Slide 1: Corporate Presentation May 2011
Corporate Presentation May 2011
Slide 2: Cautionary Note
Cautionary Note Cautionary Notes 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 financial
Slide 3: A Significant Australasian Gold Producer
A Significant Australasian Gold Producer • FY2011 guidance: Philippines 260,000 – 280,000 ounces Au Luzon Didipio @ US$645 - $685 / oz Baguio Manila • Growing production profile + declining cash cost profile HQ Mindanao • Detailed engineering design and procurement commenced at Didipio. Construction
Slide 4: Corporate Overview
Corporate Overview Market Overview (27 Apr 2011) Market Capitalisation ~US$795m Shares Outstanding 262m Non-listed Options 5.6m Average Daily Trading Volume (last 90 days) 2.5m Financial Overview (As at 31 March 2011) Cash US$194m Convertible Bonds* A$163m A$53M 5.75% Dec 2012 A$110M 7.0% Dec 2013 *
Slide 5: Q1 2011 Highlights
Q1 2011 Highlights • Revenue $90.7m up 87% on prior year • Record gold price $1,401 / oz (average) achieved • Sold 64,765 oz gold at cash operating cost $687 / oz • EBITDA $44.0m, significant improvement vs prior year (Q1 2010: $8.5m) • Commenced early stage development activities of Didipio Project
Slide 6: Q1 2011 Results
Q1 2011 Results Financial Summary Q1 2011 Q4 2010 Q1 2010 31 Mar 31 Dec 31 Mar Statement of Operations Revenue US$m 90.7 93.8 48.3 EBITDA1 US$m 44.0 49.3 8.5 Operating profit / (Loss)1 US$m 24.4 35.5 (9.0) Net Earnings / (Loss)1 US$m 14.8 20.7 (9.5) Operations snapshot Gold Produced oz 65,671 67,007
Slide 7: Quarterly Production and Margins
Quarterly Production and Margins Growing margins with stable production 7
Slide 8: Exciting Growth Profile with Low Cash Costs
Exciting Growth Profile with Low Cash Costs *Assumes Didipio first full year of production is 2013. Using copper bi-product credits of US$3.00/lb Cu NB: 2011 Guidance: 260,000 – 280,000 oz Gold at US$645 - US$685 per ounce Investments in Asia supporting growth, declining cash cost profile 8
Slide 9: Steady Reserve Growth Outpacing Depletion
Steady Reserve Growth Outpacing Depletion New Zealand Gold Reserves 9
Slide 10: Three Producing Mines in New Zealand
Three Producing Mines in New Zealand Macraes Open Cut Mine Frasers Underground Mine Reefton Open Cut Mine 120-130K oz 55-65K oz 75-95K oz Total Annual Production 260 - 280K oz Successful long term presence in New Zealand 10
Slide 11: Macraes Open Cut Mine
Macraes Open Cut Mine • ~ 120 - 130k oz annual production from 4.5Mt ore @ 1.1 g/t • Large open cut operation since 1990 • More than 3 million ounces produced • Macraes Pressure oxidation autoclave processes all NZ concentrates Mine Type Open Cut • 28 km of mineral trend; Resources1 Gold (m oz) 4.31
Slide 12: Frasers Underground Mine
Frasers Underground Mine • ~ 55 – 65k oz of annual production from 1Mt ore @ 2.5 g/t • Commissioned in January 2008 • Ore body is the down-dip extension to Macraes • Mining focused on the higher grade hanging wall Mine Type Underground • Drilling from dedicated exploration drive is ongoing to extend
Slide 13: Reefton Open Cut Mine
Reefton Open Cut Mine • ~ 75 – 95k oz of annual production from 1.6Mt ore @ 2 g/t • Commissioned in 2007 • Operating at >60% above plant design • Concentrate railed to Macraes for processing • Historic gold mining district - 10 million Mine Type Open Cut oz produced from hardrock and alluvial Resour
Slide 14: Didipio Project - Philippines
Didipio Project - Philippines • High grade gold-copper porphyry with robust economics Tailings Open Pit Dam • Forecast lower cash cost with bi- Plant product copper credit Site • Capital investment ROM • US$80m spent - partial construction, majority of long lead times purchased Contractor Ore Lay Do
Slide 15: Didipio Project - Philippines
Didipio Project - Philippines Based on 2010 Re-Optimisation Study: • 92% OceanaGold, 8% local partner (M&I) 2.0m oz Au + 0.27mt Cu, Resources (Inferred) 0.31m oz Au + 0.05mt Cu • Early stage exploration activities Reserves 1.41m oz Au + 0.17mt Cu commenced Reserve Grade 1.48g/t Au + 0.57% Cu • Proje
Slide 16: Culture of Sustainability & Community Engagement
Culture of Sustainability & Community Engagement • Commitment to sustainability beyond life of mine is a key objective • >20 years community and environmental track record in New Zealand • Actively delivering health, environmental, social and community programs to remote communities in northern Luzo
Slide 17: Exploration – Macraes: 30km Strike Potential
Exploration – Macraes: 30km Strike Potential • 15,000 metre surface drill program completed in 2010 resulted in reserve expansion net of 2009 mine depletion • Programs now extending to north and south of immediate area of mining • New exploration model developed for identifying blind high grade targ
Slide 18: Frasers Underground – It Keeps Growing
Frasers Underground – It Keeps Growing Step out surface drilling continues to be successful intersecting mineralisation down-dip OPEN Lower zone of mineralisation approx 25 metres below Panel 2 extension discovered in 2010 18
Slide 19: Reefton – Enormous Potential in an Historic District
Reefton – Enormous Potential in an Historic District • Reserves increased by 28% in 2010 • High priority targets identified from new geological models in 2010 to be drill tested in 2011 • Strong Au-As-Sb geochemical surface anomalies identified through surface sampling programs in late 2010 at Big R
Slide 20: Prospective Philippines Exploration
Prospective Philippines Exploration Claveria: • Magnetite skarn with potential porphyry at depth • Surface samples of 20+% Cu & 2+ g/t Au • A suite of separate tenements all containing gold-copper signatures • Projects in Luzon and Surigao Peninsula are highly mineralised with excellent discovery po
Slide 21: Significant Near Mine Exploration Potential
Significant Near Mine Exploration Potential 21
Slide 22: A Changing Landscape in The Philippines
A Changing Landscape in The Philippines Market Cap Company Au Prod oz (2011E) Notes (USD mil) Gold Fields 12,878 3.6 million Recent $360m investment 100% of current production OceanaGold 795 260,000 - 280,000 in New Zealand 1 producing operation in CGA Mining 985 213,000 Philippines Medusa 1,610 104
Slide 23: EV/EBITDA (2011)
EV/EBITDA (x) 0.0 5.0 20.0 25.0 10.0 15.0 REGIS Source: Bloomberg, OGC estimates MEDUSA EV/EBITDA (2011) KINGSGATE ALACER CGA CATALPA ST BARBARA SARACEN OCEANAGOLD 23
Slide 24: Reserves (Moz Au Equivalent)
Reserves (Moz Au Equivalent) 16.8 4.5 3.6 3.4 3.4 3.1 3.0 2.9 2.5 2.5 2.4 1.4 0.5 0.3 0.0 Source: Company filings. Note: Gold equivalent basis at long-term copper price US$2.20/lb. 24
Slide 25: EV / M&I Resources (A$/oz)
EV / M&I Resources (A$/oz) 2437 337 308 262 254 240 Median: 177 204 177 165 149 129 128 118 88 61 Source: Company filings. Note: Market data as at 29 April 2011. Gold equivalent basis at long-term copper price US$2.20/lb. 25
Slide 26: Building the Growth Pipeline
Building the Growth Pipeline Operations • Solid New Zealand operations with strong leverage to gold price • Strong Operating Margins • Extending mine life in New Zealand – now 7 - 8 years Development • Didipio under development - low-cost production growth with exceptional reserve life and immense e
Slide 27: OceanaGold
OCEANAGOLD INNOVATION, PERFORMANCE & GROWTH
Slide 28: Mineral Resources and Reserves
Mineral Resources and Reserves RESOURCE MEASURED INDICATED MEASURED & INDICATED INFERRED RESOURCE AREA Mt Au g/t Au Moz Cu % Cu Kt Mt Au g/t Au Moz Cu % Cu Kt Mt Au g/t Au Moz Cu % Cu Kt Mt Au g/t Au Moz Cu % Cu Kt MACRAES TOTAL 27.16 1.36 1.18 . . 78.42 1.08 2.72 . 105.58 1.15 3.90 . . 37.6 1.1 1.3
Slide 29: Didipio Section 5800N
Didipio Section 5800N 88m 1.7 Au, 1.7 Cu 124m 1.3 Au, 1.3 Cu 278m 1.3 Au, 0.3 Cu +54m 2.4 Au, 2.0 Cu +60m 3.7 Au, 0.6 Cu 146m 1.3 Au, 1.04 Cu 240m 2.5 Au, 0.3 Cu +30m 4.2 Au, 2.9 Cu +66m 5.3 Au, 0.6 Cu 242m 1.7 Au, 0.5 Cu 423m 5.1 Au, 0.8 Cu +140m 13.2 Au, 1.0 Cu 2400 RL MINERALIZED ZONE Mineralised
Slide 30: Didipio Section 5800N
Dark Dierto Tun Derite Brvcela Sheer Quan Dierite Bugyy Breoda Buta Bek Sear waz omz Loz Cu_gom Trace Stade) Tre Shade OH tion INNOVATION, PERFORMANCE &
Slide 31: Reefton – A Historic Goldfield
Reefton – A Historic Goldfield • More than 2 million ounces of gold has been mined from district through high-grade underground mines • An additional 8 million ounces of gold reportedly recovered from district through alluvial mining • OceanaGold controls entire gold district spanning >30 kilometres
Slide 32: Management
Management Mick Wilkes (CEO & MD) – Mr. Wilkes is a mining engineer with 26 years of broad international experience predominantly in precious and base metals across Asia and Australia. Prior to joining OceanaGold, Mick was Executive General Manager – Operations at Oz Minerals where he was responsibl
Slide 33: Board of Directors
Board of Directors Jim Askew (Chairman) - Mining engineer with over 30 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 public companies