Oceanagold Corporation · TSX:OGC
Oceanagold — Denver Gold Forum 2014
19 slides from Oceanagold's conference presentation, Sep 15, 2014
Slide 1: Denver Gold Forum
Denver Gold Forum a Mick Wilkes, Managing Director & CEO 15 September 2014
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 Emerging multinational gold and copper producer with strong free cash flow Didipio – Philippines Macraes – New Zealand Reefton – New Zealand Shareholder Geo. Breakdown1 Stock Exchanges TSX, ASX, NZX Australia & Ticker: “OGC” NZ 19% Market Capitalisation2 North America C$790 61% Euro
Slide 4: First Half 2014 Results Summary
First Half 2014 Results Summary 2014 Guidance YTD Jun 2014 Combined Didipio New Zealand Company Gold production oz 275,000 to 305,000 45,266 102,133 147,399 Copper production t 21,000 to 24,000 11,185 – 11,185 Gold sales oz – 54,010 112,334 166,344 Copper sales t – 12,925 – 12,925 Cash costs $/oz 40
Slide 5: OceanaGold Vision & Strategy
OceanaGold Vision & Strategy We will be a mid-tier, multinational gold producer delivering superior shareholder returns in a safe and sustainable manner by developing and operating high quality assets. We will be the partner, employer and mining company of choice. Commitment to Optimise mines Sustai
Slide 6: OceanaGold Transformation
OceanaGold Transformation Despite a major change in the gold environment, we have delivered positive results Effective execution of Maximising margins from Strong social licence to high quality, low cost mine optimisation in NZ operate Didipio Mine Doubled Strong global liquidity over Share price sh
Slide 7: Share Price Performance Comparative
7 20% 40% 80% 60% 100% 120% -80% -60% -40% -20% 0% Semafo Inc. Northern Star Resources Source: Bloomberg OceanaGold Corp. OceanaGold Corporation Centamin plc Rio Alto Mining Primero Mining Corp. Detour Gold Corporation OZ Minerals AuRico Gold New Gold Inc. Barrick Gold Gold Spot Price (US$/oz) B2Gol
Slide 8: Free Cash Flow Yield Comparative
Free Cash Flow Yield Comparative Well positioned to strengthen balance sheet and invest in further value creation Free Cash Flow Yield Estimates 2014 2015 40% 35% 30% 25% 20% 15% 10% 5% 0% -5% -10% -15% AuRico Newcrest SEMAFO Eldorado Detour Gold Barrick Gold OceanaGold Yamana Goldcorp Perseus Alace
Slide 9: Global AISC Curve Comparative
Global AISC Curve Comparative 1st quartile AISC demonstrates strong profitability even at lower commodity prices 1,600 All-In Sustaining Cost Curve 1,400 1,200 Gold Price (as at 5 Sep 2014) All-in Sustaining cost ($/oz Au) 1,000 800 600 OceanaGold Consolidated AISC 2014 Range 400 200 0 -200 Didipio
Slide 10: Didipio Mine
Didipio Mine High quality, low-cost transformative asset generating significant free cash flow Luzon Lepanto / Goldfields DIDIPIO San Fernando (Port) Manila First FTAA signed & in production Nominal production of 100 koz gold, 14 kt copper per year over life of mine P&P Reserves1 of 1.59 Moz gold, 2
Slide 11: Didipio – A Game Changer
Didipio – A Game Changer Didipio has been one of the more successful start-ups over the last several years Didipio Contribution Strong copper revenue insulates against 180,000 100% commodity price fluctuations % of Total Operating Margin from Didipio 160,000 90% Gold Equivalent Production1 (oz) 140,
Slide 12: Didipio Optimisation Study Highlights
Didipio Optimisation Study Highlights Original Open Pit Design Optimised Open Pit Design Underground development to commence 1 year earlier Q1 15 Access to high grade material brought forward by 2 years Q3 17 Optimised design of underground and open pit resulting in 70 Mt in Larger Underground M
Slide 13: Optimised Didipio Design
Optimised Didipio Design Study identifies significant value to be unlocked at Didipio Revised Plan Limit of Oxidation Development: Q1 2015 Production: Q3 2017 New Stage 5 & 6 Full ramp-up: 2020 Pit Designs Technical Design Previous Mining rate: 1.6 Mtpa Stage 5/6 Underground Pit Design Mining type:
Slide 14: Other Didipio Catalysts
Other Didipio Catalysts Continued optimisation of the Didipio Mine to unlock additional value Didipio Process Plant Ramp-up Schedule Production increasing in H2 4.0 250,000 Production (Ounces) 3.5 Throughput (Mtpa) 200,000 3.0 2.5 150,000 Update the NI 43-101 Technical Report – end 2.0 of October 20
Slide 15: New Zealand Optimisation
New Zealand Optimisation Mitigated downside risk of a lower gold price, optionality with a higher gold price Mine optimisation and operating efficiencies over $100m in cost savings Focused on margin by mining less waste Production de-risked with zero cost collar hedging over next 18 months New Zea
Slide 16: New Zealand Studies
New Zealand Studies Evaluating new, organic growth opportunities in New Zealand Blackwater Near Reefton Inferred Resource1 of 0.7 Moz Au grading 23 g/t Drill program tested for continuity below historic workings Preliminary Economic Assessment near finalisation Round Hill Gold/Tungsten At Macrae
Slide 17: Foundation of Our Success
Foundation of Our Success A strong social license underpins success in socially complex, emerging countries Operating to highest of environmental standards Unique and tailored programs for a diverse group of stakeholders Engagement throughout all stages of the lifecycle Open and transparent communic
Slide 18: Looking Ahead
Looking Ahead Continue to deliver positive results through effective execution of strategy Well on track to achieve full year production and cost guidance Significant cash flow Increasing throughput rates to planned 3.5 Mtpa generation by year end at Didipio Finalise the Didipio Optimisation Study i
Slide 19: oceanagold.com
oceanagold.com Innovation Performance Growth