden Star Kirland Lake Agnico Eagle Timmins Gold Corp. Alacer SEMAFO Allied Nevada Large Cap Average Smal
Slide 30: OGC Production & Cash Costs Profile
OGC Production & Cash Costs Profile Steady growth and solid returns for shareholders OGC Production Profile 450 1000 400 900 800 350 700 300 600 Cash Costs/oz Ounces Gold 250 500 200 400 150 300 100 200 50 100 0 0 2012E 2013E* 2014E* 2015E* 2016E* Macraes Reefton Didipio Blackwater Cash operating co
Slide 31: Looking ahead
Looking ahead Company transformation with Didipio: high growth at lower cash costs • Growth outlook is golden – Increased production (300 – 350k oz Au/yr) – Decreasing cash cost profile (circa US$600/oz net of Cu1) • Didipio project is fully financed and on-schedule to commission in Q4 2012 • Finali
Slide 32: OceanaGold
i a 4) OCEANAGOLD oceanagold.com PC Innovation Performance Growth
Slide 33: Board of Directors
Board of Directors Jim Askew (Chairman) - Mr. Askew is a mining engineer with over 35 years broad international experience as a Director/CEO for a wide range of international publicly listed mining, mining finance, and other mining related companies. He has served on the board of numerous resource p
Slide 34: Financial Summary
Financial Summary As of June 30, 2012 Q2 2012 Q1 2012 Q2 2011 Statement of Operations Revenue US$M 86.7 88.6 90.7 EBITDA US$M 25.6 23.3 33.0 Operating profit / (Loss) US$M 5.6 1.5 12.0 Net Earnings / (Loss) US$M 0.7 (3.9) 4.1 Operations snapshot Gold Produced oz 55,709 50,842 61,988 Gold Sold oz 53,
Slide 35: Pro forma net cash flow per ounce sold
Pro forma net cash flow per ounce sold Per ounce Au sold Q2 2012 Q1 2012 Q2 2011 Average Gold Price Rec’d $1,613 $1,708 $1,546 Cash Cost reported $1,029 $1,126 $921 Pre strip cash expenditure $229 $161 $165 capitalised to Balance Sheet Total Cost/oz (incl pre-strip ) $1,258 $1,287 $1,086 Pro forma n
Slide 36: 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