Oceanagold Corporation · TSX:OGC
Oceanagold — Macquarie Australia Conference 2015
27 slides from Oceanagold's conference presentation, May 7, 2015
Slide 1: Macquarie Australia Conference
Macquarie Australia Conference Mark Chamberlain, Chief Financial Officer May 7 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 Market Capitalisation* A$760m Avg. 90-Day Daily Liquidity* 2.0m shares Shares Outstanding* 303m Indices TSX Composite, ASX300, GDXJ, GDX *Note: Metrics as at 4 May 2015 3 OceanaGold Corpora
Slide 4: 2015 Guidance
2015 Guidance Strong production with sector leading cost structure from high quality operations Gold Production Detailed Guidance Production Costs* 295,000 to 335,000 Gold Copper Cash Costs AISC ounces (koz) (kt) (per oz) (per oz) ($240) – Copper Production Didipio 100 – 120 21 – 23 ($190) $200 – $2
Slide 5: OceanaGold Value Proposition
OceanaGold Value Proposition Consistent delivery of positive results under pins strong free cash flow generation Strong production from high Sector leading free cash flow quality assets generation First quartile AISC Strong balance sheet Over 24 years of operations & Dividend paying development expe
Slide 6: Peer Comparatives
Peer Comparatives Compelling metrics further demonstrates the OceanaGold investment appeal All-In Sustaining Costs Comparative Price to Cash Flow per Share (US$/oz) Comparative 2015E 2016E OceanaGold OceanaGold OceanaGold OceanaGold Barrick Gold Northern Star Yamana Saracen Agnico-Eagle Argonaut SEM
Slide 7: Recent Highlights
Recent Highlights Strong Q1 Financial and Operational Results Waihi Gold Mine – New Zealand • Record quarterly gold production from • Signed non-binding Letter of Intent with Didipio Newmont to acquire Waihi • Generated $19.4m in free cash flow • Transaction cost of $101m cash • Reduced total debt b
Slide 8: Q1 2015 Results
Q1 2015 Results Strong operational performance continues across the business Consolidated Didipio New Zealand Consolidated 2015 Guidance Q1 2015 Q1 2015 Q1 2015 Gold production oz 295,000 to 335,000 35,122 56,024 91,146 Copper production t 21,000 to 23,000 6,102 – 6,102 Cash costs $/oz 450 to 5301 (
Slide 9: Financial Position (as at 31 Mar 2015)
Financial Position (as at 31 Mar 2015) Dividend payment made on 30 April 2015 in aggregate of US$12m – 11% pay-out Mar 31 Dec 31 2015 2014 LIQUIDITY Total debt at end of 2014 Cash $60m $51m $118 million (interest paid: $12m) Undrawn Revolving Credit Facility* $97m $112m TOTAL LIQUIDITY $157m $163m T
Slide 10: Proposed Waihi Acquisition
Proposed Waihi Acquisition 10 OceanaGold Corporation Innovation Performance Growth
Slide 11: Waihi Transaction Overview
Waihi Transaction Overview Waihi represents a high-grade, low-cost asset in a stable, well-known jurisdiction Municipality Non-binding Letter of Intent with Newmont to OGC operation acquire Waihi Gold Mine for US$101m Auckland OGC project New asset Waihi Transaction subject to completion of due dili
Slide 12: Investment Highlights
Investment Highlights Transaction strongly aligns with OceanaGold’s value creation strategy High-grade, low-cost, meaningful Invest in high-quality assets production Substantial free cash flow generation Immediate cash flow generation Accretive transaction EPS and CFPS Synergistic with existin
Slide 13: Waihi – Asset Overview
Waihi – Asset Overview Comprises Correnso Underground Mine and highly prospective tenement packages Experienced workforce with track record of success Magazine and skills complementary to OceanaGold Newmont Head Office Conventional SAG & ball mills, CIP circuit w/plant MacMahon Office capacity of up
Slide 14: Waihi's Significant Exploration Upside
Waihi’s Significant Exploration Upside Interests in three groups of highly prospective tenement packages Waihi Group (within 5 km) Includes EP51771 Waihi North, Martha Open-Pit Phase 5, Gladstone pit / underground, No. 9 vein and Favona pit Residual Martha Open-Pit reserves of~65koz. Suspended indef
Slide 15: Philippines Operations
Philippines Operations Two consecutive quarters of Significant cash flow generation record gold production One of the lowest gold mines globally Underground development Q1 2015 AISC = $210 / oz underway 15 OceanaGold Corporation Innovation Performance Growth
Slide 16: Didipio Underground
Didipio Underground Earlier access to high grade underground ore enhances cash flow 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 are established Access to high
Slide 17: 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 completion by Q4 2015 Continued development of Un
Slide 18: Philippines Exploration
Philippines Exploration Exploration activities progressing well in the highly prospective Philippines Paco Tenements Geophysical surveying commenced at Paco tenements in Mindanao Didipio area drilling underway with early promising results achieved Didipio Area Drilling 18 OceanaGold Corporation Inno
Slide 19: New Zealand Operations
New Zealand Operations Lower costs, weaker NZD has Leveraging inherent significant increased profit margins technical experience Over 7 Moz in resource provides strong optionality New options to increase reserve Q1 2015 AISC = 913 / oz and mine life at Macraes 19 OceanaGold Corporation Innovation Pe
Slide 20: New Zealand Value Enhancement
New Zealand Value Enhancement New economic conditions have increased profitability, organic growth in NZ Generated $13m in free cash flow in Q1 2015 Cost reductions, lower fuel costs, weaker New Zealand dollar have increased profit margins Strong profit margins from Reefton due to reduced material m
Slide 21: Trading Comparables
Trading Comparables OGC’s New Zealand assets with Waihi demonstrate clear value compared to producing peers ASX-Listed TSX-Listed NZ Company NZ Portfolio Northern Star Saracen Lake Shore Klondex Richmont + Waihi Market Cap. US$m 1,043 289 416 326 192 Enterprise Value US$m 970 265 451 312 141 ? FY15E
Slide 22: New Zealand Looking ahead
New Zealand Looking ahead Current Drilling Future Drilling Production from NZ operations expected to be North of Macraes steady with good profit margins NZ$8m spend over next two years on exploration at Macraes South of Macraes Macraes Gold-Tungsten Project: Tungsten offtake agreement tendering an
Slide 23: New Zealand Projects
New Zealand Projects Organic growth demonstrates potential for increased value from NZ asset base Blackwater Macraes Gold-Tungsten Project Near Reefton At Macraes • PEA completed with robust financials • Scoping study underway • Currently reviewing mining method; • Advancing to feasibility by year-
Slide 24: Sustainability
Sustainability Unwavering commitment to our Focused on building capacity, communities & environment not dependency Achieved ISO14001 certification Industry best rehabilitation for Didipio programs 24 OceanaGold Corporation Innovation Performance Growth
Slide 25: 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 26: Looking Ahead
Looking Ahead Continue to produce positive results from effective delivery of strategy Forecasted for another consecutive year of strong Significant free cash flow free cash generation generation Development of Didipio underground well advanced; power grid connection on track for Q3 2015 Low cost ba
Slide 27: oceanagold.com
oceanagold.com Innovation Performance Growth