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

3

• 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

OPERATING AND FINANCIAL HIGHLIGHTS 4

5

Operating Statistics

1Q2015 1Q2014 Inc (Dec)

Tonnes Milled ('000) 2,221 2,396 -7% Operating Days 88 90 -2%

Ore Grade

Gold - gms/DMT 0.435 0.439 -1% Copper - % 0.204 0.223 -9%

Production

Gold – ozs 25,997 26,442 -2% Copper - lbs ('000) 8,361 9,468 -12%

Prices

Gold (US$/ounce) 1,189 1,371 -13% Copper (US$/pound) 2.71 2.85 -5%

Tonnage affected by lower

operating days and care and

maintenance

Lower grades due

to natural depletion of

higher grade ore

Drop in metal production

attributed to lower tonnage

and ore grades

5

5

6 *excludes insurance gains from business interruption of P427 million

(in PHP million,

unless indicated) 1Q2015 1Q2014 Inc/(dec)

Gross Revenue 2,393 2,913 -18%

Marketing Charges 200 214 -7%

Cost & Expenses 1,887 2,274 -17%

Income from Operations 306 426 -28%

Other Inc / (charges) 110 (49) 324%

Provision for Tax (111) (109) 1%

Net Income 305 267 14%

Core Net Income 214 278 -23%

Reported EPS (Php) 0.067 0.051 30%

Core EPS (Php) 0.043 0.056 -23%

Financial Highlights

Revenue down due to lower

output and depressed metal

prices

Drop in cost & expenses

due to cost containment

Net income boosted by cost

management and sale of non-

core assets

6

7

Revenue Breakdown

7

2,913 2,393

1Q2015 1Q2014

Revenue Share per Product (PhP million)

Gold

Copper

Silver

Petroleum & other

1%

2%

38%

59%

40%

55%

1%

4%

PRODUCT BREAKDOWN (PhP million)

1Q2015 1Q2014 Inc (Dec)

Gold 1,423 1,610 -12%

Copper 912 1,178 -23%

Silver 19 22 -12%

Petroleum & others 38 102 -63%

TOTAL 2,393 2,913 -18% 7

8

Cost and Expenses

8

Decline in production cost

due to: More efficient use of ball

mills and reagents

Reduction in overhead

expenses

48% drop in G&A due to

stringent cost control

measures

(in PHP million) 1Q2015 1Q2014 Inc

(Dec)

Production cost

Materials & Supplies 427 417 2%

Power 431 426 1%

Labor 212 312 -32%

Contracts 65 146 -55%

Others 53 91 -42%

Cash Production cost 1,188 1,392 -15%

Depreciation & Amortization 373 423 -12%

Total Production Cost 1,561 1,815 -14%

Excise Tax & Royalties 114 138 -17%

Operating Cost (Mining) 1,675 1,953 -14%

G&A (Mining) 114 220 -48%

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

9

(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) -

Breakdown of Other Charges - Net

9

Capital Expenditures

CAPITAL EXPENDITURE BREAKDOWN

(PhP million)

1Q2015 1Q2014

Padcal & Head Office 310 360

Silangan & Kalayaan 918 979

Other mine exploration 20 39

Oil & gas exploration 5 152

TOTAL 1,253 1,530

10

10

1Q2015 1Q2014

CAPITAL EXPENDITURE PERFORMANCE

Oil & gas exploration

Other mine exploration

Silangan & Kalayaan

Padcal & Head Office

11

Financial Position

Sustained investments in

Silangan and Padcal push

deferred exploration costs

higher

Repayment of P705 million

in local bank loans (as of

April 2015) reduced Parent

Company debt to P3.6B

11

LIABILITIES AND STOCKHOLDERS’ EQUITY (in PHP million)

As of Mar

31, 2015

As of Dec 31,

2014

Inc

(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%

Total equity 27,138 27,042 0%

Total Liabilities and SHE 44,261 44,640 -1%

ASSETS (in PHP million)

As of Mar

31, 2015

As of Dec

31, 2014

Inc

(Dec)

Cash & cash equivalents 4,105 5,232 -22%

Receivables & others 4,145 4,299 -4%

Current assets 8,250 9,530 -13%

Property, plant & equipment 7,390 7,139 4%

Deferred exploration costs/others 28,621 27,971 2%

Total assets 44,261 44,640 -1%

SELECTED FINANCIAL RATIOS

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

12

Cash Flows

12

(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%

13

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%

Breakeven Analysis

13

UPDATE ON SILANGAN 14

* Presented Pre-Feasibility Study

to the Board (August 2014)

Complete Definitive Feasibility Study

Early works/mine development/

project execution

Obtain remaining government

permit approvals

Satisfy requirements of

project financing

Reduce project risks from: Metallurgy: through bulk sample

pilot plant test work program

Hydrogeology: through

continued pumping, monitoring

and modelling

Fieldwork and Engineering:

to support an industry standard

bankable feasibility study

Silangan Timetable

15

2016-

2018 2015/

2016

Q3 2014

-Q4 2015

2018/2019

Production

DMPF

approved in

April 2015

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

16

16

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

17

Crush Grind Float Acid

Leach

Cyanide

Leach

Float

Con. Cathode Dore

17

• 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

18

Next Steps: Complete DFS

18

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

19

Discipline Key Activities

Engineering Detailed design and engineering for civil, mechanical, and electrical

infrastructure/equipment

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

Enabling

Works

• Tree cutting permit on critical path for early works

(tree-cutting, clearing and grubbing, access pioneering)

• Area preparation for Process Plant, workshops, camp

Social

Preparations

• Community development planning in progress

• Strong support from the Governor and the other Congressmen

19

OIL AND GAS EXPLORATION 20

21

(in PhP million) 1Q2015 1Q2014 % Inc

(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 -

Financial Performance

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

21

22

Financial Position

22

LIABILITIES AND STOCKHOLDERS’ EQUITY (in PHP million)

As of Dec

31, 2014

As of Dec 31,

2013

% Inc

(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%

ASSETS (in PHP million)

As of Dec

31, 2014

As of Dec

31, 2013

% Inc

(Dec)

Cash & cash equivalents 1,852 1,908 -3%

Others 125 153 -18%

Current assets 1,978 2,061 -4%

Deferred exploration costs & other

NCA 6,449 6,436

0%

Total assets 8,427 8,497 -1%

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 23

End of Presentation Thank you