Slide 1: 2012 Third Quarter Results Conference Call Presentation
2012 Third Quarter Results Conference Call Presentation 31 October 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: OceanaGold Today
OceanaGold Today DIDIPIO Luzon Didipio Philippines Baguio Didipio Stage II Manila Mindanao REEFTON HQ Auckland New Zealand Reefton Open Pit /FRASERS MACRAES Wellington Blackwater Christchurch Macraes Open Pit Frasers Underground Dunedin Note: All amounts in the presentation stated in USD unless othe
Slide 4: Didipio Project Update
Didipio Project Update • Commissioning activities have commenced • Jaw crusher commissioning on rock • On track for milling in November • Tailings storage facility completed • Continued support and funding of community activities 4 OceanaGold Corporation
Slide 5: Q3 2012 Financial Highlights
Q3 2012 Financial Highlights Cash Margins 1,800 1,600 1,400 1,200 1,000 800 600 400 200 - Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2008 2009 2010 2011 2012 Cash operating cost $/oz Cash operating margin $/oz Gold price rec'd (ave) $/oz • Revenue $91.2m @ average gold price of $1,665
Slide 6: Q3 Costs and Production Guidance
Q3 Costs and Production Guidance Q3 2012 Cash Cost (US$/oz) Analysis 1400 1200 1000 89 31 (48) (20) 800 600 1029 1081 400 200 0 • Cash costs slightly increased from Q2. Increase attributable to: – Decrease in inventory due to draw down: gold in circuit; concentrate stockpile and low grade ore stockp
Slide 7: Pro forma net cash flow per ounce sold
Pro forma net cash flow per ounce sold Per ounce Au sold Q3 2012 Q2 2012 Q3 2011 Average gold price received $1,665 $1,613 $1,706 Cash cost reported $1,081 $1,029 $956 Pre strip cash expenditure capitalised to $203 $229 $147 Balance Sheet Total cost/oz (incl pre-strip ) $1,284 $1,258 $1,103 Pro form
Slide 8: Operations Summary
Operations Summary 8 OceanaGold Corporation
Slide 9: Q3 2012 Operational Summary
Q3 2012 Operational Summary • 5 lost time injuries in Q3 – Corrective action taken through retraining workers on standard operating procedures Safety – Safety performance improving • Awarded Health, Safety & Environment recognition in the Philippines • Q3 production of 49,514 ounces, 11% lower vs. Q
Slide 10: Macraes (Open Pit & Underground)
Macraes (Open Pit & Underground) Macraes Goldfield Q3 2012 Q2 2012 Q3 2011 YTD 2012 YTD 2011 Gold sales(oz) 37,570 39,304 42,311 114,103 129,812 Gold produced (oz) 36,874 39,012 42,136 110,737 130,400 Open pit ore mined (Mt) 1.17 1.12 1.48 3.22 4.09 Underground ore mined (Mt) 0.18 0.18 0.22 0.52 0.6
Slide 11: Reefton
Reefton Reefton Goldfield Q3 2012 Q2 2012 Q3 2011 YTD 2012 YTD 2011 Gold sales (oz) 17,180 14,452 18,335 46,256 56,934 Gold produced (oz) 12,640 16,697 16,954 45,328 56,349 Total ore mined (Mt) 0.32 0.27 0.32 0.91 1.10 Mill feed (Mt) 0.42 0.43 0.46 1.27 1.34 Mill feed grade (g/t) 1.16 1.53 1.54 1.38
Slide 12: Blackwater Exploration
Blackwater Exploration True Depth1 Grade Drill Width (m) (g/t Au) (m) Historic 0 - 700 0.7 14.6 WA11 321 0.5 24.5 WA21A 430 0.5 23.3 WA22C 680 0.5 15.65 WA22D 670 1.0 85.2 • Testing continuity below historic workings • Fourth drill hole (WA24) started, results expected Q2 2013 • Feasibility study to
Slide 13: Didipio Summary
Didipio Summary 13 OceanaGold Corporation
Slide 14: Didipio Project Schedule
Didipio Project Schedule Project currently ~95% complete and on schedule for milling in November Completed 2011 2012 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Site access road • Commissioning commenced Construction camp • First ore in mills Operations village Mining infrastructure Tailings Storage Facility Sto
Slide 15: Didipio Project Update
Didipio Project Update Commissioning has commenced as planned • Construction employees and contractors being demobilised • ~900 operations employees and contractors on site Personnel • All operations managers and superintendants recruited • Expect total workforce of 1,000 in full production with 97%
Slide 16: Didipio Commissioning Update
Didipio Commissioning Update Commissioning Milestones • Power station commissioning completed Power on September Commence plant • Commenced commissioning October commissioning jaw crusher on rock First milling November • Mills and concentrator practically complete 4 250 3.5 Didipio Ramp-up Sched
Slide 17: Didipio Ore Body
Didipio Ore Body 17 OceanaGold Corporation
Slide 18: Crushed Rock Stockpiled
Crushed Rock Stockpiled 18 OceanaGold Corporation
Slide 19: Conveyor to Mills
Conveyor to Mills 19 OceanaGold Corporation
Slide 20: Grinding Works at Night
Grinding Works at Night 20 OceanaGold Corporation
Slide 21: Flotation Tanks
Flotation Tanks 21 OceanaGold Corporation
Slide 22: Tailings Storage Facility
Tailings Storage Facility 22 OceanaGold Corporation
Slide 23: OceanaGold's AgroForestry Program
OceanaGold’s AgroForestry Program OceanaGold Sustainable AgroForestry Inc. (OGSAI) • Managing our AgroForestry commitments – National Greening Program – Mining Forestry Program • Investing into valuable initiatives – Additional employment opportunities – New source of income for local landowners – S
Slide 24: Philippines Growth Opportunities
Philippines Growth Opportunities Didipio Expansion Concept Exploration Tenements in our FTAA 1. Didipio expansion opportunity: 3.5 Mtpa 5 Mtpa – Plan to commence feasibility study on Didipio expansion in H1 2013. 2. Company objective to spend US$10M in FY2013 on near- Didipio exploration targets –
Slide 25: Philippines Mining Reform
Philippines Mining Reform • New mining policy effective on October 25, 2012 • Government’s stated objectives: – Ensure mining’s contribution to the country’s sustainable development – Adopt international best practices – Protection of the environment through sound technical methods – Align Constitut
Slide 26: Financial Summary
Financial Summary 26 OceanaGold Corporation
Slide 27: Group Results Q3 2012
Group Results Q3 2012 USDm Q3 2012 Q2 2012 Q3 2011 YTD 2012 YTD 2011 Revenue 91.2 86.7 103.5 266.4 289.0 Operating costs1 (62.6) (61.1) (60.2) (188.9) (168.7) EBITDA2 28.6 25.6 43.3 77.5 120.3 Depreciation & Amortisation (21.9) (20.0) (24.4) (63.8) (64.3) Net interest & Finance Costs (5.8) (4.0) (3.
Slide 28: Cash Flows September 30, 2012
Cash Flows September 30, 2012 USDm Q3 2012 Q2 2012 Q3 2011 YTD 2012 YTD 2011 Opening cash balance 73.1 123.3 193. 2 170.0 181.3 Operating cash inflows 13.3 20.9 22.2 55.0 98.5 Capital expenditure (68.7) (69.3) (37.5) (203.1) (98.9) Financing cash inflows/(outflows) 6.8 (4.6) (2.7) (1.4) (11.5) Forex
Slide 29: Q3 2012 Cash Flows
Q3 2012 Cash Flows • Q3 lower than in Q2 Operating – Higher cash costs, less interest income, gold put Cash Flows options premium – Offset by increase in revenue • Q3 in line with Q2 Investing – Didipio Project construction: $46.8m Cash Flows – Pre-stripping capex: $16.4m – Sustaining capex: $3.5m •
Slide 30: Outlook
Outlook • Didipio Project commissioning on track for milling in November • Mining of higher grade ore at Macraes and Reefton has commenced – Increased mining rates expected at Frasers Underground • FY 2012 guidance narrowed and adjusted – Production guidance: 225,000 to 230,000 oz – Cash costs guida
Slide 31: OceanaGold
a) OCEANAGOLD oceanagold.com PC Innovation Performance Growth