Oceanagold Corporation · TSX:OGC
Oceanagold — Investor Presentation (November 2013)
37 slides from Oceanagold's investor presentation, November 2013
Slide 1: Corporate Presentation
Corporate Presentation November 2013 Innovation Performance Growth
Slide 2: Cautionary Notes – Forward-looking
Cautionary Notes – Forward-looking 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: Cautionary Notes – Technical Information
Cautionary Notes – Technical Information Cautionary Notes regarding Technical Information Standards: This presentation includes disclosure of scientific and technical information, as well as information in relation to the calculation of reserves and resources, with respect to OGC’s and Pacific Rim’s
Slide 4: OceanaGold Today
OceanaGold Today Multinational gold producer with increasing production & decreasing costs Luzon Markets: OGC Didipio Philippines Baguio TSX, ASX, NZX Manila Market Capitalisation $540m Mindanao Daily Average Liquidity Auckland 1.7 M shares HQ New Zealand Reefton Open Pit Wellington Shares Outstandi
Slide 5: OceanaGold Value Proposition
OceanaGold Value Proposition Commitment MANAGEMENT Experience SOCIAL LICENSE STRATEGY OCEANAGOLD Discipline Execution GROWTH OPERATIONS Free Cash Flow 5 OceanaGold Corporation Innovation Performance Growth
Slide 6: Experienced Management Team
Experienced Management Team Mick Wilkes Managing Director & Chief Executive Officer • 28 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 Micha
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 discovering, acquiring, developing and operating high quality gold assets. We will be the partner, employer and gold company of choice. Strength
Slide 8: 2013 Guidance & All-In Sustaining Costs
2013 Guidance & All-In Sustaining Costs Copper production guidance increased, costs decreased New Zealand Didipio Total Company Combined Gold Production Guidance 50,000 – 70,000 235,000 – 255,000 285,000 – 325,000 (ounces) Copper Production Guidance 18,000 – 20,000 - 18,000 – 20,000 (tonnes) [was 15
Slide 9: Third Quarter 2013 Results Summary
Third Quarter 2013 Results Summary Total Total Didipio Macraes Reefton Q3 2013 Q3 2013 Q3 2013 Company Company Q3 2013 YTD Sep 30 2013 GOLD PRODUCTION 18,011 42,199 14,487 74,697 210,513 (ounces) COPPER PRODUCTION 6,150 - - 6,150 15,523 (tonnes) GOLD SALES 20,827 39,936 14,826 75,589 204,880 (ounces
Slide 10: Financial Position (as at 30 September 2013)
Financial Position (as at 30 September 2013) Increasing cash flows to be used to strengthen the balance sheet Cash & Facilities Cash $15m Undrawn Revolving Credit Facility $30m Available Term Facility $112m TOTAL $157m • Cash slightly lower in Q3 vs. Q2 on account of increase in receivables and inve
Slide 11: All-in Sustaining Costs (USD per ounce)
AISC Asset Comparison – Global Global Gold Assets 2013 All-in Sustaining Cost Curve 2500 AvgAll-in Avg. Industry Industry All-in Cost Sustaining Cost Gold Price OceanaGold 2013 AISC Forecast Range 2000 All-in Sustaining Costs (USD per ounce) 1500 1000 500 0 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100
Slide 12: Pacific Rim Mining Acquisition
Pacific Rim Mining Acquisition Nominal investment in a high quality resource w/ significant upside potential All-share transaction to acquire remaining Belize ~80.1% shares in Pacific Rim Guatemala Honduras Offer value of C$10.2m1 El Salvador Nicaragua Offer / Total Resource (2008)2 = US$7/oz AuEq C
Slide 13: Philippines Operations
Philippines Operations 13 OceanaGold Corporation Innovation Performance Growth
Slide 14: Didipio Highlights
Didipio Highlights Over 7.3 million consecutive man hours worked without an LTI* Production increasing with higher gold grades and better recoveries 2013 copper production guidance increased Transitioning to owner trucking expect improved scheduling and reduced transportation costs On schedule to
Slide 15: Didipio Mine
Didipio Mine LOM Nominal Production Gold: 100,000 oz Copper: 14,000 t Reserves1 Gold: 1.69 Moz Copper: 240 kt Measured & Indicated Resources1 Gold: 2.11 Moz Copper: 290 kt Inferred Resources1 Gold: 0.40 Moz Copper: 50 kt Average Grade Gold: 1.0 g/t Copper: 0.45% Mine Type and Mine Life Open Pit: 201
Slide 16: Didipio Concentrate Production Profile
Didipio Concentrate Production Profile Didipio Concentrate Production Profile (as at 30 September 2013) 9,000 First ore through the mill Commercial production 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 July January February June September December March April May August Estimated production a
Slide 17: Didipio Optimisation Study
Didipio Optimisation Study Optimising the operations to potentially unlock maximum value from Didipio Didipio Process Plant Ramp-Up Schedule 4.00 250 3.50 Debottlenecking of process plant to achieve 3.5 Throughput Mtpa 3.00 200 Mtpa rate by end of 2014 Gold '000 oz 2.50 150 2.00 1.50 100 1.00 50 0.5
Slide 18: Didipio Underground Overview
Didipio Underground Overview High grade underground provides significant optionality NW SE Production commences 2019 Two Dogs Zone Capital expenditure of Shearing Drill Hole: $100m over four years DDDH83 Total length: 471 m Gold grade: 4.7 g/t Mining rate Copper grade: 0.7% 1.0 Mtpa Underground port
Slide 19: New Zealand Operations
New Zealand New Zealand Operations Operations 19 OceanaGold Corporation Innovation Performance Growth
Slide 20: New Zealand Highlights
New Zealand Highlights Mining higher grade ore from Macraes and Reefton in Q4 Cost reductions have lowered cash costs, improved margins despite higher exchange rate Focused on maximising cash flows across NZ operations through mine optimisation and cost reductions Blackwater study near completion, R
Slide 21: Macraes Open Pit
Macraes Open Pit Nominal Production 125,000 – 145,000 ounces Reserves1 1.47 Moz Resources1 Measured & Indicated Inferred 2.99 Moz 1.40 Moz Average Grade 0.9 – 1.1 g/t Ore Mined 5.0 Mt per year Mine Life 2017+ 1) Complete Reserve & Resource Table on page 38 21 OceanaGold Corporation Innovation Perfor
Slide 22: Frasers Underground
Frasers Underground Nominal Production 40,000 – 50,000 ounces Reserves1 0.18 Moz Resources1 Measured & Indicated Inferred 0.92 Moz 0.50 Moz Average Grade 1.9 – 2.2 g/t Ore Mined 0.8 Mt per year Mine Life 2017+ 1) Complete Reserve & Resource Table on page 38 22 OceanaGold Corporation Innovation Perfo
Slide 23: Reefton Open Pit
Reefton Open Pit Nominal Production 55,000 – 70,000 ounces Reserves1 0.30 Moz Resources1 Measured & Indicated Inferred2 0.71 Moz 0.80 Moz Average Grade 1.5 – 1.8 g/t Ore Mined 1.6 Mt per year Mine Life mid – 2015 1) Complete Reserve & Resource Table on page 38 2) Includes Blackwater 23 OceanaGold Co
Slide 24: Round Hill Study at Macraes
Round Hill Study at Macraes Organic, potential value creating opportunity Tungsten by-product could provide high margin production ounces Commenced resource definition and metallurgical test work in Q3 2013 Feasibility study expected in 2014 24 OceanaGold Corporation Innovation Performance Growth
Slide 25: Blackwater
Blackwater Technical study underway on high grade prospect in the Reefton Goldfield area Selected Drill Results* Depth True Grade Drill # Width (m) (g/t Au) (m) Historic 0 – 700 0.7 14.6 WA11 980 0.5 24.5 WA21A 1,316 0.5 23.3 WA22C 1,632 0.5 15.6 WA22D 1,625 1.0 85.2 WA25 1,134 0.3 62.4 WA25A 1,137
Slide 26: Sustainability
Sustainability 26 OceanaGold Corporation Innovation Performance Growth
Slide 27: Investing in Our Local Communities
Investing in Our Local Communities Working together with our communities to leave a long lasting, positive legacy Employment Education Infrastructure • Preferential hiring policy • Teachers salaries • New roads and improvements • 98% Filipino workforce • Scholarship programs • Bridges, waterways Hea
Slide 28: 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 29: Macro & Comparatives
Financial Summary Macro & Comparatives 29 OceanaGold Corporation Innovation Performance Growth
Slide 30: Gold Miners’ Comparatives – Free Cash Flow Yield
Gold Miners’ Comparatives Well positioned to strengthen balance sheet and invest in further value creation Free Cash Flow Yield Estimates 50.0% FY14 FY15 40.0% 30.0% FCF Yield 20.0% 10.0% 0.0% -10.0% St. Barbara Silver Lake Resources OceanaGold Corp Beadell Resources Perseus Mining Resolute Mining S
Slide 31: Gold Miners’ Comparatives – Price to Cash Flow
Gold Miners’ Comparatives Potential re-rating in share price to drive P/CF multiple Price to Cash Flow per Share Multiples (FY2014E) 10.0 9.0 8.0 7.0 6.0 P/CF 5.0 4.0 3.0 2.0 1.0 0.0 Lachlan Star Troy Resources OceanaGold Corporation Kingsgate Consolidated Alacer Gold Regis Resources St Barbara Bead
Slide 32: Outlook
Outlook Strong fourth quarter production expected on the back of mining higher grades across the operations Increase in free cash flow generation and liquidity to strengthen balance sheet Continued focus on ensuring profitability in a lower gold price environment Continued value creation through org
Slide 33: oceanagold.com
oceanagold.com Innovation Performance Growth
Slide 34: 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 35: Group Results Q3 2013
Group Results Q3 2013 USDm Q3 2013 Q2 2013 Q1 2013 YTD 2013 YTD 2012 Revenue 156.6 131.2 95.6 383.5 266.4 Operating costs1 (80.3) (88.7) (48.5) (217.6) (188.9) EBITDA2 76.3 42.5 47.1 165.9 77.5 Depreciation & amortisation (25.1) (39.8) (29.5) (94.5) (63.8) Net interest & finance costs (6.3) (6.3) (6
Slide 36: Cash Flows as at September 30, 2013
Cash Flows as at September 30, 2013 USDm Q3 2013 Q2 2013 Q1 2013 YTD 2013 YTD 2012 Opening cash balance 17.9 27.4 96.5 96.5 170.0 Operating cash inflows 39.1 9.9 21.4 70.4 55.0 Capital expenditure (35.4) (25.2) (65.0) (125.6) (203.1) Financing cash (3.0) (4.5) (25.7) (33.2) (1.4) inflows/(outflows)
Slide 37: Mineral Resources and Reserves (as at Dec 31, 2012)
Mineral Resources and Reserves (as at Dec 31, 2012) RESOURCE MEASURED INDICATED MEASURED & INDICATED INFERRED RESOURCE Au Au Au Au AREA Mt Au g/t Cu % Cu Mt Mt Au g/t Cu % Cu Mt Mt Au g/t Cu % Cu Mt Mt Au g/t Cu % Cu Mt Moz Moz Moz Moz MACRAES TOTAL 28.7 1.38 1.27 . . 73.1 1.12 2.64 . 101.8 1.19 3.9