Slide 1: Q2 2017 Results Presentation
Consistently Delivering On Commitments July 28, 2017 Q2 2017 Results Presentation
Slide 2: Cautionary & Technical Statements
Cautionary & Technical Statements Cautionary N otes - I nform ation 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 offe
Slide 3: H1 2017 Results Summary
H1 2017 Results Summary OPERATING RESULTS Q2/17 Q1/17 H1/17 H1/16 GOLD PRODUCTION koz 124.4 148.0 272.4 225.3 GOLD SALES koz 129.8 126.2 256.0 233.3 COPPER PRODUCTION kt 4.32 5.96 10.28 12.24 COPPER SALES kt 5.83 4.15 9.98 10.86 AISC $ per ounce sold 681 521 599 722 FINANCIAL RESULTS Q2/17 Q1/17 H1/
Slide 4: Financial Metrics
Financial Metrics EBITDA Margin Return on Invested Capital (1) 60% 16 14 50% 12 40% 10 30% 8 6 20% 4 10% 2 0% 0 2010 2011 2012 2013 2014 2015 2016 H1 2017 2010 2011 2012 2013 2014 2015 2016 Q1 2017 H1 2017 R esults Q2 2017 R esults EBITDA MARGIN: 55.9% EBITDA MARGIN: 49.4% ADJUSTED EPS: $0.13/sh ADJ
Slide 5: Haile Optimisation Study
Haile Optimisation Study OPTIMISATION STUDY RESULTS DEMONSTRATES INHERENT VALUE Champion Small Mill Zone Ledbetter Snake Horseshoe OPTIMISED DESIGN ORIGINAL DESIGN Gold Reserves Moz 3.46 2.02 Average Annual (1) koz 189 127 Production (1) Life of Mine Years 18 13.25 (1),(2),(3) (4) Net Cash flows US$
Slide 6: Commissioning Focus Areas
Commissioning Focus Areas EST. COMPLETION AREA ISSUE SOLUTION EST. COST STATUS DATE Aperture of grate is SAG Mill grate Replace with larger grate $50k July 2017 Complete inadequate Sub-optimal density of fine Regrind inflow Close the feed circuit $200k July 2017 Complete grind material Inadequately
Slide 7: Advancing Haile: Slower Than Expected Ramp-up in Q2
Advancing Haile SLOWER Grinding THAN and EXPECTEDCircuit, Processing RAMP-UP IN Q2 YIELDED February 1 2017 LOWER RESULTS H1 2017 PRODUCTION OPERATING STATISTICS Operating Physicals Q2/17 Q1/17 36,958 ounces Ore Mined kt 538 377 Waste Mined kt 3,514 4,584 Mill Feed kt 409 351 Haile Ramp-up Profile Pl
Slide 8: TRIFR Performance
TRIFR Performance INCREASING FOCUS & ENGAGEMENT ON HEALTH AND SAFETY EXCELLENCE ENGAGEMENT Senior leaders increasing focus on one-on-one safety engagements, task observations and workplace inspections BEHAVIOURS Rolling out workforce engagement programs to focus on improved safety behaviours ENHANCE
Slide 9: Environmental, Social and Governance
Environmental, Social and Governance STRONG ESG PERFOMANCE REMAINS AN INTEGRAL PILLAR OF THE COMPANY New Zealand Significant local and regional educational investment and sponsorship Progressive rehabilitation of >740ha; advancing closure of Reefton Protection and restoration of sites with significa
Slide 10: Didipio Operations Overview
Didipio Operations Overview PRODUCTION IN LINE WITH EXPECTATIONS; SOFTER H2 PRODUCTION EXPECTED PRODUCTION SALES OPERATING STATISTICS GOLD (ounces) Operating Costs H1/17 Q2/17 42,899 47,185 Mining costs USD /t mined 3.80 Q1/17 62,748 51,467 Processing costs USD / t milled 6.64 Site G&A costs USD / t
Slide 11: Didipio Underground
Didipio Underground TRANSITION TO UNDERGROUND MINING CONTINUES TO ADVANCE WELL Didipio paste fill plant under construction OPEN PIT COMPLETE UNDERGROUND ORE FEED First ore expected at end of 2017 New underground mine plan in progress 11
Slide 12: Waihi Operations Overview
Waihi Operations Overview STEADY PRODUCTION QoQ WITH HIGHER PRODUCTION EXPECTED IN H2/17 PRODUCTION SALES OPERATING STATISTICS GOLD (ounces) Operating Costs H1/17 Q2/17 25,559 24,743 Mining costs USD / t mined 44.32 Q1/17 25,860 26,757 Processing costs USD / t milled 29.36 Site G&A costs USD / t mil
Slide 13: Macraes Operations Overview
Macraes Operations Overview PRODUCTION IN LINE WITH EXPECTATIONS; STRONGER H2 PRODUCTION EXPECTED PRODUCTION SALES OPERATING STATISTICS GOLD (ounces) Operating Costs H1/17 OP Mining costs USD / t mined 1.39 Q2/17 39,778 42,264 U/G Mining costs USD / t mined 38.11 Q1/17 38,550 35,798 Processing costs
Slide 14: Financial Results Overview
Financial Results Overview REVENUE (excludes Haile) Q2/17 $172 million REVENUE DRIVERS Increase in gold sales volume Q1/17 $162 million Higher average gold price received H1/17 $334 million EBITDA EBITDA DRIVERS Q2/17 $85 million Higher cost of sales Q1/17 $102 million Higher G&A costs Q1 included t
Slide 15: Cash Flow Statement
Cash Flow Statement OPERATING CASH FLOW Q2/17 $88.4 million STRONGER OPERATING CASH FLOW Higher revenue and positive working capital movements were Q1/17 $52.3 million partially offset by increased costs Lower income tax payments H1/17 $140.7 million INVESTING CASH FLOW INCREASED INVESTMENT CAPITAL
Slide 16: H1 2017 Capex
H1 2017 Capex H1 2017 Capex Breakdown H1 2017 Capex Breakdown Q2 2017 Capex Breakdown (USDm) (USDm) (USDm) Haile Didipio Macraes Waihi Non-Sustaining Sustaining Exploration Haile Didipio Macraes Waihi $15 $13 $8 $17 $53 $25 $35 $15 TOTAL TOTAL TOTAL $143m $143m $72m $95 $50 $32 H1 2017 Sustaining Ca
Slide 17: Financial Position (as at Jun 30, 2017)
Financial Position (as at Jun 30, 2017) CASH NET DEBT / TOTAL ASSETS $82 million (does not include ~$72m in marketable Total Liquidity $127m securities) 13% UNDRAWN FACILITIES $45 million NET DEBT $248m EQUIPMENT LEASES $45 million NET DEBT / EBITDA(1) Total Debt $330m 0.4 DRAWN FACILITIES (2017E Co
Slide 18: Consistent Approach
Consistent Approach LONG TERM FOCUS, DECISION MAKING UNDERPINS POSITIVE PERFORMANCE 5-YR Share Price Performance GDX GDXJ 125% 100% 75% 50% 25% 0% -25% -50% -75% -100% New Gold OceanaGold Randgold Tahoe Yamana Evolution B2Gold Detour Agnico Eagle IAMGOLD Alamos Eldorado 18
Slide 19: Year Ahead
Year Ahead CONTINUED FOCUS ON CREATING VALUE, DELIVERING ON COMMITMENTS & STAKEHOLDER ENGAGEMENT PRODUCTION 2017 GUIDANCE H2 > H1 from increased production in NZ & at Haile Didipio production expected to decrease in H2 Gold Production 550,000 – 600,000 ounces DEVELOPMENT Complete commissioning of Ha
Slide 20: www.oceanagold.com
( www.oceanagold.com Innovation ¢ Performance ¢ Growth OCEANAGOLD