Corporate Presentation

Transcription

Corporate Presentation
January 2015
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, securities of OGC or other financial products. The information contained
herein is not investment or financial product advice and has been prepared without taking into account the investment objectives, financial situation or
particular needs of any particular person. The views, opinions and advice provided in this presentation reflect those of the individual presenters only.
No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and
conclusion contained in this presentation. To the maximum extent permitted by law, none of OGC or any of its directors, officers, employees or agents
accepts any liability, including, without limitation, any liability arising out of fault or negligence, for any loss arising from the use of the information
contained in this presentation. Furthermore, this presentation does not constitute an offer of shares for sale in the United States or to any person that
is, or is acting for the account or benefit of, any U.S. person (as defined in Regulation S under the United States Securities Act of 1933, as amended
(the "Securities Act")) ("U.S. Person"), or in any other jurisdiction in which such an offer would be illegal. OGC’s shares have not been and will not be
registered under the Securities Act.
Technical Disclosure
The Mineral Resources for Didipio were prepared by, or under the supervision of, J. G. Moore, whilst the Mineral Resources for Macraes and Reefton
were prepared by S. Doyle. The Mineral Reserves for Didipio were prepared under the supervision of M. Holmes, while the Mineral Reserves for
Macraes and Reefton were prepared by, or under the supervision of, K Madambi. C. Bautista is Exploration Manager for the Philippines. M. Holmes,
S. Doyle, K. Madambi, and J. G. Moore are Members and Chartered professionals with the Australasian Institute of Mining and Metallurgy and each is
a “qualified person” for the purposes of NI 43-101.. C. Bautista is a member of the AIG and is a “qualified person” for the purposes of NI 43-101.
Messrs Holmes, , Doyle, , Madambi, Moore and Bautista have sufficient experience, which is relevant to the style of mineralisation and type of
deposits under consideration, and to the activities which they are undertaking, to qualify as Competent Persons as defined in the 2012 Edition of the
“Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” (“JORC Code”).
The resource estimates for the El Dorado Project were prepared by Mr. Steven Ristorcelli, C.P.G., of Mine Development Associates, Reno, Nevada
(who is an independent Qualified Person as defined in NI 43-101) and conforms to current CIM Standards on Mineral Resources and Reserves.
For further scientific and technical information (including disclosure regarding mineral resources and mineral reserves) relating to the Reefton Project,
the Macraes Project and the Didipio Project please refer to the NI 43-101 compliant technical reports available at sedar.com under the Company’s
name. For further scientific and technical information (including disclosure regarding mineral resources and mineral reserves) relating to the El
Salvador Project please refer to the reports publicly available on SEDAR (www.sedar.com) prepared for Pacific Rim.
2
OceanaGold Corporation
Innovation Performance Growth
OceanaGold Today (OGC: TSX/ASX/NZX)
Emerging multinational gold and copper producer with strong free cash flow
Shareholder
Composition1
North
America
61%
Australia
& NZ
19%
Europe
18%
Asia
2%
3
1.
2.
Market
Capitalisation2
90-Day Avg. Daily
Liquidity2
Shares Outstanding2
Indices
C$690
2.8m shares
301m
TSX Composite /
ASX300 / GDXJ /
GDX
Internal Report as at 30 Nov 2014
Metrics as at 13 Jan 2015
OceanaGold Value Proposition
Delivering strong operational and financial results in a low gold price environment
Significant free
cash flow
generation
Low cost producer
Consistently
delivering positive
results
Strengthening
balance sheet
2015 All-In Sustaining Costs Comparative1
$1,300
Spot Gold Price (13Jan 2015)
Net of by-products (per oz)
$1,200
$1,100
$1,000
Global Average
$900
$800
$700
4
Detour
IAMGOLD
Centerra Gold
Kinross
Primero
Beadell
Evolution
Northern Star
B2Gold
Regis
Barrick
Agnico-Eagle
Newcrest
Alacer
Yamana
SEMAFO
Argonaut
New Gold
OceanaGold*
Goldcorp
$600
Source: RBC Capital Markets (4 Jan 2015)
* Midpoint of Company 2015 AISC Guidance
Global AISC Curve
1st quartile AISC demonstrates strong profitability even at lower commodity prices
All-In Sustaining Cost Curve
1,600
All-in Sustaining cost ($/oz Au)
1,400
Average USD Converted Hedge Collar for NZ1
1,200
MARGIN
1,000
Spot Gold Price (as at 13 Jan 2015)
800
600
OceanaGold Consolidated
AISC 2015 Range
400
200
0
Q1
-200
Q2
Q3
Q4
-400
0
10
20
30
40
50
60
70
80
90
100
Cumulative Production (Percentile)
5
Source of AISC Cost Curve: Goldman Sachs Research (1 Sep 2014)
1. Based on NZD:USD exchange rate on 13 Jan 2014
Strong Didipio Margins
Despite the drop in copper prices, Didipio’s free cash generation remains robust
All-In Sustaining Cost Curve
1,600
All-in Sustaining cost ($/oz Au)
1,400
Spot Gold Price (as at 13 Jan 2015)
1,200
1,000
800
Strong margins despite drop in copper price
600
400
Potential additional cost due to lower copper price, partly offset by lower fuel costs
200
Didipio 2015 AISC Guidance Range
0
Q1
-200
Q2
Q3
Q4
-400
0
10
20
30
40
50
60
70
80
90
100
Cumulative Production (Percentile)
Source of AISC Cost Curve: Goldman Sachs Research (1 Sep 2014)
6
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
Michael Holmes
Chief Operating Officer
• Mining engineer with over 28 years of experience
working in Australia and Argentina
• Broad operational experience in underground and
open pit gold, copper, lead, zinc and nickel mines
• Recent experience with Xstrata Copper
Mark Cadzow
Chief Development Officer
• Metallurgist with >30 years industry experience
• Mineral processing
• Precious metals and Sulphide minerals
• Joined predecessor company in 1991 and has held
various technical and operations responsibilities
Darren Klinck
Head of Business Development
• International capital markets experience in metals
and mining
• Appointed VP Investor Relations in 2007 and
current role in 2011
• Responsible for identifying & evaluating external
growth opportunities; & capital markets interface
7
Mark Chamberlain
Chief Financial Officer
• >30 years financial experience
• Capital markets
• Financial and risk management expertise
• 17 years industry experience including senior
finance roles at Newcrest Mining and Western
Mining Corp.
Liang Tang
Company Secretary & Corporate Counsel
• Practising lawyer, joined OGC’s legal and company
secretarial team in 2009
• Broad range legal experience including corporate,
equity and debt financing and general commercial
law
Yuwen Ma
Head of Human Resources
• 24 years Human Resources experience
• Industry experience includes Eldorado Gold and
Sino Gold Mining Ltd
• Significant Asian experience with multinational
corporations
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.
Commitment to
Sustainability
Optimise mines
Operating
efficiently
Investing in
high quality
assets
Strengthen
balance sheet
8
CORE
VALUES
Spending
judiciously –
capital discipline
Maximising
value from
existing
assets
Strategic
capital allocation
Highlights
& Results
9
2015 Guidance
Increasing production with sector leading margins from low cost Didipio Mine
10
Didipio
New Zealand
Consolidated
Gold production
ounces
100,000 – 120,000
195,000 – 215,000
295,000 – 335,000
Copper production
tonnes
21,000 – 23,000
–
21,000 – 24,000
Cash costs
per
ounce
($430) – ($390)
$950 – $1,000
$450 – $530
All-In Sustaining Costs
per
ounce
$0 – $50
$1,200 – $1,250
$770 – $840
1. Costs are net of by-product credits at $3.20/lb copper
2. NZ costs assumes a NZD:USD exchange rate of 0.80
3. All-in Sustaining Costs (“AISC”) based on WGC methodology; expansionary and growth capital expenditures are excluded from the AISC
Key YTD 2014 Highlights
Consistently delivering positive results through effective executive of strategy
11
1.
Au produced: 214,751 oz
Cu produced: 18,263 t
Free cash flow generation2:
over $70m
Well on track to achieve 2014 guidance
Stand-out free cash flow yield amongst
all equities
Cash costs: $437 / oz
AISC: $818 / oz
Debt repayment2: $30m
One of the lowest cost producers
Strong balance sheet becoming
stronger
Total shareholder return1: 23%
Maximising value from
existing assets
Solid shareholder register and global
exposure to mega-funds
Delivering of Didipio optimisation and
successful ramp-up, NZ hedging
Total return in 2014
2.
As at 30 Sep 2014
12
Source: Bloomberg
Gold Spot Price (US$/oz)
Medusa Mining
Beadell Resources
Golden Star
Argonaut Gold Inc.
Yamana Gold
Barrick Gold
Alamos Gold
Regis Resources
Kingsgate Consolidated
IAMGOLD
Perseus Mining
New Gold Inc.
Goldcorp
B2Gold Corp.
Primero Mining Corp.
Dundee Precious Metals
AuRico Gold
OZ Minerals
Semafo Inc.
Alacer Gold Corp.
Evolution Mining
Newcrest Mining
Centamin plc
OceanaGold Corp.
Rio Alto Mining
Northern Star Resources
Detour Gold Corporation
Share Price Performance Comparative
Delivering strong results & continued outperformance; enhanced shareholder value
Share Price Performance
(12 months as at January 9 2015)
150%
100%
50%
0%
-50%
-100%
Market Vectors Junior Gold Miners ETF
Results Summary
YTD 2014 (Sep 30)
Didipio
New Zealand
Company
Consolidated
oz
71,473
143,278
214,751
275,000 to 305,000
t
18,263
–
18,263
21,000 to 24,000
oz
77,422
153,163
230,585
–
t
19,615
–
19,615
–
Cash costs
$/oz
(480)1
900
4371
400 to 4501
All-In Sustaining Costs2
$/oz
(166)1
1,315
8181
750 to 8501
Gold production
Copper production
Gold sales
Copper sales
13
2014 Guidance
1.Net of by-product credits
2.All-in Sustaining Costs (“AISC”) based on WGC methodology; expansionary and growth capital expenditures are excluded from the AISC
Financial Position (as at 30 Sep 2014)
Strengthening balance sheet through further debt repayment, increased cash
LIQUIDITY (USDm)
Repaid $30m in core debt YTD; approx.
$75m in last 12 months
Cash
$47
Undrawn Revolving Credit Facility
$82
TOTAL LIQUIDITY
$129
Cash balance expected to increase in Q4
from continued strong performance
DEBT (USDm)
14
Revolving Credit Facility
$118
Equipment leases
$33
TOTAL DEBT
$151
Target debt repayment of $30m in Q4 2014
Revolving credit facility with syndicate of
global banks
Credit facility consists of competitive
fiscal terms; expires in mid-2017
Philippines
Operations
15
Didipio Mine
Significant cash flow generation from one of the lowest cost gold mines
2015 AISC Guidance1
Island of
Luzon
$0 to $50 / oz
Far Southeast
San Fernando (Port)
DIDIPIO
Nominal Production
Gold: 100 koz
Manila
Copper: 14 kt
P&P Reserves2
Masbate
Gold: 1.77 Moz
Copper: 216.5 kt
Paco
M&I Resources2
Gold: 2.08 Moz
Municipality
OGC operation
OGC project/tenement
Peer Project
16
1.
2.
3.
Tampakan
Mine Life
Island of
Mindanao
Net of by-product credits
Reserves and Resources are based on the Didipio Technical Report dated 29 Oct 2014
Based on Company LOM plan which includes Inferred Resources
Copper: 250.2 kt
OP: 2017
UG: 20303
Didipio Highlights
Tracking to exceed 2014 production guidance on expected higher production in Q4
Didipio Process Plant Ramp-Up
300
3.5
250
3.0
200
2.5
2.0
150
1.5
100
1.0
50
0.5
0.0
Throughput
2014E
Increasing throughput rates to 3.5 Mtpa:
40% higher than nameplate
2015E
Gold Production
Total Gold Equivalent
YTD1
2014 Didipio Results
Gold produced
oz
71,473
t
18,263
oz
169,171
Cash costs (by-product)
per oz
($480)
Cash costs (co-product)
per oz
$556
AISC (by-product)
per oz
($166)
AISC (co-product)
per oz
$687
Copper produced
Gold Equiv. ounces produced
1.
Increasing production from higher grades
and throughput
0
2013A
17
Production (Ounces)
Throughput (Mtpa)
4.0
Connection to power grid on track:
expecting 40% power cost savings
Optimised mine design and plan; earlier
access to higher grade underground ore
New drilling targets identified within
mining permit
As at 30 Sep 2014
Didipio Optimisation Study Highlights
Operational and economical enhancement of high quality Didipio Mine
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
Increased U/G mining rate to 1.6 Mtpa by
2020 (previously 1.2 Mtpa)
Optimised mine design resulting in 67 Mt
less waste mined from the open pit
18
Optimised Design and Economics
Earlier access to high grade underground
feed + deferred mining costs  enhanced
design & cash flow profile
Limit of
Oxidation
New Stage 5 & 6
Pit Designs
Previous
Stage 5/6
Pit Design
Underground
Mine
Smaller open pit completed in 2017: $215
million in cost savings between 2018 and
2020
Larger underground and higher mining
rates: lower unit costs ($34/t to $27/t)
Dark
Diorite
Dark
Diorite
AuEq g/t
Capex of $116m for the underground over
next 3 years; sustaining capex of $75m
over the following 10 years
Note: Not to scale.
19
1.
Forecasted after-tax and capex cash flow
of $944 million over life of mine1
Based on $1,300/oz gold, $3.20/lb copper, See Technical Report for additional details
Paco Tenement Exploration Permit Renewal
Preparations in place to commence exploration program in prospective Mindanao
Adjacent to Silangan copper-gold
porphyry deposits
Preparing site for geophysical survey to
identify drill targets
20
New Zealand
Operations
21
New Zealand Overview
Mitigated downside risk of a lower gold price, optionality with a higher gold price
Municipality
OGC operation
OGC project/tenement
Mine optimisation over the past 18
months; focused on margin by mining
less waste
Auckland
Reefton
Revised mine plans at Macraes and
Reefton to ensure a cash flow positive
business in NZ
Wellington
Blackwater
Christchurch
Macraes
Round Hill
Frasers
Dunedin
Production de-risked with zero cost collar
hedging out to end of 2016
New Zealand Financial De-risking Program
Zero-Cost Collar Hedge
Range
(NZ$/oz)
Ounces
1
Remaining
(koz)
Term
1,600 – 1,787
38.2
Jun/13 – Jun/15
1,500 – 1,600
127.8
Jan/14 – Dec/15
1,600 – 1,736
153.5
Jan/15 – Dec/16
Current NZ gold price
22
1.
As at 30 Sep 2014
2
2.
NZ$1,594 / oz
Hedging program allows for healthier
margins than spot gold price; also covers
all rehabilitation costs
Blackwater PEA completed with results
demonstrating robust economics
On 13 Jan 2015
New Zealand Assets
Over 8 million ounces in resource provides optionality with a higher gold price
Macraes
Frasers
Reefton
Open pit
Underground
Open pit
koz
90 – 120
40 – 55
50 – 70
180 – 245
Moz
1.23
0.12
0.19
1.54
Moz
3.15
0.86
0.74
4.98
Moz
1.5
0.6
0.9
3.18
Mtpa
5.0
0.8
1.6
7.4
g/t
0.9 – 1.1
2.0 – 2.2
1.4 – 1.5
1.0 – 1.4
end of 2017
end of 2015
end of 2015
Mine Type
Nominal production
P&P Reserves
1
M&I Resources
1
Inferred Resources
1
Ore milled
Head grade
Estimated mine life
23
1.
NZ Combined
Complete Reserve & Resource Table on page 36
Blackwater PEA Highlights1
PEA based solely on Inferred
Mineral Resources
Pre-tax NPV of $200m on base
case2 – significant tax offsets
available
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
exploration decline, resource
drilling, trial mining and DFS
24
1.
The production target and forecast financial information discussed in this slide must be read in conjunction with the cautionary statement on page 3 of the
Blackwater Preliminary Economic Assessment dated October 21, 2014 (“PEA”) explaining that there is a low level of geological confidence associated with Inferred
Mineral Resources and there is no certainty that further exploration work will result in the determination of Indicated Mineral Resources or that the production target
and forecast financial information will be realised. OceanaGold confirms that all material assumptions underpinning the production target and forecast financial
information in the Blackwater PEA continue to apply and have not materially changed.
2.
Post-tax NPV for base case revenue +/- 25% using a discount rate of 5% is in the range of $40m-$223m with a midpoint of $132m. Please refer to Blackwater PEA
for range of NPV results.
Sustainability
25
Investing in Our Local Communities
Working together with our communities to leave a positive, long lasting legacy
Employment
• Hire locally policy
• 98% Filipino workforce
Support
• Investing in the reconstruction
after Typhoon Haiyan
26
Education
• Teachers salaries
• Scholarship programs
Infrastructure
• New roads and improvements
• Bridges, waterways
Enterprise Development
Building Capacity
• DiCorp: Provides mine
services, employs 300 locally
• Didipio Training Academy
• Leadership training
Sustainable Development Today and Beyond
An unwavering commitment to our social responsibilities beyond mining
Agroforestry
• Planting one million trees
• Commercial plantations
Environment
• ISO14001 EMS at Didipio
• Reducing GhG emissions
Rehabilitation
• Restoring lands to match area
• Supporting agriculture
Water Management
• Water treatment plant at
Didipio
27
• Raise 10,000 trout a year at
foot of Macraes tailings facility
• Partnering with likeminded
organisations such as the IRF
Free Cash Flow is KING
Well positioned to strengthen balance sheet and invest in further value creation
2015 Free Cash Flow Yield Comparative
20%
18%
16%
14%
12%
Producer Average
10%
8%
6%
4%
2%
28
B2Gold
AuRico
Alacer
Agnico-Eagle
Primero
Alamos
Barrick
Goldcorp
Detour
IAMGOLD
Newcrest
SEMAFO
Yamana
Regis
Argonaut
OceanaGold
0%
Source: Macquarie Research (4 Jan 2015)
Looking Ahead
On track to achieve 2014 production and cost
guidance – Didipio tracking to exceed guidance
Generate significant free
cash flow
Commence the Didipio underground development
in Q1 2015
Strengthen the balance
sheet
Continue construction of the Didipio power line
and substations
Repay an additional $30m of debt before end of
2014
Increase shareholder
wealth
Identify and evaluate new value add opportunities
29
oceanagold.com
Innovation
Performance
Growth
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 public companies, which currently include Evolution Mining, Asian Mineral Resources Ltd and
Syrah Resources where he serves as the non-executive Chairman.
Mick Wilkes (MD & CEO) – Mr. Wilkes is a mining engineer with over 30 years of broad international experience across Asia
and Australia. Prior to OGC, Mick was Executive General Manager of Operations at OZ Minerals where he was responsible for
the evaluation studies, construction and operation of the Prominent Hill copper gold project in South Australia. Preceding this, he
was General Manager of the Sepon gold copper project for Oxiana in Laos. Earlier experience was in Papua New Guinea in
senior roles and, at the outset of his career, at Mount Isa Mines in operations and design.
Denham Shale (Lead Director) - Mr. Shale is a lawyer in practice in Auckland, New Zealand. He has been a director of listed
companies for over 20 years and is President and an Accredited Fellow of the Institute of Directors in New Zealand Inc.
Joey Leviste (Director) - Mr. Leviste is the current Chairman of OceanaGold's wholly-owned subsidiary company in the
Philippines, OceanaGold (Philippines), Inc and Philippine resident of the Australia-Philippines Business Council. He has also
been appointed by the President of the Philippines as private sector member of Governing Council of the Philippines Council for
Agriculture, Aquatic and Natural Resource.
Bill Myckatyn (Director) - Mr. Myckatyn is a professional mining engineer with over 30 years experience in mine development
and operations. He was the former Chairman of Quadra FNX Mining Ltd., until its takeover in 2012, a company he co-founded as
CEO in 2002. He is currently on the Board for First Point Minerals, San Marco Resources and Delta Gold.
Dr Geoff Raby (Director) - Dr. Raby is the former Australian Ambassador to The People’s Republic of China from 2007 – 2011.
Dr. Raby joined the Australian public service in 1986 and has held various postings throughout Asia and Europe prior to his
posting in Beijing. Dr. Raby is also a non-executive director of ASX listed Fortescue and SmartTrans.
Paul Sweeney (Director) – Mr Sweeney has over 35 years experience in financial management of mining and renewable
energy companies. He held management roles with Placer Dome and Gibraltar Mines, board roles with Pan American Silver and
New Gold. He currently sits on the boards of Tahoe Resources, Grenville Strategic Royalty Corp., Magma Energy Corp, and
Mongolia Growth Group Ltd.
31
2014 Guidance
On track to meet full year guidance; exceed Didipio production guidance
Gold Production
Guidance
Didipio
New Zealand
Combined
Consolidated
85,000 – 95,000
190,000 – 210,000
275,000 – 305,000
21,000 – 24,000
–
21,000 – 24,000
($725) – ($650)1
$840 – $9252
$400 – $4501,2
($240) – ($210)1
$1,170 – $1,2902
$750 – $8501,2
(ounces)
Copper Production
Guidance
(tonnes)
Cash Cost Guidance
(per ounce)
All-In Sustaining Costs3
(per ounce)
1.Costs at Didipio are NEGATIVE net of copper by-product credits and assumes copper price of $3.20/lb
2.Assumes NZD/USD exchange rate of 0.80
3.All-in Sustaining Costs based on WGC methodology. expansionary and growth capital expenditures are excluded from the AISC
32
El Salvador
Nominal investment in a high quality resource w/ significant upside potential
Measured & Indicated Resources1
Belize
Guatemala
Honduras
Gold: 1.30 Moz
Silver: 9.48 Moz
Inferred Resources1
Gold: 0.30 Moz
El Salvador
Silver: 1.9 Moz
Nicaragua
M&I Average Grade
Costa Rica
Gold: 9.42 g/t
Panama
Silver: 69.0 g/t
High grade, low sulphidation, epithermal deposit
El Dorado
San Salvador
Underground mine = small footprint
Continuous focus on community and stakeholder
engagement
1.
2.
33
Complete Reserve & Resource Table on page 36
Refer to OGC news release dated 8 October 2013 and “OGC to Acquire
Pacific Rim Mining” presentation at www.oceanagold.com for additional
details and details on the current arbitration claim
El Dorado currently in international arbitration;
OGC seeks a negotiated outcome to impasse2
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
7m @ 1.16 g/t Au & 0.57% Cu
Cabinwangan
Mogambos
1.6 KM
Rock Sampling Highlights:
8.09 g/t Au & 4.21% Cu
3.20 g/t Au & 1.73% Cu
2.86 g/t Au & 2.09% Cu
2.54 g/t Au & 1.10% Cu
1 KM
250 ppm Cu contour
200 ppm Cu contour
Proposed drillhole
collar (with direction)
>150 ppb Au
> 80 ppb Au
> 50 ppb Au
CDDH105 &
CDDW105
SDDH052
SDDH053
SDDH050
1.42 g/t Au
and 6.81%
Cu
SDDH051
Chinichinga
True Blue
2 holes, 396.4 m
SDDH049
San Pedro
5 holes, 1, 756.6 m
2m @ 1.91 g/t Au
Didipio Au-Cu
Near-mine
2m @ 1.48 g/t Au
Luminag
2 holes , 496.4 m
PPYCH02: 4m @
0.26% Cu and
0.03g/t Au
LMDH002
(ongoing)
MSDH212
Morning Star
1 hole, 461.3 m
PPYTR05: 8m @
0.18% Cu and 0.02
g/t Au
Papaya
D’Beau
5 holes
2, 053.5 m
DBDH206
DBDH202
34
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 over next 3 years
• Revenue Sharing
•
After capital recovery period, sharing of “NET REVENUE”
•
•
40%  OceanaGold
60%  Government Share
Net Revenue Calculation
Revenue
LESS operating costs
LESS depreciation of post development capital expenditure (excluding underground development costs)
LESS underground mine development
= NET REVENUE
Government Share
2% Net Smelter Royalty
2% Excise Duty (2% gross sales for gold, 2% copper concentrate)
Corporate Tax (current tax rate is 30%)
Other taxes (e.g. Withholding tax)
8% Interest to syndicate partner
Top up to 60% - additional government share
35
Mineral Resources and Reserves (as at 31 Dec 2013)
RESOURCES
MEASURED
AREA
Mt
MACRAES
TOTAL
31.7
REEFTON
TOTAL
2.01
SAMS
CREEK
TOTAL
.
DIDIPIO
TOTAL
18.0
Au
g/t
Ag
g/t
Ag
Moz
Cu
%
Cu
Mt
1.24 1.26
.
.
.
.
1.70 0.11
.
.
.
.
.
.
.
.
.
Au
Moz
INDICATED
.
1.26 0.73
Ag
g/t
Ag
Moz
Cu
%
85.6 1.00 2.75
.
.
.
.
13.5 1.46 0.63
.
.
.
4.03 1.77 0.23
.
.
0.51 0.09 43.0 0.96 1.33
.
.
EL DORADO
0.78 11.30 0.28 75.7 1.90
TOTAL
.
TOTAL
RESOURCE
.
52.4
1.41 2.38
.
1.90
.
Mt
Au
g/t
Au
Moz
MEASURED & INDICATED
3.50 9.00 1.01 67.5 7.58
0.09 149.7 1.24 5.96
.
7.58
Ag
g/t
Ag
Moz
Cu
%
Cu
Mt
Mt
Au
g/t
Au
Moz
Ag
g/t
Ag
Moz
Cu
%
Cu
Mt
117.3 1.06 4.01
.
.
.
.
65.0
1.0
2.1
.
.
.
.
.
15.5 1.50 0.74
.
.
.
.
7.8
3.7
0.90
.
.
.
.
.
4.03 1.77 0.23
.
.
.
.
4.2
1.3
0.18
.
.
.
.
0.39 0.17 61.0 1.05 2.06
.
.
0.42 0.26 14.7
0.6
0.3
.
.
0.2
0.03
0.8
9.4
0.3
71.0
1.9
.
.
0.26 92.4
1.3
3.7
.
1.9
.
0.03
.
.
Cu
Mt
.
Mt
Au
g/t
Au
Moz
INFERRED RESOURCE
4.28 9.42 1.30 69.0 9.48
0.17 202.1 1.28 8.34
.
9.48
.
.
.
All resources are inclusive of reserves. Macraes and Reefton Open Pit resource cut-off are based on $1,250/oz Au. Underground resources are reported within geological constraints. For Didipio: 0.47 g/t
EqAu cut-off above the 2,390mRL and 1.5 g/t cut-off below the 2,390mRL. No resource reported below 2,180mRL. EqAu cut-off is gold equivalent based on US$1,450/oz gold and US$3.00/lb copper.
OceanaGold retains a 40% interest in the Sams Creek project in the South Island of New Zealand. The project contains a total of 10.1 Mt @ 1.77 g/t Au for 575 koz Indicated resource, as well as 10 Mt @ 1.3
g/t Au for 440 koz of Inferred resource. 40% of the total Sams Creek inventory has been included in OceanaGold's resource table. The project is not considered material to OceanaGold. The El Dorado Project
is not considered material. Please refer to www.oceanagold.com for the press release dated October 8, 2013 for more details on the status of the permit applications and arbitration for the El Dorado Project
as at the end of 2013. El Dorado resource cut-offs are based on gold 2008 assumptions of US$980/oz and US$20/oz silver.
RESERVES
PROVEN
36
PROBABLE
PROVEN AND PROBABLE
AREA
Mt
Au
g/t
Au Moz
Cu
%
Cu
Mt
Mt
Au
g/t
Au Moz
Cu
%
Cu
Mt
Mt
Au
g/t
Au Moz
Cu
%
Cu
Mt
MACRAES
TOTAL
21.2
1.00
0.68
.
.
20.8
1.01
0.68
.
.
42.0
1.00
1.35
.
.
REEFTON
TOTAL
0.9
1.53
0.04
.
.
3.3
1.40
0.15
.
.
4.2
1.43
0.19
.
.
DIDIPIO
TOTAL
16.7
1.23
0.66
0.52
0.09
29.0
1.00
0.93
0.42
0.12
45.6
1.09
1.59
0.46
0.21
TOTAL
RESERVE
38.8
1.11
1.38
-
0.09
53.2
1.03
1.76
-
0.12
91.9
1.06
3.14
-
0.21
Figures are in-situ delivered to ROM. Macraes and Reefton cut-offs are based on US$1,250/oz gold (0.4 g/t Au for Macraes Open Pit, 0.5 g/t Au for Reefton and 2.1 g/t Au cut-off for Frasers Underground).
Didipio cut-offs are Net Metal Value based, using US$1,250/oz gold and US$3.25/lb copper (0.55 g/t AuEq for open pit and 1.9 g/t AuEq for underground).

Corporate Presentation

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