Oceanagold Corporation · TSX:OGC
Oceanagold — Investor Presentation (January 2014)
33 slides from Oceanagold's investor presentation, January 2014
Slide 1: Corporate Presentation January 2014
Corporate Presentation January 2014 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: OceanaGold Today
OceanaGold Today Multinational gold producer with increasing free cash flow generation Philippines New Zealand El Salvador Luzon Baguio Didipio Auckland Manila El Dorado Reefton Open Pit Wellington Blackwater San Salvador Christchurch Macraes Open Pit Frasers Underground Dunedin Mindanao Markets: OG
Slide 5: OceanaGold Value Proposition
OceanaGold Value Proposition Commitment MANAGEMENT Experience SOCIAL LICENSE STRATEGY OCEANAGOLD Discipline Execution GROWTH OPERATIONS Free Cash Flow 5 OceanaGold Corporation Innovation Performance Growth
Slide 6: Experienced Management Team
Experienced Management Team Mick Wilkes Managing Director & Chief Executive Officer • 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 Micha
Slide 7: 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 discovering, acquiring, developing and operating high quality gold assets. We will be the partner, employer and gold company of choice. Strength
Slide 8: Strong Q4 & FY2013 Results
Strong Q4 & FY2013 Results Exceeded production guidance and lower than cost guidance Note: all financials are preliminary and New Zealand Total unaudited Didipio Combined Company Gold Production FY 2013 66,277 259,455 325,732 Guidance (ounces) Q4 2013 27,713 87,506 115,219 Copper Production FY 2013
Slide 9: 2014 Guidance
2014 Guidance Increased gold production & strong copper production at Didipio, low costs New Zealand Didipio Total Company Combined Gold Production Guidance 85,000 – 95,000 190,000 – 210,000 275,000 – 305,000 (ounces) Copper Production Guidance 21,000 – 24,000 - 21,000 – 24,000 (tonnes) Cash Cost Gu
Slide 10: Unaudited Financial Position (as at 31 December 2013)
Unaudited Financial Position (as at 31 December 2013) Increasing cash flows to be used to further strengthen the balance sheet Cash & Facilities Cash $25m Undrawn Revolving Credit Facility $30m Core Debt Term Facility $125m Revolving Credit Facility $20m • No remaining convertible notes – matured in
Slide 11: All-in Sustaining Cost ($/oz Au)
AISC Asset Comparison All-In Sustaining Cost Curve OceanaGold 2014 AISC Forecast Range 1,600 1,400 Gold Price (as at 10 Jan 2014) 1,200 All-in Sustaining cost ($/oz Au) 1,000 800 600 400 200 0 -200 -400 Q1 Q2 Q3 Q4 -600 -800 0 10 20 30 40 50 60 70 80 90 100 Cumulative Production (Percentile) Source:
Slide 12: Pacific Rim Mining Acquisition
Pacific Rim Mining Acquisition Nominal investment in a high quality resource w/ significant upside potential Belize Transaction closed on 27 November 2013 Guatemala Honduras Transaction value of C$10.2m El Salvador Nicaragua Costa Rica Cost / Total Resource (2008)1 = US$7/oz AuEq Principal project i
Slide 13: Philippines Operations
Philippines Operations 13 OceanaGold Corporation Innovation Performance Growth
Slide 14: Didipio Highlights
Didipio Highlights Solid ramp-up in 2013 from commissioning to consistently above nameplate capacity Exceeded 2013 copper production guidance 2013 AISC of negative $688 per ounce on the back of strong copper credits 2014 production guidance reflects continued increase in gold production levels, copp
Slide 15: Didipio Mine
Didipio Mine LOM Nominal Production Gold: 100,000 oz Copper: 14,000 t Reserves1 Gold: 1.69 Moz Copper: 240 kt Measured & Indicated Resources1 Gold: 2.11 Moz Copper: 290 kt Inferred Resources1 Gold: 0.40 Moz Copper: 50 kt Average Grade Gold: 1.0 g/t Copper: 0.45% Mine Type and Mine Life Open Pit: 201
Slide 16: Didipio Optimisation Study
Didipio Optimisation Study Optimising the operations to potentially unlock maximum value from Didipio Didipio Process Plant Ramp-Up Schedule 4.00 250 3.50 Debottlenecking of process plant to achieve 3.5 Throughput Mtpa 3.00 200 Mtpa rate by end of 2014 Gold '000 oz 2.50 150 2.00 1.50 100 1.00 50 0.5
Slide 17: Didipio Underground Overview
Didipio Underground Overview High grade underground provides significant optionality NW SE Production commences 2019 Two Dogs Zone Capital expenditure of Shearing Drill Hole: $100m over four years DDDH83 Total length: 471 m Gold grade: 4.7 g/t Mining rate Copper grade: 0.7% 1.0 Mtpa Underground port
Slide 18: New Zealand Operations
New Zealand New Zealand Operations Operations 18 OceanaGold Corporation Innovation Performance Growth
Slide 19: New Zealand Highlights
New Zealand Highlights Strong 2014 gold production on the back of higher grades Cost reductions have lowered cash costs, improved margins despite higher exchange rate Maximising cash flows across NZ operations through mine optimisation and cost reductions 2014 gold production expected lower than 201
Slide 20: Macraes Open Pit
Macraes Open Pit Nominal Production 125,000 – 145,000 ounces Reserves1 1.47 Moz Resources1 Measured & Indicated Inferred 2.99 Moz 1.40 Moz Average Grade 0.9 – 1.1 g/t Ore Mined 5.0 Mt per year Mine Life 2017 1) Complete Reserve & Resource Table on page 33 20 OceanaGold Corporation Innovation Perform
Slide 21: Frasers Underground
Frasers Underground Nominal Production 40,000 – 50,000 ounces Reserves1 0.18 Moz Resources1 Measured & Indicated Inferred 0.92 Moz 0.50 Moz Average Grade 1.9 – 2.2 g/t Ore Mined 0.8 Mt per year Mine Life mid – 2015 1) Complete Reserve & Resource Table on page 33 21 OceanaGold Corporation Innovation
Slide 22: Reefton Open Pit
Reefton Open Pit Nominal Production 55,000 – 70,000 ounces Reserves1 0.30 Moz Resources1 Measured & Indicated Inferred2 0.71 Moz 0.80 Moz Average Grade 1.5 – 1.8 g/t Ore Mined 1.6 Mt per year Mine Life mid – 2015 1) Complete Reserve & Resource Table on page 33 2) Includes Blackwater 22 OceanaGold Co
Slide 23: Sustainability
Sustainability 23 OceanaGold Corporation Innovation Performance Growth
Slide 24: Investing in Our Local Communities
Investing in Our Local Communities Working together with our communities to leave a positive, long lasting legacy Employment Education Infrastructure • Preferential hiring policy • Teachers salaries • New roads and improvements • 98% Filipino workforce • Scholarship programs • Bridges, waterways Hea
Slide 25: Sustainable Development Today and Beyond
Sustainable Development Today and Beyond An unwavering commitment to our social responsibilities beyond mining Agroforestry Environment Rehabilitation • Reforestation initiatives • Reducing GhG emissions • Restoring lands to match area • Commercial plantations • Effective water management • Preservi
Slide 26: In the Spotlight: Rescue & Relief
In the Spotlight: Rescue & Relief Providing rescue and relief effort in response to Philippine natural disasters Didipio Emergency Response Team provided rescue aid to the Bohol earthquake, Typhoon Haiyan (Yolanda) disasters Working collaboratively with the Philippines Mine Safety and Environment As
Slide 27: Macro & Comparatives
Financial Summary Macro & Comparatives 27 OceanaGold Corporation Innovation Performance Growth
Slide 28: Gold Miners' Comparatives
Gold Miners’ Comparatives Well positioned to strengthen balance sheet and invest in further value creation Free Cash Flow Yield Estimates 30% 2014E 2015E 20% 10% FCF Yield 0% -10% -20% -30% -40% -50% Alamos Gold OceanaGold Brigus Gold Primero Mining Osisko Mining New Gold Detour Gold B2Gold Golden S
Slide 29: Gold Miners' Comparatives
Gold Miners’ Comparatives Executing on our strategy to deliver strong results and enhance shareholder value Share Price Performance1 (Last 6 months as at 10 Jan 2014) 50% 30% 10% -10% -30% -50% -70% Semafo Inc. Alamos Gold New Gold Inc. Kinross Gold Osisko Mining Corp. Yamana Gold Alacer Gold Corp.
Slide 30: Outlook
Outlook Didipio throughput rates ramping up to planned 3.5 Mtpa capacity by end of 2014 Increase in free cash flow generation to further strengthen the balance sheet Continued focus on ensuring profitability in a lower gold price environment Identify and evaluate new opportunities to further enhance
Slide 31: oceanagold.com
oceanagold.com Innovation Performance Growth
Slide 32: Board of Directors
Board of Directors Jim Askew (Chairman) - Mr. Askew is a 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 p
Slide 33: Mineral Resources and Reserves (as at Dec 31, 2012)
Mineral Resources and Reserves (as at Dec 31, 2012) 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 28.7 1.38 1.27 . . 73.1 1.12 2.64 . 101.8 1.19 3.9