Slide 1: Consistently Delivering On Commitments: Q1 2017 Results Presentation
Consistently Delivering On Commitments April 28, 2017 Q1 2017 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: Q1 2017 Webcast
Q1 2017 Webcast Mick Wilkes President & Chief Executive Officer Mark Chamberlain Michael Holmes Craig Feebrey Darren Klinck Chief Financial Officer Chief Operating Officer EVP Exploration EVP Corporate Development 3
Slide 4: Q1 2017 Highlights
Q1 2017 Highlights RECORD QUARTERLY PRODUCTION UNDERPINS STRONG START TO 2017 PRODUCTION(1) FINANCIALS(2) REVENUE $161.8 million EBITDA $101.7 million GOLD 147,956 ounces NET PROFIT $36.0 million COPPER 5,955 tonnes NET PROFIT BEFORE IMPAIRMENT $53.7 million SALES(2) & COSTS(2) BALANCE SHEET CASH $7
Slide 5: Consolidated Performance
Consolidated Performance INCREASED QoQ PRODUCTION DUE TO DIDIPIO & INCLUSION OF HAILE Gold Sales(1) Copper Sales GOLD PRODUCTION (oz) (oz) 114,022 105,658 Q1/17 147,956 ounces 4,960 4,148 44% Q4/16 102,428 ounces Q4/16 Q1/17 Q4/16 Q1/17 COPPER PRODUCTION Q1/17 5,955 tonnes QoQ Gold Production Varian
Slide 6: Consistent Positive Results
Consistent POSITIVE Results CONTINUED STRONG MARGINS WITH SOLID RETURNS EBITDA Margin Return on Invested Capital(1) 65% 18 16 60% 14 55% 12 50% 10 45% 8 6 40% 4 35% 2 30% 0 2010 2011 2012 2013 2014 2015 2016 Q1 2017 2010 2011 2012 2013 2014 2015 2016 2017E ROIC(2): 18.7% Q1 2017 Results EBITDA MARGI
Slide 7: 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 ENHAN
Slide 8: Advancing Haile
Advancing Haile ON TRACK Grinding and FOR COMMERCIAL Processing PRODUCTION Circuit, February 1 2017 IN Q2/17 PRODUCTION TRANSITION Successful handover from 20,798 ounces Commissioning to Operations COMMERCIAL PRODUCTION CRITERIA(1) 1) All major capex spent 2) Process plant, power plant and other fac
Slide 9: Haile Process Plant
Haile Process Plant PROCESS PLANT Grinding and Processing RAMPING Circuit, UP AS February PLANNED 1 2017 Haile Process Plant Ramp-up Comparison to Didipio Ramp-up 140% Mill Production (% of nameplate capacity) 120% 100% 80% 60% 40% 20% 0% 1 2 3 4 5 6 7 8 Month PROCESS PLANT: Ramping-up as planned; c
Slide 10: Advancing Haile
Advancing Haile MINING OPERATIONS Steady-state mining with continued productivity improvements MILL ZONE PIT MINING PIT #2 Currently stripping Snake Pit (2nd Pit) SNAKE PIT four months ahead of schedule OPTIMISATION STUDY On track for mid-2017 completion 10
Slide 11: Didipio Operations Overview
Didipio Operations Overview HIGHER GRADES, INCREASED MILL FEED LEAD TO RECORD QUARTER OPERATING STATISTICS GOLD PRODUCTION Operating Costs Q1/17 Q1/17 62,748 ounces Mining costs USD /t mined 3.36 104% Q4/16 30,695 ounces Processing costs USD / t milled 5.69 Site G&A costs USD / t milled 5.76 COPPER
Slide 12: Mining Transition
Mining Transition TRANSITION TO UNDERGROUND MINING Mill Feed Profile Open pit Underground ore Stockpiles 4.00 3.50 3.00 2.50 2.00 1.50 1.00 2032+ 0.50 0.00 2017 2018 2019 2020 OPEN PIT UNDERGROUND Expected completion during Q2 2017 First ore expected at end of 2017 STOCKPILES PRODUCTION PROFILE >24
Slide 13: Philippines Update
Philippines Update CONTINUED OPERATIONS, ADDITIONAL AWARDS RECEIVED GLOBAL CSR SUMMIT AWARDS TOP AWARD Best Workplace Practices 2nd PLACE Environment Excellence 3rd PLACE Best Community Programs APPEAL PROCESS UPDATE: Submitted supporting documentation within 30 day timeframe; awaiting decision from
Slide 14: Waihi Operations Overview
Waihi Operations Overview INCREASED PRODUCTION EXPECTED NEXT QUARTER GOLD PRODUCTION OPERATING STATISTICS Q1/17 25,860 ounces Operating Costs Q1/17 12% Q4/16 29,280 ounces Mining costs USD / t mined 46.85 Processing costs USD / t milled 28.34 AISC Site G&A costs USD / t milled 22.94 Q1/17 $841 per o
Slide 15: Macraes Operations Overview
Macraes Operations Overview PRODUCTION IN LINE WITH EXPECTATIONS; STRONGER H2 PRODUCTION EXPECTED GOLD PRODUCTION OPERATING STATISTICS Q1/17 38,550 ounces Operating Costs Q1/17 9% OP Mining costs USD / t mined 1.27 Q4/16 42,453 ounces U/G Mining costs USD / t mined 39.01 AISC Processing costs USD /
Slide 16: Resource & Reserve Update
Resource & Reserve Update SIGNIFICANT MINERAL ENDOWMENT & ORGANIC GROWTH POTENTIAL TOTAL RESOURCES(1) GOLD SILVER COPPER 13.0 6.4 0.24 million ounces million ounces million tonnes TOTAL RESERVES GOLD SILVER COPPER 5.0 5.0 0.18 million ounces million ounces million tonnes HAILE: R&R update EXCLUDED,
Slide 17: Making Waihi Top Tier
Making Waihi Top Tier EXPLORATION PROGRAM CONTINUES TO UNLOCK VALUE December 31, 2014 December 31, 2015 December 31, 2016 Total Resource(1) Total Resource(1) Total Resource(1) 360,000 430,000 570,000 ounces ounces ounces ~300 koz mined during 2015 and 2016 1. Total Resources = M&I and Inferred Resou
Slide 18: Waihi 2017 Exploration Program
Waihi 2017 Exploration Program MULTIPLE TARGETS Significant AT WAIHI exploration & REGIONALLY program WITH planned for FOCUS Waihi ON NEAR-MINE in 2017 Martha Project DRILL DRIVE 1 Construction status(1): 58% complete Completion: Q3 2017 Diamond drilling planned: 12,200m DRILL DRIVE 2 Construction s
Slide 19: Macraes Exploration
Macraes Exploration CONTINUED FOCUS ON EXPLORATION TO DRIVE ADDITIONAL GROWTH Golden Point Nunns Coronation North Trimbells Coronation Pit Deepdell Process Plant Golden Point Frasers Innes Mill Underground Expansion Ounce Lot’s Wife Stoneburn 2017 Target Existing operations / infrastructure 19
Slide 20: Financial Results Overview
Financial Results Overview STRONG FINANCIAL PERFORMANCE CONTINUES REVENUE (excludes Haile) Q1/17 $161.8 million REVENUE DRIVERS 10% Increase in gold sales and from a higher gold price Q4/16 $147.4 million received EBITDA Q1/17 $101.7 million EBITDA DRIVERS 52% Higher revenue and lower operating cost
Slide 21: Cash Flow Statement
Cash Flow Statement INCREASE IN WORKING CAPITAL IMPACTS OPERATING CASH FLOWS OPERATING CASH FLOW INCREASED WORKING CAPITAL Operating cash flow before working capital: Q1/17: $93.1m $52.3 million Q4/16: $67.0m INVESTING CASH FLOW REDUCING INVESTMENT CAPITAL Capex spend predominately on capitalised op
Slide 22: Q1 2017 Capex
Q1 2017 Capex SIGNIFICANT REDUCTION IN CAPITAL SPEND Q1 2017 Capex Breakdown (USDm) REDUCTION IN CAPEX Didipio Macraes Waihi Haile 41% reduction in consolidated capex spend QoQ $18.2 *Before capitalised $47.3* HAILE CAPEX revenue $10.2 Capitalised operating costs of $16.1m before capitalised sales r
Slide 23: Financial Position (as at Mar 31, 2017)
Financial Position (as at Mar 31, 2017) STRONG BALANCE SHEET & CASH FLOWS UNDERPINS SELF-FINANCING CAPABILITY CASH $70.6 million (does not include ~$90m in marketable Total Liquidity securities) NET DEBT $96m UNDRAWN FACILITY $15.2 million $262.2m NET DEBT / EBITDA(1) EQUIPMENT LEASES $48.0 million
Slide 24: Catalysts & Events
Catalysts & Events SEVERAL NEAR-TERM & MEDIUM-TERM CATALYSTS FOR YEAR AHEAD HAILE COMMERCIAL PRODUCTION April 27 Q1 2017 RESULTS Expected in Q2/17 QUARTERLY INDEX Early June REBALANCE HAILE OPTIMISATION STUDY Mid-2017 HAILE PLANT EXPANSION RESULTS 2 Mtpa 3 Mtpa 2017 INVESTOR DAY By end of 2017 Jun
Slide 25: www.oceanagold.com
y / www.oceanagold.com 4) Innovation ¢ Performance ¢ Growth OCEANAGOLD
Slide 26: Mineral Resource and Reserves
Mineral Resource and Reserves RESERVE STATEMENT (31 December 2016) PROJECT PROVEN PROBABLE PROVEN & PROBABLE RESERVE AREA Mt Au g/t Ag g/t Cu % Mt Au g/t Ag g/t Cu % Mt Au g/t Au Moz Ag g/t Ag Moz Cu % Cu Mt MACRAES Open Pit 12.2 1.08 - - 18.1 1.12 - - 30.3 1.10 1.07 - . - - MACRAES Underground 0.54