Oceanagold Corporation · TSX:OGC
Oceanagold — 2017 BMO Metals & Mining Conference
23 slides from Oceanagold's conference presentation, Feb 28, 2017
Slide 1: 2017 BMO Metals & Mining Conference
Consistently Delivering On Commitments 2017 BMO Metals & February 28, 2017 Mining Conference Mick Wilkes, President & CEO
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: 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) Total Shareholder Return(3) (2017E) Haile expansion (3-
Slide 4: 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 5: Consistent POSITIVE Results
Consistent POSITIVE Results Consistently delivering industry leading return on invested capital Annual Return on Invested Capital(1) Relative Performance(3) 18 3-YR 5-YR 16 14 Positive ROIC each year OGC 138% 74% 12 10 GDX 25% - 46% 8 6 GDXJ 29% - 58% 4 2 Spot Gold - 4% - 26% 0 2010 2011 2012 2013 2
Slide 6: Solid Growth
Solid Growth Addition of high-margin ounces expected from Haile Production Profile Didipio Macraes Reefton Waihi Haile AISC 700,000 900 600,000 850 Gold Production (oz) 800 500,000 750 400,000 700 300,000 650 200,000 600 100,000 550 0 500 2013A 2014A 2015A 2016A 2017E PRODUCTION GROWTH: ~150% increa
Slide 7: 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 Myanmar Exploration Laos WAIHI
Slide 8: Organic Growth
Organic Growth Significant organic growth potential underpins deep value of the business 2017 EXPLORATION 2017 STUDIES Budget Haile Optimisation $30 to $41 Mid-2017 million Planned Drilling Martha Study (Waihi) >105,000 H2 2017 metres INCREASED EXPLORATION SPEND Several brownfields and greenfields t
Slide 9: Haile
UNITED STATES HAILE
Slide 10: Haile Process Plant
Haile Process Plant Grinding and Processing Circuit, February 1 2017 PLANT UTILISATION: YTD utilisation rate > 60% ramping up well; MTD utilisation rate >80% SEQUENTIAL FOCUS: Oxide/transitional ore: Grinding, leaching, thickener, refining & tailings Sulphide ore: flotation and fine grind POSITIVE R
Slide 11: 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 GROWING INVENTORY: Sulphide stockpile growing 11
Slide 12: 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 HAILE OPTIMISATION S
Slide 13: Haile 2016 Exploration Summary
Haile 2016 Exploration Summary Significant exploration potential at Haile & regionally HAILE EXPLORATION Increased resource grade & confidence at Horseshoe deposit Drilled >35,000 metres using four core rigs on Haile targets CAROLINAS REGIONAL EXPLORATION Completed geophysics; identified new targets
Slide 14: 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 15: Palomino & Snakeshoe
Palomino & Snakeshoe Expanding area of drilling focus in the underground at Haile $950 reserve pit $950 reserve pit SW NE Red Hill 1 g/t Au 1 g/t Au volcanics grade shell sediments grade shell Snake Horseshoe Palomino target zone Snakeshoe volcanics 1 km sediments Haile Gold Mine Northwest-looking L
Slide 16: Waihi & Macraes
NEW ZEALAND WAIHI & MACRAES
Slide 17: Making Waihi Top Tier
Making Waihi Top Tier High margin with significant exploration potential GROWING WAIHI RESOURCE December 31, 2014 December 31, 2015 December 31, 2016 Total Resource(1) Total Resource(1) 360,000 430,000 Expected to grow ounces ounces $100m acquisition cost recovered STRONG MARGINS: AISC margin $400 -
Slide 18: Waihi Exploration Program
Waihi Exploration Program Significant exploration Extensiveprogram planned exploration for at Waihi to Waihi in 2017 continue MARTHA PROJECT 5 drill rigs testing extensions beneath REGIONAL EXPLORATION Martha Pit WKP, other targets in ONE MILLION-OUNCE Coromandel district TARGET UNDERGROUND DRILLING
Slide 19: Martha Project
Martha Project Targeting incremental ONE MILLION reserve ounces in the medium-term APPROACH ~30% extracted from surface ~70% extracted from underground DRILLING: Proving out resource through surface drills and underground drill drives UNLOCKING VALUE: Martha Project Study expected in Q3/17 19
Slide 20: 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 21: Macraes Exploration
Macraes Exploration Growing the current 5 Moz Resource Upgraded Coronation North Resource Nunns Mareburn Mt g/t koz Coronation North M&I Resource (Dec 2016) 4.60 1.48 218 Coronation Pit Inferred Deep Dell 4.60 0.93 138 (Dec 2016) Process Golden Point Plant Frasers Innes Mill Underground IMPROVED GRA
Slide 22: Gold Mining Company of Choice
Gold Mining Company of Choice All-In Sustaining Costs EBITDA Margin (2017E) (2017E) $1,100 60% $1,000 $900 50% USD/oz $800 $700 40% $600 $500 30% Semafo Newmont OceanaGold Tahoe Evolution Northern Star B2Gold Alamos Detour Centerra Eldorado Agnico Eagle Centerra B2Gold SEMAFO Detour New Gold Yamana
Slide 23: www.oceanagold.com
y / www.oceanagold.com 4) Innovation ¢ Performance ¢ Growth OCEANAGOLD