Oceanagold Corporation · TSX:OGC
Oceanagold — Merger or Acquisition (April 2015)
20 slides from Oceanagold's merger presentation, Apr 30, 2015
Slide 1: Waihi Gold Mine Acquisition: High Grade, Low Cost Growth
Waihi Gold Mine Acquisition High Grade, Low Cost Growth 30 April 2015
Slide 2: 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, securities of OGC or other
Slide 3: OceanaGold Today (pre-Waihi)
OceanaGold Today (pre-Waihi) Emerging multinational gold producer with industry leading AISC 2015 Guidance Gold Production 295,000 to 335,000 ounces Copper Production 21,000 to 23,000 tonnes Cash Costs* $450 to $530 per ounce All-In Sustaining Costs* $770 to $840 per ounce *Note – Cash costs & AISC
Slide 4: Waihi Transaction Overview
Waihi Transaction Overview Waihi represents a high-grade, low-cost asset in a stable, well-known jurisdiction Municipality Non-binding Letter of Intent with Newmont to OGC operation acquire Waihi Gold Mine for US$101m Auckland OGC project New asset Waihi Transaction subject to completion of due dili
Slide 5: Transaction Parameters (LOI)
Transaction Parameters (LOI) • OceanaGold has signed a non-binding Letter of Intent (LOI) to purchase 100% of the shares Letter of Intent of Newmont Waihi Gold Limited (NWG) from Newmont (LOI) • NWG is the sole owner of the Waihi gold mine and related ore milling facilities and holds interests in mu
Slide 6: Investment Highlights
Investment Highlights Transaction strongly aligns with OceanaGold’s value creation strategy High-grade, low-cost, meaningful Invest in high-quality assets production Substantial free cash flow generation Immediate cash flow generation Accretive transaction EPS and CFPS Synergistic with existin
Slide 7: Waihi – Asset Overview
Waihi – Asset Overview Comprises Correnso Underground Mine and highly prospective tenement packages Experienced workforce with track record of success Magazine and skills complementary to OceanaGold Newmont Head Office Conventional SAG & ball mills, CIP circuit w/plant MacMahon Office capacity of up
Slide 8: Recent Historical Production and Reserves
Recent Historical Production and Reserves Waihi has a track record of reserve replenishment over its 27 year history Waihi Historical Production, Year End Reserves and Cumulative Production since 2007 1,000 1,00 0 900 864 900 800 732 800 700 622 700 555 500 600 600 460 458 500 410 350 500 360 360 36
Slide 9: Waihi Geology
Waihi Geology Low sulphidation epithermal gold & silver deposits in quartz veins within andesitic to ryholitic volcanics Main ore minerals are electrum & silver sulphides with minor pyrite Generally steep dipping veins which splay upwards to narrower hanging wall vein sets, typically 1-5m wide 9 Oce
Slide 10: Recent Production and Costs
Recent Production and Costs Increasing production and lower costs complementary to existing portfolio Gold Production, Costs Applicable to Sales and All-In Sustaining Costs 150 1,800 1,600 120 1,400 1,200 Production (koz) Costs (US$/oz) 90 1,000 800 60 600 400 30 200 0 0 2009 2010 2011 2012 2013 201
Slide 11: Correnso Underground Mine
Correnso Underground Mine High-grade underground operations with significant upside potential Ore development commenced January 2015, Project capital commenced August 2014 producing 20 kt @ 10.7 g/t Reserves = 0.9 Mt at 9.1 g/t containing ~259 Modified Avoca stoping method utilised with koz gold lon
Slide 12: Waihi's Significant Exploration Upside
Waihi’s Significant Exploration Upside Interests in three groups of highly prospective tenement packages Waihi Group (within 5 km) Includes EP51771 Waihi North, Martha Open-Pit Phase 5, Gladstone pit / underground, No. 9 vein and Favona pit Residual Martha Open-Pit reserves of~65koz. Suspended indef
Slide 13: OceanaGold in New Zealand
OceanaGold in New Zealand Long, rich history of operating sustainably in a low-risk jurisdiction Over 24 years of operations experience at Macraes Goldfield Comprehensive understanding of NZ regulatory and social frameworks Valued member of the communities in which we operate Experienced managerial
Slide 14: Current New Zealand Portfolio
Current New Zealand Portfolio New economic conditions have increased profitability & medium-term optionality 2015 Gold Production Drop in diesel price, weaker New Zealand dollar have 195,000 to 215,000 driven operating costs lower ounces 2015 Cash Costs1 Recent drill program at Macraes targeting add
Slide 15: Macraes / Frasers Potential Upside
Macraes / Frasers Potential Upside Unlocking the value in the 7 million ounces resource base Current Drilling Future Drilling Immediate organic growth opportunities exist North of Macraes within the Macraes Goldfield New drill program initiated at the Macraes Goldfield Surface drilling along strike
Slide 16: Trading Comparables
Trading Comparables OGC’s New Zealand assets with Waihi demonstrate clear value compared to producing peers ASX-Listed TSX-Listed NZ Company NZ Portfolio Northern Star Saracen Lake Shore Klondex Richmont + Waihi Market Cap. US$m 1,043 289 416 326 192 Enterprise Value US$m 970 265 451 312 141 ? FY15E
Slide 17: Waihi Transaction – Balance Sheet
Waihi Transaction – Balance Sheet Modest gearing post acquisition with robust liquidity position Balance Sheet Metrics(1) Highly confident letters received to increase revolving credit facility to a total of US$225m Illustrative OceanaGold US$m OceanaGold Current Pro Forma2 Balance Sheet Metrics1 Ca
Slide 18: OceanaGold: Outperforming Mid-Tier
OceanaGold: Outperforming Mid-Tier Low cost, dividend paying mid-tier producer generating significant free cash flows STRATEGY DELIVERY Operate safely & efficiently to Generating industry leading free cash maximise profitability flows Delivering Didipio – underground underway; and grid connection du
Slide 19: OceanaGold with Waihi
OceanaGold with Waihi With Waihi, we continue to deliver further value to shareholders from a stronger asset base Pipeline of Projects PHILIPPINES Paco tenement exploration Near-mine exploration NEW ZEALAND Macraes Goldfield exploration Macraes Gold Tungsten Project Blackwater Project Waihi explorat
Slide 20: oceanagold.com
oceanagold.com Innovation Performance Growth