Slide 1: Q1 2018 Results Presentation
Consistently Delivering On Commitments April 27, 2018 Q1 2018 Results 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: Q1 2018 Highlights
Q1 2018 Highlights INITIATED THE PERMITTING OF A 10-YEAR MINE LIFE EXTENSION AT WAIHI PRODUCTION OF 125,646 OUNCES OF GOLD & 3,889 TONNES OF COPPER REVENUE OF $197 MILLION WITH EBITDA OF $101 MILLION AND NET PROFIT OF $45 MILLION DIDIPIO CONTINUES TO BE RECOGNISED FOR ENVIRONMENT AND SOCIAL PERFORMA
Slide 4: Q1 2018 Overview
Q1 2018 Overview Q1 2018 OPERATING RESULTS EBITDA MARGIN* 125,646 OceanaGold Peer Average GOLD PRODUCTION oz 60% 51% 50% GOLD SALES 127,473 oz 40% 3,889 30% COPPER PRODUCTION tonnes 20% COPPER SALES 3,192 tonnes 10% 0% AISC $799 per oz sold -10% 2011 2012 2013 2014 2015 2016 2017 Q1 2018 Q1 2018 FIN
Slide 5: Waihi Mine Life Extension
Waihi Mine Life Extension MINE LIFE EXTENSION EXPECTED TO DELIVER SIGNIFICANT VALUE TO NUMEROUS STAKEHOLDERS ANNOUNCED MAIDEN 110,000 koz GOLD RESOURCE(1) AT GLADSTONE EXTENSIVE DRILLING BENEATH MARTHA PIT CONTINUED ADVANCEMENT OF OTHER TARGETS 1. Total Resource including Measured & Indicated and In
Slide 6: Operational Results
Q1 2018 OPERATIONAL RESULTS
Slide 7: Health & Safety Performance
Health & Safety Performance FOCUSING ON OPERATIONAL EXPOSURES AND ACCOUNTABILITY FOR SAFETY 2018 HEALTH AND SAFETY INITIATIVES ▶ Q1 - Steady TRIFR performance with TRI’s slightly lower than same period last year ▶ A continued focus on building employee engagement in safe work practices ▶ Proactively
Slide 8: Haile
Haile PRODUCTION IN-LINE WITH EXPECTATIONS DESPITE WEATHER DISRUPTION Q1 2018 OPERATING RESULTS OPERATIONAL RESULTS TRIFR (12-mo rolling avg) 8.56 per million work hours PRODUCTION – in-line with expectations ▶ Despite severe cold weather event; plant GOLD PRODUCTION 37,049 oz utilisation reduced to
Slide 9: Haile Expansion & Enhancement
Haile Expansion & Enhancement HAILE EXPANSION ▶ Permitting expected to commence mid-year ▶ Pebble Crusher installation expected in Q3/18 ▶ Isa Mill and Tower Mill engineering completed ▶ Tower Mill procurement complete, expected in Q4/18 ▶ Isa Mill expected to be installed in Q1/19 9
Slide 10: Didipio
Didipio DECREASED QoQ PRODUCTION EXPECTED DUE TO LOWER HEAD GRADES Q1 2018 OPERATING RESULTS OPERATIONAL RESULTS TRIFR (12-mo rolling avg) 0.83 per million work hours PRODUCTION – lower QoQ as expected ▶ Lower head grades and recoveries partially GOLD PRODUCTION 25,656 oz offset by higher mill feed
Slide 11: Didipio Underground
Didipio Underground RAMPING-UP UNDERGROUND MINING RATES TO FULL RATES BY END OF 2019 CONSTRUCTION OF PANEL TWO UNDERWAY INCREASING GRADES AND MINING RATES IN 2018 ▶ Steadily increasing ore production rates expected ▶ 2018: 500 – 600 kt ▶ 2019: 1.2 – 1.3 Mt ▶ 2020 and beyond: 1.6 Mt OVER 21 MT OF ORE
Slide 12: Waihi
Waihi DECREASE IN PRODUCTION QoQ EXPECTED OPERATIONAL RESULTS Q1 2018 OPERATING RESULTS SAFETY TRIFR (12-mo rolling avg) 6.11 per million work hours ▶ Recordable injury-free quarter GOLD PRODUCTION 18,522 oz PRODUCTION – decreased QoQ as expected ▶ Lower head-grade GOLD SALES 20,983 oz ▶ Reduction i
Slide 13: Macraes
Macraes STEADY PRODUCTION WITH HIGHER-GRADE MATERIAL FROM CORONATION NORTH OPERATIONAL RESULTS Q1 2018 OPERATING RESULTS PRODUCTION – steady QoQ as expected TRIFR (12-mo rolling avg) 6.96 per million work hours ▶ Higher-grade material from Coronation North GOLD PRODUCTION 44,419 oz ▶ Lower tonnage Q
Slide 14: Financial Results
Q1 2018 FINANCIAL RESULTS
Slide 15: Q1 2018 Financial Results
Q1 2018 Financial Results Gold Price Received Copper Price Received REVENUE (per oz) $1,340 $3.17 (per lb) $3.18 $1,275 Q4/17 Q1/18 $197 Q4/17 Q1/18 Q1 2018 million Q2/17 Q4 2017 $246 million Gold Sales (koz) Copper Sales (t) 169 127 4,842 3,192 Q1 2017 $162 million Q4/17 Q1/18 Q4/17 Q1/18 EBITDA FI
Slide 16: Q1 2018 Cash Flows
Q1 2018 Cash Flows CASH FLOW FROM OPERATIONS CASH FLOW DRIVERS Q1 2018 $77 million OPERATING CASH FLOWS ▶ Strong operating cashflow, despite negative Q4 2017 $179 million working capital movements Q1 2017 $52 million ▶ Haile revenue impacted by sales timing INVESTING CASH FLOWS CASH FLOW USED IN INV
Slide 17: Robust Balance Sheet
Robust Balance Sheet Liquidity and Debt Cash Balance $89m ▶ Improved cash position Total Liquidity ▶ Marketable securities $71 million $119m ▶ Next scheduled repayment: $50m in H2 Credit Facility (Undrawn) $30m Hedging GOLD ▶ Remaining ounces: 108,000 Credit Facility (Drawn) ▶ Put NZ$1,750 – Call NZ
Slide 18: Q1 2018 Capital Investment
Q1 2018 Capital Investment CONSOLIDATED (USDm) Q1 / 18 Q4 / 17 2018 GUIDANCE GROWTH* 20.0 36.6 102 – 116 SUSTAINING 4.8 12.6 20 – 27 PRE-STRIP & CAPITALISED MINING 20.9 16.7 64 – 78 EXPLORATION 6.8 7.0 24 – 34 TOTAL 52.5 72.9 210 – 255 ASSET (USDm) HAILE DIDIPIO WAIHI MACRAES CORPORATE GROWTH 4.4 12
Slide 19: Outlook
2018 OUTLOOK
Slide 20: 2018 Outlook
2018 Outlook ON TRACK TO ACHIEVE 2018 GUIDANCE GENERATE STRONG CASH FLOWS AND DELIVER ON ORGANIC GROWTH INITIATIVES BALANCED BUSINESS ADVANCE GROWTH PROJECTS ▶ Reduce debt ▶ Advance the Waihi extension plans ▶ Pay dividends ▶ Advance the Haile expansion plans ▶ Prudent investment on organic growth ▶
Slide 21: www.oceanagold.com
( www.oceanagold.com Innovation ¢ Performance ¢ Growth OCEANAGOLD