Oceanagold Corporation · TSX:OGC
Oceanagold — Investor Day (March 2016)
88 slides from Oceanagold's investor day presentation, Mar 10, 2016
Slide 1: Consistently Delivering On Commitments – Analyst Day
Consistently Delivering On Commitments March 10 2016 Analyst Day Toronto, Canada
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: Executive Management Team
Executive Management Team Mick Wilkes Mark Cadzow Mark Chamberlain Craig Feebrey President & Chief EVP and EVP and EVP and Head of Executive Officer Chief Development Officer Chief Financial Officer Exploration Since 2011 Since 1991 Since 2011 Since 2015 Michael Holmes Darren Klinck Yuwen Ma Liang T
Slide 4: Connected Globally
Connected Globally Toronto Haile Melbourne 4
Slide 5: Agenda
Agenda 1 INTRODUCTION Sam Pazuki 2 ACHIEVEMENTS Mick Wilkes 3 TRANSFORMATION Darren Klinck 4 VALUE PROPOSITION Darren Klinck 5 FINANCE Mark Chamberlain 6 UNITED STATES Mark Cadzow / Craig Feebrey 7 NEW ZEALAND Michael Holmes / Craig Feebrey 8 PHILIPPINES Michael Holmes / Craig Feebrey 9 STRATEGY & O
Slide 6: 2015 Achievements
2015 Achievements Operations ▶ Record annual gold production ▶ Three consecutive years of achieving guidance ▶ Record annual throughput at Didipio Financial ▶ Inaugural dividend ▶ Strong cash flow generation despite lower commodity prices ▶ Increased liquidity Growth ▶ Successful acquisition of Roma
Slide 7: OceanaGold Strategy
OceanaGold Strategy We will be a mid-tier, multinational gold producer delivering superior shareholder returns in a safe and sustainable manner by developing and operating high quality assets. We will be the partner, employer and mining company of choice. Deliver consistent & positive results Op
Slide 8: Transformation
Building THE Lowest Cost Producer TRANSFORMATION
Slide 9: OceanaGold Transformation
OceanaGold Transformation Half a million ounce producer at lowest AISC Market Capitalisation(1) C$2.4 BN Haile Shares Outstanding(1) Vancouver Didipio 606m GSV Cash(2) Melbourne El Dorado Waihi US$186m Debt(2) Macraes (1) As at 9 Mar 2016 US$199m (2) As at 31 Dec 2015 9
Slide 10: Global Investor Base
Global Investor Base Increased exposure to global markets, blue chip investors Shareholder Register Shareholder Register Shareholder Register TODAY(1) PRE-ROMARCO(2) In 2012 Asia Asia Australia/NZ Asia 1% Australia/NZ 2% 6% 2% United States 9% Australia/NZ 34% 38% Europe 26% Europe 18% Canada Canada
Slide 11: OceanaGold – A Core Holding
OceanaGold – A Core Holding Strong support and ownership from solid investor base Shareholder ownership by type(1) TOP SHAREHOLDERS 1 Blackrock Custodian 1% 2 Van Eck Associates Corporate 2% Institutional 86% 3 Ingalls & Snyder Broker 8% 4 Norges Bank Investment Mgmt Retail 3% 5 Dimensional Fund 6 R
Slide 12: Value Proposition
A Go-To Gold Mid-Tier VALUE PROPOSITION
Slide 13: Delivering Value
Delivering Value Significantly outperforming gold & key indexes 3-YR PERFORMANCE CHART 3 YEAR RETURNS (28 Feb 2013 to 29 Feb 2016) 160 OceanaGold 140 + 54.4% 120 100 80 Gold Price 60 40 - 19.6% 20 0 GDXJ 31/12/2012 28/02/2013 30/04/2013 30/06/2013 31/08/2013 31/10/2013 31/12/2013 28/02/2014 30/04/20
Slide 14: Total Shareholder Return Comparison
14 -100% -50% 0% 50% 100% 150% 200% 250% 300% Northern Star Resources Ltd Detour Gold Corp Evolution Mining Ltd Lake Shore Gold Corp Kirkland Lake Gold Inc OceanaGold Corp Centerra Gold Inc SEMAFO Inc Alacer Gold Corp G-Resources Group Ltd Royal Gold Inc Regis Resources Ltd Silver Standard Resources
Slide 15: Value Proposition
Value Proposition A “go-to” gold mining company with strong cash flow generation STRONG GROWTH DECREASING COSTS 3-Year Production Growth Forecast 2017E All-In Sustaining Cost Comparative (per ounce) (per ounce) Northern Star OceanaGold Alamos Evolution OceanaGold Northern Star Evolution Alacer B2Gol
Slide 16: Net Debt / EBITDA Comparative
0.0 1.0 2.0 3.0 4.0 5.0 16 Harmony Gold Sibanye OceanaGold Source: Bank of America Merrill Lynch (24 Feb 2016) Evolution Mining Newmont Mining Gold Fields Kinross Gold IAMGOLD (2017E) Strong growth with low leverage Eldorado Gold Agnico Eagle Mines Net Debt / EBITDA (2017E) Net Debt / EBITDA Compara
Slide 17: Finance
Solid financial performance and outlook FINANCE
Slide 18: Financial Performance
Financial Performance Solid financial performance in the backdrop of lower commodity prices 800,000 1,800 3 YEAR RETURNS 700,000 1,600 Revenue Growth 1,400 600,000 + 31.8% 1,200 Gold Price (USD per oz) 500,000 Revenue (USDm) 1,000 EBITDA Growth 400,000 800 300,000 + 33.8% 600 200,000 400 Gold Price
Slide 19: Financial Position (as at Dec 31, 2015)
Financial Position (as at Dec 31, 2015) Solid balance sheet with strong cash flow generation Cash Drawn Facility $186m $183m Total Liquidity Total Debt $253m $199m Undrawn Facility Equipment Leases $67m $15m REVOLVING CREDIT FACILITY Lenders Bank of Nova Scotia, BNP Current Size Maturity Date Pariba
Slide 20: Financial De-Risking
Financial De-Risking 100% of Macraes gold production hedged for 2016 & 2017 90% of Company diesel consumption hedged for 2016 & 2017 Macraes Financial De-risking Program Diesel Hedging Program (as at Jan 1 2016) Zero-Cost Collar Ounces Set Diesel Fuel Price Hedge Range Remaining Expiration Year (US$
Slide 21: Company Capex
Company Capex(1) Fully Financed Capital Program 450 400 350 300 Capex (USDm) 250 2017 Capex Expected Lower(2) 200 150 100 50 0 Didipio Waihi Macraes Haile Total 2016 Growth Capex Sustaining Capex Capitalised Mining Exploration (1) 2016E is only estimates and should not be used as guidance (2) Based
Slide 22: Estimated Cash Flow
Estimated Cash Flow(1) Strong cash flows expected to grow 2016E Gold Production AISC(2) AISC Margin Cash Flow(3) (mid-point of guidance range) (mid-point of guidance range) (assuming $1,100/oz gold) (assuming $1,100/oz gold) 405,000 oz $725 / oz $375 / oz >$150 M *Note: AISC guidance does not includ
Slide 23: United States
UNITED STATES
Slide 24: Expansion into the US
Expansion into the US Executing on another top-tier asset GSV Haile 24
Slide 25: Romarco Acquisition
Romarco Acquisition WHAT WE PAID ADDITIONAL CAPEX Transaction Price OGC Haile Capex (1 Oct 2015) (1 Oct 2015) ~$416m $280m WHAT WE RECEIVED Cash Haile Capex Spent Resource Geological Prospectivity (1 Oct 2015) (as at 1 Oct 2015) (as at 1 Oct 2015) ~$150m ~$100m 4.8Moz (1) Significant upside (1) Reso
Slide 26: Haile Gold Mine Overview
Haile Gold Mine Overview Low-cost, long-life top-tier asset in a desirable jurisdiction CAPITAL COST ESTIMATE Capex USDm 380 Sustaining Capex (1) USDm 139 LOM LIFE OF MINE UNIT COST ESTIMATES(1) Mining Cost USD/ton mined 1.45 Processing Cost USD/ton milled 10.11 Site G&A Cost USD/ton milled 3.56 All
Slide 27: Updated Capex
Updated Capex February 2016 OGC (USD millions) Area of Discipline OGC Romarco Direct Costs 222 197 Owners Costs 28 18 EPCM 40 30 Mining Capital Equipment 53 46 Mining Pre-Production OPEX 33 25 Contingency 4 17 TOTAL 380 333 PROJECT CAPITAL EXPENDITURE Estimated Project Capex Capital Spent(1) Capital
Slide 28: Haile Construction Schedule
Haile Construction Schedule 2016 Q1 Q2 Q3 Q4 Process Plant Civil works Structural, Mechanical, Piping Electrical, Instrumentation, Controls (EIC) Tailings Storage Facility Not to scale Mining infrastructure KEY MILESTONES (expected timing) First Ore Through the Mill Commercial Production End of 2016
Slide 29: Design & Procurement
Design & Procurement Design & Procurement Status* Description Statistic Commentary Design Complete 98% Remaining minor EIC and punchlist items. Design Close out March Target for all design activities to be complete. Of forecast total purchase orders for the project Procurement 83% including minor mi
Slide 30: Haile Progress
Haile Progress* Construction well underway, exploration program advanced MINING GRINDING & CLASSIFICATION FLOTATION WATER TREATMENT PLANT *Note: As at 15 Feb 2016 30
Slide 31: Mining Progress
Mining Progress PROGRESS SUMMARY* MINING ▶ Mining ramp-up underway at Mill Zone pit ▶ Review and re-forecast of mine plan and budget ▶ Full mining fleet now deployed ▶ Operator recruitment and training ongoing ▶ Strengthened mining supervision ▶ On-track to deliver ore for commissioning *Note: As at
Slide 32: Mining Progress
Mining Progress PROGRESS SUMMARY* ▶ Completion of haul road network, March 2016 ▶ Groundwater audit, March 2016 ▶ Mine geotechnical review, March 2016 ▶ Blasting contractor, March 2016 ▶ Mine plan optimisation, Q4 2016 *Note: As at 3 Mar 2016 32
Slide 33: Pre-Production
Pre-Production* Material Mined (Jun 15 – Feb 16) Pre-Production Plan PP Plan dst (million) 2.640 PP Forecast Total dst (million) 16.3 Actual dst (million) 2.196 PP Forecast Ore dst (million) 0.28 *Note: As at 3 Mar 2016 33
Slide 34: 2016 Ore Production
2016 Ore Production* Existing 2016 schedule has adequate ore tonnes for commissioning *Note: As at 3 Mar 2016 34
Slide 35: Enhanced Process Plant Design
Enhanced Process Plant Design Drawing on 25 years of experience to deliver a more robust project Modified process plant design that incorporates: ▶ ROM pad to allow effective blending ▶ Decoupling mining and milling operations ▶ Maintained Reliability via emergency stockpile ▶ Reduce Dust emission p
Slide 36: Flash Float Upgrade
Flash Float Upgrade ▶ Flash flotation upgrade expected to improve recovery compared to previous design & operational ability ▶ Larger unit for increased throughput ▶ Improved feed rate control and maintainability ▶ Industry proven cell design 36
Slide 37: Plant Ramp-up
Plant Ramp-up ▶ Throughput ramp-up profile designed to reach nameplate within 6 months ▶ Proven approach recognizes commissioning issues in first few months ▶ Similar approach to the plan for Didipio 37
Slide 38: Opportunities
Opportunities Equipment review and Maximise grade / reduce mining dilution alternative bench height Reduce unit haul costs, improve Redesign ramp configuration productivity Review Whittle optimisation Pit sequence optimisation and cut-back selection Review the groundwater Review water management mod
Slide 39: Underground Potential
Underground Potential Potential inventory beneath current reserve pit Horseshoe Mustang Palomino 39
Slide 40: Haile Exploration Program
Haile Exploration Program Extensive exploration program initiated at Haile; regionally Horseshoe Mustang Palomino Commenced Further Initial regional Additional drill infill and extension of drilling at targets identified extension infill drilling at Cypress and and form 2016 drilling at Haile planne
Slide 41: Haile Resources
Haile Resources HAILE MINERAL RESOURCES* Mt g/t Moz P&P Reserves 31 2.06 2.0 M&I Resources 71 1.75 4.0 Inferred 20 1.23 0.8 Resources *Note: Refer to the Haile NI43-101 Report at http://www.oceanagold.com/wp-content/uploads/ 41
Slide 42: Haile Block Model
Haile Block Model Extensive exploration program initiated at Haile; regionally Ledbetter Mustang Champion Horseshoe Small Snake Block model South Pit based on 2,102 holes and Palomino 418.3km of 600 drilling 601 meters 42
Slide 43: Haile Exploration Results
Haile Exploration Results RECENT DRILL RESULTS AT HORSESHOE(1) 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 in
Slide 44: Haile Exploration Results – Cross Section
Haile Exploration Results HORSESHOE DEPOSIT CROSS SECTION 44
Slide 45: Southeastern US Geology
Southeastern US Geology with Historical Gold Mines 45
Slide 46: Haile Analyst Consensus
Haile Analyst Consensus Valuation mainly based on December 2014 NI43 -101 ANALYST CONSENSUS Mill expansion potential Average Valuation (USDm) Significant underground resource $395m Increased production potential to 250koz per year Significant exploration opportunities at Haile and regionally; first
Slide 47: Gold Standard Ventures
Gold Standard Ventures Strategic investment in one of the most prolific gold belts globally OGC Equity Ownership Goldcorp Ownership Lease 19.9% ~9% Extension drilling program to prove out resource on existing land package GSV holds 2nd largest land package in the Carlin trend North Dark Star Discove
Slide 48: Recent GSV Drilling
Recent GSV Drilling Recent drill results have produced encouraging results of oxide mineralisation RECENT DRILL RESULTS AT DARK STAR* Au Grade True Width (m) (g/t) 149.4 1.38 157.0 1.51 97.0 1.61 RESERVES AND RESOURCES* Mt g/t koz Pinion Indicated 20.8 0.63 423 Resource Pinion Inferred 55.9 0.57 1,0
Slide 49: New Zealand
NEW ZEALAND
Slide 50: Waihi Gold Mine
Waihi Gold Mine Creating a top-tier asset H2 2015 WAIHI RESULTS(1) CURRENT RESERVES AND RESOURCES(2) Mt g/t Au Moz Au g/t Ag Moz Ag Gold Production oz 69,973 P&P 1.5 6.33 0.31 24.0 1.17 Reserves AISC per oz sold US$530 M&I 1.5 6.33 0.31 24.0 1.17 Resources Inferred Cash Costs per oz sold US$399 0.6
Slide 51: Waihi Operational Overview
Waihi Operational Overview Waihi Operation Overview Magazine 2016E OPERATING METRICS(1) Admin Office Ore Mined kt 550 – 600 Throughput kt 550 – 600 Crusher and Stamilers Head Grade g/t 7.5 – 8.5 UG Portal Ventilation shaft Recoveries % 88 – 90 Mill Polishing and AVG. UNIT OPERATING COSTS(1) Collecti
Slide 52: 30-Year History at Waihi
30-Year History at Waihi Amax ACM Normandy Newmont Normandy managed exploration Junior partner managed near mine exploration Correnso Trio Favona Moonlight Source of chart: Newmont Mining 52
Slide 53: Recent Historical Production & Reserves
Recent Historical Production & Reserves Waihi has produced ~2.8 Moz of gold since 1988 Waihi Historical Production, Year End Reserves and Cumulative Production since 2007 Year End Reserves (koz) Production (koz) Cumulative Production (koz) 864 732 622 500 460 555 410 360 458 360 360 350 300 220 237
Slide 54: Exploration Pipeline
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 Sainsb
Slide 55: Waihi Exploration Program
Waihi Exploration Program 34 km+ of drilling planned for 2016 Four drill rigs currently in operation Waihi Targets Open Pit Optimisation underway Four drill rigs currently in operation Drilling below Correnso Underground Testing underground targets 55
Slide 56: Correnso Drilling
Correnso Drilling True Au Ag From (m) Width Grade Grade (m) (g/t) (g/t) (1) Recent Drill Results 168.0 5.8 4.33 9.6 169.6 3.5 9.83 12.2 167.0 11.4 2.41 7.8 169.6 7.8 6.25 8.2 184.6 1.30 5.35 13.7 158.0 3.9 4.03 12.1 187.3 2.1 11.87 13.8 (1) Drill Results (Released Nov 2015) 53.4 4.9 17.98 67.1 58.8
Slide 57: Daybreak & Empire Drilling
Daybreak & Empire Drilling True Au Ag From (m) Width Grade Grade (m) (g/t) (g/t) (1) Recent Daybreak Drill Results 166.1 7.1 9.44 25.0 209.3 0.9 13.86 13.4 207.2 3.5 12.65 15.0 181.6 3.7 10.23 13.6 (1) Recent Empire Drill Results 56.5 1.5 5.32 5.3 41.9 1.5 28.09 27.7 38.7 2.5 41.63 40.8 141.5 0.8 8.
Slide 58: Regional Exploration Permits
Regional Exploration Permits Dome field EP applications – design and initiate programs Twin Hills Map/sample – target generation for 2017 Ohui Remodel – target generation for 2017 White Bluffs Drill program planned in 2016 Glamorgan Map/sample – target generation for 2017 Hauraki Includes WKP, signi
Slide 59: WKP – Previous Exploration
WKP – Previous Exploration PREVIOUS DRILL RESULTS* From True Width Au Grade WKP33 WKP34 (m) (m) (g/t) 205.0 5.0 13.5 WKP26 WKP25 WKP24 WKP39 268.2 13.8 7.2 WKP31 WKP27 221.0 15.0 8.6 WKP30 WKP28 141.0 1.0 19.1 WKP29 WKP32A WKP32 WKP38 167.2 0.8 24.5 204.0 1.0 17.5 WKP35 181.4 1.4 30.7 WKP36 WKP37 21
Slide 60: WKP – Previous Exploration
WKP – Previous Exploration T-Stream and EG Targets Source: Newmont Mining 60
Slide 61: Waihi Analyst Consensus
Waihi Analyst Consensus High-grade, low-cost operation with strong potential ANALYST CONSENSUS Generates US$5m in FCF each month Average Valuation (USDm) $115m Significant exploration opportunities Spare mill capacity 2016E(1) Gold Production AISC(2) AISC Margin Free Cash Flow(3) (mid-point of guida
Slide 62: Macraes Goldfield
Macraes Goldfield Highly efficient operation with steady reserve replenishment MACRAES & REEFTON 2015 RESULTS RESERVES AND RESOURCES(1) Mt g/t Moz Gold Production oz 222,093 P&P Reserves 35.1 1.04 1.17 AISC per oz sold $961 M&I Resources 101 1.11 3.58 Cash Costs per oz sold $737 Inferred 80 0.94 2.4
Slide 63: Macraes Intellectual Property
Macraes Intellectual Property Deep technical experience has enabled growth opportunities AUTOCLAVE FINE GRINDING 63
Slide 64: Macraes Operational Overview
Macraes Operational Overview MACRAES HEDGING PROGRAM 2016 OPERATING METRICS(3) (as at Jan 1 2016) Ore Mined Mt 4.0 – 4.5 Zero-Cost Collar Ounces Remaining 5.5 – 6.0 Hedge Range Expiration Throughput Mt (NZ$/oz) (koz) Head Grade g/t 1.0 – 1.1 1,600 – 1,736 108.9 Dec 2016 Recoveries % 80 – 81 1,628 –
Slide 65: Additional Mine Life at Macraes
Additional Mine Life at Macraes Macraes has successfully replenished reserves over 25 year history Macraes Annual Resource Inventory with Cumulative Mined Resource Shown Note Includes Measured, Indicated and Inferred Resources 6.0 4.5 4.0 Cumulative Production (Moz) 5.0 3.5 Resources (Moz) 4.0 3.0 2
Slide 66: Macraes Exploration
Macraes Exploration Nearly 4 million ounce of gold in Resource provides strong opportunities Macraes South Macraes North Extensive 30-km strike length Focused on primary targets Focused on stockwork ore, low strip ratio, underground 66
Slide 67: Coronation North
Coronation North RECENT DRILL RESULTS AT CORONATION NORTH(1) From (m) Width (m) Au Grade (g/t) 123.0 11.0 1.84 88.3 12.7 1.25 60.0 10.0 4.62 61.0 11.0 1.58 103.0 8.0 1.74 *Note: some assays cut to 15 g/t (1) For full drill results, visit: http://www.oceanagold.com/investor-centre/filings/ or regulat
Slide 68: Lot's Wife
Lot’s Wife Early stage exploration with good potential identified through soil sampling Frasers Pit Lot’s Wife Soil Sampling 68
Slide 69: Gold-Tungsten
Gold-Tungsten Organic growth demonstrates potential for increased value from NZ asset base Scoping study completed in Q2 2015 Feasibility study commenced in Q3 2015 Results expected in mid-2016 Concept: ▶ Development of new 3-4 Mtpa plant ▶ Plant to be constructed in new location to access current d
Slide 70: Macraes Analyst Consensus
Macraes Analyst Consensus Strong history of reserve replenishment, good cash flow ANALYST CONSENSUS Currently has strong resource base Average Valuation (USDm) $95m Lower NZD has improved profitability Mine plan out to 2019+ 2016E(1) Gold Production AISC(2) AISC Margin Free Cash Flow(3) (mid-point o
Slide 71: Philippines
Q I 9 : ui Q Q PHILIPPINES
Slide 72: Didipio Overview
Didipio Overview Continued strong performance from low cost gold mine DIDIPIO 2016 GUIDANCE RESERVES AND RESOURCES(1) Moz Gold Production oz 127,086 Mt g/t Au % Cu Mt Au Copper Production t 23,109 P&P 47.6 1.11 1.70 0.44 0.21 Reserves AISC per oz sold $382 M&I 57.3 1.10 2.02 0.42 0.24 Resources $17
Slide 73: Didipio Operational Overview
Didipio Operational Overview 2016 OPERATING METRICS(1) Ore Mined Mt 9.0 – 9.5 Throughput Mt 3.5 – 3.6 Head Grade Aueq g/t 2.8 – 2.9 Recoveries Au% & Cu% 90 & 92 AVG. UNIT OPERATING COSTS(1) O/P Mining Costs USD / t mined 2.30 – 2.40 Processing Costs USD / t milled 8–9 Site G&A Costs USD / t milled 7
Slide 74: Didipio Ore Inventory
Didipio Ore Inventory Expected to have over 24 million tonnes stockpiled by end of 2017 Didipio Stockpile Inventory 17.0 16.0 15.0 14.0 Ore (Mt) 13.0 12.0 11.0 10.0 Mar 2015 Apr 2015 May 2015 Jul 2015 Oct 2014 Jan 2015 Jun 2015 Oct 2015 Feb 2015 Nov 2014 Dec 2014 Aug 2015 Sep 2015 Nov 2015 Dec 2015
Slide 75: Didipio Underground
Didipio Underground Early access to high grade underground ore enhances cash flow profile Measured and Indicated Stopes Sill and Crown Pillars (ore) Inferred Stopes (drilling targets) Limit of Oxidation Tunja Stage 5 Monzonite and 6 Pit Designs 2460m RL Underground 30m Crown Mine Pillar AuEq g/t Dar
Slide 76: Underground Development
Underground Development Progressing toward first underground ore through mill by end of 2017 76
Slide 77: FTAA – Recovery Period
FTAA Recovery Period OGC has up to 1 April 2018 (5 years after the Commencement of Commercial Production on 1 April 2013) to recover all the costs incurred in developing the Project including: ▶ all taxes paid (such as excise tax, business tax, property tax and withholding tax on interest on the int
Slide 78: FTAA – Top Up Amount
FTAA Top Up Amount The top up mechanism kicks in at the end of the Recovery Period. The Government will derive a top up payment if in any of the years following the end of the Recovery Period the following calculation is positive: Step #1: Calculate Revenue in respect of the relevant year less: » Op
Slide 79: FTAA – Top Up Amount
FTAA Top Up Amount Step #2: Take 60% of the figure calculated in Step #1 Step #3: Deduct the full amount of these expenses paid by the Project: » 2% Excise Duty » 2% Business Tax » Property Tax » Corporate Income Tax » Interest Withholding Tax » Dividend Withholding Tax » Any other taxes paid » 2% R
Slide 80: Didipio Cash Flows
Didipio Cash Flows Chart from NI43-101 After-Tax Cash Flow Profile(1) (USDm) 150 100 50 USDm 0 -50 -100 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Effective tax rate of ~37% over LOM (1) Refer to the Didipio Technical Report (NI43-101) dated 29 Oct 2014 - http://www.oceana
Slide 81: Didipio Analyst Consensus
Didipio Analyst Consensus Strong free cash flows over LIFE OF MINE ANALYST CONSENSUS Mine Life: 2030+ Average Valuation (USDm) $515m Strong potential for resource growth Investment community understanding of FTAA misrepresented 2016E(1) Gold Production AISC(2) AISC Margin Cash Flow(3) (mid-point of
Slide 82: Strategy & Outlook
Building a Mid-tier STRATEGY & OUTLOOK
Slide 83: OceanaGold Strategy
OceanaGold Strategy We will be a mid-tier, multinational gold producer delivering superior shareholder returns in a safe and sustainable manner by developing and operating high quality assets. We will be the partner, employer and mining company of choice. Deliver consistent & positive results Maximi
Slide 84: Company Outlook
Company Outlook Solid production, low costs, organic growth, go -to gold stock Consolidated 2016 Guidance ▶ Guidance Assumptions Gold Production ounces 385,000 – 425,000 ▶ NZD:USD exchange rate of Copper Production tonnes 19,000 – 21,000 0.65 AISC per oz sold $700 – $750 ▶ Copper price: $2.00 / lb o
Slide 85: Production and Cost Profile
Production and Cost Profile Production growth with decreasing cost profile Production and Cost 600,000 $1,000 2016 Guidance Range $900 500,000 $800 $700 400,000 Gold Production (ounces) AISC ($ per oz sold) $600 300,000 $500 $400 200,000 $300 $200 100,000 $100 0 $0 2013 2014 2015 2016E 2017E *Note:
Slide 86: 2016 Catalysts
2016 Catalysts Unlocking significant organic growth potential and further effective execution HAILE First Ore Through the Mill Exploration Activities Mine Optimisation Study End of 2016 40-km of drilling and H2 2016 ongoing WAIHI Re-establish Access to Exploration Activities Mine Optimisation Open P
Slide 87: Upcoming Events
Upcoming Events Update Reserves & Resource Table Week of March 21 Didipio Site Visit April 19 – 20 Q1 2016 Results End of April Macquarie Australia Conference May 5 (Sydney, Australia) Bank of America Merrill Lynch Global Metals, Mining & Steel Conference May 10 – 12 (Miami, USA) 87
Slide 88: www.oceanagold.com
y / www.oceanagold.com 4) Innovation ¢ Performance ¢ Growth OCEANAGOLD