Oceanagold Corporation · TSX:OGC
Oceanagold — Investor Presentation (December 2015)
47 slides from Oceanagold's investor presentation, December 2015
Slide 1: Consistently Delivering On Commitments
Consistently Delivering On Commitments December 2015 Corporate Presentation Innovation • Performance • Growth
Slide 2: Cautionary and Technical Statements
Cautionary and Technical Statements 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
Slide 3: OceanaGold Overview
OceanaGold Overview 2015 Guidance Gold Production Copper Production Cash Costs All-In Sustaining Costs 380,000 – 410,000 ounces 22,000 – 23,500 tonnes $420 – $470 per ounce $690 – $740 per ounce Didipio LOM: 2030+ Gold Gold Standard Copper Ventures LOM: 2030+ Haile Gold LOM: 2018+ Vancouver Waihi El
Slide 4: OceanaGold Value Proposition
OceanaGold Value Proposition Sound operators and developers with compelling financial metrics Financial Operational Over 25 years of operating & Strong balance sheet development experience Sector leading AISC In-house mine development team Significant experience with complex Strong cash flow generat
Slide 5: Value Enhancement
Value Enhancement Low-cost production growth further with compelling peer comparative 600 Gold Production(1) $1,000 AISC(1) 500 Haile Projected $800 Year 1 400 Gold Production (koz) AISC (US$/oz) $600 300 $400 200 100 $200 0 $0 2015E 2016E 2017E PF 2015E 2016E 2017E PF $1,200 2017E AISC Comparative(
Slide 6: Recent News
Recent News Continued focus on integrating recent transactions, organic growth YTD Sep Consolidated Operations(1) Q3 2015 2015 Guidance 30 2015 Gold Production oz 120,664 297,663 380,000 – 410,000 Copper Production t 5,219 17,518 22,000 – 23,500 per oz Cash costs sold $451 $465 $420 – $470 per oz AI
Slide 7: Financial Results Overview (as at 2 Oct 2015)
Financial Results Overview (as at 2 Oct 2015) LIQUIDITY(1) Cash includes $144m acquired through Romarco acquisition Cash $190m Undrawn Revolving Credit Facility $132m Acquired ~$24m in cash through TOTAL LIQUIDITY $322m Waihi transaction (on Oct 30) (1) DEBT Revolving Credit Facility $78m $101m of u
Slide 8: United States
United States 8 OceanaGold Corporation Innovation Performance Growth
Slide 9: Haile Gold Mine Overview
Haile Gold Mine Overview Construction of top-tier asset underway and progressing well Resources & Reserves(1) Mt g/t koz P&P Reserves 30.5 2.06 2,018 M&I Resources 71.2 1.77 4,039 Inferred 20.1 1.24 801 Resources Construction Concrete Post-transaction Developing well underway foundation for integrat
Slide 10: Haile Gold Mine Overview
Haile Gold Mine Overview Capital Cost Estimate Initial Capex USDm 333 Sustaining Capex USDm 139 LOM Haile Gold Mine LOM Operating Unit Cost Estimates Mining Cost USD/ton mined 1.45 Processing Cost USD/ton milled 10.11 Site G&A Cost USD/ton milled 3.56 All-In Sustaining USD/oz 414 Cost (Year 1) Proje
Slide 11: Haile Site Overview
Haile Site Overview Haile Operation Overview Process Plant Schematic First Concrete Pour at Haile 11 OceanaGold Corporation Innovation Performance Growth
Slide 12: Haile Long Section
Haile Long Section Significant potential opportunity beyond current open-pit reserves Underground Targets Mustang Palomino Horseshoe Developing Currently Infill drilling Optimisation extensive drilling two expected to study to further exploration regional targets commence at define program for at Cy
Slide 13: Horseshoe Deposit
Horseshoe Deposit Horseshoe deposit represents one of the primary underground targets NE 13 OceanaGold Corporation Innovation Performance Growth
Slide 14: Haile Regional Exploration Opportunities
Haile Regional Exploration Opportunities Numerous regional exploration opportunities identified to date Current drilling Haile 14 OceanaGold Corporation Innovation Performance Growth
Slide 15: New Zealand
New Zealand 15 OceanaGold Corporation Innovation Performance Growth
Slide 16: Waihi Gold Mine Overview
Waihi Gold Mine Overview GOLD Reserves and Resources(1) Moz Moz Mt g/t Au g/t Ag UNDERGROUND Au Ag P&P 1.5 6.33 0.31 24.0 1.17 Reserves M&I 1.5 6.33 0.31 24.0 1.17 Resources Inferred Auckland 0.6 7.73 0.15 16.7 0.33 Resources Waihi Avg. Unit Operating Costs (H2 2015) Mining Costs NZD / t mined 90 –
Slide 17: Waihi Operation
Waihi Operation Waihi Operation Overview Magazine Admin Office Attributable to Guidance Q3 2015(1) OGC (H2 2015) Gold Production oz 65,000 – 70,000 32,997 Crusher and Stamilers per oz UG Portal Ventilation shaft AISC sold US$650 – US$680 US$497 Mill Polishing and per oz Collection Ponds Cash Costs s
Slide 18: Recent Historical Production and Reserves
Recent Historical Production and Reserves Waihi has a track record of reserve replenishment over its 27 year history Waihi Historical Production, Year End Reserves and Cumulative Production since 2007 1,000 1,00 0 900 864 900 800 732 800 700 622 700 555 500 600 600 460 458 500 410 350 500 360 360 36
Slide 19: Waihi Plan
Waihi Plan 1000 RL Moonlight Martha Favona Trio Correnso Grace-Empire metres 500 RL Comprehensive Significant Over 15,000 Updated optimisation upside potential metres of drilling Resource and program to exists within planned in H2 Reserve boost current deposits 2015; 34,000 statement productivity; a
Slide 20: Current Exploration Program
Current Exploration Program Recent Drilling Results (1) True Width Au Grade Vein (m) (g/t) Correnso 4.9 18.0 Deeps 6.8 8.7 3.9 13.1 4.3 20.8 4.7 18.3 Daybreak 5.3 11.4 4.8 6.4 5.8 26.1 Empire 3.2 14.5 5.9 6.9 Quattro 1.8 29.1 7.6 5.6 New vein 0.9 12.9 2.7 8.3 20 OceanaGold Corporation 1. For full dr
Slide 21: Correnso Extension
Correnso Extension Recent drilling results indicate encouraging extension of Correnso operation opportunity 4.7m true @ 18.3g/t Au 4.8m true @ 20.8g/t Au opportunity 21 OceanaGold Corporation Innovation Performance Growth
Slide 22: Regional Exploration Opportunities
Regional Exploration Opportunities Dome field EP application/s – design and initiate programs Twin Hills Map/sample – access post Treaty Settlement Ohui Remodel – target generation for 2017 White Bluffs 500m drilling Glamorgan Map/sample – access Hauraki Includes WKP, significant drill program plann
Slide 23: Macraes Goldfield Overview
Macraes Goldfield Overview GOLD Reserves and Resources(1) Mt g/t Moz OPEN PIT & UNDERGROUND P&P Reserves 35.1 1.04 1.17 M&I Resources 101 1.11 3.58 Inferred 80 0.94 2.4 Resources Auckland Waihi Avg. Unit Operating Costs O/P Mining Costs NZD / t mined 1.50 – 1.60 U/G Mining Costs NZD / t mined 53 – 5
Slide 24: Macraes & Reefton Highlights
Macraes & Reefton Highlights NZD:USD Exchange Rate 0.90 Macraes & Reefton 2015 Guidance YTD Sep 30 2015 0.85 Results 0.80 0.75 Gold Production oz 210,000 – 220,000 170,674 0.70 per oz 0.65 AISC sold $980 – $1,030(1) $946(2) 0.60 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013
Slide 25: Macraes Goldfield Exploration
Macraes Goldfield Exploration Maiden resource at Coronation further illustrates mine life extension potential Coronation North Resource(1) Mt g/t Moz Indicated Resources 2.75 1.52 0.13 Inferred Resources 5.33 0.95 0.16 25 OceanaGold Corporation 1. For full drill results, see www.oceanagold.com/inves
Slide 26: Macraes Gold – Tungsten Project
Macraes Gold – Tungsten Project Organic growth demonstrates potential for increased value from NZ asset base Scoping study completed in Q2 2015 Feasibility study commenced in Q3 2015 Results expected in mid-2016 Concept: • Development of new 3-4 Mtpa plant • Plant to be constructed in new location t
Slide 27: Philippines
Philippines 27 OceanaGold Corporation Innovation Performance Growth
Slide 28: Didipio Overview
Didipio Overview Reserves and Resources(1) GOLD / COPPER Mt g/t Au Moz Au % Cu Mt OPEN PIT & UNDERGROUND P&P 47.6 1.11 1.70 0.44 0.21 Reserves M&I Island of 57.3 1.10 2.02 0.42 0.24 Resources Luzon Inferred 12 0.93 0.35 0.32 0.04 Resources San Fernando (Port) Didipio Avg. Unit Operating Costs Far So
Slide 29: Philippines Highlights
Philippines Highlights Consistent strong performance from one of the lowest cost gold mines Didipio Underground Didipio Results 2015 Guidance YTD Sep 30 2015 Gold Production oz 105,000 – 120,000 93,992 Copper Production t 22,000 – 23,500 17,518 per oz AISC sold $230 – $280(1) $370 per oz Cash Costs
Slide 30: Didipio Underground
Didipio Underground Early access to high grade underground ore enhances cash flow profile Measured and Indicated Stopes Sill and Crown Pillars (ore) Inferred Stopes (drilling targets) Limit of Oxidation Tunja New Stage Monzonite 5 and 6 Pit Designs Previous Stage 6 2460m RL Underground Pit Design 30
Slide 31: Philippines Exploration
Philippines Exploration True Blue drilling includes 134 m @ 1.18 g/t Au, 0.25% Cu Commenced drilling at Paco tenements 31 OceanaGold Corporation Innovation Performance Growth
Slide 32: Sustainability
Sustainability 32 OceanaGold Corporation Innovation Performance Growth
Slide 33: Continued Focus on Safety
Continued Focus on Safety A strong culture of safety underpins operational success Total Recordable Injury Frequency Rate 14 12 10 8 6 4 2 0 2011 2012 2013 2014 2015 YTD Received Achieved over Macraes has Reduced overall Presidential 10 million man achieved 1.6 Lost-Time Injury “Safest Mining hours
Slide 34: 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 COMMUNITY Infrastructure INVESTMENT Education Enterprise Development Health & Nutrition Capacity Building Sports and Socio-Cultural 34 OceanaGold Corpora
Slide 35: Sound Environmental Management
Sound Environmental Management An unwavering commitment to the environment today, for tomorrow Agroforestry Environment Rehabilitation • Planting one • ISO14001 EMS at • Restoring lands million trees Didipio to match area • Commercial • Reducing GhG • Supporting plantations emissions agriculture Wat
Slide 36: Delivering Organic Growth
Delivering Organic Growth Creating value from within the business through significant organic growth Mine Waihi Didipio Power Macraes Mine Optimisation Optimisation Grid Connection Life Extension Haile Development & Didipio Macraes Gold- Construction & Studies Underground Tungsten U/G study Haile &
Slide 37: oceanagold.com
oceanagold.com Innovation Performance Growth
Slide 38: Executive Management Team
Executive 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 Ma
Slide 39: Board of Directors
Board of Directors Jim Askew Mick Wilkes Denham Shale Diane Garrett Chairman Managing Director & CEO Lead Director Director • Mining engineer with over 35 • Over 30 years industry • Lawyer in practice in Auckland, • Over 20 years of senior years broad international experience New Zealand management
Slide 40: 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. Operating efficiently Maximising va
Slide 41: Consolidated Financial Results
Consolidated Financial Results YTD Sep 30 YTD Sep 30 (Excluding Waihi) Q3 2015 Q2 2015 2015 2014 Gold production (ounces) 87,667 85,853 264,666 214,751 Gold sales (ounces) 78,639 82,890 247,763 230,585 Copper production (tonnes) 5,219 6,197 17,518 18,263 Copper sales (tonnes) 5,484 5,438 17,167 19,6
Slide 42: Consolidated Cash Flows
Consolidated Cash Flows YTD Sep 30 YTD Sep 30 USDm (excluding Waihi) Q3 2015 Q2 2015 2015 2014 Opening cash balance 48.7 59.6 51.2 24.8 Operating cash inflows 23.8 42.3 109.3 154.2 Investing expenditure (22.4) (38.3) (84.5) (82.9) Financing cash outflows (2.1) (15.2) (30.6) (39.9) Foreign exchange e
Slide 43: 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 44: Gold Standard Ventures (Nevada)
Gold Standard Ventures (Nevada) Strategic investment in one of the most prolific gold regions globally Private placement in GSV.V for 14.9% of common shares for C$16.2m Technical representation and anti-dilution provision with right to increase equity stake to 19.9%1 GSV holds 2nd largest land packa
Slide 45: El Salvador Overview
El Salvador Overview Nominal investment in a high quality resource w/ significant upside potential M&I Resources(1) Belize Gold: 1.30 Moz Silver: 9.48 Moz Guatemala Honduras Inferred Resources(1) Gold: 0.30 Moz Silver: 1.9 Moz El Salvador Nicaragua M&I Average Grade(1) Costa Rica Panama Gold: 9.42 g
Slide 46: Didipio Cash Flow Profile
Didipio Cash Flow Profile Strong, steady free cash flow generation over life of mine After-Tax Cash Flow Profile(1) (USDm) 150 133 135 123 123 100 88 87 84 78 62 69 72 66 60 50 37 USDm 0 -4 -1 -7 -8 -6 -9 -6 -19 -15 -23 -50 -49 -52 -59 After Tax Cash Flow (before Capex) Capex FCF Trend -100 2015 201
Slide 47: 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