Oceanagold Corporation · TSX:OGC
Oceanagold — 2015 Global Metal & Mining Conference (BMO Capital Markets)
20 slides from Oceanagold's conference presentation, Feb 24, 2015
Slide 1: 2015 Global Metal & Mining Conference, BMO Capital Markets
2015 Global Metal & Mining Conference BMO Capital Markets Mick Wilkes, Managing Director & CEO February 24 2015
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 2014 Results Strong Production Gold: 307,463 ounces Copper: 25,010 tonnes Sector Low AISC* $785 / ounce Record Revenue $563.3 million Record Net Profit $111.5 million *Net of by-products 3
Slide 4: Delivering Strong Performance
Delivering Strong Performance Delivering on our commitments underpins our focus on shareholder value Successful, on-time build and Deliver Didipio commissioning Deliver positive results from Met or exceeded guidance over operations the past three years Reduced debt by $149.4m over Strengthen the
Slide 5: Strengthening Balance Sheet
Strengthening Balance Sheet Focus on strengthening the balance sheet has paid “dividends” Total debt at end of 2014 Reduced total debt by $77.4m in 2014; approx. $149.4m in last 2 years $118 million (interest paid: $12m) Increased cash balance by $26.4m in 2014 to $51.2m Total debt at end of 2013 $1
Slide 6: Dividend Declared
Dividend Declared Effectively managing a balanced business that delivers a sustainable dividend Dividend policy Board of Directors approve sustainable dividend implemented policy Includes ordinary dividend of US$0.02 per share plus a discretionary payment 2014 dividend of US$0.04/share declared Disc
Slide 7: Didipio Mine
Didipio Mine Significant cash flow generation from one of the lowest cost gold mines globally Island of Luzon Nominal Production Far Southeast Gold: 100 koz Copper: 14 kt San Fernando (Port) DIDIPIO P&P Reserves1 Manila Gold: 1.77 Moz Copper: 216.5 kt Masbate M&I Resources1 Paco Gold: 2.08 Moz Coppe
Slide 8: Strong Margins: All-in sustaining cost ($/oz)
Strong Margins Strong profitability despite weaker commodity prices 1,600 Global All-in Sustaining Cost Curve 1,400 Average USD Converted Hedge Collar for NZ1 1,200 Spot Gold Price (as at 18 Feb 2015) All-in sustaining cost ($/oz) 1,000 800 600 Strong Didipio margins 400 Didipio AISC Range 200 Q1 Q2
Slide 9: Didipio 2015 Guidance
Didipio 2015 Guidance Increased gold production, steady copper production in 2015 Gold Production In 2015, 25% of operating costs are associated with 100,000 to 120,000 diesel consumption ounces Copper Production 10¢ / pound change in copper price AISC margin 21,000 to 23,000 changes by $40/oz tonn
Slide 10: Didipio Underground Development
Didipio Underground Development Earlier access to high grade underground ore enhances cash flows profile Underground development expected to commence in Q1 2015 Capex of $116m over next 3 years; sustaining capex of $75m over the following 10 years Mining rate of 1.6 Mtpa by 2020 when two mining doma
Slide 11: Paco Exploration
Paco Exploration Preparations in place to conduct geophysical surveying in prospective Mindanao Adjacent to Boyongan and Bayugo copper-gold porphyry deposits (Salangan - Philex) Preparing site for geophysical survey to identify drill targets 11 OceanaGold Corporation Innovation Performance Growth
Slide 12: New Zealand Overview
New Zealand Overview Over 8 million ounces in resource1 provides optionality with a higher gold price Municipality OGC operation MACRAES FRASERS REEFTON Auckland OGC project/tenement Nominal Production (koz) 90 – 120 40 – 55 60 – 70 Reefton Wellington Blackwater Christchurch Macraes Round Hill P&P R
Slide 13: New Zealand 2015 Guidance
New Zealand 2015 Guidance Drop in diesel price, weaker New Zealand dollar have driven operating costs lower Gold Production Over next two years, approximately 80% of gold production in NZ is hedged 195,000 to 215,000 ounces In 2015, 8-10% of operating costs are associated with Cash Costs1 diesel con
Slide 14: 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 15: OceanaGold Value Proposition
OceanaGold Value Proposition Strong free cash flow generation, strong performance underpins deep value 2015 All-In Sustaining Cost Comparative Low cost producer New Gold OceanaGold* OceanaGold* SEMAFO Newcrest Regis Generating strong free cash Agnico-Eagle flow Goldcorp Alacer Argonaut Barrick North
Slide 16: Global Ownership
Global Ownership Strong liquidity with a diverse global shareholder base Market Capitalisation2 Shareholder Composition1 C$780m 62% 18% 2% 18% Avg. Daily Liquidity2 2.9m shares % Total liquidity in North America2 75%1 Indices TSX Composite, ASX300, GDXJ, GDX 1. Internal Report as at 31 Jan 2015 2. M
Slide 17: Cash is King
Cash is King Strong free cash flow generation continues to provide opportunities to add value Price to Cash Flow per Share Multiples 2015E 2016E OceanaGold OceanaGold Yamana Gold Primero Argonaut Gold IAMGOLD Lake Shore Gold Barrick Gold New Gold Agnico Eagle B2Gold AuRico Detour Gold Alacer Gold Go
Slide 18: Looking Ahead
Looking Ahead Continue to deliver positive results by effectively executing on our strategy 2015 Consolidated Guidance Dividend of US$0.04/sh payable on April 30 2015 Gold Production (Shareholders of record on March 2 2015) 295,000 to 335,000 ounces Significant free cash flow generation expected Cop
Slide 19: Building the Next Mid-Tier
Building the Next Mid-Tier Well defined strategy Operating a low- Leveraging 24+ cost business years of effectively experience 19 OceanaGold Corporation Innovation Performance Growth
Slide 20: oceanagold.com
oceanagold.com Innovation Performance Growth
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