Oceanagold Corporation · TSX:OGC
Oceanagold — FY2020 Earnings Presentation
38 slides from Oceanagold's earnings presentation, Feb 19, 2021
Slide 1: 2020 Results and Multi-Year Outlook
2020 Results and Multi-Year Outlook FEBRUARY 19, 2021 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: Multi-Year Outlook (ex-Didipio)
3 Multi-Year Outlook (ex-Didipio) GROWING PRODUCTION, DECREASING COSTS, INCREASING MARGINS MULTI-YEAR OUTLOOK(1) (based on mid-points) 600 $1,400 Production All-in Sustaining Costs 75% INCREASE IN GOLD PRODUCTION OVER 5-YEARS 500 $1,300 20% DECREASE IN AISC OVER 5-YEARS All-In Sustaining Costs (USD/
Slide 4: 2020 Overview
4 2020 Overview PROGRESS MADE; FOCUSSED ON DELIVERING LONG-TERM, SUSTAINED VALUE RETAINED HIGH-RANKING ESG PERFORMANCE & PRACTICES Announced zero net carbon initiative by 2050 DELIVERED ON REVISED PRODUCTION GUIDANCE With improved health & safety performance despite ongoing risks associated with COV
Slide 5: Health and Safety
5 Health and Safety HEALTH & SAFETY OF OUR EMPLOYEES IS PARAMOUNT & UNDERPINS SAFETY CULTURE TOTAL RECORDABLE INJURY FREQUENCY RATE (12-Month Moving Average) 14 13.06 12 Didipio First Haile Gold Mine Production First Production 10 8.09 Waihi Acquisition 8 and First COVID-19 Global TRIFR Production P
Slide 6: Results Overview
6 Results Overview STRONG END TO 2020, CREATING POSITIVE MOMENTUM INTO 2021 OPERATING RESULTS Q4 2020 2020 OPERATIONS GOLD PRODUCTION 99.2 301.7 koz » QoQ production increased ~57% from higher production at Haile & Macraes & Waihi resumption GOLD SALES 96.4 310.5 koz AVERAGE GOLD PRICE $1,726 $1,597
Slide 7: Capital Investment Overview
7 Capital Investment Overview 2020 INVESTMENT ADVANCES ORGANIC GROWTH PROJECTS CONSOLIDATED (USDm) Q4 2020 Q3 2020 2020 GENERAL OPERATING 6.7 7.7 28.0 PRE-STRIP & CAPITALISED MINING WAIHI 12.9 22.4 65.8 GROWTH CAPITAL MACRAES 46.2 43.7 150.4 (1) EXPLORATION 5.9 7.9 22.7 (2) TOTAL 71.7 81.7 266.9 Mar
Slide 8: Capital Allocation
8 Capital Allocation STRONG BALANCE SHEET WITH REINVESTMENT IN HIGHLY ACCRETIVE ORGANIC GROWTH NEAR-TERM USES OF CASH FLOWS AS AT DECEMBER 31, 2020 Currently investing to drive long-term shareholder CASH DRAWN FACILITY DEBT value… $179 $200 million Invest in value accretive organic million growth pr
Slide 9: Outlook
OUTLOOK Q = fe) q ; WwW 2) ic)
Slide 10: 2021 Initiatives
10 2021 Initiatives FOCUSSED ON DELIVERING VALUE OVER THE LONG-TERM BUILD ON OUR TOP RATED ESG PERFORMANCE Demonstrate the Company’s leadership through continued investor engagement, ESG execution DELIVER ON OUR COMMITMENTS Acutely focused on driving operational excellence while effectively managing
Slide 11: ESG Leadership
11 ESG Leadership SUSTAINABILITY IS FUNDAMENTAL TO THE WAY WE DO BUSINESS 2021 KEY INITIATIVES Establishing interim targets to achieve net zero emissions by 2050 Implementing a Biodiversity Management Standard Implementing Human Rights Trout Hatchery, Macraes Policy HIGHLY-RANKED AMONG GOLD INDUSTRY
Slide 12: Robust Organic Growth Pipeline
12 Robust Organic Growth Pipeline INVESTING IN ATTRACTIVE GOLD DISTRICTS HAILE WAIHI MACRAES South Carolina, United States North Island, New Zealand South Island, New Zealand 2023 2023 2023 Haile Martha Golden Point Underground (1) Underground (2) Underground (3) » 1st Production: Q4 2022 » FIRST PR
Slide 13: Multi-Year Outlook (ex-Didipio)
13 Multi-Year Outlook (ex-Didipio) GROWING PRODUCTION, DECREASING COSTS, INCREASING MARGINS MULTI-YEAR OUTLOOK(1) (based on mid-points) 600 $1,400 Production All-in Sustaining Costs 75% INCREASE IN GOLD PRODUCTION OVER 5-YEARS 500 $1,300 20% DECREASE IN AISC OVER 5-YEARS All-In Sustaining Costs (USD
Slide 14: 2021 Guidance (ex-Didipio)
14 2021 Guidance (ex-Didipio) YOY 20% PRODUCTION INCREASE AT 12% LOWER AISC PRODUCTION & COSTS Haile Waihi Macraes Consolidated(1) Gold Production koz 150 – 170 35 – 45 155 – 165 340 – 380 All-in Sustaining Costs $/oz 950 – 1,100 1,350 – 1,450 1,000 – 1,100 1,050 – 1,200 Cash Costs $/oz 750 – 850 1,
Slide 15: Haile
15 Haile NEAR-TERM INVESTMENT DELIVERS ATTRACTIVE LOM FREE CASH FLOWS HAILE 2021 GUIDANCE(1) 2021 OPERATING ASSUMPTIONS » Gold Production → 150 – 170 koz Mining Physicals » Cash Cost → $750 – $850 per oz sold Waste Mined Mt 35 – 38 » Site AISC → $950 – $1,100 per oz sold Ore Mined Mt 3.6 – 3.8 » Sus
Slide 16: Managing Risks
16 Managing Risks ADDRESSING EXCEPTIONAL HEALTH AND WEATHER IMPACTS ANNUAL RAINFALL 70 Kershaw, South Carolina, USA 65 2020 EXTERNAL FACTORS 2020 IMPACTS 60 » Rainfall was 132% of 20-year » Lost mining days → 60 Rainfall (inches) 55 47 inch – avg. average 50 » Mine utilisation → 57% 45 » 63 COVID-19
Slide 17: Mining Improvements
17 Mining Improvements DEMONSTRATED CONTINUED MINING IMPROVEMENTS DESPITE EXTERNAL CHALLENGES MINING MOVEMENTS MINING UNIT COSTS Waste Ore % of Avg. Rainfall $6.00 12.0 2.5 $5.00 10.0 2.0 $4.00 8.0 USD per tonne mined Material Mined (Mt) 1.5 Mined Grade (g/t) $3.00 6.0 1.0 $2.00 4.0 0.5 2.0 $1.00 0.
Slide 18: Processing
18 Processing PLANT UPGRADES DELIVER HIGHER THROUGHPUTS AND IMPROVED RECOVERIES MILLING RATE Annual Average Mill Feed Head Grade 1,000 3.50 900 3.00 800 Head Grade (g/t) 700 2.50 Mill Feed (kt) 600 2.00 500 400 1.50 300 1.00 200 0.50 100 IsaMill 0 0.00 2019 2017 2017 2017 2017 2018 2018 2018 2018 20
Slide 19: Haile Production Sequencing
19 Haile Production Sequencing MULTIPLE SOURCES OF ORE FEED PROVIDE OPERATING FLEXIBILITY OVER THE LOM 2021 2022 2023 2024 2025 2026 2021 GROWTH 2027 CAPITAL 2028 INVESTMENT 2029 2030 Mill Zone Phase 2 Other $115 - $125 million Snake Phase 2 $20 - $25 HUG Growth Capital $30 - $35 Investment Snake Ph
Slide 20: HUG Development
20 HUG Development UNDERGROUND PRODUCTION PROVIDES OPERATING OPTIONALITY PROJECT DELIVERABLES 2021 2022 H1 H2 H1 H2 UG Mining & EPCM Contractor Selected Surface Earthworks Surface Infrastructure Production Portal Construction Vent Portal Construction Decline Development Access First Production Level
Slide 21: HUG Exploration
21 HUG Exploration THE FUTURE AT HAILE IS EXPANDING THE UNDERGROUND N Champion Horseshoe Deposit 0.42Moz Reserves @ 3.78g/t Au 0.53Moz M&I @ 4.95 g/t Au Horseshoe Deposit 0.3Moz Inferred Mill Zone @ 4.4 g/t Au Ledbetter Snake Aquarius Exploration Target Horseshoe Extension Target Palomino Deposit Vi
Slide 22: SEIS Update
22 SEIS Update SEIS DRAFT EXPECTED WITH APPROVAL BY MID-YEAR SUPPLEMENTARY ENVIRONMENTAL IMPACT STATEMENT (SEIS) FACILITATES: » Consolidation / expansion of pits » Development of Haile Underground » Additional PAG, overburden and TSF storage » Larger mine footprint DRAFT 45-DAY APPROVAL / SEIS PUBLI
Slide 23: Macraes
23 Macraes GROWING RESOURCE AT GOLDEN POINT UG UNDERPINS MACRAES MINE LIFE EXTENSION MACRAES 2021 OUTLOOK (1) 2021 OPERATING ASSUMPTIONS » Gold Production → 155 – 165 koz Mining Physicals » Cash Cost → $700 – $800 per oz sold Waste Mined Mt 40 – 43 » Site AISC → $1,000 – $1,100 per oz sold Total Ore
Slide 24: Macraes Production Sequencing
24 Macraes Production Sequencing GOLDEN POINT UNDERGROUND AND OPEN PIT EXPANSIONS EXTEND MINE LIFE TO 2028 2021 2022 2023 2024 2025 2026 2021 2027CAPITAL INVESTMENT 2028 2029 2030 Exploration Coronation North $7 - $10 Frasers West Other General Projects $20 - $25 $20 - $25 Gay Tan 2 $30 - $35 Capita
Slide 25: GPUG Development
25 GPUG Development GPUG TO SUPPLEMENT AND REPLACE EXISTING FRUG PRODUCTION Round Hill Stage 1 Open Pit RESERVES(1) 0.16 Moz @ 2.1 g/t Au M&I RESOURCES 0.26 Moz @ 2.7 g/t Au INFERRED RESOURCES 0.08 Moz @ 2.5 g/t Au 1. Reported Resources are as of 30 June 2020.
Slide 26: Macraes Exploration
26 Macraes Exploration ROBUST RESOURCE UNDERPINS LEVERAGE TO THE GOLD PRICE CURRENT LIFE OF MINE ORE SOURCES » Coronation North » Frasers Underground » Frasers West » Golden Point Underground » Gay Tan Multiple Phases » Innes Mills » Deepdell » Round Hill Stage 1 » Golden Bar MINE LIFE EXTENSION OPP
Slide 27: Waihi
27 Waihi EMERGING WORLD CLASS GOLD DISTRICT WAIHI 2021 OUTLOOK 2021 OPERATING ASSUMPTIONS » Gold Production → 35 – 45 koz Mining Physicals » Cash Cost → $1,000 – $1,100 per oz sold Ore Mined kt 370 – 390 » Site AISC → $1,350 – $1,450 per oz sold Processing Physicals » Sustaining Capital → $10 – $15
Slide 28: MUG Development
28 MUG Development MUG UNDERPINS ADVANCEMENT OF GREATER WAIHI DISTRICT FIRST PRODUCTION ACHIEVED GROWING RESOURCE REPORTED(1) Indicated Resources: 1.0 Moz @ 5.2 g/t Inferred Resources: 0.4 Moz @ 4.7 g/t FEASIBILITY STUDY EXPECTED BY END OF Q1/21 1. Reported Resources as of December 2020. See Company
Slide 29: WKP Project
29 WKP Project HIGH-GRADE PROJECT LEVERAGING EXISTING PROCESSING INFRASTRUCTURE SELECT 2020 DRILL RESULTS(1) 48.9m @ 22.8g/t WKP96A 3.1m @ 169.0g/t WKP95A 2.2m @ 45.6g/t WKP97 9.0m @ 41.4g/t WKP97 1. See Company Press Release “OceanaGold Intersects Additional High-Grade Gold Mineralisation at WKP in
Slide 30: Resource Consenting Process
30 Resource Consenting Process WELL-UNDERSTOOD AND PREVIOUSLY NAVIGATED PROCESS
Slide 31: Didipio
31 Didipio WORLD CLASS GOLD DEPOSIT SUPPORTED BY A DEDICATED FILIPPINO WORKFORCE PRODUCTION & COSTS 200 Gold Copper 25 180 » Renewal terms under final review with 160 ~120Koz Au and 20 Government agencies 140 12Kt Cu @ 1st Copper Production (kt) Quartile AISC Gold Production (koz) 120 15 » Continuin
Slide 32: Didipio Restart
32 Didipio Restart UP TO 12 MONTHS TO ACHIEVE FULL OPERATIONAL CAPACITY DRIVERS PRODUCTION CYCLE & PROCESSES Consumables GOLD & COPPER Hiring » Underground ore stoping and development recommences FULL Equipment Readiness PRODUCTION » Process plant recommissioning Logistics & Access » Paste plant rec
Slide 33: Wrap-Up
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Slide 34: Multi-Year Outlook (ex-Didipio)
34 Multi-Year Outlook (ex-Didipio) GROWING PRODUCTION, DECREASING COSTS, INCREASING MARGINS MULTI-YEAR OUTLOOK(1) (based on mid-points) 600 $1,400 Production All-in Sustaining Costs 75% INCREASE IN GOLD PRODUCTION OVER 5-YEARS 500 $1,300 20% DECREASE IN AISC OVER 5-YEARS All-In Sustaining Costs (USD
Slide 35: A Robust Gold Miner with Significant Upside
35 A Robust Gold Miner with Significant Upside INVESTING IN LONG-TERM VALUE; GROWTH AT INCREASING MARGINS 1200 OGC PEER LANDSCAPE(1) Market Cap (US$Bn) Higher Production 1.0 B2Gold 1000 2.0 Yamana Northern Star Centerra Endeavour 800 2020E Production (Gold koz) Evolution SSR Mining 4.0 OGC IAMGOLD 2
Slide 36: q fh Q
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Slide 37: 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
Slide 38: Cautionary and Technical Statements
38 Cautionary and Technical Statements PRELIMINARY ECONOMIC ASSESSMENT CAUTIONARY STATEMENT The PEA is a preliminary technical and economic study of the potential viability for the Waihi District project. The production target and financial forecast referred to in the PEA are comprised of 51% Indica