Oceanagold Corporation · TSX:OGC
Oceanagold — 2016 Macquarie Australia Conference
31 slides from Oceanagold's conference presentation, May 5, 2016
Slide 1: Creating the Lowest Cost Gold Producer
Creating the Lowest Cost Gold Producer 2016 Macquarie Australia May 5, 2016 Conference Mick Wilkes, President & CEO
Slide 2: Cautionary & Technical Statements
Cautionary & 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 t
Slide 3: OceanaGold Overview
OceanaGold Overview 2016 GUIDANCE Gold Production Copper Production Cash Costs All-In Sustaining Costs 385,000 – 425,000 ounces 19,000 – 21,000 tonnes $460 – $500 per ounce $700 – $750 per ounce Haile Vancouver Didipio Melbourne Waihi Macraes *As at 3 May 2016 Market Capitalisation* Shares Outstandi
Slide 4: Pillars of Success
Pillars of Success Long life, low cost Development Highly efficient Exploration Strong safety performance Optimisation SIGNIFICANT HIGH ORGANIC QUALITY GROWTH OPERATIONS POTENTIAL TEAM Breadth of experience Values driven “OGC Way” STRONG SOLID SOCIAL FINANCIAL LICENSE POSITION Proven track record Go
Slide 5: OceanaGold – A Core Holding
OceanaGold – A Core Holding Strong support and ownership from solid investor base Shareholder Composition United TOP SHAREHOLDERS States 43% 1 Blackrock (London) Canada 20% 2 Van Eck Associates (NYC) 3 Ingalls & Snyder (NYC) Asia 2% 4 Norges Bank IM (Oslo) Australia/ NZ 5 Dimensional Fund (Texas) 6%
Slide 6: Valuation Discrepancy
Valuation Discrepancy Australian Target Prices Canadian Target Prices(1) ($A/sh) ($A/sh) North American gold stocks are currently trading between 1.2x to 1.4x NAV(2) Macquarie $6.85 Cormark $5.80 Target Price Consensus ($A/sh) RJ $5.48 National $5.01 Overall $4.29 Haywood $4.59 CIBC $4.48 Australia
Slide 7: Strong Cash Flows Forecasted
Strong Cash Flows Forecasted Net Debt / EBITDA Estimated Cash Flows* Comparative (2017E) 2016E 2017E New Gold Yamana Gold Gold Barrick Gold oz 405,000 550,000 Production Newcrest Mining Goldcorp Agnico Eagle Mines AISC $/oz 725 650 Eldorado Gold IAMGOLD Kinross Gold Gold Fields Cash Flow US$ >150m 2
Slide 8: Financial Position (as at 31 Mar 2016)
Financial Position (as at 31 Mar 2016) Solid balance sheet with strong cash flow generation Cash Drawn Facility $118m $183m Total Liquidity Total Debt $185m $195m Undrawn Facility Equipment Leases $67m $12m REVOLVING CREDIT FACILITY DIESEL HEDGING* 90% of Company diesel Lenders consumption hedged fo
Slide 9: Growth
a) OCEANAGOLD GROWTH
Slide 10: Romarco Transaction
Romarco Transaction Highly accretive, transformational acquisition WHAT WE PAID Transaction Price (1 Oct 2015) ~$416m ADDITIONAL CAPEX OGC Haile Capex Haile (1 Oct 2015) $280m WHAT WE RECEIVED Cash Haile Capex Spent Resource Geological Prospects (1 Oct 2015) (as at 1 Oct 2015) (as at 31 Dec 2015) ~$
Slide 11: Haile Gold Mine Overview
Haile Gold Mine Overview Top-tier asset in a top-tier jurisdiction P&P Reserves (Dec 31/15) Open Pit Gold 30.5Mt @2.1g/t = 2.02 Moz M&I Resources* (Dec 31/15) Open Pit Gold 70.3Mt @1.7g/t = 3.92 Moz Underground Gold 0.8Mt @4.39g/t = 0.12 Moz *Note: Resources are inclusive of reserves Haile Process P
Slide 12: Haile Development Status
Haile Development Status Haile Process Plant – Apr 29/16 Haile Development Capex* Capex Remaining*: $202m Capex Spent*: $178m CONSTRUCTION STATUS* Milestone completed in Q1 Engineering Procurement PAG cell ready for use Complete 85% Complete *Note: As at 31 Mar 2016 12
Slide 13: The “Oceana Way”
The “Oceana Way” Design enhancement, project de-risking = more robust operation MINING PROCESS PLANT Mining Enhancements Processing Enhancements Grade control drilling Crushed ore bin: minimise dust ROM Pad: decouple mine from process New flash flotation cell: larger, more plant proven technology Bu
Slide 14: Haile Construction Update
Haile Construction Update 2016 Q1 Q2 Q3 Q4 Process Plant Civil works Structural, Mechanical, Piping Electrical, Instrumentation, Controls Tailings Storage Facility Mining infrastructure Not to scale KEY MILESTONES First Ore Through Mill Commercial Production End of 2016 Early 2017 14
Slide 15: Current Status – Mining
Current Status – Mining Progressing well April 29 2016 15
Slide 16: Current Status – PAG Cell
Current Status – PAG Cell Phase One complete April 29 2016 16
Slide 17: Haile Exploration
Haile Exploration Extensive exploration program initiated at Haile; regionally Horseshoe Mustang Palomino US$950/oz Open Pit Shell & Underground Targets 40km+ of Drilling Advancing study Seeking to grow drilling planned underground to operate open production to at Haile & Horseshoe pit & 250koz / yr
Slide 18: Haile Exploration Results
Haile Exploration Results DRILL RESULTS AT HORSESHOE* Horseshoe Deposit Long Section True Au Drill Hole From (m) Width Grade (m) (g/t) DDH-519 173.7 21.3 21.66 198.1 23.5 6.55 DDH-520 164.4 10.9 1.36 184.2 13.9 1.15 202.7 14.2 1.53 DDH-518 169.5 11.6 2.43 183.5 13.0 5.47 201.9 13.3 10.57 including 2
Slide 19: Carolina Terrain
Carolina Terrain Extensive geological system that stretches wide and far 19
Slide 20: Growth – Philippines
Philippines GROWTH
Slide 21: Didipio Underground
Didipio Underground Early access to high grade underground ore enhances cash flow profile First Over 24 million Underground underground ore tonnes of open infill and processed pit ore to be extensional expected by end stockpiled by drilling expected of 2017 end of 2017 in H2 2016 21
Slide 22: Didipio FTAA
Didipio FTAA Gold in soil anomalies within 13,000+ hectares Targets identified through Upper stream sediment Tucod Mogambos geochemistry TNN Cabinwangan Follow up soil surveys over MMB prospective catchments delineated targets Papaya 2016 Program • 8,900 m drilling Didipio Au-Cu • Infill mapping, sa
Slide 23: Didipio FTAA Drill Targets
Didipio FTAA Drill Targets 15.1 g/t Au & Upper Tucod • 4 Initial drilling targets Mogambos 0.1 % Cu • 6,000 m drilling 1.02 g/t Au • Mapping, soil sampling, 1.90 g/t Au & geophysics 0.8 % Cu 1.48 g/t Au, 1.56 g/t Au & 127 g/t Ag, 0.4 % Cu 9.7 % Cu 1.73 g/t Au, 141 g/t Ag 8.13 g/t Au 1.0 % Cu * 1.70
Slide 24: Growth – New Zealand
New Zealand GROWTH
Slide 25: Waihi Exploration
Waihi Exploration WKP Open Pit WKP33 WKP34 WKP26 WKP25 WKP24 WKP39 WKP31 WKP27 WKP30 WKP28 WKP29 WKP38 WKP32A WKP32 WKP35 WKP36 WKP37 Underground Eight drill rigs operating: four on surface, four on underground targets WKP drilling expected to commence in Q2/16 25
Slide 26: Waihi Exploration Pipeline
Waihi Exploration Pipeline Extensive drill program across numerous targets Prospect Exploration Mineral Resource Reserve Inventory Inventory Charlie’s Waihi West Rex Grace No 9 Blackhill Correnso Correnso Deeps Edward Extensions Martha East UG Correnso Upper WKP Midway Correnso Quattro WKP Daybreak
Slide 27: Macraes Exploration
Macraes Exploration Macraes South Macraes North Extensive 35-km strike length Focused on primary targets Focused on stockwork ore, low strip ratio, underground 27
Slide 28: Lot’s Wife
Lot’s Wife Early stage exploration with good potential identified through soil sampling Frasers Pit Lot’s Wife Soil Sampling 28
Slide 29: Strategic Investments
Strategic Investments Gold Standard NuLegacy Ventures Carlin Trend, Cortez Trend, Location Nevada Nevada Project Railroad-Pinion Iceberg Equity Stake 19.1% 19.9% # Shares Owned 39.3m 47.7m C$30.3m C$6.7m Total Investment (C$0.77 / share) (C$0.14 / share) Current value C$63.3m(1) C$17.2m(1) (1) As at
Slide 30: Looking Ahead
Looking Ahead Solid growth with strong cash flows ORGANIC GROWTH – extensive exploration program across first quartile cost assets Haile Waihi Didipio & FTAA 40km+ of drilling 34km+ of drilling Drilling & surface exploration DEVELOPMENT – pipeline of development projects to drive further growth Hail
Slide 31: www.oceanagold.com
y / www.oceanagold.com 4) Innovation ¢ Performance ¢ Growth OCEANAGOLD