Slide 1: 2018 Results Presentation
2018 RESULTS PRESENTATION February 20, 2019 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: Results Highlights
3 Results Highlights ANNUAL REVENUE OF $773 MILLION INCLUDING EBITDA OF $364 MILLION & NET PROFIT OF $124 MILLION INCREASED CASH BALANCE 55% QoQ to $108 MILLION DECREASED NET DEBT 38% QoQ ACHIEVED PRODUCTION & COST GUIDANCE FOR A SEVENTH CONSECUTIVE YEAR RECEIVED PERMITS FOR THE MARTHA UNDERGROUND P
Slide 4: Results Overview
4 Results Overview OPERATING RESULTS MACRAES Q4 2018 2018 ▪ Solid operating and financial performance led Company’s quarterly performance GOLD PRODUCTION 126,656 533,286 oz ▪ Second highest annual production ever achieved at GOLD SALES 132,161 532,716 oz Macraes DIDIPIO COPPER PRODUCTION 2,881 14,99
Slide 5: Solid Margins & Returns
5 Solid Margins & Returns 35 CONSECUTIVE QUARTERS OF DELIVERING A POSITIVE ROIC EBITDA MARGIN* RETURN ON INVESTED CAPITAL* OceanaGold Peer Average OceanaGold Peer Average 60% 20% 50% 15% 40% 10% 30% 20% 5% 10% 0% 0% -10% -5% 2011 2012 2013 2014 2015 2016 2017 2018 2011 2012 2013 2014 2015 2016 2017
Slide 6: Operational Results
6 OPERATIONAL RESULTS Macraes Gold Mine, New Zealand
Slide 7: Health & Safety Performance
7 Health & Safety Performance Total Recordable Injury Frequency Rate* 14 13.06 12 10 8.09 8 6 5.49 4.56 4.50 3.99 3.99 4 2.69 2 0 2011 2012 2013 2014 2015 2016 2017 2018 ▪ Continued focus on Workforce Behavioural programs as we ramp up operations at Haile and Didipio underground. Significant focus o
Slide 8: Haile Operations Overview
8 Haile Operations Overview Q4 2018 2018 2018 PERFORMANCE TRIFR – 13.0 per million work hours ▪ Severe storms and sustained heavy rainfall disrupted operations in Q4 GOLD PRODUCTION 27,528 131,819 oz ▪ Mine productivity, access to higher GOLD SALES 27,637 130,499 oz grades in Mill Zone impeded CASH
Slide 9: Haile Expansion
9 Haile Expansion INCREASE PLANT CAPACITY: 3.5 to 4.0 Mtpa MINING EXPANSION ✅ INSTALL PEBBLE CRUSHER ✅ COMMENCE PERMITTING OF MINE EXPANSION ✅ INSTALL TOWER MILL 2021 HORSESHOE U/G H1 2019 INSTALL ISAMILL 2021 EXPANDED OPEN PITS
Slide 10: Upgraded Fine Grinding Circuit Construction
10 Upgraded Fine Grinding Circuit Construction ISAMILL TOWER MILL
Slide 11: Didipio Operations Overview
11 Didipio Operations Overview Q4 2018 2018 2018 PERFORMANCE TRIFR – 0.6 per million work hours ▪ Increased production guidance twice GOLD PRODUCTION 23,344 114,985 oz ▪ Production as expected based on mill throughput limit GOLD SALES 25,195 116,898 oz ▪ UG ore mined in 2018 higher than COPPER PRODU
Slide 12: Didipio Underground
12 Didipio Underground RAMP-UP OF UNDERGROUND PROGRESSING WELL, INCREASING MINING RATES IN 2019 +19 MT OF ORE STOCKPILED FOR PROCESSING INCREASING MINING RATES ▪ 2018: 500 – 600 kt (actual: 627 kt) ▪ 2019: 1.2 – 1.3 Mt ▪ 2020 and beyond: 1.6 Mt CONSTRUCTION OF PANEL TWO UNDERWAY POTENTIAL ADDITIONAL
Slide 13: Waihi Operations Overview
13 Waihi Operations Overview Q4 2018 2018 2018 PERFORMANCE TRIFR – 8.6 per million work hours ▪ Production as expected with lower grades and throughput GOLD PRODUCTION 17,553 83,492 oz ▪ Exploration continued to yield positive GOLD SALES 19,587 86,469 oz results CASH COSTS $620 $615 per oz sold AISC
Slide 14: Macraes Operations Overview
14 Macraes Operations Overview Q4 2018 2018 2018 PERFORMANCE TRIFR – 4.4 per million work hours ▪ Excellent operational performance and higher grades led to increased QoQ GOLD PRODUCTION 58,231 202,990 oz production GOLD SALES 59,742 198,850 oz ▪ Second highest annual production at CASH COSTS $469 $
Slide 15: Financial Results
Waihi Underground, New Zealand 15 FINANCIAL RESULTS
Slide 16: Balance Sheet Overview
16 Balance Sheet Overview (as at 31 Dec 2018) Year-on-Year CASH BALANCE CASH BALANCE $108m Total Liquidity $158m Excludes cash held in marketable securities 47% Credit Facility (Undrawn) $50m Year-on-Year NET DEBT 59% Credit Facility (Drawn) $150m Total Debt $176m NET DEBT Equipment Leases $26m $69
Slide 17: Financial Results Overview
17 Financial Results Overview Q4 2018 Q3 2018 2018 REVENUE million $183 $187 $773 EBITDA million $74 $79 $364 ADJUSTED NET PROFIT(1) million $17 $20 $124 AVG GOLD PRICE (2) US$/oz $1,239 $1,202 $1,268 AVG COPPER PRICE (2) US$/lb $3.04 $2.95 $3.05 GOLD SALES koz. 132.2 134.1 532.7 COPPER SALES kt 3.1
Slide 18: Cash Flows Overview
18 Cash Flows Overview Q4 2018 Q3 2018 2018 OPERATING CASH FLOW million $96 $64 $346 INVESTING CASH FLOW million ($51) ($59) ($229) FINANCING CASH FLOW million ($3) ($63) ($79) ▪ Generated $121 million in free cash flow ▪ Significant QoQ increase in operating cash flow related to more favourable wor
Slide 19: Capital Expenditure Overview
19 Capital Expenditure Overview CONSOLIDATED (USDm) Q4 2018* Q3 2018* 2018* 2018 GUIDANCE GROWTH 23.7 23.6 86.5 102 – 116 GENERAL OPERATING 6.7 6.6 24.4 20 – 27 PRE-STRIP & CAPITALISED MINING 12.4 15.2 68.8 64 – 78 EXPLORATION 11.4 7.9 33.7 24 – 34 TOTAL 54.2 53.3 213.4 210 – 255 Q4 2018 (USDm) HAIL
Slide 20: Outlook
Waihi Process Plant, New Zealand 20 OUTLOOK
Slide 21: 2019 Guidance
21 2019 Guidance Gold Production Copper Production All-In Sustaining Costs 500,000 – 550,000 14,000 – 15,000 US$850 – US$900 ounces tonnes per ounce HAILE DIDIPIO WAIHI MACRAES Gold Production (ounces) 145,000 – 160,000 120,000 – 130,000 60,000 – 70,000 175,000 – 190,000 Copper Production (tonnes) –
Slide 22: 2019 Capital Program
22 2019 Capital Program USDm HAILE DIDIPIO WAIHI MACRAES CORPORATE GROWTH 55 – 60 35 – 40 15 – 20 1–2 3–5 GENERAL OPERATING 10 – 15 10 – 15 2–3 10 – 15 – PRE-STRIP & CAPITALISED 10 – 15 – 3–5 30 – 35 – MINING EXPLORATION 3–5 2–3 15 – 20 6–8 10 – 15 TOTAL 80 – 95 45 – 55 35 – 50 50 – 60 15 – 20 HAILE
Slide 23: 2019 Priorities
23 2019 Priorities GENERATE STRONG CASH FLOWS AND BUILD FOR THE FUTURE OPERATIONS GROWTH ▪ Continue improvement of safety leadership ▪ Implement Martha Underground project ▪ Implement productivity improvements and ▪ Advance the Haile mine & plant expansion plans cost reductions ▪ Continue constructi
Slide 24: 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