Oceanagold Corporation · TSX:OGC
Oceanagold — Q3 2013 Earnings Presentation
25 slides from Oceanagold's earnings presentation, Oct 31, 2013
Slide 1: 2013 Third Quarter Results Conference Call Presentation
2013 Third Quarter Results Conference Call Presentation October 31 2013 Innovation Performance Growth
Slide 2: Cautionary Notes – Forward-looking
Cautionary Notes – Forward-looking 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: Cautionary Notes – Technical Information
Cautionary Notes – Technical Information Cautionary Notes regarding Technical Information Standards: This presentation includes disclosure of scientific and technical information, as well as information in relation to the calculation of reserves and resources, with respect to OGC’s and Pacific Rim’s
Slide 4: Q3 2013 Results Highlights
Q3 2013 Results Highlights Luzon Q3 Financial Highlights Didipio Philippines Baguio Net profit of $43.7 million Manila Revenue of $156.6 million Total Production & Costs Mindanao Q3 Au: 74,697 oz Q3 Cu: 6,150 t YTD Au: 210,513 oz YTD Cu: 15,523 t Q3 cash costs: $271 per ounce1 HQ Auckland YTD cash c
Slide 5: 2013 Guidance & All-In Sustaining Costs
2013 Guidance & All-In Sustaining Costs New Zealand Didipio Total Company Combined Gold Production Guidance 50,000 – 70,000 235,000 – 255,000 285,000 – 325,000 (ounces) Copper Production Guidance 18,000 – 20,000 – 18,000 – 20,000 (tonnes) [was 15,000 – 18,000] [was 15,000 – 18,000] 2013 Cash Cost Gu
Slide 6: Third Quarter 2013 Results Summary
Third Quarter 2013 Results Summary Total Total Didipio Macraes Reefton Q3 2013 Q3 2013 Q3 2013 Company Company Q3 2013 YTD Sep 30 2013 GOLD PRODUCTION 18,011 42,199 14,487 74,697 210,513 (ounces) COPPER PRODUCTION 6,150 - - 6,150 15,523 (tonnes) GOLD SALES 20,827 39,936 14,826 75,589 204,880 (ounces
Slide 7: Pro Forma Net Cash Flow
Pro Forma Net Cash Flow Didipio (per ounce Au sold) Q3 2013 Q2 2013 Q1 2013 YTD 2013 Average gold price received $1,339 $1,270 - $1,315 Average copper price received (per tonne) $7,017 $7,094 - $7,047 Cash cost (net of by-product credits) reported ($1,336) ($586) - ($1,075) Capitalised mining costs
Slide 8: Pacific Rim Mining Acquisition
Pacific Rim Mining Acquisition All-share transaction to acquire remaining Belize ~80.1% shares in Pacific Rim announced 8 Oct Guatemala Honduras Offer value of C$10.2m1 El Salvador Nicaragua Offer / Total Resource (2008)2 = US$7/oz AuEq Costa Rica Pacific Rim’s principal project is the gold-silver P
Slide 9: Philippines Operations
Philippines Operations 9 OceanaGold Corporation Innovation Performance Growth
Slide 10: Didipio Q3 Highlights
Didipio Q3 Highlights Over 7.3 million consecutive man hours worked without an LTI Production increasing with higher gold grades and better recoveries 2013 copper production guidance increased Transitioning to owner trucking expect improved scheduling and reduced transportation costs On schedule t
Slide 11: Didipio Concentrate Production Profile
Didipio Concentrate Production Profile Didipio Concentrate Production Profile (as at 30 September 2013) 9,000 First ore through the mill Commercial production 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 July January February June September December March April May August Estimated production a
Slide 12: Didipio Mine
Didipio Mine YTD Q3 2013 Q2 2013 Q1 2013 Sep 30 2013 Lost time injuries 0 0 0 0 Gold production oz 18,011 13,676 6,877 38,564 Copper production t 6,150 5,710 3,663 15,523 Total ore mined Mt 2.60 1.73 1.84 6.17 Total waste mined Mt 3.83 4.34 2.75 10.93 Ore grade mined gold g/t 0.58 0.55 0.49 0.54 Ore
Slide 13: New Zealand Operations
New Zealand New Zealand Operations Operations 13 OceanaGold Corporation Innovation Performance Growth
Slide 14: New Zealand Q3 Highlights
New Zealand Q3 Highlights Macraes Commenced mining higher grade ore from Macraes and Reefton late in the quarter Cost reductions have lowered cash costs, improved margins despite higher exchange rate Reefton Q4 2013 production tracking to plan Continued review of the impact on mine life at Macraes d
Slide 15: Macraes Goldfield
Macraes Goldfield YTD Sep YTD Sep Q3 2013 Q2 2013 Q1 2013 30 2013 30 2012 Lost time injuries 2 1 0 3 6 Gold production oz 42,199 40,063 48,139 130,401 110,737 Total ore mined from Mt 1.65 1.19 1.43 4.28 3.22 open pit Total ore mined from Mt 0.23 0.22 0.21 0.66 0.52 underground Total waste mined Mt 9
Slide 16: Reefton Goldfield
Reefton Goldfield YTD Sep YTD Sep Q3 2013 Q2 2013 Q1 2013 30 2013 30 2012 Lost time injuries 3 1 0 4 2 Gold production oz 14,487 14,614 12,447 41,548 45,328 Total ore mined Mt 0.44 0.38 0.34 1.15 0.91 Total waste mined Mt 4.84 4.39 4.00 13.22 13.65 Ore grade mined g/t 1.51 1.45 1.47 1.48 1.49 Mill f
Slide 17: Round Hill Study at Macraes
Round Hill Study at Macraes Organic, potential value creating opportunity Tungsten by-product could provide high margin production ounces Commenced resource definition and metallurgical test work in Q3 2013 Feasibility study expected in 2014 17 OceanaGold Corporation Innovation Performance Growth
Slide 18: Sustainability
Sustainability 18 OceanaGold Corporation Innovation Performance Growth
Slide 19: Q3 Sustainability Highlights
Q3 Sustainability Highlights Teacher and health worker salary subsidies Typhoon Labuyo relief Upgrading Didipio Elementary School 19 OceanaGold Corporation Innovation Performance Growth
Slide 20: Financial Results
Financial Summary Financial Results 20 OceanaGold Corporation Innovation Performance Growth
Slide 21: Financial Position (as at September 2013)
Financial Position (as at 30 September 2013) Cash & Facilities • Cash Cash $15m Undrawn Revolving Credit Facility $30m Available Term Facility $112m TOTAL $157m • Cash slightly lower in Q3 vs. Q2 on account of increase in receivables and inventories • Liquidity increasing in Q4 through higher produc
Slide 22: Group Results Q3 2013
Group Results Q3 2013 USDm Q3 2013 Q2 2013 Q1 2013 YTD 2013 YTD 2012 Revenue 156.6 131.2 95.6 383.5 266.4 Operating costs1 (80.3) (88.7) (48.5) (217.6) (188.9) EBITDA2 76.3 42.5 47.1 165.9 77.5 Depreciation & amortisation (25.1) (39.8) (29.5) (94.5) (63.8) Net interest & finance costs (6.3) (6.3) (6
Slide 23: Cash Flows as at September 30, 2013
Cash Flows as at September 30, 2013 USDm Q3 2013 Q2 2013 Q1 2013 YTD 2013 YTD 2012 Opening cash balance 17.9 27.4 96.5 96.5 170.0 Operating cash inflows 39.1 9.9 21.4 70.4 55.0 Capital expenditure (35.4) (25.2) (65.0) (125.6) (203.1) Financing cash (3.0) (4.5) (25.7) (33.2) (1.4) inflows/(outflows)
Slide 24: Outlook
Outlook Strong fourth quarter production expected on the back of mining higher grades across the operations Increase in free cash flow generation and liquidity to strengthen balance sheet Continued focus on ensuring profitability in a lower gold price environment Continued value creation through org
Slide 25: oceanagold.com
oceanagold.com Innovation Performance Growth