Analyst Briefing

First Quarter 2015 Results

29 April 2015
Presentation Outline

(3) Significant Developments

(4) Operating and Financial Highlights

(14) Update on Silangan

(20) Oil and Gas Exploration

Significant Developments

Implementation of 2nd wave of manpower rightsizing program

(February 2015) following Phase 1 in December 2014
Sale of shares in Indophil Resources (February 2015)
Declaration of 111M tonnes of additional resources
(March 2015)
Approval of Silangan project DMPF (April 2015)
Receipt of Integrated Management System (IMS) Certification from
TUV Rheinland (April 2015)
Definitive Feasibility Study (DFS) in process and expected to be
completed in 2nd half of 2015
Exploration works within and nearby Padcal ongoing

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OPERATING AND FINANCIAL HIGHLIGHTS 4
Operating Statistics

1Q2015 1Q2014 Inc (Dec)

Tonnage affected by lower
Tonnes Milled ('000) 2,221 2,396 -7%
Operating Days 88 90 -2% operating days and care and
maintenance
Ore Grade
Gold - gms/DMT 0.435 0.439 -1%
Copper - % 0.204 0.223 -9%
Lower grades due
to natural depletion of
Production higher grade ore
Gold ozs 25,997 26,442 -2%
Copper - lbs ('000) 8,361 9,468 -12%
Drop in metal production
Prices attributed to lower tonnage
Gold (US$/ounce) 1,189 1,371 -13% and ore grades
Copper (US$/pound) 2.71 2.85 -5%

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Financial Highlights

(in PHP million,

1Q2015 1Q2014 Inc/(dec)
unless indicated)
Gross Revenue 2,393 2,913 -18%
Marketing Charges 200 214 -7% Revenue down due to lower
Cost & Expenses 1,887 2,274 -17% output and depressed metal
Income from Operations 306 426 -28% prices
Other Inc / (charges) 110 (49) 324% Drop in cost & expenses
Provision for Tax (111) (109) 1% due to cost containment
Net Income 305 267 14%
Net income boosted by cost
Core Net Income 214 278 -23% management and sale of non-
core assets
Reported EPS (Php) 0.067 0.051 30%
Core EPS (Php) 0.043 0.056 -23%

*excludes insurance gains from business interruption of P427 million 6

Revenue Breakdown
Gold
Revenue Share per Product Copper
(PhP million) Silver
Petroleum & other
2,913 4%
2% 2,393
1%
40%
1% 38%

59% 55%

1Q2015 1Q2014

PRODUCT BREAKDOWN
(PhP million)
1Q2015 1Q2014 Inc (Dec)
Gold 1,423 1,610 -12%
Copper 912 1,178 -23%
Silver 19 22 -12%
7
Petroleum & others 38 102 -63%

TOTAL 2,393 2,913 -18%

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Cost and Expenses

Inc
(in PHP million) 1Q2015 1Q2014
(Dec)
Production cost
Materials & Supplies 427 417 2%
Decline in production cost
Power 431 426 1%
Labor 212 312 -32%
due to:
More efficient use of ball
Contracts 65 146 -55%
mills and reagents
Others 53 91 -42%
Reduction in overhead
Cash Production cost 1,188 1,392 -15%
expenses
Depreciation & Amortization 373 423 -12%
Total Production Cost 1,561 1,815 -14%
Excise Tax & Royalties 114 138 -17% 48% drop in G&A due to
Operating Cost (Mining) 1,675 1,953 -14% stringent cost control
G&A (Mining) 114 220 -48% measures
All-in Operating Cost (Mining) 1,789 2,173 -18%
Oil & Gas expenses 98 98 -1%
TOTAL COST AND EXPENSES 1,887 2,272 -17%
8

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Breakdown of Other Charges - Net

(in PHP million) 1Q2015 1Q2014 Inc/(dec)

Gain on sale of AFS financial assets 107 - -
Foreign exchange gain (losses) 13 (34) -
Interest Expense (Net) (15) (66) (77%)
Provisions - 32 -
Others 5 17 33%

Total 110 (49) -

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Capital Expenditures

CAPITAL EXPENDITURE PERFORMANCE

Oil & gas exploration

Other mine exploration
Silangan & Kalayaan
Padcal & Head Office

1Q2015 1Q2014

CAPITAL EXPENDITURE BREAKDOWN

(PhP million)
1Q2015 1Q2014
Padcal & Head Office 310 360
Silangan & Kalayaan 918 979
Other mine exploration 20 39
10
Oil & gas exploration 5 152
TOTAL 1,253 1,530
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Financial Position
ASSETS (in PHP million)
As of Mar As of Dec Inc
31, 2015 31, 2014 (Dec)
Cash & cash equivalents 4,105 5,232 -22%
Receivables & others 4,145 4,299
Current assets 8,250 9,530
-4%
-13%
Sustained investments in
Property, plant & equipment 7,390 7,139 4% Silangan and Padcal push
Deferred exploration costs/others 28,621 27,971 2%
Total assets 44,261 44,640 -1%
deferred exploration costs
higher
LIABILITIES AND STOCKHOLDERS EQUITY
(in PHP million)
As of Mar As of Dec 31, Inc
31, 2015 2014 (Dec)
Short-term debt 3,777 4,308 -12%
Others 2,754 3,215 -14%
Current liabilities 6,531 7,523 -13%
Bonds Payable 6,024 5,947 0%
Deferred income tax liability/others 10,593 10,076 5%
Total liabilities 17,124 17,599 -3%
Capital stock, RE & others 23,720 23,599 1%
Non-controlling interest 3,418 3,442 -1% Repayment of P705 million
Total equity 27,138 27,042 0% in local bank loans (as of
Total Liabilities and SHE 44,261 44,640 -1%
April 2015) reduced Parent
SELECTED FINANCIAL RATIOS
Company debt to P3.6B
Current Ratio 1.26:1 1.27:1
Debt-to-equity Ratio 39:61 39:61

Net debt/(cash)-to-equity Ratio 48:52 46:54 11

Cash Flows
(In PHP millions) 1Q2015 1Q2014 Inc/(dec)
CASH FLOWS FROM OPERATING ACTIVITIES
Income before income tax 416 376 10%
Adjustments for:
Depletion and depreciation 393 428 -8%
Gain on sale of asset (107) -
Others 26 76 -65%
Change in working capital (256) 379 -168%
Net cash flows from operating activities 460 1,259 -63%
CASHFLOWS FROM INVESTING ACTIVITIES
Deferred exploration costs/other noncurrent assets (936) (961) -3%
Property, plant and equipment (318) (569) -44%
Net proceeds from sale of AFS financial asset 297 -
Net cash flows used in investing activities (5,462) (4,452) 23%
CASH FLOWS FROM FINANCING ACTIVITIES - -
Payment of loans (527) (35) 1414%
Dividends paid (99) (247) -60%
Net cash from (used in) financing activities (626) (282) 122%
EFFECT OF EXCHANGE RATE CHANGES (6) 99 -106%
NET INCREASE IN CASH AND CASH EQUIVALENTS (1,127) (453) 149%
CASH AND CASH EQUIVALENTS (BEGINNING) 5,232 4,081 28%
CASH AND CASH EQUIVALENTS (END OF PERIOD) 4,105 3,628 13%

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Breakeven Analysis

COST STRUCTURE (excluding G&A)

1Q2015 1Q2014 Variance
Cost per Tonne
Cash Production Cost 535 581 -8%
Depreciation 168 176 -5%
Total 703 758 -7%
Operating cost 844 904 -7%
Operating Cost per Metal
Co-production method
Gold ($/oz) 937 956 -2%
Copper ($/lb) 2.18 2.39 -9%
By-product credits method
Gold ($/oz)
Before by-product credits 1,625 1,825 -11%
After by-product credits 737 786 -6%
Copper ($/lb)
Before by-product credits 5.05 5.10 -1%
After by-product credits 1.31 1.21 8%

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UPDATE ON SILANGAN 14
Silangan Timetable

* Presented
Pre-Feasibility Study Obtain remaining Early works/mine
to the Board (August 2014) government development/
permit approvals project execution
Complete Definitive
Feasibility Study

Q3 2014 2015/ 2016- 2018/2019

-Q4 2015 2016 2018 Production

Satisfy requirements of
project financing
DMPF
Reduce project risks from: approved in
Metallurgy: through bulk sample
pilot plant test work program April 2015
Hydrogeology: through
continued pumping, monitoring
and modelling
Fieldwork and Engineering:
to support an industry standard
15
bankable feasibility study
Next Steps: Finish Bulk Sampling

Bulk sampling work completed

First 70 tons arrived at the Lab in Perth WA Mar 30, 2015
Pilot test work commencing
Second batch of samples (30 Tons) expected to reach Perth on June 2015
Currently securing a caved portion of the OCD

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Next Steps: Complete DFS
Geology
Final Mineral Resource Model to be completed by July 15

Mining
Pit optimization and equipment selection ongoing

Process
Flow sheet selected and throughput optimization ongoing

Acid Cyanide
Crush Grind Float
Leach Leach

Float
Cathode Dore
Con.

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Next Steps: Complete DFS
Balance of Plant
TSF: Embankment construction planning commenced
Logistics: port options study in progress
(construction of own port likely)
Infrastructure: location options planning ongoing
Power: options assessment in progress (MGP and EPC)

Market Study
Metal/Commodities and TCRC pricing ongoing

Third Party Audit

Tenders undergoing evaluation

DFS on schedule for October 2015 completion

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Next Steps: Commence Early Works
(by June 2015 to meet Q1 2018 first ore)

Discipline Key Activities

Detailed design and engineering for civil, mechanical, and electrical

Engineering
infrastructure/equipment

Procurement Long lead plant equipment (deposits/allocation of build slot)

Tree cutting permit on critical path for early works

Enabling
(tree-cutting, clearing and grubbing, access pioneering)
Works
Area preparation for Process Plant, workshops, camp

Social
Community development planning in progress
Preparations
Strong support from the Governor and the other Congressmen

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OIL AND GAS EXPLORATION 20
Financial Performance
% Inc
(in PhP million) 1Q2015 1Q2014
(Dec)
Gross revenue 38 102 (63%)
Cost and expenses 81 97 (16%)
Income (loss) from operations (44) 5 -
Other income (charges) (1) 21 -
Reported net income (loss) (44) 26 -

62% decline in petroleum revenues due to:

Slowdown in Galoc Phase II production
47% drop in crude oil prices
16% decline in cost and expenses due to:
Lower output
Continued cost containment

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Financial Position
ASSETS (in PHP million)
As of Dec As of Dec % Inc
31, 2014 31, 2013 (Dec)
Cash & cash equivalents 1,852 1,908 -3%
Others 125 153 -18%
Current assets 1,978 2,061 -4%
Deferred exploration costs & other
6,449 6,436
NCA 0%
Total assets 8,427 8,497 -1%

LIABILITIES AND STOCKHOLDERS EQUITY

(in PHP million)
As of Dec As of Dec 31, % Inc
31, 2014 2013 (Dec)
Due to Parent 3,416 3,422 0%
Others 54 65 -17%
Current liabilities 3,470 3,487 0%
Deferred income tax liability & others 1,112 1,112 0%
Accounts payable 227 226 0%
Non-current liabilities 1,323 1,338 -1%
Total liabilities 4,793 4,824 -1%
Capital stock, RE & others 1,700 1,700 0%
Deficit (1,167) (1,146) 2%
Others (5) (8) -38%
Non-controlling interest 3,106 3,127 -1%
Total equity 3,634 3,673 -1%

Total Liabilities and SHE 8,427 8,497 -1% 22

Strong Management, Corporate
Governance, CSR & IR Platforms
Most Promising Company of the Year
(Corporate Governance Asia)
November 2014 Hong Kong

Best Investor Relations Company

(Corporate Governance Asia)
April 2015 Hong Kong

Corporate Governance Company of the Year

(Asia CEO Awards)
November 2014 Manila
Finalist: CSR Company of the Year

Gold Award in Financial Performance,

Management, Corporate Governance,
Investor Relations, Environmental and
Social Responsibility
(The Asset Magazine)
December 2014 Hong Kong

Award of Excellence 2013 Annual Report

(Philippine Quill Awards)
March 2015
Integrated Management Systems (IMS) Certification
(TUV Rheinland)
April 2015 Manila
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End of Presentation
Thank you