Oceanagold Corporation · TSX:OGC
Oceanagold — Investor Presentation (April 2015)
37 slides from Oceanagold's investor presentation, April 2015
Slide 1: Corporate Presentation April 2015
Corporate Presentation April 2015
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 (OGC: TSX/ASX/NZX)
OceanaGold Today (OGC: TSX/ASX/NZX) Emerging multinational gold and copper producer with strong free cash flow 2015 Guidance Gold Production 295,000 to 335,000 ounces Copper Production 21,000 to 23,000 tonnes Cash Costs* $450 to $530 per ounce All-In Sustaining Costs* $770 to $840 per ounce *Note –
Slide 4: Global Ownership
Global Ownership Strong liquidity with a diverse global shareholder base Market Capitalisation2 Shareholder Composition1 C$780m 63% 17% 2% 18% Avg. Daily Liquidity2 2.5m shares Shares Outstanding2 301m Indices TSX Composite, ASX300, GDXJ, GDX 1. Internal Report as at 28 Feb 2015 2. Metrics as at 1 A
Slide 5: OceanaGold Value Proposition
OceanaGold Value Proposition Strong free cash flow generation, strong performance underpins deep value All-In Sustaining Costs Comparative 2015E 2016E Low cost producer OceanaGold OceanaGold Barrick Gold Yamana Agnico-Eagle SEMAFO Generating strong free cash Kinross flow Alacer B2Gold Goldcorp North
Slide 6: Strong Margins
Strong Margins Strong profitability despite weaker commodity prices 1,600 Global All-in Sustaining Cost Curve 1,400 Spot Gold Price (as at 5 Apr 2015) 1,200 All-in sustaining cost ($/oz) 1,000 800 600 Strong Didipio margins 400 Didipio AISC Range 200 Q1 Q2 Q3 Q4 0 0 10 20 30 40 50 60 70 80 90 100 Cu
Slide 7: Key Highlights
Key Highlights Record Financials Reported Revenue: $563.3 million Record financial results despite continued lower commodity prices; $105.5m free cash flow in 2014 Net profit: $111.5 million (in 2014) Enhanced Shareholder Wealth 2014 dividend payment of US$0.04/sh; 11% pay-out Dividend policy establ
Slide 8: Dividend Policy
Dividend Policy Effectively managing a balanced business that delivers a sustainable dividend Established a sustainable dividend policy Dividend policy implemented Ordinary dividend of US$0.02 per share plus a discretionary payment Discretionary payment dependent on profitability and taking into acc
Slide 9: Financial Position (as at 31 Dec 2014)
Financial Position (as at 31 Dec 2014) LIQUIDITY Reduced total debt by $77.4m in 2014; approx. $149.4m in last 2 years Cash $51m Undrawn Revolving Credit Facility* $62m Increased cash balance by $26.4m in 2014 TOTAL LIQUIDITY $113m to $51.2m DEBT Revolving Credit Facility* $88m Reduced debt to equit
Slide 10: Experienced Management Team
Experienced Management Team Mick Wilkes Managing Director & Chief Executive Officer • Over 30 years industry experience • Developed major projects in Australia & SE Asia • Strong Operations background in hard rock mining • Strong in Community and Government relations • Extensive SE Asian experience
Slide 11: 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 12: Philippines Operations
Philippines Operations 12 OceanaGold Corporation Innovation Performance Growth
Slide 13: Didipio Mine
Didipio Mine Significant cash flow generation from one of the lowest cost gold mines globally Island of Luzon Nominal Production Far Southeast Gold: 100 koz Copper: 14 kt San Fernando (Port) DIDIPIO P&P Reserves1 Manila Gold: 1.70 Moz Copper: 0.21 Mt Masbate M&I Resources1 Paco Gold: 2.02 Moz Copper
Slide 14: Didipio 2015 Guidance
Didipio 2015 Guidance Increased gold production, steady copper production in 2015 Gold Production 100,000 to 120,000 ounces In 2015, 25% of operating costs are associated with diesel consumption Copper Production 21,000 to 23,000 tonnes 10¢ / pound change in copper price AISC margin Cash Costs* cha
Slide 15: Didipio Underground Development
Didipio Underground Development Earlier access to high grade underground ore enhances cash flows profile Underground development commenced Capex of $116m over next 3 years; sustaining capex of $75m over the following 10 years Mining rate of 1.6 Mtpa by 2020 when two mining domains established Larger
Slide 16: Philippines Looking ahead
Philippines Looking ahead Continued strong outlook at Didipio in 2015 and beyond Increased gold production, steady copper production expected in 2015 Q1 & Q4 are expected to be the strongest quarters for production, Q3 softest Power grid connection on track for completion in Q3 2015 Continued deve
Slide 17: Paco Exploration
Paco Exploration Geophysical surveying commenced at Paco tenements in Mindanao Adjacent to Boyongan and Bayugo copper-gold porphyry deposits (Salangan - Philex) Commenced geophysical survey to identify drill targets Bayugo Deposit: 125M tonnes at 0.60% Cu and 0.66 g/t Au (M&I) Kalayaan Exploration P
Slide 18: FTAA Exploration Opportunities
FTAA Exploration Opportunities Drilling Highlights (MetEx): 31m @ 0.35 g/t Au & 0.85% Cu 28m @ 0.65 g/t Au & 0.27% Cu 13m @ 0.75 g/t Au & 0.25% Cu Cabinwangan Mogambos 7m @ 1.16 g/t Au & 0.57% Cu 1.6 KM Rock Sampling Highlights: 8.09 g/t Au & 4.21% Cu 1 KM 3.20 g/t Au & 1.73% Cu 2.86 g/t Au & 2.09%
Slide 19: New Zealand Operations
New Zealand Operations 19 OceanaGold Corporation Innovation Performance Growth
Slide 20: New Zealand Overview
New Zealand Overview Over 8 million ounces in resource1 provides optionality with a higher gold price MACRAES FRASERS REEFTON Municipality Nominal Production (koz) OGC operation OGC project 90 – 120 40 – 55 50 – 60 Auckland P&P Reserves1 (Moz) 1.06 0.11 0.16 Wellington Reefton Blackwater M&I Resourc
Slide 21: New Zealand Value Enhancement
New Zealand Value Enhancement New economic conditions have increased profitability, optionality in New Zealand Drop in diesel price, weaker New Zealand dollar have driven operating costs lower; margins stronger Recent drill program at Macraes targeting additional resources; mine life extensions with
Slide 22: New Zealand 2015 Guidance
New Zealand 2015 Guidance Strong production base with strengthening cost profile Gold Production 195,000 to 215,000 In 2015, 8-10% of operating costs are associated with ounces diesel consumption Cash Costs* $850 to $900 10¢ / litre change in diesel price AISC margin per ounce changes by approx. $
Slide 23: New Zealand Looking ahead
New Zealand Looking ahead Production at Macraes steady in 2015 vs 2014; Reefton production expected higher NZ$8m planned spend over next two years on Macraes Goldfield exploration programs Cash flow generation tracking stronger on the back of a weaker NZD, lower fuel costs Continue to advance Roun
Slide 24: Blackwater PEA Highlights
Blackwater PEA Highlights1 PEA based solely on Inferred Mineral Resources Pre-tax NPV of $200m on base case2 – significant tax offsets available Estimated nominal production 55 to 60 koz / year for 10 years Processing rate of 120,000 tpa with estimated recovery of 96% Initial capex of US$40m for exp
Slide 25: Sustainability
Sustainability 25 OceanaGold Corporation Innovation Performance Growth
Slide 26: Investing in Our Local Communities
Investing in Our Local Communities Working together with our communities to leave a positive, long lasting legacy Community Investment Composition INFRASTRUCTURE EDUCATION COMMUNITY INVESTMENT CAPACITY DEVELOPMENT ENTERPRISE DEV’MENT Infrastructure Education Enterprise Development Health & Nutrition
Slide 27: Sound Environmental Management
Sound Environmental Management An unwavering commitment to the environment today, for tomorrow Agroforestry Environment Rehabilitation • Planting one million trees • ISO14001 EMS at Didipio • Restoring lands to match area • Commercial plantations • Reducing GhG emissions • Supporting agriculture Wat
Slide 28: Cash is King
Cash is King Strong free cash flow generation continues to provide opportunities to add value Price to Cash Flow per Share Comparative 2015E 2016E OceanaGold OceanaGold Beadell Northern Star Saracen Argonaut Gold IAMGOLD New Gold B2Gold Primero Goldcorp Agnico-Eagle AuRico Detour Gold Alamos 0.0 5.0
Slide 29: Looking Ahead
Looking Ahead Continue to produce positive results from effectively delivery of strategy Forecasted for another consecutive year of strong Significant free cash flow free cash generation generation Didipio continues to deliver positive results, optionality with additional drilling Low cost base; Dev
Slide 30: oceanagold.com
oceanagold.com Innovation Performance Growth
Slide 31: 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 32: 2014 Results Summary
2014 Results Summary 2014 Guidance 2014 Actuals Consolidated Didipio New Zealand Consolidated Gold production oz 275,000 to 305,000 106,256 201,207 307,463 Copper production t 21,000 to 24,000 25,010 – 25,010 Gold sales oz – 110,510 208,462 318,972 Copper sales t – 25,886 – 25,886 Cash costs $/oz 40
Slide 33: Consolidated Financial Results
Consolidated Financial Results Year Year Consolidated Financial Results (USDm) Q4 2014 Q3 2014 Q4 2013 2014 2013 Gold sales (ounces) 88,386 64,241 100,410 318,972 308,081 Copper sales (tonnes) 6,271 6,690 6,461 25,886 21,290 Gold price received ($ per ounce) 1,201 1,271 1,262 1,273 1,382 Copper pric
Slide 34: Consolidated Cash Flows
Consolidated Cash Flows Year Year USDm Q4 2014 Q3 2014 Q4 2013 2014 2013 Opening cash balance 46.8 46.2 14.7 24.8 96.5 Operating cash inflows 60.7 28.2 89.0 214.9 159.4 Investing expenditure (26.5) (27.6) (33.2) (109.4) (158.8) Free cash flow 34.2 0.6 55.8 105.5 0.6 Financing cash outflows (35.5) (2
Slide 35: El Salvador
El Salvador Nominal investment in a high quality resource w/ significant upside potential Measured & Indicated Resources1 Belize Guatemala Gold: 1.30 Moz Silver: 9.48 Moz Honduras Inferred Resources1 El Salvador Gold: 0.30 Moz Silver: 1.9 Moz Nicaragua M&I Average Grade Costa Rica Gold: 9.42 g/t Sil
Slide 36: Financial or Technical Assistance Agreement
Financial or Technical Assistance Agreement • Capital Recovery Period • 5 years from date of commercial production (April 1, 2013) to recover pre-operating expenses and other allowable items dating back to 1994 (when FTAA was signed) • Residual capital (capital unrecovered within 5 years) amortised
Slide 37: Mineral Resources and Reserves (as at Dec 2014)
Mineral Resources and Reserves (as at 31 Dec 2014) RESOURCES MEASURED INDICATED MEASURED & INDICATED INFERRED RESOURCE Au Au Ag Ag Cu Cu Au Au Ag Ag Cu Cu Au Au Ag Ag Cu Cu Au Au Ag Ag Cu Cu AREA Mt g/t Moz g/t Moz % Mt Mt g/t Moz g/t Moz % Mt Mt g/t Moz g/t Moz % Mt Mt g/t Moz g/t Moz % Mt MACRAES