Oceanagold Corporation · TSX:OGC
Oceanagold — Shareholder Meeting (June 2018)
33 slides from Oceanagold's shareholder meeting presentation, June 2018
Slide 1: 2018 Annual General Meeting
2018 Annual General Meeting Jim Askew, Chairman; and Mick Wilkes, President and CEO 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: Today's Agenda
3 TODAY’S AGENDA 1. INTRODUCTION 2. FORMAL BUSINESS OF THE MEETING 3. OVERVIEW OF 2017 4. OPERATIONS 5. GROWTH 6. OUTLOOK
Slide 4: Introduction
4 INTRODUCTION 2018 Annual General Meeting
Slide 5: Your Board of Directors
5 YOUR BOARD OF DIRECTORS Jim Askew Mick Wilkes Paul Sweeney President & Chief Executive Dr. Geoff Raby Chairman Director Director Officer Ian Reid Bill Myckatyn Diane Garrett Joey Leviste Nora Scheinkestel Director Director Director Director Director
Slide 6: Welcome Your New Directors
6 WELCOME YOUR NEW DIRECTORS Nora Scheinkestel Ian Reid Director Director Significant banking and metallic mining Extensive Board and corporate experience experience • Senior management positions in Caterpillar • 25+ years on Boards • President of Finning (Canada) • Served on the Board of Newcrest,
Slide 7: Farewell of Directors
7 FAREWELL OF DIRECTORS Jim Askew (Chairman) “On behalf of the Board, I sincerely thank Diane, Bill and Joey for their Board service to OceanaGold and wish them all the very best in their future endeavours.” Joey Leviste Bill Myckatyn Diane Garrett Director Director Director
Slide 8: Executive Management Team
8 EXECUTIVE MANAGEMENT TEAM Mick Wilkes Mark Cadzow Scott McQueen Sharon Flynn Craig Feebrey President & Chief EVP and EVP and EVP External Affairs and EVP Exploration Executive Officer Chief Development Officer Chief Financial Officer Social Performance Michael Holmes Yuwen Ma Cody Whipperman Liang
Slide 9: Overview of 2017
9 OVERVIEW OF 2017 A record year of financial and operational performance
Slide 10: 2017 Highlights
10 2017 HIGHLIGHTS RECORD ANNUAL NET PROFIT & REVENUE REDUCED NET DEBT BY ~$88M PAID OVER $12M IN DIVIDENDS, DECLARED ADDITIONAL $6M IN DIVIDENDS IN Q1/18 STRONG OPERATIONAL PERFORMANCE AT HAILE CONTINUED POSITIVE EXPLORATION RESULTS AT WAIHI
Slide 11: 2017 Overview
11 2017 OVERVIEW 2017 FINANCIAL RESULTS REVENUE $724 million EBITDA $408 million NET PROFIT $172 million ADJUSTED EPS (fully diluted) $0.32 RECORD FINANCIALS ADJUSTED CFPS (fully diluted) $0.62 ▶Record production and sales volumes ▶Oct 1 2017 commercial production at Haile 2017 OPERATIONAL RESULTS ▶
Slide 12: 12 Month Total Shareholder Returns
12 MONTH TOTAL SHAREHOLDER RETURNS 100 80 60 40 20 0 -20 -40 -60 *Source: Bloomberg. Total shareholder returns from 31/12/2016 to 31/12/2017 in US Dollars
Slide 13: 3 Year Total Shareholder Returns
13 3 YEAR TOTAL SHAREHOLDER RETURNS 3,644% 400 300 200 100 0 -100 -200 *Source: Bloomberg. Total shareholder returns from 31/12/2014 to 31/12/2017 in US Dollars
Slide 14: Track Record of Consistent Returns
14 TRACK RECORD OF CONSISTENT RETURNS EBITDA MARGIN* RETURN ON INVESTED CAPITAL* OceanaGold Peer Average OceanaGold Peer Average 60% 20% 50% 15% 40% 30% 10% 20% 5% 10% 0% 0% -10% 2011 2012 2013 2014 2015 2016 2017 -5% 2011 2012 2013 2014 2015 2016 2017 *Source: Bloomberg
Slide 15: Consistent Profitability
15 CONSISTENT PROFITABILITY Net Income – GAAP (5-Yr Total) Adjustments (5-Yr Total) Net Income - Adjusted (5-Yr Total) ($USM) ($USM) ($USM) Randgold $1,228 $0 $1,228 Centerra $516 $184 $700 OceanaGold $425 $186 $611 Northern Star $403 $44 $447 Regis Resources $273 $188 $462 Tahoe $153 $199 $352 Sara
Slide 16: Operations
16 OPERATIONS Our suite of top tier assets continue to shine
Slide 17: Health & Safety Performance
17 HEALTH & SAFETY PERFORMANCE 2017 - Steady TRIFR performance ▶A continued focus on building employee engagement in safe work practices ▶Proactively reinforce hazard control and workplace and behavioural standards through the Gold Standard leadership engagement and inspection activities ▶Improve fa
Slide 18: Recognised as a Responsible Miner
18 RECOGNISED AS A RESPONSIBLE MINER SAFETY ▶Haile: 2017 Excellence in Safety Award ▶Didipio: Best Workplace Practices (Gold) ▶Didipio: Safest Mining Operation and Safest Surface Mining Operation ▶Didipio: Safest Mineral Processing Award (Concentrator category) ENVIRONMENT ▶Didipio: Best Practices,
Slide 19: 2017 Sustainability Report
19 2017 SUSTAINABILITY REPORT STRENGTHENING SUSTAINABILITY PERFORMANCE ▶2,068 employees; increased average training hours ▶87% of procurement investment within host countries ▶Annual social investment across all sites increased by 150% YoY ▶Strengthening community support across all sites ▶Implement
Slide 20: Solid Financial Performance
20 SOLID FINANCIAL PERFORMANCE Cash Balance $89m Total Liquidity $119m GENERATED STRONG CASH FLOWS Credit Facility ▶Increased cash balance by 22% from Q4 2017 (Undrawn) $30m ▶Continued to pay down debt ▶Paid dividends of $0.02 per share Credit Facility ▶Continue to invest in growth while paying down
Slide 21: A Strong Year Across All Assets
21 A STRONG YEAR ACROSS ALL ASSETS WAIHI HAILE DIDIPIO MACRAES Highlights: Highlights: Highlights: Highlights: • Martha Project permitting • Commercial production Oct 17 • Record annual production • Strong production on Coro Nth. • Improving productivity and costs • Continued plant stability • U/G p
Slide 22: Growth
22 GROWTH Leveraging our significant pipeline of organic opportunities to create long-term shareholder value
Slide 23: OceanaGold Overview
23 OCEANAGOLD OVERVIEW STRATEGIC HAILE INVESTMENTS LOM: 2032+ DIDIPIO GSV – 16% LOM: 2032+ NUG – 16% JOINT VENTURES WAIHI LOM: 2019+ LA CURVA MACRAES CLAUDIA LOM: 2020+
Slide 24: Consistent Strategy
24 CONSISTENT STRATEGY OPERATE EXISTING ASSETS DRIVE INNOVATION THROUGH EFFICIENTLY TECHNOLOGY OCEANAGOLD VALUE CREATION ADVANCE ORGANIC GROWTH SEEK GEOGRAPHIC & OPPORTUNITIES PRODUCTION DIVERSIFICATION EFFECTIVE MANAGEMENT & STRONG SHAREHOLDER HIGH QUALITY ASSETS ORGANISATION SUPPORT
Slide 25: Advancing Organic Growth
25 ADVANCING ORGANIC GROWTH WAIHI HAILE DIDIPIO MACRAES • Continue permitting potential • Plant expansion and • Continue Panel 2 • 10-year potential LOM extension 10-year LOM extension debottlenecking targeting • U/G ramp-up to 1.6Mt in 2020+ • Technical study in progress • Extensive greenfield and
Slide 26: Waihi Mine Life Extension
26 WAIHI MINE LIFE EXTENSION EXPANSION ACTIVITIES ▶Commenced permitting of Martha Project – a potential 10-year LOM extension ▶Announced maiden 110,000oz. Resource at Gladstone ▶Extensive drilling beneath Martha Pit and at Favona ▶Continued advancement of other targets 1. Total Gold Resource includi
Slide 27: Haile Expansion
27 HAILE EXPANSION EXPANSION ACTIVITIES ▶Increased mine life and a 60% increase in net cash flows ▶Increase annual average production to 189,000 ounces ▶Commenced works to increase plant throughput to 4.0 Mtpa ▶Continue debottlenecking activities within the process plant ▶Q1 2019 commencement of reg
Slide 28: Didipio Expansion and Exploration
28 DIDIPIO EXPANSION AND EXPLORATION EXPANSION ACTIVITIES ▶Construction of Panel 2 continues ▶Underground ore production rates increasing as expected - 2018: 500 – 600 kt - 2019: 1.2 – 1.3 Mt - 2020 and beyond: 1.6 Mt ▶Increasing grades and mining rates in 2018 EXPLORATION ACTIVITIES ▶22,400m of dri
Slide 29: Macraes Re-Development
29 MACRAES RE-DEVELOPMENT EXPANSION ACTIVITIES ▶Resource of 1.49Moz. gold (1)(2) ▶Round Hill / Golden Point Technical study progressing ▶Objective: unlock value through relocation of the plant ▶Mine life extension potential of 10 years ▶Encouraging drill results at Golden Point are increasing the re
Slide 30: Outlook
30 OUTLOOK Staying the course in 2018 as we keep our eye on the long-term
Slide 31: 2018 Guidance by Asset
31 2018 GUIDANCE BY ASSET WAIHI HAILE DIDIPIO MACRAES Production: Production: Production: Production: • 75,000 - 85,000 ounces • 135,000 - 155,000 ounces • 80,000 - 90,000 ounces • 190,000 - 200,000 ounces AISC AISC • 15,000 - 16,000 tonnes Cu AISC • $750 - $790 per ounce sold • $725 - $775 per ounc
Slide 32: Looking Ahead
32 LOOKING AHEAD(1) HIGH MARGIN, STRONG YEILDS ESTIMATED CASH FLOWS(2) ▶Highly competitive consolidated AISC in 2018e(3) 2018e GOLD PRODUCTION 505,000 oz. ▶Continued strong cash flow yield in 2018e(3) AISC $750 per oz. sold ▶Budgeted gearing ratio below 5% at end of 2018e CASH FLOW (@$1,200/oz. Au)
Slide 33: Corporate Headquarters
Corporate Headquarters Americas Corporate Office Level 14, 357 Collins Street 777 Hornby Street Suite 1910 Melbourne, Victoria, 3000 Vancouver, British Columbia V6Z 1S4 Australia Canada PO Box 355, E: info@oceanagold.com Flinders Lane Post Office Melbourne, Victoria, 3000 Australia T: +61 3 9656 530