Slide 1: Q3 2018 Results Presentation
Q3 2018 RESULTS PRESENTATION October 26, 2018 CONSISTENTLY DELIVERING ON COMMITMENTS INNOVATION I PERFORMANCE I GROWTH
Slide 2: Cautionary and Technical Statements
2 Cautionary and Technical Statements 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 off
Slide 3: Results Highlights
3 Results Highlights RECORD YTD 2018 REVENUE OF $589.2 MILLION $50 MILLION DEBT REDUCTION; MAINTAINED TOTAL LIQUIDITY AT $139.7 MILLION CONTINUED TREND OF STRONG MARGINS AND RETURNS EXPLORATION SUCCESS; INCREASED MARTHA UG RESOURCE; NEW DISCOVERY AT WKP EYEING MINE LIFE EXTENSION AT MACRAES THROUGH
Slide 4: Results Overview
4 Results Overview Q3 2018 OPERATING RESULTS Q3 2018 YTD 2018 YTD 2018 vs. YTD 2017 GOLD PRODUCTION 138,034 406,631 oz REVENUE GOLD SALES 134,134 400,556 oz COPPER PRODUCTION 4,310 12,118 tonnes 23% COPPER SALES 4,232 11,404 tonnes AISC $761 $751 per oz sold NET PROFIT Q3 2018 FINANCIAL RESULTS Q3 2
Slide 5: Solid Margins & Returns
5 Solid Margins & Returns 34 CONSECUTIVE QUARTERS OF DELIVERING A POSITIVE ROIC EBITDA MARGIN* RETURN ON INVESTED CAPITAL* OceanaGold Peer Average OceanaGold Peer Average 60% 20% 50% 15% 40% 10% 30% 20% 5% 10% 0% 0% -10% -5% 2011 2012 2013 2014 2015 2016 2017 YTD 2018 2011 2012 2013 2014 2015 2016 2
Slide 6: Operational Results
6 OPERATIONAL RESULTS Macraes Gold Mine, New Zealand
Slide 7: Health & Safety Performance
7 Health & Safety Performance Total Recordable Injury Frequency Rate* 14 13.06 12 10 8.09 8 6 5.49 4.56 4.70 3.99 3.99 4 2.69 2 0 2011 2012 2013 2014 2015 2016 2017 2018 YTD ▪ Proactive site preparation to ensure no safety or environmental incidents occurred during the extreme weather events in Sout
Slide 8: Haile Operations Overview
8 Haile Operations Overview ON TRACK TO ACHIEVE PRODUCTION & COST GUIDANCE Q3 2018 YTD 2018 THIRD QUARTER OVERVIEW TRIFR – 12.8 per million work hours ▪ Decreased QoQ production due to lower mill utilisation from planned shutdown GOLD PRODUCTION 28,598 104,291 oz ▪ Pebble crusher & upgraded thickene
Slide 9: Haile Expansion: Plant & Mine
9 Haile Expansion: Plant & Mine INCREASE PLANT CAPACITY: 3.5 to 4.0 Mtpa MINING EXPANSION ✅ INSTALL PEBBLE CRUSHER ✅ COMMENCE PERMITTING OF MINE EXPANSION H1 INSTALL TOWER MILL 2021 HORSESHOE U/G 2019 H1 2019 INSTALL IsaMill 2021 EXPANDED OPEN PITS 1. Refer to Haile 43-101 Technical Report located a
Slide 10: Upgraded Fine Grinding Circuit Construction
10 Upgraded Fine Grinding Circuit Construction IsaMill Tower Mill
Slide 11: Didipio Operations Overview
11 Didipio Operations Overview Q3 2018 YTD 2018 PRODUCTION GUIDANCE INCREASED TRIFR – 0.8 per million work hours GOLD PRODUCTION 32,844 91,641 oz THIRD QUARTER OVERVIEW GOLD SALES 32,209 91,703 oz ▪ Steady production QoQ; increased mill feed but slight decrease in head grade COPPER PRODUCTION 4,310
Slide 12: Didipio Underground
12 Didipio Underground RAMP-UP OF UNDERGROUND PROGRESSING WELL, INCREASING MINING RATES IN 2018 & 2019 +20 MT OF ORE STOCKPILED FOR PROCESSING INCREASING MINING RATES ▪ 2018: 500 – 600 kt ▪ 2019: 1.2 – 1.3 Mt ▪ 2020 and beyond: 1.6 Mt CONSTRUCTION OF PANEL TWO UNDERWAY POTENTIAL ADDITIONAL RESOURCES
Slide 13: Waihi Operations Overview
13 Waihi Operations Overview ON TRACK TO ACHIEVE PRODUCTION & COST GUIDANCE Q3 2018 YTD 2018 THIRD QUARTER OVERVIEW TRIFR – 6.8 per million work hours ▪ QoQ production increased on higher head grade, better recoveries GOLD PRODUCTION 26,619 65,939 oz ▪ Improved mine productivity GOLD SALES 25,999 66
Slide 14: Macraes Operations Overview
14 Macraes Operations Overview ON TRACK TO ACHIEVE PRODUCTION & COST GUIDANCE Q3 2018 YTD 2018 THIRD QUARTER OVERVIEW TRIFR – 5.8 per million work hours ▪ Steady operations with QoQ production broadly in-line GOLD PRODUCTION 49,973 144,759 oz • Head grade & mill feed similar GOLD SALES 48,598 139,10
Slide 15: Financial Results
Reefton Rehabilitation, New Zealand 15 FINANCIAL RESULTS
Slide 16: Financial Results Overview
16 Financial Results Overview Q3 2018 Q2 2018 Q3 2017 FINANCIAL DRIVERS REVENUE million $187 $206 $145 ▪ Revenue decreased 9% QoQ on lower avg gold price received EBITDA million $79 $110 $73 ▪ Sales 3.9k oz below production (timing) NET PROFIT million $22 $45 $22 ▪ Strong EBITDA margin, but lower Qo
Slide 17: Cash Flows Overview
17 Cash Flows Overview Q3 2018 Q2 2018 Q3 2017 FINANCIAL DRIVERS OPERATING CASH FLOW million $64 $109 $38 ▪ Operating cash flows remain strong, despite lower gold price received INVESTING CASH FLOW million ($59) ($60) ($50) ▪ $13m unfavourable working capital FINANCING CASH FLOW million ($63) ($8) (
Slide 18: Capital Expenditure Overview
18 Capital Expenditure Overview CONSOLIDATED (USDm) Q3 / 18 Q2 / 18 YTD 2018 2018 GUIDANCE GROWTH 24.8 21.3 66.1 102 – 116 GENERAL OPERATING 6.6 6.1 17.5 20 – 27 PRE-STRIP & CAPITALISED MINING 15.2 20.2 56.3 64 – 78 EXPLORATION 7.9 7.5 22.1 24 – 34 TOTAL 54.4 55.1 162.0 210 – 255 Q3 2018 (USDm) HAIL
Slide 19: Balance Sheet Overview
19 Balance Sheet Overview Year-on-Year Quarter-on-Quarter CASH BALANCE $70m TOTAL LIQUIDITY TOTAL DEBT Total Liquidity Excludes cash held in $140m marketable securities 18% 23% Credit Facility (Undrawn) $70m NET DEBT $110 million Credit Facility 2019 MACRAES HEDGES (Drawn) $150m ▪ Total volume: 169k
Slide 20: New Zealand Exploration Highlights
20 NEW ZEALAND EXPLORATION HIGHLIGHTS Macraes Exploration, New Zealand
Slide 21: Waihi Exploration
21 Waihi Exploration PERMITTING OF 10-YEAR MINE LIFE EXTENSION IN PROGRESS MARTHA U/G RESOURCE GROWTH (1) M&I Resource Inferred Resource 400 300 200 100 0 2016 2017 2018 MARTHA U/G RESOURCE BASED ON ONLY ONE- THIRD OF PLANNED DRILLING MARTHA U/G EXPLORATION TARGET(2) NINE DRILL RIGS CURRENTLY OPERAT
Slide 22: WKP Exploration
22 WKP Exploration POTENTIAL INCREMENTAL MILL FEED AND MINE LIFE EXTENSION TO WAIHI RECENT SIGNIFICANT INTERCEPTS FROM Tenements EAST GRABEN VEIN(1) ▪ 8.7 metres @ 24.5 g/t gold, 32.0 g/t silver ▪ 5.0 metres @ 39.0 g/t gold, 76.6 g/t silver Dome Field North ▪ 3.6 metres @ 35.8 g/t gold, 43.3 g/t sil
Slide 23: WKP Exploration
23 WKP Exploration DRILLING FOCUSSED ON EAST GRABEN VEIN – SIGNIFICANT UPSIDE EAST GRABEN VEIN East Graben Vein Long section WESTERN VEIN T STREAM VEIN
Slide 24: Macraes Golden Point Drilling
24 Macraes Golden Point Drilling RECENT SIGNIFICANT INTERCEPTS(2) ▪ 15.0 metres @ 4.3 g/t gold ▪ 9.0 metres @ 4.6 g/t gold ▪ 9.0 metres @ 3.9 g/t gold ▪ 6.6 metres @ 4.0 g/t gold Downhole widths UNDERGROUND POTENTIAL 1. Refer to OceanaGold news release dated 22 October 2018 for additional details an
Slide 25: Macraes Coronation North
25 Macraes Coronation North RECENT SIGNIFICANT INTERCEPTS(2) ▪ 49.0 metres @ 5.1 g/t gold ▪ 25.0 metres @ 4.8 g/t gold ▪ 38.0 metres @ 3.0 g/t gold ▪ 26.0 metres @ 3.1 g/t gold ▪ 29.0 metres @ 2.5 g/t gold 1. Refer to OceanaGold news release dated 22 October 2018 for additional details and informati
Slide 26: 2018 Priorities
26 2018 Priorities ON TRACK TO ACHIEVE 2018 GUIDANCE GENERATE STRONG CASH FLOWS AND DELIVER ON ORGANIC GROWTH INITIATIVES OPERATIONS GROWTH ▪ Continued improvement of safety leadership ▪ Advancing the Waihi extension plans ▪ Identifying and implementing productivity ▪ Advancing the Haile expansion p
Slide 27: Corporate Headquarters
Corporate Headquarters Americas Corporate Office Level 14, 357 Collins Street Suite 350 4725 South Monaco Street Melbourne, Victoria, 3000 Denver, Colorado, 80237 Australia United States of America T: +61 3 9656 5300 F: +61 3 9656 5333 info@oceanagold.com oceanagold.com