140901 ogc corporate presentation september north america final
DESCRIPTION
40901 OGC Corporate Presentation September North America FINALTRANSCRIPT
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September 2014
Corporate Presentation
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OceanaGold Corporation Innovation Performance Growth 2
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. OGCs shares have not been and will not be registered under the Securities Act.
Technical Disclosure
The Mineral Resources for Didipio and Blackwater (within the Reefton Goldfield) 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
R.Corbett, 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. 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. R. Corbett is a Registered Professional Engineer (Ontario) and 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 Moore, Doyle, Corbett, Madambi 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 Companys 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.
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OceanaGold Corporation Innovation Performance Growth 3
OceanaGold Today
Emerging multinational gold and copper producer with strong free cash flow
Macraes New Zealand Didipio Philippines Reefton New Zealand
90-Day Average Daily Liquidity2
2.6m shares
Stock Exchanges
TSX, ASX, NZX Ticker: OGC
Market Capitalisation2
C$790
Shareholder Geo. Breakdown1
North America
61%
Australia & NZ
19%
Europe 18%
Asia 2%
1. Internal Report as at 31 Jul 2014
2. Metrics as at 11 Sep 2014
Shares Outstanding2
301m
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OceanaGold Corporation Innovation Performance Growth 4
OceanaGold Value Proposition
MANAGEMENT
STRATEGY
OPERATIONS GROWTH
SOCIAL LICENSE
Commitment Experience
Execution Discipline
Free Cash Flow
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OceanaGold Corporation Innovation Performance Growth 5
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
Practising lawyer, joined OGCs legal and company secretarial team in 2009
Broad range legal experience including corporate, equity and debt financing and general commercial law
24 years Human Resources experience
Industry experience includes Eldorado Gold and Sino Gold Mining Ltd
Significant Asian experience with multinational corporations
>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.
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
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
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
Experienced Management Team
Liang Tang Company Secretary & Corporate Counsel
Yuwen Ma Head of Human Resources
Mick Wilkes Managing Director & Chief Executive Officer
Mark Cadzow Chief Development Officer
Darren Klinck Head of Business Development
Michael Holmes Chief Operating Officer
Mark Chamberlain Chief Financial Officer
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OceanaGold Corporation Innovation Performance Growth 6
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.
Maximising
value from
existing
assets
Operating
efficiently
Spending
judiciously capital discipline
Investing in
high quality
assets
CORE
VALUES
Optimise mines
Strategic
capital allocation
Commitment to
Sustainability
Strengthen
balance sheet
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OceanaGold Corporation Innovation Performance Growth 7
Strategy on Growth
Invest in high quality organic and external value add opportunities
Effective use of capital through investment in
first and second quartile assets
Leveraging in-house expertise to identify and
evaluate new opportunities
Focus on accretive transactions that increase
shareholder wealth
Leveraging experience and capabilities
Clear definition of investment criteria
Accretive investment to increase
shareholder wealth
Focus on Asia-Pacific and Americas regions
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OceanaGold Corporation Innovation Performance Growth 8
2014
Guidance YTD Jun 2014 Q2 2014
Combined Didipio New
Zealand Company Didipio
New
Zealand Company
Gold
production oz
275,000 to
305,000 45,266 102,133 147,399 14,786 46,045 60,831
Copper
production t
21,000 to
24,000 11,185 11,185 4,706 4,706
Gold sales oz 54,010 112,334 166,344 17,746 54,548 72,294
Copper sales t 12,925 12,925 5,173 5,173
Cash costs $/oz 400 to 4501 (412)1 843 4351 (254)1 1,114 7781
All-In
Sustaining
Costs2 $/oz 750 to 8501 (150)1 1,226 7791
First Half 2014 Results Summary
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
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OceanaGold Corporation Innovation Performance Growth 9
2014 Guidance
Didipio Consolidated
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
Cash Cost Guidance (per ounce)
All-In Sustaining Costs3
(per ounce)
($725) ($650)1
New Zealand
Combined
$400 $4501,2
$750 $8501,2
85,000 95,000 Gold Production
Guidance (ounces)
Copper Production
Guidance (tonnes)
21,000 24,000
190,000 210,000
275,000 305,000
21,000 24,000
$840 $9252
($240) ($210)1 $1,170 $1,2902
On track to meet full year guidance
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OceanaGold Corporation Innovation Performance Growth 10
Financial Position (as at 30 Jun 2014)
Strengthening balance sheet from strong free cash flow generation
LIQUIDITY
Cash $46m
Undrawn Revolving Credit Facility $82m
TOTAL LIQUIDITY $128m
CORE DEBT
Revolving Credit Facility $118m
Equipment leases $38m
TOTAL DEBT $156m
Repaid approximately $95m in core debt
over past 18 months
Repaid over $30m in debt in 2014
Revolving credit facility of $200m with
competitive fiscal terms, expires in mid-
2017
Banking syndicate: Barclays, BNP
Paribas, Citibank, HSBC, Nedbank
Continue to repay debt and increase cash
position
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OceanaGold Corporation Innovation Performance Growth 11
Macro &
Comparatives
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OceanaGold Corporation Innovation Performance Growth 12
Share Price Performance Comparative
Effective execution of strategy: strong results & enhanced shareholder value
Source: Bloomberg
-80%
-60%
-40%
-20%
0%
20%
40%
60%
80%
100%
120%
Sem
afo
In
c.
No
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orp
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Co
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Min
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ico G
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Inc.
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ick G
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B2G
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.
Gold
co
rp
Gold
en
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ing
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us M
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Evolu
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Con
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ing
Re
gis
Reso
urc
es
Share Price Performance (Last 12 months as at 5 September 2014)
Gold Spot Price (US$/oz) Market Vectors Junior Gold Miners ETF
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OceanaGold Corporation Innovation Performance Growth 13
Price to Cash Flow per Share Comparative
P/CFPS multiple demonstrates opportunity for share price growth
Source: CIBC Research (9 Sep 2014)
0
2
4
6
8
10
12
14
16
18
Ocea
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Gold
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IAM
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Du
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B2G
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ico
Ea
gle
Gold
co
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Eld
ora
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old
Gold
en
Sta
r
Ala
mos G
old
Price to Cash Flow per Share Multiples 2014E 2015E
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OceanaGold Corporation Innovation Performance Growth 14
Free Cash Flow Yield Comparative
Well positioned to strengthen balance sheet and invest in further value creation
Source: Macquarie Research (7 Sep 2014)
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
35%
40%
Bea
dell
Ocea
naG
old
Ne
wcre
st
SE
MA
FO
Barr
ick G
old
Agn
ico
-Eag
le
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Gold
co
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IAM
GO
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No
rth
ern
Sta
r
Pers
eu
s
AuR
ico
Me
dusa
Free Cash Flow Yield Estimates
2014 2015
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OceanaGold Corporation Innovation Performance Growth 15
-800
-600
-400
-200
0
200
400
600
800
1,000
1,200
1,400
1,600
0 10 20 30 40 50 60 70 80 90 100
All
-in
Su
sta
inin
g c
ost
($/o
z A
u)
Cumulative Production (Percentile)
Q1 Q4 Q3 Q2
Didipio
Global AISC Curve Comparative
Source: Goldman Sachs Research (1 Sep 2014)
Gold Price (as at 10 Sep 2014)
All-In Sustaining Cost Curve
OceanaGold Consolidated AISC 2014 Range
1st quartile AISC demonstrates strong profitability even at lower commodity prices
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OceanaGold Corporation Innovation Performance Growth 16
Philippines
Operations
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OceanaGold Corporation Innovation Performance Growth 17
Didipio Mine
High quality, low-cost transformative asset generating significant free cash flow
First FTAA signed & in production
Open pit (currently) plus underground
Current Mine Life: 2029
Nominal production of 100 koz gold, 14 kt
copper per year over life of mine
Lepanto / Goldfields
Manila
DIDIPIO
San Fernando (Port)
Mindanao
Luzon
1. Complete Reserve & Resource Table on page 39
P&P Reserves1 of 1.59 Moz gold, 210 kt
copper
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OceanaGold Corporation Innovation Performance Growth 18
Didipio Overview
Production increasing in H2 as operations
advance Stage 3 into a higher grade zone of
the ore body
Increasing throughput rate to planned 3.5
Mtpa by end of 2014
Power grid connection development work
advancing well lower operating costs early 2016
Didipio Optimisation Study complete with
strong results
Conducting exploration geophysical survey at
depths greater than 500 metres near mine-site
in Q3
2014 Didipio Results H1 2014
Gold produced oz 45,266
Copper produced t 11,185
Gold equivalent ounces
produced oz 104,506
Cash costs
(by-product) per oz ($412)
Cash costs
(co-product) per oz $565
AISC (by-product)
per oz ($150)
AISC (co-product) per oz $678
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OceanaGold Corporation Innovation Performance Growth 19
Didipio Optimisation Study Highlights
Access to high grade material
brought forward by 2 years Q3 17
Optimised design of underground
and open pit resulting in 70 Mt in
reduced waste
Crown pillar moved higher by 80 m,
underground expanded deeper by
170 m two mining domains est.
Underground development to
commence 1 year earlier Q1 15
Increased mining rate to 1.6 Mtpa
(previously 1.2 Mtpa) by 2020 Note: Not to scale.
Original Open Pit Design Optimised Open Pit Design
Larger Underground Mine
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OceanaGold Corporation Innovation Performance Growth 20
Optimised Didipio Design
Development: Q1 2015
Production: Q3 2017
Full ramp-up: 2020
Revised Plan
Mining rate: 1.6 Mtpa
Mining type: long-hole open stope
w/paste backfill
Technical Design
Update NI43-101: Late Oct
Resource drilling: Immediate
Resource Statements: w/NI43-101
Next Steps
Pre-production: $110m / 3 yrs
Annual Sustaining: $7m to $8m
Capex
Study identifies significant value to be unlocked at Didipio
Limit of
Oxidation
Dark
Diorite Dark
Diorite
Previous
Stage 5/6
Pit Design
AuEq g/t
New Stage 5 & 6
Pit Designs
Underground
Mine
Note: Not to scale.
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OceanaGold Corporation Innovation Performance Growth 21
New Zealand
Operations
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OceanaGold Corporation Innovation Performance Growth 22
New Zealand Optimisation
Mine optimisation and operating efficiencies
over $100m in cost savings
Production de-risked with zero cost collar
hedging over next 18 months
Evaluating organic growth opportunities
New Zealand Financial De-risking Program
Macraes Reefton
Remaining ounces
hedged1 154.5 koz 53.7 koz
Hedge period Jan/14 Jan/16 Jun/13 Jun/15
Put Option Price
NZ$1,500/oz NZ$1,600/oz
Call Option Price NZ$1,600/oz NZ$1,787/oz
Strong New Zealand dollar persists, partly
offset by hedging program in NZD
1. As at 30 Jun 2014
Focused on margin by mining less waste
Mitigated downside risk of a lower gold price, optionality with a higher gold price
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OceanaGold Corporation Innovation Performance Growth 23
New Zealand Assets
Macraes Frasers Reefton NZ Combined
Mine Type Open pit Underground Open pit
Nominal production koz 90 120 40 55 50 70 180 245
P&P Reserves1
Moz 1.23 0.12 0.19 1.54
M&I Resources1
Moz 3.15 0.86 0.74 4.98
Inferred Resources1
Moz 1.5 0.6 0.9 3.18
Ore milled Mtpa 5.0 0.8 1.6 7.4
Head grade g/t 0.9 1.1 2.0 2.2 1.4 1.5 1.0 1.4
Estimated mine life end of 2017 end of 2015 end of 2015
Over 8 million ounces in resource provide optionality with a higher gold price
1. Complete Reserve & Resource Table on page 39
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OceanaGold Corporation Innovation Performance Growth 24
New Zealand Studies
Round Hill Gold/Tungsten
M&I Resource1 of 1.26 Moz gold, sterilised by current
location of process plant
Evaluating new, organic growth opportunities in New Zealand
1) Refer to 2013 AIF
Resource definition and metallurgical test work
underway
Conceptual design includes build of new but relocated
3.0 Mtpa process plant w/Au stream and WO3 stream
Blackwater
Inferred Resource1 of 0.7 Moz Au grading 23 g/t
Drill program tested for continuity below historic
workings
Preliminary Economic Assessment near finalisation
Near Reefton
At Macraes
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OceanaGold Corporation Innovation Performance Growth 25
Sustainability
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OceanaGold Corporation Innovation Performance Growth 26
Foundation of Our Success
Open and transparent communications,
particularly during economic downturn
Unique and tailored programs for a diverse
group of stakeholders
Engagement throughout all stages of the
lifecycle
Operating to highest of environmental
standards
Continuous improvement to enhance social
licence
A strong social license underpins success in socially complex, emerging countries
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OceanaGold Corporation Innovation Performance Growth 27
Investing in Our Local Communities
Education Infrastructure
Teachers salaries Scholarship programs
New roads and improvements Bridges, waterways
Enterprise Development Building Capacity
DiCorp: Provides mine services, employs 300 locally
Didipio Training Academy Leadership training
Working together with our communities to leave a positive, long lasting legacy
Employment
Hire locally policy 98% Filipino workforce
Investing in the reconstruction after Typhoon Haiyan
Support
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OceanaGold Corporation Innovation Performance Growth 28
Sustainable Development Today and Beyond
Water Management
Water treatment plant at Didipio
Raise 10,000 trout a year at foot of Macraes tailings facility
Environment Rehabilitation
ISO14001 EMS at Didipio Reducing GhG emissions
Restoring lands to match area Supporting agriculture
Partnering with likeminded organisations such as the IRF
An unwavering commitment to our social responsibilities beyond mining
Agroforestry
Planting one million trees Commercial plantations
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OceanaGold Corporation Innovation Performance Growth 29
Looking Ahead
Well on track to achieve full year production and
cost guidance
Increasing throughput rates to planned 3.5 Mtpa
by year end at Didipio
Identify and evaluate new value add opportunities
Continue to repay debt while increasing cash
position
Continue to deliver positive results through effective execution of strategy
Finalise the Didipio Optimisation Study including
an update to the NI 43-101
Significant
cash flow
generation
Strengthen
the balance
sheet
Increase
shareholder
wealth
Finalise the Blackwater Preliminary Economic
Assessment
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OceanaGold Corporation Innovation Performance Growth 30
Upcoming Events
Denver Gold Forum Denver September 15 to 17, 2014
Goldman Sachs Mining & Metals Conference New York November 19 to 20, 2014
Canaccord Global Resources Conference New York October 15 to 16, 2014
Q3 Financial and Operating Results Release and Webcast October 31, 2014
Didipio & New Zealand Site Visits TBD - Late Nov/early Dec,
2014
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Innovation Performance Growth
oceanagold.com
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OceanaGold Corporation Innovation Performance Growth 32
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 and Asian Mineral Resources Ltd.
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 Peoples 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.
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OceanaGold Corporation Innovation Performance Growth 33
Analyst Coverage
North America Analyst
BMO Capital Markets Brian Quast
CIBC Jeff Killeen
Cormark Securities Mike Kozak
Macquarie Bank Michael Siperco
National Bank Financial Raj Ray
PI Financial Brian Szeto
Australia Analyst
Canaccord Genuity Reg Spencer
CIMB David Coates
Citigroup Trent Allen
Credit Suisse Michael Slifirski
GMP Securities Conrad Mulherin
Goldman Sachs Brett Cottrell
JP Morgan Mark Busuttil
Macquarie Bank Ben Crowley
New Zealand Analyst
Forsyth Barr Andrew Harvey-Green
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OceanaGold Corporation Innovation Performance Growth 34
USDm Q2 2014 Q1 2014 YTD
Jun 2014
YTD
Jun 2013
Revenue 127.5 170.4 297.8 226.9
Operating costs1 (97.9) (69.4) (167.2) (137.3)
EBITDA2 29.6 101.0 130.6 89.6
Depreciation & amortisation (31.4) (33.4) (64.8) (69.4)
Net interest & finance costs (2.8) (2.4) (5.3) (12.7)
Earnings before tax2 (4.6) 65.2 60.5 7.5
Income tax expense 5.7 (5.4) 0.3 (3.7)
Gain/(loss) on fair value undesignated hedges (4.3) (1.3) (5.6) (8.2)
Impairment charge (85.5)
Tax benefit/(expense) on gain/(loss) on undesignated
hedges & impairment 1.2 0.4 1.6 26.4
Net profit/(loss) after impairment (2.1) 58.9 56.8 (63.4)
Gold price received ($ per ounce) 1,314 1,311 1,312 1,377
Consolidated Financial Results
1. Includes G&A 2. Before gain/(loss) on undesignated hedges and impairment Note: Summation subject to rounding differences
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OceanaGold Corporation Innovation Performance Growth 35
USDm Q2 2014 Q1 2014 YTD
Jun 2014
YTD
Jun 2013
Opening cash balance 42.1 24.8 24.8 96.5
Operating cash inflows 52.7 73.3 126.0 31.3
Investing expenditure (31.1) (24.1) (55.2) (90.2)
Free cash flow 21.6 49.2 70.8 (58.9)
Financing cash inflows/(outflows) (12.6) (25.2) (37.8) (30.2)
Foreign exchange effect (4.9) (6.7) (11.6) 10.5
Net cash (decrease)/increase 4.1 17.3 21.4 (78.6)
Closing cash balance 46.2 42.1 46.2 17.9
Consolidated Cash Flows
Note: Summation subject to rounding differences
Investing expenditure includes:
Pre-strip: $17m, Sustaining: $6m, TSF & water treatment plant: $5m, Didipio process plant debottlenecking: $2m, Exploration: $1m
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OceanaGold Corporation Innovation Performance Growth 36
El Salvador
Underground mine = small footprint
High grade, low sulphidation, epithermal deposit
Continuous focus on community and stakeholder
engagement
El Dorado
San Salvador
El Salvador
Guatemala
Belize
Honduras
Nicaragua
Costa Rica
Panama
Measured & Indicated Resources1
Gold: 1.30 Moz Silver: 9.48 Moz
M&I Average Grade
Gold: 9.42 g/t Silver: 69.0 g/t
Inferred Resources1
Gold: 0.30 Moz Silver: 1.9 Moz
El Dorado currently in international arbitration;
OGC seeks a negotiated outcome to impasse2 1. Complete Reserve & Resource Table on page 39
2. 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
Nominal investment in a high quality resource w/ significant upside potential
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OceanaGold Corporation Innovation Performance Growth 37
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
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
FTAA Exploration Opportunities
1 KM
1.6
KM
>150 ppb Au > 80 ppb Au > 50 ppb Au
250 ppm Cu contour 200 ppm Cu contour Proposed drillhole
collar (with direction)
Cabinwangan Mogambos
PPYTR05: 8m @
0.18% Cu and 0.02
g/t Au
PPYCH02: 4m @
0.26% Cu and
0.03g/t Au
1.42 g/t Au
and 6.81%
Cu
2m @ 1.91 g/t Au
2m @ 1.48 g/t Au
Papaya
DBeau 5 holes
2, 053.5 m
Luminag 2 holes , 496.4 m
Morning Star 1 hole, 461.3 m
True Blue
Didipio Au-Cu
MSDH212
DBDH202
Chinichinga 2 holes, 396.4 m
CDDH105 &
CDDW105
DBDH206
San Pedro 5 holes, 1, 756.6 m
LMDH002
(ongoing)
SDDH049 SDDH050 SDDH051
SDDH052
SDDH053
Near-mine
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OceanaGold Corporation Innovation Performance Growth 38
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% Free Carried (entitles the holder to 8% of equity in the operating vehicle and dividends paid after recovery period)
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OceanaGold Corporation Innovation Performance Growth 39
Mineral Resources and Reserves (as at 31 Dec 2013)
RESOURCES MEASURED INDICATED MEASURED & INDICATED INFERRED RESOURCE
AREA Mt Au
g/t
Au
Moz
Ag
g/t
Ag
Moz
Cu
%
Cu
Mt Mt
Au
g/t
Au
Moz
Ag
g/t
Ag
Moz
Cu
%
Cu
Mt Mt
Au
g/t
Au
Moz
Ag
g/t
Ag
Moz
Cu
%
Cu
Mt Mt
Au
g/t
Au
Moz
Ag
g/t
Ag
Moz
Cu
%
Cu
Mt
MACRAES
TOTAL 31.7 1.24 1.26 . . . . 85.6 1.00 2.75 . . . 117.3 1.06 4.01 . . . . 65.0 1.0 2.1 . . . .
REEFTON
TOTAL 2.01 1.70 0.11 . . . . 13.5 1.46 0.63 . . . 15.5 1.50 0.74 . . . . 7.8 3.7 0.90 . . . .
SAMS
CREEK
TOTAL . . . . . . . 4.03 1.77 0.23 . . . 4.03 1.77 0.23 . . . . 4.2 1.3 0.18 . . . .
DIDIPIO
TOTAL 18.0 1.26 0.73 . . 0.51 0.09 43.0 0.96 1.33 . . 0.39 0.17 61.0 1.05 2.06 . . 0.42 0.26 14.7 0.6 0.3 . . 0.2 0.03
EL DORADO
TOTAL 0.78 11.30 0.28 75.7 1.90 . . 3.50 9.00 1.01 67.5 7.58 . . 4.28 9.42 1.30 69.0 9.48 . . 0.8 9.4 0.3 71.0 1.9 . .
TOTAL
RESOURCE 52.4 1.41 2.38 . 1.90 . 0.09 149.7 1.24 5.96 . 7.58 . 0.17 202.1 1.28 8.34 . 9.48 . 0.26 92.4 1.3 3.7 . 1.9 . 0.03
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).
RESERVES
PROVEN 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
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.