Oceanagold Corporation · TSX:OGC
Oceanagold — Investor Presentation (December 2014)
35 slides from Oceanagold's investor presentation, December 2014
Slide 1: Corporate Presentation
Corporate Presentation December 2014
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 (OGC: TSX/ASX/NZX)
OceanaGold Today (OGC: TSX/ASX/NZX) Emerging multinational gold and copper producer with strong free cash flow Shareholder Composition1 Australia & NZ North 20% America 61% Europe 17% Asia 2% Market 90-Day Avg. Daily Shares Outstanding2 Indices Capitalisation2 Liquidity2 C$610 3.0m shares 301m TSX C
Slide 4: OceanaGold Value Proposition
OceanaGold Value Proposition Delivering strong operational and financial results in a low gold price environment Significant free Consistently Strengthening Low cost producer cash flow delivering positive balance sheet generation results All-In Sustaining Costs Comparative 2014 2015 Producer Average
Slide 5: Global AISC Curve
Global AISC Curve 1st quartile AISC demonstrates strong profitability even at lower commodity prices All-In Sustaining Cost Curve 1,600 1,400 Average USD Converted Hedge Collar for NZ1 All-in Sustaining cost ($/oz Au) 1,200 Spot Gold Price (as at 12 Dec 2014) 1,000 MARGIN 800 600 OceanaGold Consolid
Slide 6: Experienced Management Team
Experienced Management Team Mick Wilkes Managing Director & Chief Executive Officer • Over 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
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 developing and operating high quality assets. We will be the partner, employer and mining company of choice. Commitment to Optimise mines Sustai
Slide 8: Highlights & Results
Highlights & Results 8 OceanaGold Corporation Innovation Performance Growth
Slide 9: 2015 Guidance Announced
2015 Guidance Announced Increasing production with sector leading margins from low cost Didipio Mine Didipio New Zealand Consolidated Gold production ounces 100,000 – 120,000 195,000 – 215,000 295,000 – 335,000 Copper production tonnes 21,000 – 23,000 – 21,000 – 24,000 per Cash costs ounce ($430) –
Slide 10: Key YTD 2014 Highlights
Key YTD 2014 Highlights Consistently delivering positive results through effective executive of strategy Au produced: 214,751 oz Free cash flow generation2: Cu produced: 18,263 t over $70m Stand-out free cash flow yield amongst Well on track to achieve 2014 guidance all equities Cash costs: $437 / o
Slide 11: Share Price Performance Comparative
11 -100% 20% 40% 60% -80% -60% -20% -40% 0% Detour Gold Corporation 142% Rio Alto Mining Source: Bloomberg Northern Star Resources OceanaGold Corporation Newcrest Mining OceanaGold Corp. Semafo Inc. Centamin plc Alacer Gold Corp. AuRico Gold Primero Mining Corp. OZ Minerals Gold Spot Price (US$/oz)
Slide 12: Results Summary
Results Summary YTD 2014 (Sep 30) 2014 Guidance Didipio New Zealand Company Consolidated Gold production oz 71,473 143,278 214,751 275,000 to 305,000 Copper production t 18,263 – 18,263 21,000 to 24,000 Gold sales oz 77,422 153,163 230,585 – Copper sales t 19,615 – 19,615 – Cash costs $/oz (480)1 90
Slide 13: Financial Position (as at 30 Sep 2014)
Financial Position (as at 30 Sep 2014) Strengthening balance sheet through further debt repayment, increased cash LIQUIDITY (USDm) Repaid $30m in core debt YTD; approx. $75m in last 12 months Cash $47 Undrawn Revolving Credit Facility $82 Target debt repayment of $30m in Q4 2014 TOTAL LIQUIDITY $129
Slide 14: Philippines Operations
Philippines Operations 14 OceanaGold Corporation Innovation Performance Growth
Slide 15: Didipio Mine
Didipio Mine Significant cash flow generation from one of the lowest cost gold mines 2014 AISC Guidance1 Island of Luzon ($240) to ($210) / oz Far Southeast San Fernando (Port) DIDIPIO Nominal Production Gold: 100 koz Copper: 14 kt Manila Masbate P&P Reserves2 Gold: 1.77 Moz Copper: 216.5 kt Paco M&
Slide 16: Didipio Highlights
Didipio Highlights Tracking to exceed 2014 production guidance on expected higher production in Q4 Didipio Process Plant Ramp-Up 4.0 300 Increasing production from higher grades and throughput Production (Ounces) 3.5 250 Throughput (Mtpa) 3.0 200 2.5 2.0 150 1.5 100 Increasing throughput rates to 3.
Slide 17: Didipio Optimisation Study Highlights
Didipio Optimisation Study Highlights Operational and economical enhancement of high quality Didipio Mine Underground development to commence 1 year earlier; now in Q1 2015 Access to high grade material in late 2017; brought forward by 2 years Crown pillar moved higher by 80 m, underground extension
Slide 18: Optimised Design and Economics
Optimised Design and Economics Earlier access to high grade underground Limit of feed + deferred mining costs enhanced Oxidation design & cash flow profile New Stage 5 & 6 Smaller open pit completed in 2017: $215 Pit Designs million in cost savings between 2018 and 2020 Previous Stage 5/6 Pit Desi
Slide 19: Paco Tenement Exploration Permit Renewal
Paco Tenement Exploration Permit Renewal Preparations in place to commence exploration program in prospective Mindanao Adjacent to Silangan copper-gold porphyry deposits Preparing site for geophysical survey to identify drill targets 19 OceanaGold Corporation Innovation Performance Growth
Slide 20: New Zealand Operations
New Zealand Operations 20 OceanaGold Corporation Innovation Performance Growth
Slide 21: New Zealand Overview
New Zealand Overview Mitigated downside risk of a lower gold price, optionality with a higher gold price Municipality Mine optimisation over the past 18 OGC operation Auckland months; focused on margin by mining OGC project/tenement less waste Reefton Revised mine plans at Macraes and Wellington Bla
Slide 22: New Zealand Assets
New Zealand Assets Over 8 million ounces in resource provides optionality with a higher gold price Macraes Frasers Reefton NZ Combined Mine Type Open pit Underground Open pit Nominal production koz 90 – 120 40 – 55 50 – 70 180 – 245 1 P&P Reserves Moz 1.23 0.12 0.19 1.54 1 M&I Resources Moz 3.15 0.8
Slide 23: Blackwater PEA Highlights
Blackwater PEA Highlights1 PEA based solely on Inferred Mineral Resources Pre-tax NPV of $200m on base case2 – significant tax offsets available Estimated nominal production 55 to 60 koz / year for 10 years Processing rate of 120,000 tpa with estimated recovery of 96% Initial capex of US$40m for exp
Slide 24: Sustainability
Sustainability 24 OceanaGold Corporation Innovation Performance Growth
Slide 25: 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 Support En
Slide 26: Sustainable Development Today and Beyond
Sustainable Development Today and Beyond An unwavering commitment to our social responsibilities beyond mining Agroforestry Environment Rehabilitation • Planting one million trees • ISO14001 EMS at Didipio • Restoring lands to match area • Commercial plantations • Reducing GhG emissions • Supporting
Slide 27: Free Cash Flow is KING
Free Cash Flow is KING Well positioned to strengthen balance sheet and invest in further value creation Free Cash Flow Yield Comparative 2014E 2015E 20% 15% 10% 5% 0% -5% -10% Newmont SEMAFO Detour Gold Alacer Gold Eldorado AuRico Gold OceanaGold Goldcorp IAMGOLD Yamana Barrick Kinross Agnico-Eagle
Slide 28: Looking Ahead
Looking Ahead On track to achieve full year production and cost guidance – Didipio tracking to exceed guidance Generate significant free cash flow Didipio to increase throughput rates to planned 3.5 Mtpa by year end Commence the Didipio underground development in Q1 2015 Strengthen the balance sheet
Slide 29: oceanagold.com
oceanagold.com Innovation Performance Growth
Slide 30: 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 31: 2014 Guidance
2014 Guidance On track to meet full year guidance; exceed Didipio production guidance New Zealand Didipio Consolidated 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 Guidan
Slide 32: El Salvador
El Salvador Nominal investment in a high quality resource w/ significant upside potential Measured & Indicated Resources1 Belize Guatemala Gold: 1.30 Moz Silver: 9.48 Moz Honduras Inferred Resources1 El Salvador Gold: 0.30 Moz Silver: 1.9 Moz Nicaragua M&I Average Grade Costa Rica Gold: 9.42 g/t Sil
Slide 33: 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 34: Financial or Technical Assistance Agreement
Financial or Technical Assistance Agreement • Capital Recovery Period • 5 years from date of commercial production (April 1, 2013) to recover pre-operating expenses and other allowable items dating back to 1994 (when FTAA was signed) • Residual capital (capital unrecovered within 5 years) amortised
Slide 35: Mineral Resources and Reserves (as at Dec 2013)
Mineral Resources and Reserves (as at 31 Dec 2013) RESOURCES MEASURED INDICATED MEASURED & INDICATED INFERRED RESOURCE Au Au Ag Ag Cu Cu Au Au Ag Ag Cu Cu Au Au Ag Ag Cu Cu Au Au Ag Ag Cu Cu AREA Mt g/t Moz g/t Moz % Mt Mt g/t Moz g/t Moz % Mt Mt g/t Moz g/t Moz % Mt Mt g/t Moz g/t Moz % Mt MACRAES