Oceanagold Corporation · TSX:OGC

Oceanagold — Q3 2014 Earnings Presentation

25 slides from Oceanagold's earnings presentation, Oct 31, 2014

  1. Slide 1: Third Quarter 2014 Results

    Third Quarter 2014 Results 31 October 2014

  2. 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

  3. Slide 3: Third Quarter 2014 Key Highlights

    Third Quarter 2014 Key Highlights Production Didipio YTD gold production 71,473 ounces – on track Gold: 67,352 ounces to exceed 2014 full year guidance at Didipio Copper: 7,078 tonnes Higher production from Didipio as expected with Cash Costs1 26,207 ounces of gold and 7,078 tonnes of copper Consoli

  4. Slide 4: Results Summary

    Results Summary 2014 YTD Sep 30 2014 Q3 2014 Guidance New New Combined Didipio Company Didipio Company Zealand Zealand Gold 275,000 to oz 71,473 143,278 214,751 26,207 41,145 67,352 production 305,000 Copper 21,000 to t 18,263 – 18,263 7,078 – 7,078 production 24,000 Gold sales oz – 77,422 153,163 2

  5. Slide 5: Philippines Operations

    Philippines Operations 5 OceanaGold Corporation Innovation Performance Growth

  6. Slide 6: Philippines Highlights

    Philippines Highlights Increased quarterly production on the back of higher grades mined from Stage 3 of the open pit Record quarterly throughput rate achieved from better mill availability & debottlenecking On track to achieve a steady-state throughput rate of 3.5 Mtpa by year end 2014 Didipio Resu

  7. Slide 7: Didipio Operating Statistics

    Didipio Operating Statistics YTD YTD Q3 2014 Q2 2014 Sep 30 2014 Sep 30 20131 Lost time injuries 0 1 1 0 Gold production oz 26,207 14,786 71,473 38,564 Copper production t 7,078 4,706 18,263 15,523 Total ore mined Mt 2.79 1.40 5.86 6.17 Total waste mined Mt 3.79 4.68 12.91 10.93 Ore mined grade gold

  8. Slide 8: Didipio Optimisation Study Highlights

    Didipio Optimisation Study Highlights Underground development to commence 1 year earlier; now in Q1 2015 Access to high grade material in late 2017; brought forward by 2 years Crown pillar moved higher by 80 m, underground extension to 2010mRL  two mining domains established. Larger Underground Min

  9. Slide 9: Optimised Design

    Optimised Design Open pit redesigned to fit geological Limit of orientation of the ore body, improve Oxidation ramp and lift crown pillar New Stage 5 & 6 Pit Designs Open pit mining completed at the end of 2017 Previous Stage 5/6 Pit Design Underground Mine Improved production profile through mining

  10. Slide 10: Enhanced Economics

    Enhanced Economics Original Open Pit Design Optimised Open Pit Design Earlier access to high grade underground feed + deferred mining costs  enhanced cash flow profile Smaller open pit  $215 million in cost savings between 2018 and 2020 Larger underground and higher mining rates  lower unit costs

  11. Slide 11: Didipio – Looking ahead

    Didipio  Looking ahead Tracking to exceed 2014 production guidance at Didipio Increased production expected in Q4 from higher grades Increase throughput rate to 3.5 Mtpa before year end Continue to advance the power grid connection development Prepare for the commencement of the underground develop

  12. Slide 12: New Zealand Operations

    New Zealand Operations 12 OceanaGold Corporation Innovation Performance Growth

  13. Slide 13: New Zealand Highlights

    New Zealand Highlights 2014 New Zealand Results YTD 2014 Steady production at Macraes, decreased production from Reefton as previously Gold produced oz 143,278 guided Cash costs per oz $900 Completed pit redesign at Reefton; milling AISC per oz $1,315 resumed and now back to planned operating rates

  14. Slide 14: Macraes Goldfield Operating Statistics

    Macraes Goldfield Operating Statistics YTD YTD Q3 2014 Q2 2014 Sep 30 2014 Sep 30 2013 Lost time injuries 0 0 1 3 Gold production oz 35,403 35,641 111,712 130,401 Total ore mined from open pit Mt 0.38 0.19 1.67 4.28 Total ore mined from Mt 0.27 0.21 0.69 0.66 underground Total waste mined Mt 1.79 0.

  15. Slide 15: Reefton Goldfield Operating Statistics

    Reefton Goldfield Operating Statistics YTD YTD Q3 2014 Q2 2014 Sep 30 2014 Sep 30 2013 Lost time injuries 3 0 3 4 Gold production oz 5,742 10,404 31,566 41,548 Total ore mined Mt 0.34 0.20 0.99 1.15 Total waste mined Mt 2.48 4.03 11.24 13.22 Ore mined grade g/t 1.04 1.14 1.21 1.48 Mill feed Mt 0.24

  16. Slide 16: Blackwater PEA Highlights

    Blackwater PEA Highlights1 PEA based solely on Inferred Mineral Resources Post-tax NPV of $132m on base case scenario at 5% discount rate2 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 explorati

  17. Slide 17: New Zealand – Looking ahead

    New Zealand  Looking ahead Macraes production in Q4 similar to Q3 and Q2 Reefton production expected to increase on the back of higher grades and mill feed and better availability and mill feed With final cutback at Reefton completed, stripping ratio significantly lower to end of mine life Lower co

  18. Slide 18: Sustainability

    Sustainability 18 OceanaGold Corporation Innovation Performance Growth

  19. Slide 19: Sustainability Highlights

    Sustainability Highlights PHILIPPINES EL SALVADOR OceanaGold donation to repair damaged schools in Bohol after earthquake GLOBAL OceanaGold, together with community building playgrounds and parks in Cabañas, El Salvador OceanaGold proud sponsor of inaugural Emerging River Professional Awards at Inte

  20. Slide 20: Financial Results

    Financial Results 20 OceanaGold Corporation Innovation Performance Growth

  21. Slide 21: Financial Position (as at Sep 2014)

    Financial Position (as at 30 Sep 2014) Modest increase in cash balance due to LIQUIDITY lower costs in NZ, higher sales in Philippines offset by inventory build-up, Cash $47m lower sales in NZ Undrawn Revolving Credit Facility $82m Cash balance expected to increase in Q4 on the back of higher produc

  22. Slide 22: Consolidated Financial Results

    Consolidated Financial Results YTD YTD Consolidated Financial Results (USDm) Q3 2014 Q2 2014 Q1 2014 Sep 30 Sep 30 2014 2013 Gold sales (ounces) 64,241 72,294 94,050 230,585 204,880 Copper sales (tonnes) 6,690 5,173 7,752 19,615 13,280 Gold price received ($ per ounce) 1,271 1,314 1,311 1,301 1,441

  23. Slide 23: Consolidated Cash Flows

    Consolidated Cash Flows YTD YTD USDm Q3 2014 Q2 2014 Q1 2014 Sep 30 2014 Sep 30 2013 Opening cash balance 46.2 42.1 24.8 24.8 96.5 Operating cash inflows 28.2 52.7 73.3 154.2 70.4 Investing expenditure (27.6) (31.1) (24.1) (82.9) (125.6) Free cash flow 0.6 21.6 49.2 71.3 (55.2) Financing cash (2.1)

  24. Slide 24: Looking Ahead

    Looking Ahead Well on track to achieve full year production and cost guidance Significant free cash flow generation Didipio to increase throughput rates to planned 3.5 Mtpa by year end Prepare for the commencement of the Didipio underground development scheduled for Q1 2015 Strengthen the balance sh

  25. Slide 25: oceanagold.com

    oceanagold.com Innovation Performance Growth

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