Oceanagold Corporation · TSX:OGC
Oceanagold — Q2 2020 Earnings Presentation
21 slides from Oceanagold's earnings presentation, Jul 31, 2020
Slide 1: Q2 2020 Results Presentation
Q2 2020 RESULTS PRESENTATION July 31, 2020 CONSISTENTLY DELIVERING ON COMMITMENTS INNOVATION I PERFORMANCE I GROWTH
Slide 2: Cautionary and Technical Statements
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 offer
Slide 3: Results Overview
3 Results Overview OPERATIONS OPERATING RESULTS » QoQ production decreased more than plan due to Q2 2020 H1 2020 o No mining and restricted processing at Macraes due to COVID-19 restrictions GOLD PRODUCTION 58.7 139.4 koz o Haile productivity impacted by COVID-19 protocols; record May rainfall impac
Slide 4: Managing near term risks
4 Managing near term risks HAILE MACRAES WAIHI DIDIPIO ▪ 8 confirmed COVID-19 cases ▪ April shutdown in accordance ▪ Development of Martha UG ▪ Gov’t focus on COVID-19 to-date, 3 active and with gov’t regulations with temporarily paused per gov’t response temporarily paused quarantined (1) limited m
Slide 5: Highly Ranked ESG Performance
5 Highly Ranked ESG Performance Note: The use by OceanaGold of any MSCI ESG Research LLC or its affiliates (“MSCI”) data, and the use of MSCI logos, trademarks, service marks or index names herein, do no constitute a sponsorship, endorsement, recommendation or promotion of OceanaGold by MSCI. MSCI s
Slide 6: Operational Results
6 OPERATIONAL RESULTS Macraes Gold Mine, New Zealand
Slide 7: Haile Operations Overview
7 Haile Operations Overview Q2 2020 Q1 2020 H1 2020 H1 2019 2020 OUTLOOK per million work TRIFR (12-MMA) hours 6.3 5.7 2.7 7.7 H2 production = 2/3 of total 2020 production GOLD PRODUCTION koz 30.7 29.4 60.1 62.9 Increasing production, decreasing AISC GOLD SALES koz 31.7 33.3 65.0 58.8 CASH COSTS per
Slide 8: Haile Delivers on Commitments
8 Haile Delivers on Commitments AVERAGE MONTHLY RAINFALL 14.0 DRIVERS H1 2020 vs. H1 2019 12.0 12.5 (43%) 10.0 Mining unit costs $2.55 vs $4.44 per tonne mined 8.0 inches (17%) 6.0 6.9 Processing unit costs $11.92 vs $14.42 per tonne milled 4.0 2.0 +100% Material mined 18,757 vs 9,425 0.0 kt May-20
Slide 9: Macraes Operations Overview
9 Macraes Operations Overview Q2 2020 Q1 2020 H1 2020 H1 2019 2020 OUTLOOK per million work TRIFR (12-MMA) hours 1.5 3.1 1.5 5.4 H2 production > H1 production GOLD PRODUCTION koz 27.9 39.2 67.1 89.1 Now expecting 140 – 150koz production in 2020 GOLD SALES koz 30.2 37.8 68.0 91.9 CASH COSTS per oz so
Slide 10: Waihi Operations Overview
10 Waihi Operations Overview Q2 2020 Q1 2020 H1 2020 H1 2019 2020 OUTLOOK per million work TRIFR (12-MMA) hours 5.3 4.2 3.8 5.5 Q4 production → ~ 8,000 oz expected GOLD PRODUCTION koz - 12.2 12.2 36.3 Martha UG first ore expected in Q2/21 GOLD SALES koz - 13.5 13.5 35.3 Advancing Waihi District oppo
Slide 11: Didipio – FTAA Renewal Update
11 Didipio – FTAA Renewal Update OFFICE OF THE PRESIDENT CURRENTLY REVIEWING RENEWAL FTAA Renewal » FTAA renewal currently with the Office of the President – no decision timeline provided » Tangible Philippine Government Actions (eg.100,000 litres of diesel delivered in early April for back-up power
Slide 12: Financial Results
12 FINANCIAL RESULTS Haile Gold Mine, United States
Slide 13: Financial Overview as at June 2020
13 Financial Overview as at 30 June 2020 CONSERVATIVE APPROACH TO BALANCE SHEET MANAGEMENT REVOLVING CREDIT FACILITY CASH FACILITY DEBT » $200m facility – fully drawn $148 $200 » Maturing date – December 31, 2021 million million » Banking Syndicate – six international banks NET DEBT $170 million 202
Slide 14: Financial Results Overview
14 Financial Results Overview Q2 2020 Q1 2020 H1 2020 H1 2019 PROFIT & LOSS REVENUE million $96 $138 $234 $366 » Revenue decreased QoQ on lower sales volume, partly offset by higher gold price EBITDA million $12 $42 $55 135 » EBITDA decreased QoQ on lower revenue, partially NPAT million ($31) ($26)
Slide 15: Capital Investment Overview
15 Capital Investment Overview CONSOLIDATED (USDm) Q2 2020 Q1 2020 H1 2020 2020 GUIDANCE GENERAL OPERATING 4.2 9.3 13.5 20 – 30 PRE-STRIP WAIHI & CAPITALISED MINING 12.3 18.3 30.6 55 – 65 GROWTH MACRAES CAPITAL 33.5 27.1 60.6 135 – 145 EXPLORATION 4.0 4.9 8.9 20 – 25 (1) TOTAL 54.1 59.6 113.7 230 –
Slide 16: Organic Growth
16 ORGANIC GROWTH Waihi, New Zealand
Slide 17: Organic Growth Pipeline
Organic Growth Pipeline EXPLORATION STUDY PERMITTING DEVELOPMENT Martha Underground WAIHI Waihi District Martha UG North Island, New Zealand Permitting WKP MACRAES Macraes Goldfield Golden Point UG South Island, New Zealand Haile Horseshoe UG Underground HAILE South Carolina, United States Open Pit,
Slide 18: Waihi District PEA Overview
18 Waihi District PEA Overview OVER 12 MILLION OUNCES OF GOLD MINED FROM COROMANDEL DISTRICT WAIHI DISTRICT PEA HIGHLIGHTS WKP BASE CASE SPOT SCENARIO GOLD PRICE US$1500/oz US$1750/oz ASSUMPTION PRE-TAX NPV5% US$931m US$1,273m WKP U/G AFTER-TAX NPV5% US$665m US$915m AFTER-TAX IRR 51% 75% Waihi LOM A
Slide 19: PEA Cash Flow Overview
19 PEA Cash Flow Overview (1) WAIHI DISTRICT CASH FLOW PROFILE PRODUCTION & COSTS $400 Operating Cash Flow Tax Capex Free Cash Flow Martha UG WKP Gladstone Martha Open Pit Cash Costs AISC $350 350 1,400 $300 300 1,200 Gold Production (koz) Unit Costs (USD / oz) $250 $200 250 1,000 USDm $150 200 800
Slide 20: Strategic Focus
20 Strategic Focus MANAGING FOR THE NEAR-TERM 1 EXECUTE CURRENT OPERATIONAL PLANS 2 RESTART DIDIPIO OPERATIONS 3 INVEST IN ORGANIC GROWTH PLANNING FOR THE LONG-TERM
Slide 21: 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