Slide 1: 2012 Second Quarter Results Conference Call Presentation
2012 Second Quarter Results Conference Call Presentation July 27th 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: Q2 2012 Highlights
Q2 2012 Highlights US$/oz 1,800 Cash operating margin $/oz • Revenue $87m @ average gold Cash operating cost $/oz 1,600 Gold price rec'd (ave) $ price of $1,613 per ounce 1,400 1,200 • 53,756 ounces of gold sold at 1,000 operating cash cost of $1,029 per 800 600 ounce • 400 200 Cash operating margin
Slide 4: Q2 2012 Operational Summary
Q2 2012 Operational Summary • Three lost-time injuries sustained Safety • Developed new Health & Safety standards • Gold production of 55,709 ounces – up 10% vs Q1 2012 – Improved ore production at Macraes Open Pit – Higher mill throughput and mill grade – Lower recoveries – gold in circuit build up
Slide 5: Cash cost profile
Cash cost profile • Decrease in cash costs from Q1: – Weaker ave NZD vs USD $0.79 Q2/12 vs $0.83 Q1/12 – Increase in capitalised pre strip – Increased ounces produced – Offset by higher overall input costs 5 OceanaGold Corporation
Slide 6: 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 7: Operations: Macraes (Open Pit & Underground)
Operations: Macraes (Open Pit & Underground) Macraes Goldfield Q2 2012 Q1 2012 Q2 2011 H1 2012 H1 2011 Gold produced (oz) 39,012 34,851 44,107 73,863 88,264 Open pit ore mined (Mt) 1.12 0.93 1.20 2.06 2.61 Underground ore mined (Mt) 0.18 0.16 0.18 0.34 0.38 Mill feed (Mt) 1.48 1.39 1.46 2.87 2.92 Mi
Slide 8: Operations: Reefton
Operations: Reefton Reefton Goldfield Q2 2012 Q1 2012 Q2 2011 H1 2012 H1 2011 Gold produced (oz) 16,697 15,991 17,881 32,668 39,395 Total ore mined (Mt) 0.27 0.32 0.39 0.59 0.77 Mill feed (Mt) 0.43 0.42 0.46 0.85 0.88 Mill feed grade (g/t) 1.53 1.44 1.42 1.49 1.62 Recovery (%) 78.8% 83.2% 81.1% 80.9
Slide 9: Development: Didipio Project Update
Development: Didipio Project Update • 1,700 contractors & employees on site, >98% Filipinos Personnel • Didipio operations team 60% recruited • Construction: >70% complete • Concrete foundations: 95% complete • Process plant steel erection: 65% complete Schedule • Tailings Storage Facility: 50% comp
Slide 10: Copper Concentrate HOA
Copper Concentrate HOA • 70,000 tonnes of copper concentrate per annum • ~75% of produced gold in concentrate • Heads of Agreement signed with Trafigura Lepanto / Goldfields – OGC to sell 100% copper/gold San Fernando Port concentrate Philex – Logistics managed by Trafigura from mine gate – Benchmar
Slide 11: Didipio Project Schedule
Didipio Project Schedule On-track for commissioning Q4 – Project >70% complete Completed 2011 2012 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Site access road • First ore in mills • Commissioning Construction camp1 complete Operations village Mining infrastructure Tailings Storage Facility Storage Sheds Power s
Slide 12: Didipio Construction Progress
Didipio Construction Progress Mining at the top of the ore body, June 2012 12 OceanaGold Corporation
Slide 13: Didipio Construction Progress
Didipio Construction Progress Plant site overview, July 2012 13 OceanaGold Corporation
Slide 14: Didipio Construction Progress
Didipio Construction Progress Installation of primary crusher, July 2012 14 OceanaGold Corporation
Slide 15: Didipio Construction Progress
Didipio Construction Progress Transfer conveyor from crusher to mill, July 2012 15 OceanaGold Corporation
Slide 16: Didipio Construction Progress
Didipio Construction Progress Ball mill, July 2012 16 OceanaGold Corporation
Slide 17: Didipio Construction Progress
Didipio Construction Progress Flotation tanks, July 2012 17 OceanaGold Corporation
Slide 18: Didipio Construction Progress
Didipio Construction Progress TSF construction 50% complete, June 2012 18 OceanaGold Corporation
Slide 19: Didipio Community Activities
Didipio Community Activities • Received commendation award from the Commission of Human Rights • Advanced 30% of 2013 SDMP funds to nine surrounding communities • DiCorp continued work on awarded contracts such as road maintenance • Agreement with neighbouring barangays to upgrade access road 19 Oce
Slide 20: Philippines Mining Reform – EO79
Philippines Mining Reform – EO79 • Executive Order 79 – Philippines mining policy framework – In consultation with various stakeholders – Improved transparency of mining industry – Regulation to control small scale mining • Existing revenue sharing schemes to be rationalised and granting of new mine
Slide 21: Exploration Update
Exploration Update Spend • Total Q2 spend: $3.9m (majority spent on Blackwater) • Focus on brownfields drilling Reefton • Diamond drilling at Globe Progress Mine and Blackwater • Favourable results of Blackwater drilling • Positive drilling for extensions to Macraes Open Pit • Possible increase to o
Slide 22: Financial Summary
Financial Summary 22 OceanaGold Corporation
Slide 23: Group Results Q2 2012
Group Results Q2 2012 USDm Q2 2012 Q1 2012 Q2 2011 H1 2012 H1 2011 Revenue 86.7 88.6 94.8 175.3 185.6 Operating Costs (61.1) (65.3) (61.8) (126.4) (108.6) EBITDA 25.6 23.3 33.0 48.9 77.0 Dep’n & Amortisation (20.0) (21.8) (21.0) (41.8) (39.9) Net Interest (4.0) (4.0) (3.3) (8.0) (6.1) Earnings befor
Slide 24: Cash Flows June 30, 2012
Cash Flows June 30, 2012 USDm Q2 2012 Q1 2012 Q2 2011 H1 2012 H1 2011 Opening cash balance 123.3 170.0 193.6 170.0 181.3 Operating cash inflows 20.9 20.8* 29.2 41.7 76.3 Capital expenditure (69.3) (65.1)* (32.0) (134.4) (61.3) Financing cash outflows (4.6) (3.6) (3.8) (8.2) (8.8) Forex effect 2.8 1.
Slide 25: Q2 2012 Cash Flows
Q2 2012 Cash Flows • Q2 Operating cash flows in line with Q1 – Lower revenue offset by lower costs • Investing cash flows included: – Didipio Project construction: $44.8m – Pre-stripping capex: $16.2m – Sustaining capex: $2.8m 25 OceanaGold Corporation
Slide 26: Credit Facility
Credit Facility • Subject to final documentation, entered into agreements with group of multi-national banks to provide $220m credit facility. • Three year facility provides additional liquidity, to be used if necessary for – Repayment of A$57.8m convertible bonds maturing December 2012 – Repayment
Slide 27: Outlook
Outlook • Didipio Project fully financed and on-track for commissioning in Q4 2012 • Balance sheet to be strengthened with corporate refinancing • Expect extension of exploration period of FTAA • H2 Gold production > H1 Gold Production – Access to Macraes Open Pit stage 5 higher grades expected to c
Slide 28: OceanaGold
i a 4) OCEANAGOLD oceanagold.com PC Innovation Performance Growth