Oceanagold Corporation · TSX:OGC
Oceanagold — Investor Presentation (April 2017)
35 slides from Oceanagold's investor presentation, April 2017
Slide 1: Corporate Presentation: Consistently Delivering On Commitments
Consistently Delivering On Commitments April 2017 Corporate 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: OceanaGold Overview
OceanaGold Overview Portfolio of high-quality assets with a strong balance sheet & sector leading margins 2017 Guidance Gold Copper 550,000 – 610,000 15,000 – 17,000 ounces tonnes AISC Cash Costs US$600 – US$650 US$370 – US$420 Vancouver per ounce per ounce Haile LOM: 2030+ Liquidity(1) Debt(1) Didi
Slide 4: Gold Mining Company of Choice
Gold Mining Company of Choice Compelling value proposition from growing, high-margin mid-tier producer Significant cash flow Solid pipeline of organic Delivering consistent generation growth opportunities positive results & value AISC Margin(1) Return on Invested Capital(3) (2017E) Haile Expansion (
Slide 5: Consistent Strong Returns
Consistent Strong Returns Consistently delivering industry leading returns Annual Return on Invested Capital(1) 2016 NPAT / AuEq Production(1) 18 350 Positive ROIC each year 16 300 14 250 12 USD per AuEq oz Produced 10 200 % 8 150 6 100 4 50 2 0 0 2010 2011 2012 2013 2014 2015 2016 -50 New Gold Ocea
Slide 6: 2017 Compelling Comparatives
2017 Compelling Comparatives Net Debt / EBITDA EBITDA Margin (2017E) (2017E) 0.59x 60% 50% 40% 0.1x 30% Semafo OceanaGold Tahoe Northern Star Newmont Evolution Centerra B2Gold Detour Agnico Eagle Eldorado Alamos OceanaGold Senior & Midtier Producer Average Source: RBC Capital Markets Research Source
Slide 7: Solid Growth Performance
Solid Growth Performance Solid production and margin growth profile establishes strong platform Production Profile Didipio Macraes Reefton Waihi Haile AISC 700,000 900 600,000 850 Gold Production (oz) 500,000 800 USD/oz sold 750 400,000 700 300,000 650 200,000 600 100,000 550 0 500 2013A 2014A 2015A
Slide 8: Corporate Strategy
Corporate Strategy MID-TERM STRATEGY (2017 - 2020) Maintain current production at 500-600 koz Operate four mines (2021+) Continue geographic & production diversity LONG-TERM STRATEGY a) OCEANAGOLD Focus on cost reduction & organic growth Continued strong focus on ROIC Maintaining our strong Operate
Slide 9: Growth Opportunities
Growth Opportunities Positioned well to deliver on high margin growth opportunities Current Life of Mine: Haile – 2030+ Didipio – 2032+ Macraes – 2020+ Waihi – 2019+ STRATEGIC INVESTMENT HAILE STRATEGIC GSV, NUG Extensive Exploration INVESTMENT DIDIPIO Haile Expansion M yanm ar Exploration Laos WAIH
Slide 10: A Focus on Organic Growth
A Focus on Organic Growth Significant organic growth potential underpins deep value of the business YoY Exploration Spend Profile ~240% increase 40 Acquisition of Waihi 30 Acquisition of Romarco USDm 20 10 0 (1) 2011 2012 2013 2014 2015 2016 2017E 2017 EXPLORATION 2017 STUDIES Budget Haile Optimisat
Slide 11: United States
UNITED STATES PRODUCTION 2017 GUIDANCE Gold 150,000 – 170,000 (oz) AISC $500 – $550(2) (per oz sold) (1) RESOURCES P&P Gold 2.02 Reserves (Moz) Total Gold (2) 3.92 Resources (Moz) Haile 1. As at 31 Dec 2016 – refer to www.oceanagold.com, Haile open pit only, Total Resources = M&I and Inferred Resour
Slide 12: Haile Process Plant
Haile Process Plant Grinding and Processing Circuit, February 1 2017 PROCESS PLANT: Ramping-up as planned; MTD utilisation rate > 85% FINE TUNING: Optimising plant circuit settings for desired recoveries COMMERCIAL PRODUCTION: expected in early Q2/17 PLANT EXPANSION: Plan to expand plant throughput
Slide 13: Haile Mining
Haile Mining Mill Zone Pit STEADY STATE MINING: Achieving planned rates of 60,000 tonnes per day and higher POSITIVE RECONCILITATION: More tonnage, slightly better grades MINING MULTIPLE PITS: Ore bound at Mill Zone pit, commenced stripping Snake pit (four months ahead of schedule) 13
Slide 14: Haile Expansion
Haile Expansion Champion Small Mill Zone Haile Chase Ledbetter Snake $950/oz O/P reserve shell Mill Zone $1,200/oz O/P resource shell Deeps Mustang Palomino Horseshoe 2017 - 2020 Post-2020 Annual Gold Production Avg. Annual Gold Production 150,000 – 200,000 250,000 ounces ounces HAI LE OP TI M I SAT
Slide 15: Haile 2017 Exploration Program
Haile 2017 Exploration Program Budget of $8m to $10m allocated for Haile, regional targets Champion Small Mill Zone Haile Chase Ledbetter Snake 2017 drilling focus Mill Zone Deeps 500m $950/oz reserve shell Mustang $1,200/oz resource shell Palomino Horseshoe 3 km 2016 RESOURCE DEFINITION DRILLING: P
Slide 16: Palomino & Snakeshoe
Palomino & Snakeshoe Expanding area of drilling focus in the underground at Haile SELECT RECENT DRILL RESULTS AT PALOMINO 66.3m @ 3.0 g/t 33.5m @ 4.6 g/t 4.2m @ 14.2 g/t 9.1m @ 11.7 g/t Au Au Au Au 16
Slide 17: New Zealand
PRODUCTION 2017 GUIDANCE NEW ZEALAND WAIHI Gold (oz) 110,000 – 120,000 AISC $740 – $790 (per oz sold) Auckland MACRAES Waihi Gold 180,000 – 190,000(1) (oz) AISC $950 – $1,000 (per oz sold) (1) RESOURCES Reefton Wellington WAIHI MACRAES Blackwater Christchurch Gold 0.35 1.21 Macraes P&P (Moz) Reserve
Slide 18: Making Waihi Top Tier
Making Waihi Top Tier High margin operation with a growing resource 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 m ined from 2014 to 2016 $100m acquisition cost recovered STRONG MARGI
Slide 19: Waihi Exploration Program
Waihi Exploration Program Over 42,000m Significant of drillingprogram exploration planned in 2017 onfor planned brownfields Waihi in & greenfields 2017 targets Recent Drill Results Martha Project REGIONAL EXPLORATION 12.6m @ 16.5 g/t Au, 120.5 g/t Ag WKP, other targets in 9.2m @ 10.0 g/t Au, 88.6 g/
Slide 20: Martha Project
Martha Project Targeting incremental one million ounce resource in the medium-term DRILLING: Proving out resource through surface drills and underground drill drives UNLOCKING VALUE: Martha Project Study expected in H2/17 20
Slide 21: Regional Exploration
Regional Exploration Coromandel gold district has produced over 11 Moz Au, 55 Moz Ag Dome field Map/sample Twin Hills Map/sample – target generation for 2017 Ohui Map/sample / +2,000m drill White Bluffs Map/sample / +1,500m drill Glamorgan Map/sample / +1,000m drill Hauraki (WKP) Waihi Map/sample /
Slide 22: Macraes Exploration
Macraes Exploration Growing the current 5 Moz Resource Golden Point Nunns Coronation North Trimbells Coronation Pit Deepdell Process Golden Point Plant Frasers Innes Mill Underground Expansion Ounce Lot’s Wife Stoneburn 2017 Target Existing operations / infrastructure 22
Slide 23: Macraes Beyond
Macraes Beyond Advancing the Macraes Gold-Tungsten Project ROUND HILL Relocated Process Plant ~1.38 Moz Resource(1)(2) Round Hill Deposit STUDY ADVANCING: Additional technical & economic work underway CONCEPT: New location + build of smaller process plant w/Tungsten circuit MINE LIFE EXTENSION: Pote
Slide 24: Philippines
PRODUCTION 2017 PHILIPPINES GUIDANCE Gold 110,000 – 130,000 (oz) Island of Copper 15,000 – 17,000 (t) Luzon AISC $130 – $180(1) San Fernando (Port) (per oz sold) Far Southeast Didipio Cash Costs ($20) – $40(1) (Goldfields/Lepanto) (per oz sold) Manila Masbate (2) RESOURCES (B2Gold) Gold 1.46 (Moz) P
Slide 25: Didipio Underground
Didipio Underground Recent Drill Results OPEN PIT TRANSITION TO UNDERGROUND 131m @ 2.5 g/t Au, 0.4% Cu On track for end of 2017 Infill drilling 115m @ 2.4 g/t Au, 0.5% Cu OPEN PIT STOCKPILE BUILD UP Currently 22Mt stockpiled; for blending with U/G ore Extensional 44m @ 1.2 g/t Au, 0.6% Cu drilling 1
Slide 26: Philippines Update
Philippines Update OPERATIONS CONTINUE WITHOUT INTERRUPTION “AUDIT PROCESS” UPDATE: Received suspension order on Feb 14, 2017 citing “… petition of the Local Government of Nueva Vizcaya for the cancellation of the FTAA; alleged damages to houses caused by the blasting operation; and the potential ad
Slide 27: Responsible Miner
Responsible Miner Didipio named Most Environmentally Responsible Mine 2nd year in a row MULTIPLE AWARD RECIPIENT IN THE PHILIPPINES PRESIDENTIAL MOST ENVIRONMENTALLY RESPONSIBLE MINE AWARD STRONG SOCIAL LICENSE: Major employer (1,800 direct jobs), significant benefits OPERATING TO HIGHEST STANDARDS:
Slide 28: The Year Ahead
The Year Ahead Numerous near-term and medium-term catalysts for 2017 HAILE COMMERCIAL PRODUCTION HAILE OPTIMISATION Expected early Q2/17 Study completion mid-2017 HAILE PLANT EXPANSION MARTHA PROJECT 2 Mtpa 3 Mtpa Commence permitting By end of 2017 H2 2017 Q1 2017 RESULTS: April 27 2017 INVESTOR D
Slide 29: www.oceanagold.com
( www.oceanagold.com Innovation ¢ Performance ¢ Growth OCEANAGOLD
Slide 30: Executive Management Team
Executive Management Team Mick Wilkes Mark Cadzow Mark Chamberlain Craig Feebrey President & Chief EVP and EVP and EVP Exploration Executive Officer Chief Development Officer Chief Financial Officer Michael Holmes Darren Klinck Yuwen Ma Liang Tang EVP and Chief Operating EVP Corporate Development EV
Slide 31: Board of Directors
Board of Directors Jim Askew Mick Wilkes Diane Garrett Chairman President & CEO Director • Mining engineer with over 35 • Over 30 years industry • Over 20 years of senior years broad international experience management and financial experience as a Director/CEO for • Developed major projects in expe
Slide 32: A Core Holding
A Core Holding Shareholder Geographic Composition LARGEST SHAREHOLDERS 43% 1 Blackrock (London) 2% 2 Van Eck Associates (NYC) 10% 3 Franklin (San Francisco) 13% 4 Ingalls & Snyder (NYC) 11% 5 Norges Bank Investment (Oslo) 21% 6 Dimensional Fund (Austin) 7 Taylor Asset Management (Toronto) United Sta
Slide 33: Haile Underground PEA
Haile Underground PEA High-level study validates economic & technical viability of an U/G at Haile 2016 ex ploration results ex cluded from study; no changes m ade to ex isting reserves UNDERGROUND RESOURCE ASSUMPTION UNDERGROUND OPERATING COSTS Tonnage Grade Ounces Per Tonne Processed (kt) (g/t) (k
Slide 34: 2016 Achievements
2016 Achievements Consistently delivering on commitments RECORD ANNUAL REVENUE RECORD ANNUAL NET PROFIT $628.6 $136.5 million million 2016 PRODUCTION 2016 AISC 416,741 $708 ounces per ounce sold ACHIEVED GUIDANCE: Five consecutive years SOLID FINANCIALS: Record earnings, increased cash flows HAILE C
Slide 35: 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