Oceanagold Corporation · TSX:OGC
Oceanagold — Shareholder Meeting (May 2014)
39 slides from Oceanagold's shareholder meeting presentation, May 30, 2014
Slide 1: 2014 Annual General Meeting
2014 Annual General Meeting May 30, 2014 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: Today's Agenda
Today’s Agenda 1. Introduction 2. Formal Business of the Meeting 3. 2013 Performance 4. Operations 5. Sustainability 6. Strategy & Outlook Note: All amounts in this presentation are listed in USD unless otherwise stated 3 OceanaGold Corporation Innovation Performance Growth
Slide 4: Board of Directors
Board of Directors Jim Askew Mick Wilkes Denham Shale Joey Leviste Chairman Managing Director & CEO Lead Director Non Executive Director Jacob Klein Bill Myckatyn Dr Geoff Raby Non Executive Director Non Executive Director Non Executive Director 4 OceanaGold Corporation Innovation Performance Growth
Slide 5: Executive Management Team
Executive Management Team Mark Cadzow Mark Chamberlain Michael Holmes Chief Development Officer Chief Financial Officer Chief Operating Officer Mick Wilkes Managing Director & CEO Darren Klinck Yuwen Ma Liang Tang Head of Business Company Secretary & Head of Human Resources Development Corporate Cou
Slide 6: Formal Business of Meeting
Formal Business of Meeting Item #1 Financial statements Item #2 Election of directors Item #3 Appointment of auditors Item #4 Performance Rights grant Item #5 Previous issue of 6,762,209 common shares 6 OceanaGold Corporation Innovation Performance Growth
Slide 7: Report on Proxies
Report on Proxies WITHHOLD / Resolutions FOR AGAINST Election of directors James E. Askew J. Denham Shale 1. Michael F. Wilkes Jose P. Leviste Jr. Jacob Klein William H. Myckatyn Geoff W. Raby 2. Appointment of auditors 3. Performance Rights grant Ratification of previous issue of 6,762,209
Slide 8: 2013 Performance
2013 Performance 8 OceanaGold Corporation Innovation Performance Growth
Slide 9: Key 2013 Highlights
Key 2013 Highlights Commercial production at Didipio – April 1 2013 Record gold production – 325,732 ounces, slightly ahead of guidance Strong copper production – 23,059 tonnes, exceeded guidance Revenue of $553.6m from average gold price of $1,382/oz Repaid $64m in debt and refinanced convertible n
Slide 10: 2013 Results
2013 Results Company Total Didipio New Zealand 2013 Company Guidance Gold Production 285,000 to (ounces) 66,277 259,455 325,732 325,000 Copper Production 18,000 to (tonnes) 23,059 – 23,059 20,000 Cash Costs (per ounce) ($1,078)1 $740 $4261 $550 to $650 All-In Sustaining Costs2 (per ounce) ($688)1 $1
Slide 11: Financial Results
Financial Results Year Year Year USDm 2013 2012 2011 Revenue 553.6 385.4 395.6 Operating costs1 (291.2) (240.8) (231.7) EBITDA2 262.4 144.6 163.9 Depreciation & amortisation (129.3) (91.4) (85.8) Net interest & finance costs (27.0) (21.5) (12.9) Earnings before tax2 106.1 31.7 65.2 Income tax expens
Slide 12: Financial Position
Financial Position Q4 2013 Q1 2014 Liquidity Cash $25m $42m Undrawn Revolving Credit Facility $30m $50m Core Debt Term Facility $129m $129m Revolving Credit Facility $20m – Repayment of Borrowings $45m $20m • Q1/14 financing charges of $2.4m vs. $8m in Q4/13 • Continued focus on debt reduction in 20
Slide 13: Two-Year Total Shareholder Return
13 -100% -80% -60% -40% -20% 0% 20% 40% Beadell Resources Ltd Regis Resources Ltd OceanaGold Corporation Archipelago Resources PLC Argonaut Gold Inc OceanaGold Corp B2Gold Corp G-Resources Group Ltd Medusa Mining Ltd SEMAFO Inc Market Vectors Junior Gold ETF Evolution Mining Ltd Dundee Precious Meta
Slide 14: YTD 2014 Total Shareholder Return
14 -40% -20% 0% 100% 20% 40% 60% 80% Endeavour Mining Corp OceanaGold Corp OceanaGold Corporation Northern Star Resources Ltd SEMAFO Inc B2Gold Corp Perseus Mining Ltd Evolution Mining Ltd Golden Star Resources Ltd Troy Resources Ltd Market Vectors Junior Gold ETF Alacer Gold Corp Dundee Precious Me
Slide 15: Philippines Operations
Philippines Operations 15 OceanaGold Corporation Innovation Performance Growth
Slide 16: Didipio: Low Cost Operation
Didipio: Low Cost Operation 1,600 All-In Sustaining Cost Curve 1,400 Gold Price (as at 26 May 2014) 1,200 All-in Sustaining cost ($/oz Au) 1,000 800 600 OceanaGold Combined 400 200 0 -200 Didipio -400 Q1 Q2 Q3 Q4 -600 -800 0 10 20 30 40 50 60 70 80 90 100 Cumulative Production (Percentile) Source: G
Slide 17: Didipio Highlights
Didipio Highlights Commercial production declared effective April 1 2013 after successful commissioning phase Transformative asset with the commencement of strong free cash flow generation Improving productivity and operational efficiencies (e.g. assumed trucking operations) 2013 Didipio Results Gol
Slide 18: Maximising Value from Didipio
Maximising Value from Didipio Getting the most out of Didipio through optimisation and identifying efficiencies Didipio Process Plant Ramp-Up Schedule 4.0 300 Debottlenecking of process plant to achieve 3.5 3.5 250 Mtpa rate by end of 2014 Production (ounces) Throughput (Mtpa) 3.0 200 2.5 2.0 150 1.
Slide 19: Didipio Optimisation Study
Didipio Optimisation Study High grade underground provides significant optionality 2 3 Timing of development 4 2 5/6 3 4 5/6 Optimising the design Enhancing the economics Targeting an updated NI43-101 by end of 2014 Note: Not to scale. 19 OceanaGold Corporation Innovation Performance Growth
Slide 20: Philippines Exploration Opportunities
Philippines Exploration Opportunities Significant land package in a highly prospective country Total area size of approximately 84,000 hectares Mainly gold/copper porphyry systems Focus on Didipio near mine drilling, broader FTAA, Northern Luzon and Northern Mindanao Awaiting exploration permits on
Slide 21: FTAA Exploration Opportunities
FTAA Exploration Opportunities Drilling Highlights (MetEx): 31m @ 0.35 g/t Au & 0.85% Cu 28m @ 0.65 g/t Au & 0.27% Cu 13m @ 0.75 g/t Au & 0.25% Cu Cabinwangan Mogambos 7m @ 1.16 g/t Au & 0.57% Cu 1.6 KM Rock Sampling Highlights: 8.09 g/t Au & 4.21% Cu 1 KM 3.20 g/t Au & 1.73% Cu 2.86 g/t Au & 2.09%
Slide 22: New Zealand Operations
New Zealand Operations 22 OceanaGold Corporation Innovation Performance Growth
Slide 23: New Zealand Highlights
New Zealand Highlights Re-optimised mine plans at Macraes and Reefton due to lower gold price environment Mitigated downside risk of an even lower gold price while maintained optionality in a higher gold price Production de-risked over the next two years through utilised zero cost collar hedging 201
Slide 24: New Zealand Assets
New Zealand Assets Maximising cash flows through mine re-optimisation and cost reductions Macraes Frasers Reefton Mine Type Open pit Underground Open pit Nominal production koz 90 – 120 40 – 55 50 – 65 Ounces hedged koz 208 115 Hedge collar NZ$/oz 1,500 – 1,600 1,600 – 1,787 Estimated mine life end
Slide 25: New Zealand Studies
New Zealand Studies Investigating organic growth opportunities in New Zealand Round Hill Gold/Tungsten M&I Resource1 of 1.26 Moz gold, sterilised by current location of process plant Resource definition and metallurgical test work underway Conceptual design includes build of new but relocated 3.0 Mt
Slide 26: El Salvador
El Salvador 26 OceanaGold Corporation Innovation Performance Growth
Slide 27: El Salvador
El Salvador Nominal investment in a high quality resource w/ significant upside potential Belize High grade, low sulphidation epithermal Guatemala Honduras deposit El Salvador Underground mine = small operational Nicaragua footprint Costa Rica Current gold equivalent resource1 of Panama approximatel
Slide 28: Sustainability
Sustainability 28 OceanaGold Corporation Innovation Performance Growth
Slide 29: 2013 Sustainability Highlights
2013 Sustainability Highlights Established a new set of corporate sustainability performance targets Overall increase in water recycled across the operations 176,603 trees planted over 336 hectares of land in the Philippines Overall reduction in the total amount of waste to landfill by nearly 50% ac
Slide 30: Recognition and Awards
Recognition and Awards Most Environment Compliant Rescue and Relief Women Empowerment 30 OceanaGold Corporation Innovation Performance Growth
Slide 31: 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 • Hire locally policy • Teachers salaries • New roads and improvements • 98% Filipino workforce • Scholarship programs • Bridges, waterways Health Ent
Slide 32: 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 33: Strategy & Outlook
Strategy & Outlook 33 OceanaGold Corporation Innovation Performance Growth
Slide 34: 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 developing and operating high quality assets. We will be the partner, employer and mining company of choice. Commitment to Optimise mines Sustai
Slide 35: Strategy on Growth
Strategy on Growth Investing in high quality organic or external value add opportunities Effective use of capital through investment in first and second quartile assets Leveraging experience and capabilities Focus on Asia-Pacific and Americas regions Clear definition of Strong relative valuations an
Slide 36: Stakeholder Engagement
Stakeholder Engagement Support from our internal & external stakeholders is the foundation of our success Continue to build on the existing strong support from our stakeholders Deliver meaningful benefits to our communities across our operational footprint Increase our employee engagement through st
Slide 37: 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 38: Outlook
Outlook Didipio throughput rates ramping up to planned 3.5 Mtpa capacity by end of 2014 Strong start to 2014 and on track to meet full year production guidance Continued focus on optimising operations to maximise cash flows Strengthen balance sheet through further debt repayment Identify and evaluat
Slide 39: oceanagold.com
oceanagold.com Innovation Performance Growth