Slide 1: Corporate Presentation June 2015
Corporate Presentation June 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 Market Capitalisation* C$900m Avg. 90-Day Daily Liquidity* 2.2m shares Shares Outstanding* 303m Indices TSX Composite, ASX300, GDXJ, GDX *Note: Metrics as at 8 June 2015 3 OceanaGold Corpor
Slide 4: Experienced Management Team
Experienced Management Team Mick Wilkes Managing Director & Chief Executive Officer • Over 30 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
Slide 5: 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 developing and operating high quality assets. We will be the partner, employer and mining company of choice. Unwavering commitment to the Enviro
Slide 6: 2015 Guidance (excl. Waihi)
2015 Guidance (excl. Waihi) Strong production with sector leading cost structure from high quality operations Gold Production Detailed Guidance Production Costs* 295,000 to 335,000 Gold Copper Cash Costs AISC ounces (koz) (kt) (per oz) (per oz) ($240) – Copper Production Didipio 100 – 120 21 – 23 ($
Slide 7: OceanaGold Value Proposition
OceanaGold Value Proposition Consistent delivery of positive results under pins strong free cash flow generation Strong production from high Sector leading free cash flow quality assets generation First quartile AISC Strong balance sheet Over 24 years of operations & Dividend paying development expe
Slide 8: Peer Comparative
Peer Comparative Compelling metrics further demonstrates the OceanaGold investment appeal All-In Sustaining Costs Comparative ($/oz) 2015E 2016E Alacer OceanaGold OceanaGold Beadell Yamana Evolution Barrick Gold Regis Resources Agnico-Eagle SEMAFO Northern Star Goldcorp B2Gold Primero Alamos Detour
Slide 9: Recent Highlights
Recent Highlights Waihi Gold Mine – New Zealand Gold Standard Ventures • Signed definitive acquisition agreement • Strategic investment made in Gold with Newmont to acquire Waihi Standard Ventures (GSV.TSXV) • Transaction cost of $101m cash • Acquired a 14.9% stake for C$16.2m • Economic interest tr
Slide 10: Q1 2015 Results
Q1 2015 Results Strong operational performance continues across the business Consolidated Didipio New Zealand Consolidated 2015 Guidance Q1 2015 Q1 2015 Q1 2015 Gold production oz 295,000 to 335,000 35,122 56,024 91,146 Copper production t 21,000 to 23,000 6,102 – 6,102 Cash costs $/oz 450 to 5301 (
Slide 11: Financial Position (as at 31 Mar 2015)
Financial Position (as at 31 Mar 2015) Dividend payment made on 30 April 2015 in aggregate of US$12m – 11% pay-out Mar 31 Dec 31 2015 2014 LIQUIDITY Total debt at end of 2014 Cash $60m $51m $118 million (interest paid: $12m) Undrawn Revolving Credit Facility* $97m $112m TOTAL LIQUIDITY $157m $163m T
Slide 12: Proposed Transactions
Proposed Transactions 12 OceanaGold Corporation Innovation Performance Growth
Slide 13: Waihi Transaction Overview
Waihi Transaction Overview Waihi represents a high-grade, low-cost asset in a stable, well-known jurisdiction Municipality Signed Definitive Acquisition Agreement with Newmont for US$101m OGC operation Auckland OGC project New asset Waihi Purchase price to be funded from existing cash and increased
Slide 14: Investment Highlights
Investment Highlights Transaction strongly aligns with OceanaGold’s value creation strategy High-grade, low-cost, meaningful Invest in high-quality assets production Substantial free cash flow generation Immediate cash flow generation Accretive transaction EPS and CFPS Synergistic with existin
Slide 15: Waihi – Asset Overview
Waihi – Asset Overview Comprises Correnso Underground Mine and highly prospective tenement packages Experienced workforce with track record of success Magazine and skills complementary to OceanaGold Newmont Head Office Conventional SAG & ball mills, CIP circuit w/plant MacMahon Office capacity of up
Slide 16: Recent Historical Production and Reserves
Recent Historical Production and Reserves Waihi has a track record of reserve replenishment over its 27 year history Waihi Historical Production, Year End Reserves and Cumulative Production since 2007 1,000 1,00 0 900 864 900 800 732 800 700 622 700 555 500 600 600 460 458 500 410 350 500 360 360 36
Slide 17: Waihi's Significant Exploration Upside
Waihi’s Significant Exploration Upside Interests in three groups of highly prospective tenement packages Regional Group (22-75 km from Waihi) • 50 adularia-sericite epithermal Au-Ag deposits for a historical production of 11.3 Moz Au and 53 Moz Ag • 1 prospecting and 3 exploration permits • Includes
Slide 18: Gold Standard Ventures
Gold Standard Ventures Strategic investment in one of the most prolific gold regions globally Private placement for 14.9% of common shares for C$16.2m Technical representation along with anti-dilution provision with right to increase stake to 19.9%1 GSV holds 2nd largest land package in the Carlin t
Slide 19: Philippines Operations
Philippines Operations Two consecutive quarters of Significant cash flow generation record gold production Underground development Q1 2015 AISC = $210 / oz underway 19 OceanaGold Corporation Innovation Performance Growth
Slide 20: 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: 1.70 Moz Copper: 0.21 Mt Masbate M&I Resources1 Paco Gold: 2.02 Moz Copper
Slide 21: Didipio Underground
Didipio Underground Earlier access to high grade underground ore enhances cash flow profile Underground development commenced 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 domains are established Access to high
Slide 22: Philippines – Looking ahead
Philippines Looking ahead Continued strong outlook at Didipio in 2015 and beyond Increased gold production, steady copper production expected in 2015 Q1 & Q4 are expected to be the strongest quarters for production, Q3 softest Power grid connection completion by Q4 2015 Continued development of Un
Slide 23: FTAA Exploration Opportunities
FTAA Exploration Opportunities Drilling Highlights (MetEx): 31m @ 0.35 g/t Au & 0.85% Cu 28m @ 0.65 g/t Au & 0.27% Cu 13m @ 0.75 g/t Au & 0.25% Cu Cabinwangan Mogambos 7m @ 1.16 g/t Au & 0.57% Cu 1.6 KM Rock Sampling Highlights: 8.09 g/t Au & 4.21% Cu 1 KM 3.20 g/t Au & 1.73% Cu 2.86 g/t Au & 2.09%
Slide 24: Paco Exploration
Paco Exploration Geophysical surveying commenced at Paco tenements in Mindanao Adjacent to Boyongan and Bayugo copper-gold porphyry deposits (Salangan - Philex) Commenced geophysical survey to identify drill targets Bayugo Deposit: 125M tonnes at 0.60% Cu and 0.66 g/t Au (M&I) Kalayaan Exploration P
Slide 25: New Zealand Operations
New Zealand Operations Lower costs, weaker NZD has Leveraging inherent significant increased profit margins technical experience New options to increase reserve Q1 2015 AISC = 913 / oz and mine life at Macraes 25 OceanaGold Corporation Innovation Performance Growth
Slide 26: New Zealand Overview
New Zealand Overview Over 7 million ounces in resource1 provides strong optionality MACRAES FRASERS REEFTON Municipality Nominal Production (koz) OGC operation OGC project 90 – 120 40 – 55 50 – 60 Auckland P&P Reserves1 (Moz) 1.06 0.11 0.16 Wellington Reefton Blackwater M&I Resources1 (Moz) Christch
Slide 27: New Zealand Highlights
New Zealand Highlights New economic conditions have increased profitability, organic growth in NZ Mine life at Frasers Underground extended to 2016+ New Zealand dollar continues to weaken (NZD:USD 0.83 in 2014 vs. current 0.71) Strong profit margins from Reefton due to reduced material mined New Zea
Slide 28: Trading Comparables
Trading Comparables OGC’s New Zealand assets with Waihi demonstrate clear value compared to producing peers ASX-Listed TSX-Listed NZ Company NZ Portfolio Northern Star Saracen Lake Shore Klondex Richmont + Waihi Market Cap. US$m 1,043 289 416 326 192 Enterprise Value US$m 970 265 451 312 141 ? FY15E
Slide 29: New Zealand – Looking ahead
New Zealand Looking ahead New exploration program initiated at Macraes targeting mine life extensions Current Drilling Future Drilling Production from NZ operations expected to be North of Macraes steady with good profit margins NZ$8m spend over next two years on exploration at Macraes South of Ma
Slide 30: New Zealand Projects
New Zealand Projects Organic growth demonstrates potential for increased value from NZ asset base Blackwater Project Macraes Gold-Tungsten Project Near Reefton At Macraes • PEA completed with robust financials • Scoping study underway • Currently reviewing mining method; • Advancing to feasibility b
Slide 31: Sustainability
Sustainability Unwavering commitment to our Focused on building capacity, communities & environment not dependency Achieved ISO14001 certification Industry best rehabilitation for Didipio programs 31 OceanaGold Corporation Innovation Performance Growth
Slide 32: Investing in Our Local Communities
Investing in Our Local Communities Working together with our communities to leave a positive, long lasting legacy Community Investment Composition INFRASTRUCTURE EDUCATION COMMUNITY INVESTMENT CAPACITY DEVELOPMENT ENTERPRISE DEV’MENT Infrastructure Education Enterprise Development Health & Nutrition
Slide 33: Sound Environmental Management
Sound Environmental Management An unwavering commitment to the environment today, for tomorrow Agroforestry Environment Rehabilitation • Planting one million trees • ISO14001 EMS at Didipio • Restoring lands to match area • Commercial plantations • Reducing GhG emissions • Supporting agriculture Wat
Slide 34: Looking Ahead
Looking Ahead Continue to produce positive results from effective delivery of strategy Forecasted for another consecutive year of strong Significant free cash flow free cash generation generation Development of Didipio underground well advanced; power grid connection on track for Q3 2015 Low cost ba
Slide 35: oceanagold.com
oceanagold.com Innovation Performance Growth
Slide 36: 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 37: Q1 2015 Consolidated Financial Results
Q1 2015 Consolidated Financial Results Consolidated Financial Results (USDm) Q1 2015 Q4 2014 Q1 2014 Gold sales (ounces) 86,234 88,386 94,050 Copper sales (tonnes) 6,245 6,271 7,752 Gold price received ($ per ounce) 1,195 1,201 1,311 Copper price received ($ per pound) 2.241 3.00 3.15 Income Stateme
Slide 38: Q1 2015 Consolidated Cash Flows
Q1 2015 Consolidated Cash Flows USDm Q1 2015 Q4 2014 Q1 2014 Opening cash balance 51.2 46.8 24.8 Operating cash inflows 43.2 60.7 73.3 Investing expenditure (23.8) (26.5) (24.1) Free cash flow 19.4 34.2 49.2 Financing cash outflows (13.3) (35.5) (25.2) Foreign exchange effect 2.3 5.7 (6.7) Net cash
Slide 39: El Salvador Overview
El Salvador Overview Nominal investment in a high quality resource w/ significant upside potential M&I Resources1 Belize Guatemala Honduras Gold: 1.30 Moz Silver: 9.48 Moz Inferred Resources1 El Salvador Nicaragua Gold: 0.30 Moz Silver: 1.9 Moz Costa Rica M&I Average Grade1 Panama Gold: 9.42 g/t Sil
Slide 40: Financial or Technical Assistance Agreement
Financial or Technical Assistance Agreement • Capital Recovery Period • 5 years from date of commercial production (April 1, 2013) to recover pre-operating expenses and other allowable items dating back to 1994 (when FTAA was signed) • Residual capital (capital unrecovered within 5 years) amortised
Slide 41: Mineral Resources and Reserves (as at 31 Dec 2014)
Mineral Resources and Reserves (as at 31 Dec 2014) RESOURCES MEASURED INDICATED MEASURED & INDICATED INFERRED RESOURCE Au Au Ag Ag Cu Cu Au Au Ag Ag Cu Cu Au Au Ag Ag Cu Cu Au Au Ag Ag Cu Cu AREA Mt g/t Moz g/t Moz % Mt Mt g/t Moz g/t Moz % Mt Mt g/t Moz g/t Moz % Mt Mt g/t Moz g/t Moz % Mt MACRAES