Slide 1: Q2 2016 Results Presentation
Consistently Delivering On Commitments August 5, 2016 Q2 2016 Results Presentation
Slide 2: Cautionary & Technical Statements
Cautionary & 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 offer t
Slide 3: Consistent Performance
Consistent Performance H2 2016 Highlights ▶ Continue to deliver on commitments » Haile development on schedule and budget » Didipio underground development advancing well » Operations on track to achieve production and cost guidance » Leading health, safety and environment performance ▶ Sector leadi
Slide 4: Strong Focus on Safety
Strong Focus on Safety Total Recordable Injury Frequency Rate* 14 12 10 8 6 4 down 74% 2 0 2011 2012 2013 2014 2015 H1 2016 *Note. Total Recordable Injury Frequency Rate = (number of recordable injuries / number of man hours worked) x 1,000,000 for the period between CY2011 to H1 2016 4
Slide 5: Consolidated Performance
Consolidated Performance OPERATIONAL FINANCIAL Consolidated Production Growth Consolidated Financial Growth 63.5 H1 2015 H1 2016 330.8 Gold production (koz.) 25.7 (40.9) 177.0 225.3 254.8 155.2 27% increase 100.9 63.2 23.5 H1 2015 Didipio Waihi Macraes and H1 2016 Revenue EBITDA Net Profit Reefton C
Slide 6: Haile Development
a) OCEANAGOLD HAILE DEVELOPMENT
Slide 7: Haile Development
Haile Development Capital Expenditure Status* KeyMilestones Milestones Key Capex spent to-date Capex remaining Engineering Complete $134m Procurement Complete $246m PAG Cell Complete Structural, Mechanical & Piping Q4/16 MajorMilestones Major Milestones Electrical, Instrumentation, Controls Q4/16 Fi
Slide 8: Haile Progress
Haile Progress Process Plant, July 22 2016 95% of concrete poured CIL and flotation tank shells near SAG and ball mills installed 40% of structural steel installed completion 8
Slide 9: Haile Progress
Haile Progress Crusher, July 22 2016 Construction of crusher well Concrete and structural build of ROM pad retaining wall complete advanced conveyor system on track 9
Slide 10: Haile Progress
Haile Progress Mining, July 22 2016 Stockpiled 0.19Mt of oxide ore and 24 hour mining operations Backhoe excavator employed legacy rehabilitation works complete 10
Slide 11: Haile Progress
Haile Progress PAG Cell, July 22 2016 First stage of PAG completed Accepting PAG material 11
Slide 12: Haile Progress
Haile Progress TSF, July 22 2016 Construction of TSF continues to Nearly 60% complete advance well 12
Slide 13: Operational Performance
Q2 2016 OPERATIONAL PERFORMANCE
Slide 14: Didipio Q2 2016 Overview
Didipio Q2 2016 Overview Didipio Gold Production and Sales Didipio Copper Production and Sales Q4 2015 Q1 2016 Q2 2016 Q4 2015 Q1 2016 Q2 2016 46,811 44,076 44,837 6,272 6,113 5,972 5,591 5,597 37,061 33,094 4,745 31,984 Gold Production (oz) Gold Sales (oz) Copper Production (t) Copper Sales (t) YTD
Slide 15: Didipio Operating Statistics
Didipio Operating Statistics Didipio Mining Performance Didipio Processing Performance Total Ore Mined (t) Total Waste Mined (t) Mill Feed (t) Recovery Gold (%) Recovery Copper (%) 1,200,000 120.0 1,000,000 94.6 95.3 94.8 100.0 800,000 89.3 89.6 90.4 80.0 5,746,144 % 5,564,339 5,535,009 600,000 60.0
Slide 16: Didipio Underground
Didipio Underground Open Pit Underground Expected completion in late 2017 First U/G ore expected late 2017 16
Slide 17: Philippines Exploration
Philippines Exploration Ramping up exploration efforts Near Mine Upper Tucod Mogambos TNN 3,000 m of drilling near mine targets Cabinwangan 50,000 m of drilling Didipio deposit from U/G MMB Regional (FTAA) Papaya Surface geochemical and geophysical works Didipio Au-Cu D’Fox ~6,000 m of drilling FTAA
Slide 18: Waihi Q2 2016 Overview
Waihi Q2 2016 Overview Waihi Gold Production & Sales* Q4 2015 Q1 2016 Q2 2016 39,927 36,983 36,758 34,987 YTD AISC: US$734 per ounce 26,540 26,904 YTD Cash Costs: US$497 per ounce Gold Produced (oz) Gold Sales (oz) 2016 YTD TRIFR of 5.53 per million man QoQ production decreased due to more hours wor
Slide 19: Waihi Operating Statistics
Waihi Operating Statistics Waihi Mining Performance Waihi Processing Performance Total Ore Mined (t) Total Waste Mined (t) Mill Feed (t) Recoveries (%) 160,000 91.3 91.2 91.3 100 140,000 90 19,684 80 40,440 120,000 70,840 70 100,000 60 80,000 50 148,304 143,361 106,198 151,612 60,000 40 134,011 30 1
Slide 20: Waihi Exploration Program
Waihi Exploration Program THREE AREAS OF FOCUS Waihi Waihi Regional (Underground drilling) (Surface drilling) Three drill rigs Four drill rigs Planning stage Testing resource potential WKP drilling to commence in Resource expansion beneath open pit Q4/16 • Correnso Deeps; • Build on existing WKP • M
Slide 21: Macraes & Reefton Q2 2016 Overview
Macraes & Reefton Q2 2016 Overview Macraes & Reefton Production & Sales Gold Produced Macraes (oz) Gold Produced Reefton (oz) Combined Gold Sales (oz) 53,335 43,568 44,165 YTD AISC: US$1,140 per ounce 37,924 34,511 YTD Cash Costs: US$847 per ounce 31,941 13,495 4,477 0* Q4 2015 Q1 2016 Q2 2016 2016
Slide 22: Macraes Key Operating Statistics
Macraes Key Operating Statistics Macraes Mining Performance Macraes Processing Performance Mill Feed (t) Recoveries (%) Total Ore Mined (t) Total Waste Mined (t) 1,470,000 81.7 90.0 81.9 80.7 1,460,000 80.0 1,464,622 70.0 1,450,000 1,455,769 60.0 1,440,000 1,456,788 50.0 9,914,137 1,430,000 40.0 6,6
Slide 23: Macraes Exploration
Macraes Exploration MACRAES RECENT DRILL RESULTS Mt.Highlay # Au From To Width (m) (m) (m) Grade (g/t) Mareburn Coronation North Coronation North 87 101 18 1.62 Coronation Pit 61 83 22 0.97 57 80 23 2.18 62 89 27 1.28 Macraes 68 87 19 2.52 Process Plant 47 88 21 1.49 77 86 9 2.27 58 77 19 2.78 Frase
Slide 24: Financial Performance
Q2 2016 FINANCIAL PERFORMANCE
Slide 25: Financial Position (as at Jun 30, 2016)
Financial Position (as at Jun 30, 2016) Strong balance sheet, liquidity and cash flows Equipment Leases $45m Total Liquidity Cash Total Debt $221m $104m $228m Drawn Facility Undrawn Facility $183m $117m QoQ cash outlays Increased liquidity • Haile capex; • Increase to revolving credit facility • Did
Slide 26: Q2 2016 Financial Summary
Q2 2016 Financial Summary Financial Performance Metal Sales Q4 2015 Q1 2016 Q2 2016 Q4 2015 Q1 2016 Q2 2016 169.8 161.1 144.6 140.5 136.0 143.6 77.9 77.3 57.6 39.7 28.3 28.2 22.6 23.5 23.1 Revenue ($m) EBITDA ($m) Net Profit ($m) Gold Sales ($m) Copper Sales ($m) Revenue increased QoQ EBITDA broadly
Slide 27: Consolidated Financial Results
Consolidated Financial Results Q2 2016 Q1 2016 Q2 2015 H1 2016 H1 2015 Gold production (ounces) 102,557 122,782 85,853 225,339 176,999 Gold sales (ounces) 115,906 117,387 82,890 233,293 169,124 Copper production (tonnes) 6,272 5,972 6,197 12,244 12,299 Copper sales (tonnes) 6,113 4,745 5,438 10,858
Slide 28: Q2 2016 Cash Flows
Q2 2016 Cash Flows Cash Flow Performance Q4 2015 Q1 2016 Q2 2016 Operating cash flows increased QoQ 122.5 103.7 • Higher gold sales 91.5 • Lower trade debtors at Didipio 62.2 41.0 31.7 Investing cash flows increased QoQ • Haile & Didipio construction Operations Cash Flows ($m) Investing Cash Flows (
Slide 29: 2016 Priorities
2016 Priorities Solid growth and cash flows from high quality assets DEVELOPMENT OPERATIONS Deliver Haile Gold Mine Further improve on safety Continue to advance Didipio U/G Deliver on guidance and cash flows construction GROWTH STAKEHOLDERS Increase resource base through Continue to deliver meaning
Slide 30: www.oceanagold.com
y / www.oceanagold.com 4) Innovation ¢ Performance ¢ Growth OCEANAGOLD