Oceanagold Corporation · TSX:OGC
Oceanagold — Investor Presentation (May 2012)
27 slides from Oceanagold's investor presentation, May 2012
Slide 1: Corporate Presentation
Corporate Presentation May 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: Corporate Overview
Corporate Overview Market Overview (10 May 2012) Market Capitalisation ~US$510m Shares Outstanding 262.8m Non-listed Options 6.9m Average Daily Trading Volume (last 90 days) 1.4m Listed as “OGC” TSX, ASX, NZX Share indices: TSX Composite ASX 200 NZX 50 3
Slide 4: OceanaGold Vision 2016
OceanaGold Vision 2016 High performing, growth orientated, Asia Pacific gold company Explore, develop and operate quality assets in a safe & sustainable manner Our Vision 2016 Enablers Superior returns to shareholders Innovative team culture Annual production of 600Koz gold Acting on opp
Slide 5: OceanaGold Investment Proposition
OceanaGold Investment Proposition EXPERIENCED GOLD PRODUCER ORGANIC GROWTH STRATEGY ASIA PACIFIC FOCUS Solid production growth with Luzon Didipio declining cash cost profile Philippines Baguio Didipio Stage II Manila FY2012 Guidance of 230- 250K oz Au @ US$900- $980 / oz cash costs Mindanao Hi
Slide 6: Current Producing Assets
Current Producing Assets Successful long term presence in New Zealand Macraes Frasers Reefton Macraes Frasers Reefton Mine Type Open Pit Underground Open Pit Resources1 Gold (Moz) 4.55 1.19 1.20 Reserves1 Gold (Moz) 1.41 0.18 0.37 Estimated Mine Life ~2019 ~2017 ~2015 - 2017 Gold Production (ounces)
Slide 7: Didipio Gold/Copper Project
Didipio Gold/Copper Project Mine life: 16 years Annual production 100Koz Au + 14Kt Cu (LOM Av.) Gold reserves 1.68Moz Lepanto Copper reserves 229Kt Philex Ore reserves 50.7Mt @ 1.03g/t Au and 0.45% Cu Years 1-6: Negative cash cost1 of US$(79)/oz Au LOM: Cash cost1 US$372/oz Au CAPEX
Slide 8: Didipio Gold/Copper Project
Didipio Gold/Copper Project Construction commenced June 2011 Concrete pour commenced Nov 2011 Mining & TSF construction commenced Jan 2012 Structural Steel erected Q1 2012 Major equipment arrival on site Mar 2012 Commissioning Q4 2012 1. Using US$3.00/lb copper bi-product credit 8
Slide 9: Didipio Project Key Schedule
Didipio Project Key Schedule On track to commission Q4 2012, full year production 2013 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 station Crush
Slide 10: Didipio Stage II Concept
Didipio Stage II Concept 6 300 Increase plant from 5 250 3.5Mtpa to 5Mpta Throughput Mtpa 4 200 Nominal production Gold Koz 3 150 rate 2 100 1 50 150koz Gold 0 0 20kt Copper 2013E 2014E 2015E 2016E Throughput Gold Production Total Gold Equivalent Production Add ball mills, flotation, power
Slide 11: Didipio Construction Progress April 2012
Didipio Construction Progress April 2012 TSF overview Mine pit starter Plant site overview Operations Village overview Grinding & flash flotation first steel Plant site first steel 11
Slide 12: Didipio Construction Progress May 2012
Didipio Construction Progress May 2012 Mining pit TSF construction of pump sump Plant primary crusher, conveyor & ROM pad Mine starter pit Sediment pond Tailing thickener concrete and steel works 12
Slide 13: Significant Near Mine Exploration Potential
Significant Near Mine Exploration Potential Drilling program planned for 2012 Mogambos Additional porphyry systems in the Exploration team established in exploration lease country; awaiting permits Multiple drilling targets Forecast spend $5 -10M p.a. 13
Slide 14: Culture of Sustainability & Community Engagement
Culture of Sustainability & Community Engagement Delivering long term sustainable benefits to local communities Commitment to sustainability beyond life of mine is a key objective >20 years community and environmental track record in New Zealand Actively delivering health, environmental, socia
Slide 15: Social Development & Management Plan (SDMP)
Social Development & Management Plan (SDMP) Mandated under the Mining Act and our FTAA 1.5% of operating costs to the SDMP Projects, in health, education, infrastructure, public safety, livelihood, environment, sport and culture. Approximately US$1.5 million per year Agreed with local gove
Slide 16: Host Community (Didipio)
Host Community (Didipio) Didipio will receive 14% (35% of 40% LGU share) of taxes collected by national government (OGPI income tax, excise tax) First preference in employment Capital works in MOA (high school, roads, sports centre) University scholarships and teacher support 16
Slide 17: Didipio Community Development Corporation
Didipio Community Development Corporation Didipio Community Development Corporation (DiCorp) shareholders are long-term residents of Didipio DiCorp modelled on similar community corporations in Papua New Guinea and northern Canada Contracts awarded include: waste collection service, and an emp
Slide 18: Didipio Project Community Involvement
Didipio Project Community Involvement Kasibu Fiesta with sponsored sports team Agricultural planting program Site visit with local government Typhoon food relief aid DiCorp skills training Skills Training Program Graduation Ceremony 18
Slide 19: Australian Gold Production & Cost Profile
Australian Gold Production & Cost Cost Profile Source: Macquarie Research, April 2012 19
Slide 20: EV/Reserves Multiples
EV/Reserves Multiples EV/Reserve Au EV/Reserve Au-Eq 2,000 2,000 1,500 1,500 US$/oz US$/oz 1,000 1,000 Average: Average: US$559/oz US$548/oz 500 500 - - B2Gold CGA B2Gold CGA Alamos Kingsgate St Barbara OceanaGold Aura Kingsgate Allied Alamos St Barbara Aura OceanaGold Allied Regis Regis Medusa AuRi
Slide 21: Experienced Management Team
Experienced Management Team Mick Wilkes MD & Chief Executive Officer Martyn Creaney Project Director Philippines • 27 years industry experience • >30 years construction and project management • Developed major projects in Australia and SE Asia mainly in mining industry • Strong Operations background
Slide 22: Building the Growth Pipeline
Building the Growth Pipeline Operations Steady New Zealand operations with strong leverage to gold price H2 2012 production > H1 2012 production FY2012 Production guidance of 230-250k oz Au @ cash costs of US$900-$980/oz Development Didipio Project construction commenced June 2011, > 1000 wo
Slide 23: OceanaGold: Innovation, Performance & Growth
Qy OCEANAGOLD INNOVATION, PERFORMANCE & GROWTH
Slide 24: Board of Directors
Board of Directors Jim Askew (Chairman) - Mining engineer with over 35 years broad international experience as a Director/CEO for a wide range of international publicly listed mining, mining finance, and other mining related companies. He has served on the board of numerous resource public companies
Slide 25: Financial Summary
Financial Summary Year Ended 31 December Q1 2012 Q4 2011 Q1 2011 FY2011 Statement of Operations Revenue US$m 88.8 106.6 90.7 395.6 EBITDA US$m 23.3 43.7 44.0 163.9 Operating profit / (Loss) US$m 3.0 22.6 24.4 78.5 Net Earnings / (Loss) US$m (3.9) 14.3 14.8 44.2 Operations snapshot Gold Produced oz 5
Slide 26: Pro forma net cash flow per ounce sold
Pro forma net cash flow per ounce sold Per ounce Au sold Q1 2012 Q4 2011 Q1 2011 Average Gold Price Rec’d $1,708 $1,705 $1,401 Cash Cost reported $1,126 $8901 $687 Pre strip cash expenditure $161 $121 $256 capitalised to Balance Sheet Total Cost/oz (incl pre-strip ) $1,287 $1,011 $943 Pro forma net
Slide 27: Mineral Resources and Reserves
Mineral Resources and Reserves RESOURCE MEASURED INDICATED MEASURED & INDICATED INFERRED RESOURCE Au Au Au Au AREA Mt Au g/t Cu % Cu Mt Mt Au g/t Cu % Cu Mt Mt Au g/t Cu % Cu Mt Mt Au g/t Cu % Cu Mt Moz Moz Moz Moz MACRAES TOTAL 26.29 1.41 1.19 . . 76.76 1.10 2.71 . 103.04 1.18 3.90 . . 49.4 1.2 1.8