Oceanagold Corporation · TSX:OGC
Oceanagold — Investor Presentation (September 2015)
43 slides from Oceanagold's investor presentation, September 2015
Slide 1: Corporate Presentation September 2015
Consistently Delivering On Commitments September 2015 Corporate Presentation Innovation • Performance • Growth
Slide 2: Cautionary and Technical Statements
Cautionary and Technical Statements 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
Slide 3: OceanaGold Revised 2015 Guidance
OceanaGold REVISED 2015 Guidance Gold Production Copper Production Cash Costs All-In Sustaining Costs 380,000 – 410,000 ounces 22,000 – 23,500 tonnes $420 – $470 per ounce $690 – $740 per ounce (was 295,000 – 335,000 ounces) (was 21,000 – 23,000 tonnes) (was $450 – $530 per ounce) (was $770 – $840 p
Slide 4: OceanaGold Value Proposition
OceanaGold Value Proposition Sound operators and developers with compelling financial metrics Financial Operational Over 25 years of operating & Strong balance sheet development experience Sector leading free cash flows In-house mine development team Significant experience with different First quart
Slide 5: Recent News
Recent News Transformational investments that create wealth and complement existing portfolio 2015 Digger of the Year Operating & Financial Results H1 2015 Gold Production oz 176,999 Copper Production t 12,299 Cash costs per oz $474 AISC per oz $734 FCF Generation US$’000 36,741 Romarco Waihi Gold G
Slide 6: Financial Position (as at 30 Jun 2015)
Financial Position (as at 30 Jun 2015) LIQUIDITY Total debt at end of 2014 Cash $49m $118 million (interest paid: $12m) Undrawn Revolving Credit Facility* $72m Total debt at end of 2013 TOTAL LIQUIDITY $121m $194 million (interest paid: $27m) DEBT Total debt at end of 2012 Revolving Credit Facility*
Slide 7: Executive Management Team
Executive Management Team Mick Wilkes Managing Director & Chief Executive Officer • Over 30 years industry experience • Developed major projects in Australia & SE Asia • Strong Operations background in hard rock mining • Strong in Community and Government relations • Extensive SE Asian experience Ma
Slide 8: OceanaGold Vision & Strategy
OceanaGold Vision & Strategy We will be a mid-tier, multinational gold producer delivering superior shareholder returns in a safe and sustainable manner by developing and operating high quality assets. We will be the partner, employer and mining company of choice. Operating efficiently Maximising va
Slide 9: Recent Transactions
Recent transactions 9 OceanaGold Corporation Innovation Performance Growth
Slide 10: Romarco Minerals – Haile Project
Romarco Minerals – Haile Project Best-in-class asset with projected low cost production in top tier jurisdiction Proposed transaction, subject to shareholder, regulatory approvals Haile Gold Mine Located in South Carolina, USA – 58 miles from Columbia, SC, 30 miles from Charlotte, NC Carolina Slate
Slide 11: Transaction Rationale
Transaction Rationale New OceanaGold: The Low Cost Gold Producer The Low Cost Gold Producer Diversified Producer Mining operations in 3 Industry best AISC profile jurisdictions Didipio & Haile (+10 years) Best in Class assets Insulated business over the next decade of commodity volatility
Slide 12: Pro Forma Capitalization
Pro Forma Capitalization Strong pro forma capital structure & implied valuation ratios poised for re-rating New Units OceanaGold Romarco OceanaGold (5) Share Price (TSX) (C$/sh) $2.83 $0.68 $2.83 Basic Shares Outstanding (M) 303.5 1,242.6 603.0 Basic Market Capitalization C$m $859 $848 $1,707 Cash &
Slide 13: Pro Forma Profile
Pro Forma Profile Well positioned for long-term growth & free cash flow generation Diversified Production Base & Gold Production (koz) (1) AISC (US$/oz) (1) Increased Gold Exposure RESERVES 600 BY OPERATING DISTRICT (2) $1,000 Industry USA 500 Haile Projected leading Philippines 32% Year 1 $800 AISC
Slide 14: Peer Benchmarking – AISC & Implied Margin
Peer Benchmarking – AISC & Implied Margin Insulating the business from gold price volatility Peer 2015E AISC Implied Margin to US$1,100/oz Au (3)(4) $1,200 New Oceana New Gold $900 AISC (US$/oz) Evolution $600 Northern Star Randgold $300 Goldcorp Yamana $0 (1) (2) Eldorado Newcrest Peer 2017E AISC A
Slide 15: Haile Long Section
Haile Long Section Significant potential opportunity beyond current open-pit reserves 3.5 km CHAMPION SMALL SOUTH PIT LEDBETTER SNAKE 274 m DEPTH (m) HORSESHOE MUSTANG 62.5 m of 9.6 g/t 117 m of 5.5 g/t PALOMINO 70.1 m of 5.5 g/t 610 m 2m ounces 2P Reserve @ 2.06 g/t ($950Au) 4m ounces M&I + 800 koz
Slide 16: Haile Regional Exploration Opportunities
Haile Regional Exploration Opportunities Numerous regional exploration opportunities identified to date 16 OceanaGold Corporation Innovation Performance Growth
Slide 17: Waihi Transaction Overview
Waihi Transaction Overview Waihi represents a high-grade, low-cost asset in a stable, well-known jurisdiction Attributable OGC Guidance for Waihi in 2015 Auckland Gold Production oz 65,000 – 70,000 Waihi AISC per oz $650 – $680 Cash Costs per oz $490 – $520 Acquisition cost of US$101m; funded from R
Slide 18: 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 19: Unlocking Additional Value
Unlocking Additional Value Significant value and upside potential exists at Waihi and surrounding areas Successfully integrate Waihi into OceanaGold Commence comprehensive optimisation study Regional Commence extensive drilling program Harukai Maintain strong focus on stakeholder Waihi engagement an
Slide 20: Philippines
Philippines 20 OceanaGold Corporation Innovation Performance Growth
Slide 21: Philippines Highlights
Philippines Highlights Significant cash flow generation from one of the lowest cost gold mines globally Municipality OGC operation 2015 Guidance OGC project/tenement Island of Gold Production oz 105,000 – 120,000 Peer Project Luzon Copper Production t 22,000 – 23,500 San Fernando (Port) AISC per oz
Slide 22: Didipio Cash Flow Profile
Didipio Cash Flow Profile Strong, steady free cash flow generation over life of mine After-Tax Cash Flow Profile(1) (USDm) 150 133 135 123 123 100 88 87 84 78 62 69 72 66 60 50 37 USDm 0 -4 -1 -7 -8 -6 -9 -6 -19 -15 -23 -50 -49 -52 -59 After Tax Cash Flow (before Capex) Capex FCF Trend -100 2015 201
Slide 23: Didipio Underground
Didipio Underground Early access to high grade underground ore enhances cash flow profile Measured and Indicated Stopes Sill and Crown Pillars (ore) Inferred Stopes (drilling targets) Limit of Oxidation Tunja New Stage Monzonite 5 and 6 Pit Designs Previous Stage 6 2460m RL Underground Pit Design 30
Slide 24: 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 25: Paco Exploration
Paco Exploration Geophysical surveying completed, preparing to drill Adjacent to Boyongan and Bayugo copper- gold porphyry deposits (Salangan - Philex) Drill targets identified; drilling to commence in Q3 2015 25 OceanaGold Corporation Innovation Performance Growth
Slide 26: New Zealand
New Zealand 26 OceanaGold Corporation Innovation Performance Growth
Slide 27: New Zealand Overview
New Zealand Overview Over 7 million ounces in resource provides strong optionality Municipality 2015 Guidance (excluding Waihi) OGC operation Gold Production oz 210,000 – 220,000 OGC project AISC per oz $980 – $1,030 New asset Auckland Waihi Cash Costs per oz $740 – $790 Wellington Reefton – 2015 Bl
Slide 28: New Zealand Highlights
New Zealand Highlights New economic conditions have increased profitability, organic growth in NZ Results Q2 2015 H1 2015 Gold Production oz 55,812 111,836 Cash costs per oz $810 $772 AISC per oz – $989 Waihi legal Encouraging drill Advancing the Weakening New Reefton mining closing expected results
Slide 29: New Zealand Exploration
New Zealand Exploration Encouraging drill results at surface and underground at the Macraes Goldfield New zone at Coronation North with results including: 11 m @ 2.31 g/t, 22 m @ 2.20 g/t and 8 m @ 4.58 g/t Stockwork at Innes Mills with results including: 16 m @ 2.40 g/t, 19 m @ 1.21 g/t, and 8 m @
Slide 30: Organic Growth in New Zealand
Organic Growth in New Zealand Organic growth demonstrates potential for increased value from NZ asset base Macraes Gold-Tungsten Project Blackwater At Macraes Near Reefton • PEA completed with robust financials • Scoping study complete • Currently reviewing mining method; • Advancing feasibility stu
Slide 31: Sustainability
Sustainability 31 OceanaGold Corporation Innovation Performance Growth
Slide 32: Investing in Our Local Communities
Investing in Our Local Communities Working together with our communities to leave a positive, long lasting legacy Community Investment Composition COMMUNITY Infrastructure INVESTMENT Education Enterprise Development Health & Nutrition Capacity Building Sports and Socio-Cultural 32 OceanaGold Corpora
Slide 33: Sound Environmental Management
Sound Environmental Management An unwavering commitment to the environment today, for tomorrow Agroforestry Environment Rehabilitation • Planting one million trees • ISO14001 EMS at • Restoring lands • Commercial Didipio to match area plantations • Reducing GhG • Supporting emissions agriculture Wat
Slide 34: Looking Ahead
Looking Ahead Waihi Gold Mine Close transactions Romarco Minerals Philippines Underground development Power grid connection Advance organic growth New Zealand opportunities Waihi Optimisation Macraes exploration Macraes Gold-Tungsten Feasibility Enhance stakeholder engagement to alig
Slide 35: oceanagold.com
oceanagold.com Innovation Performance Growth
Slide 36: Board of Directors
Board of Directors Jim Askew Chairman • 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 • Served on the board of numerous resource public companies, which
Slide 37: Gold Standard Ventures (Nevada)
Gold Standard Ventures (Nevada) Strategic investment in one of the most prolific gold regions globally Private placement in GSV.V for 14.9% of common shares for C$16.2m Technical representation and anti-dilution provision with right to increase equity stake to 19.9%1 GSV holds 2nd largest land packa
Slide 38: El Salvador Overview
El Salvador Overview Nominal investment in a high quality resource w/ significant upside potential M&I Resources1 Belize Guatemala Honduras Gold: 1.30 Moz Silver: 9.48 Moz Inferred Resources1 El Salvador Nicaragua Gold: 0.30 Moz Silver: 1.9 Moz Costa Rica M&I Average Grade1 Panama Gold: 9.42 g/t Sil
Slide 39: El Salvador
El Salvador Continuing to work collaboratively with stakeholders from El Salvador Investing in Infrastructure Investing in Social Programs Building Capacity Building Collaborative Relationships 39 OceanaGold Corporation Innovation Performance Growth
Slide 40: Consolidated Financial Results
Consolidated Financial Results Consolidated Financial Results (USDm) Q2 2015 Q1 2015 H1 2015 H1 2014 Gold sales (ounces) 82,890 86,234 169,124 166,344 Copper sales (tonnes) 5,438 6,245 11,683 12,925 Gold price received ($ per ounce) 1,185 1,195 1,196 1,312 Copper price received ($ per pound) 2.67 2.
Slide 41: Consolidated Cash Flows
Consolidated Cash Flows USDm Q2 2015 Q1 2015 H1 2015 H1 2014 Opening cash balance 59.6 51.2 51.2 24.8 Operating cash inflows 42.3 43.2 85.5 126.0 Investing expenditure (38.3) (23.8) (62.1) (55.2) Financing cash outflows (15.2) (13.3) (28.5) (37.8) Foreign exchange effect 0.3 2.3 2.6 (11.6) Net cash
Slide 42: 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 43: Mineral Resources and Reserves (as at Dec 2014)
Mineral Resources and Reserves (as at 31 Dec 2014) 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