Slide 1: 2011 Second Quarter Results Conference Call Presentation
2011 Second Quarter Results Conference Call Presentation July 29 2011
Slide 2: Cautionary Note
Cautionary Note Cautionary Notes 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, securities of OGC or other financial
Slide 3: Q2 2011 Operational Summary
Q2 2011 Operational Summary US$/oz Quarterly Margins 1,600 1,400 Cash operating margin $/oz Revenue $94.8m @ average gold Cash operating cost $/oz 1,200 Gold price rec'd (ave) $ price of $1,546 per ounce achieved 1,000 800 61,335 oz gold sold at cash 600 operating cost $921 per ounce 400 EBITD
Slide 4: Pro forma net cash flow per ounce sold
Pro forma net cash flow per ounce sold Per ounce Au sold Q2 2011 Q1 2011 YTD 2011 Average Gold Price Rec’d $1,546 $1,401 $1,471 Cash Cost reported $921 $687 $801 Pre strip cash expenditure $165 $256 $212 capitalised to Balance Sheet Total Cost/oz (incl pre-strip ) $1,086 $943 $1,013 Pro forma net ca
Slide 5: A closer look at cash costs Q1 vs Q2
A closer look at cash costs Q1 vs Q2 Cash Cost (US$/oz) Analysis - Q1 2011 v Q2 2011 950 16 45 900 65 850 800 108 750 700 650 600 687 921 550 500 Increase of reported cash cost to $921 / oz for Q2 Lower levels of pre strip capitalised to Balance Sheet (ie higher allocation of cash spend recognis
Slide 6: Costs in NZD
Costs in NZD Q2 2011 Q1 2011 H1 2011 NZD per tonne milled $36 $31 $34 Updated mine plan based on new resource modelling at Macraes Mining cost in local currency (NZD) up 16% mainly due to Decrease in capitalised pre-strip Lower productivity at Reefton Ramp up of mining rates will lead to i
Slide 7: Operations: Macraes Open Pit & Frasers Underground
Operations: Macraes Open Pit & Frasers Underground Macraes Goldfield Q2 2011 Q1 2011 Q2 2010 H1 2011 H1 2010 Gold Produced (oz) 44,107 44,157 41,504 88,264 85,669 Mill Feed (Mt) 1.458 1.457 1.337 2.915 2.627 Mill Feed grade (g/t) 1.12 1.13 1.16 1.12 1.23 Recovery (%) 84.2% 83.6% 83.9% 83.9% 82.7%
Slide 8: Operations: Reefton
Operations: Reefton Reefton Goldfield Q2 2011 Q1 2011 Q2 2010 H1 2011 H1 2010 Gold Produced (oz) 17,881 21,514 26,037 39,395 47,163 Mill Feed (t) 462,426 419,532 401,064 881,958 746,784 Mill Feed grade (g/t) 1.42 1.84 2.25 1.62 2.34 Recovery (%) 81.1% 82.4% 84.3% 81.8% 84.3% 1 Lost Time Injury (LT
Slide 9: Development: Didipio Project
Development: Didipio Project No LTIs in Q2 2011 Construction commenced June 2011 >200 staff inducted (>50% from local communities), to peak ~700 staff in Q1 2012 Road upgrade and accommodation facilities in progress Plant site earthworks commenced, first concrete pour expected Q4 2011 Te
Slide 10: Didipio Project Progress
Didipio Project Progress Final earthworks underway at process plant site Operations village site clearing commenced Earthworks underway at process plant site Gabion baskets at access road drain Re-sheeting of access road underway 10
Slide 11: Exploration: New Zealand
Exploration: New Zealand Reefton Goldfield Big River (1,135m drilled, 6 holes completed in Q2) Target high grade gold in quartz & sulphide mineralisation Assay results for five holes, some with high grade intersections with visible gold BR0004 20m @ 8.08g/t Au (true width 15m) from 127m depth
Slide 12: Exploration: New Zealand (cont.)
Exploration: New Zealand (cont.) Reefton Goldfield Globe Deeps Additional 95Koz Au inferred resource Pit optimisation study advanced Infill and extension drilling planned Crushington Drilling commenced Targeting Au-As-Sb anomalies similar to that at Big River Drilling adjacent to histori
Slide 13: Exploration: New Zealand (cont.)
Exploration: New Zealand (cont.) Macraes Goldfield Resource infill drilling at the Frasers Underground 3,040m drilled, 16 diamond drill holes completed confirmed mineralisation extends to north and northeast deposit remains open down dip Surface drilling between Panel 1 and Panel 2 commenc
Slide 14: Exploration: Philippines
Exploration: Philippines Didipio Expanded exploration team to 5 geologists, including appointment of Exploration Country Manager Activities on Didipio FTAA expected to scale up in H2 2011 Exploration priorities remain within Didipio FTAA Geological sampling identified low level zone Au-Cu-As
Slide 15: Financial Summary
Financial Summary 15
Slide 16: Q2 2011 Results
Q2 2011 Results Revenue up 4% to $94.8m vs $90.7m in Q1 2011 due to continued record gold prices Q2 gold sales of 61,335 ounces, down 5.3% on Q1 EBITDA1 was $33.0m for Q2 2011 vs $44.0m in Q1 2011 Cash costs were $921/oz compared to $687/oz in Q1 2011. Increase due to less pre-strip capitali
Slide 17: Group Results Q2 2011
Group Results Q2 2011 Q2 2011 Q1 2011 Q2 2010 $m $m $m Revenue 94.8 90.7 80.2 Operating Costs (inc Forex) (61.8) (46.7) (41.0) EBITDA 33.0 44.0 39.2 Dep’n & Amortisation (21.0) (18.9) (18.5) Net Interest (3.3) (2.8) (3.7) Sub Total 8.7 22.3 17.0 Income Tax (4.6) (7.5) (9.0) Net Earnings 4.1 14.8 8.0
Slide 18: Half Year 2011 Results
Half Year 2011 Results Revenue increased 44% to $185.6m vs H1 2011 - Higher gold prices - All sales at spot compared to Q1 2010 delivery into hedges YTD gold sales of 126,100 ounces (2010: 132,388 ounces) EBITDA1 of $77.0m up 62% from $47.6m – supported strongly from higher revenue Cash infl
Slide 19: Group Results Year to Date 2011
Group Results Year to Date 2011 YTD 2011 YTD 2010 $m $m Revenue 185.6 128.5 Operating Costs (inc Forex) (108.6) (80.9) EBITDA 77.0 47.6 Dep’n & Amortisation (39.9) (36.1) Net Interest (6.1) (7.5) Sub Total 31.0 4.0 Fair Value of Hedges - 16.2 Income Tax (12.1) (10.4) Net Earnings 18.9 9.8 19
Slide 20: Cash Flows 30 June 2011
Cash Flows 30 June 2011 Q2 YTD $m $m Opening cash balance 193.6 181.3 Operating cash inflows 29.2 76.3 Capital expenditure (32.0) (61.3) Financing cash outflows (3.8) (8.8) Forex effect 6.2 5.7 Net cash (decrease)/increase (0.4) 11.9 Closing cash balance 193.2 193.2 20
Slide 21: Outlook
Outlook New Zealand Focused on improved mining rates at Reefton and Frasers Mill throughputs and recoveries expected to remain strong Higher H2 (vs H1) production expected as milled grade improves Costs expected to remain under pressure if NZD remains strong Exploration programs at Reefton
Slide 22: Outlook: Production Guidance
Outlook Production Guidance FY 2011 Production guidance amended to 255,000 to 270,000 ounces Au (prior 260,000 to 280,000) FY 2011 cash costs of US$850 to $890 per ounce (prior US$645 - $685 per ounce) Forecast NZD/USD exchange rate for H2 2011 set at $0.88 (Spot=0.87) Increase in cash cost
Slide 23: Outlook: Didipio Project
Outlook Didipio Project Construction of accommodation facilities, site infrastructure (water/sewage/temporary power), site earthworks to the plant site and concrete work underway in Q3 Construction related contractors and worker continuing to ramp up to peak in Q1 2012 at 700 workers Managemen
Slide 24: CE & GROWTH
CE & GROWTH \ Q = je) F e hi 0 =) INNOVATION, PERFORMAN