Oceanagold Corporation · TSX:OGC
Oceanagold — Q2 2013 Earnings Presentation
23 slides from Oceanagold's earnings presentation, Jul 26, 2013
Slide 1: 2013 Second Quarter Results Conference Call Presentation
2013 Second Quarter Results Conference Call Presentation July 26 2013 Innovation Performance Growth
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: OceanaGold Today
OceanaGold Today Markets: OGC Luzon Didipio TSX, ASX, NZX Philippines Baguio Manila Market Capitalisation $500m Mindanao Daily Average Liquidity HQ Auckland New Zealand 1.8 M shares Reefton Open Pit Wellington Blackwater Shares Outstanding Christchurch Macraes Open Pit 294 M Frasers Underground Dune
Slide 4: Second Quarter 2013 Results Summary
Second Quarter 2013 Results Summary GOLD COPPER SALES CASH COSTS PRODUCTION PRODUCTION (Gold – ounces) (US$ / ounce) (ounces) (tonnes) (Copper – tonnes) Gold: 11,086 Didipio 13,676 5,710 Copper: 5,073 $(586)* Macraes 40,063 – Gold: 59,620 $918 Reefton 14,614 – Total Gold: 70,706 68,353 5,710 Copper:
Slide 5: Pro Forma Net Cash Flow
Pro Forma Net Cash Flow Per ounce Au sold Q2 2013 Q1 2013 Q2 2012 Didipio Average gold price received $1,270 - - Cash cost (net of copper by-product) reported $(586) - - Capitalised mining costs to the Balance Sheet $127 - - Total cost/oz (including capitalised mining costs) $(459) - - Didipio pro f
Slide 6: Managing Our Business
Managing Our Business ACTION Maximise GOLD PRICE GOLD MARKET VOLATILITY UNCERTAINTY profitability across Review mine plans our business Preserving shareholder RESULTS value $100m in cost Mine optimisations reductions Healthy & sustainable business 6 OceanaGold Corporation Innovation Performance Grow
Slide 7: Cost Reduction Initiatives
Cost Reduction Initiatives IDENTIFIED US$100m IN COST REDUCTIONS Final cutback at Reefton put on hold Deferred the Frasers 6 cutback at Macraes Scaled back on exploration activities in New Zealand Decrease other capital items Wage freezes Consumables and contractor cost reductions 7 OceanaGold Corpo
Slide 8: 2013 Guidance & All-In Sustaining Costs
2013 Guidance & All-In Sustaining Costs Production Guidance 2013 2013 Gold Copper Cash Cost Guidance All-In Sustaining Costs2 (Koz) (Kt) (per ounce) (per ounce) Didipio 50 – 70 15 – 18 ($370) – ($50)1 ($10) – $290 New Zealand 235 – 255 – $880 – $950 $1,190 – $1,260 Combined Total Company 285 – 325 1
Slide 9: Philippines Operations
Philippines Operations 9 OceanaGold Corporation Innovation Performance Growth
Slide 10: Didipio Mine
Didipio Mine Q2 2013 Q1 2013 Lost time injuries 0 0 Gold production oz 13,676 6,877 Copper production t 5,710 3,663 Total ore mined Mt 1.73 1.84 Ore grade mined gold g/t 0.55 0.49 Ore grade mined copper % 0.64 0.65 Mill feed Mt 0.73 0.45 Mill feed grade gold g/t 0.75 0.59 Mill feed grade copper % 0.
Slide 11: Didipio Concentrate Production Profile
Didipio Concentrate Production Profile Didipio Concentrate Production Profile (Dry Tonnes) 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 January February December May April June March Approximate 2.5 Mtpa run rate • Commercial production declared effective April 1, 2013. • Four shipments of copp
Slide 12: New Zealand Operations
New Zealand New Zealand Operations Operations 12 OceanaGold Corporation Innovation Performance Growth
Slide 13: Macraes Goldfield
Macraes Goldfield Q2 2013 Q1 2013 Lost time injuries 1 0 Gold production oz 40,063 48,139 Total ore mined from Mt 1.19 1.43 open pit Total ore mined from Mt 0.22 0.21 underground Adjusted mine plan from Q1 and severe wet Ore grade mined g/t 0.96 1.28 weather in June impacted production Total waste m
Slide 14: Reefton Goldfield
Reefton Goldfield Q2 2013 Q1 2013 Lost time injuries 1 0 Gold production oz 14,614 12,477 Total ore mined Mt 0.38 0.34 Ore grade mined g/t 1.45 1.47 Mine schedule adjusted with final cutback at Total waste mined Globe Progress Pit on hold Mt 4.39 4.00 including pre-strip To be placed on care and mai
Slide 15: Sustainability
Sustainability 15 OceanaGold Corporation Innovation Performance Growth
Slide 16: Didipio Employment and Enablement
Didipio Employment and Enablement Didipio Operations Didipio Corporation Enablement 395 full-time employees Owned by long term residents Preferential hiring policy 971 contractors Awarded millions in contracts Didipio Training Academy Over 50% from local Employs 224 (~50% from Agroforestry employmen
Slide 17: Financial Results
Financial Summary Financial Results 17 OceanaGold Corporation Innovation Performance Growth
Slide 18: Financial Position (as at 30 June 2013)
Financial Position (as at 30 June 2013) Cash & Facilities Core Debt Cash • Convertible note – fully financed Term facility $18m • A$110m @ 7.0% coupon $60m • Matures in December 2013 Undrawn term facility Convertible notes • Covered by undrawn term $112m facility of US$112m $112m • Term facility Ava
Slide 19: Impairment Charge
Impairment Charge • Accounting requirement to assess impairment indicators, if any • Recent significant decline in the gold price and adjustments made to the mine schedule at Reefton • Carrying value of New Zealand assets have been reduced to recoverable value • No indicator for impairment for the P
Slide 20: Group Results Q2 2013
Group Results Q2 2013 Q2 2013 Q2 2013 Q1 2013 Q2 2012 H1 2013 H1 2012 (Excluding (Including impairment) impairment) Revenue 131.2 131.2 95.6 86.7 226.9 175.3 Operating costs1 (88.7) (88.7) (48.5) (61.1) (137.3) (126.4) EBITDA2 42.5 42.5 47.1 25.6 89.6 48.9 Depreciation & amortisation (39.8) (39.8) (
Slide 21: Cash Flows as at June 30, 2013
Cash Flows as at June 30, 2013 Q2 2013 Q1 2013 Q2 2012 H1 2013 H1 2012 Opening cash balance 27.4 96.5 123.3 96.5 170.0 Operating cash inflows 9.9 21.4 20.9 31.3 41.7 Capital expenditure (25.2) (65.0) (69.3) (90.2) (134.4) Financing cash (4.5) (25.7) (4.6) (30.2) (8.2) inflows/(outflows) Foreign exch
Slide 22: Outlook
Outlook Strengthen balance sheet through cash flows Stronger production expected in H2, particularly in Q4 2013 Further reduction in operating and capital expenditure to add to current $100m savings already identified Continued value creation through project development e.g. Blackwater & other proje
Slide 23: oceanagold.com
oceanagold.com Innovation Performance Growth