Oceanagold Corporation · TSX:OGC
Oceanagold — Q3 2017 Earnings Presentation
20 slides from Oceanagold's earnings presentation, Oct 27, 2017
Slide 1: Q3 2017 Results Presentation
Consistently Delivering On Commitments October 27, 2017 Q3 2017 Results Presentation
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: Q3 2017 Summary
Q3 2017 Summary HIGHER GOLD PRODUCTION 9% quarter-on-quarter increase in production due to Haile & Waihi HAILE BACK ON-TRACK Rebound in operations following stronger August & September performance REVENUE AND PROFIT TIMING Lower due to quarter end sales timing and continued capitalisation of Haile A
Slide 4: YTD 2017 Results Summary
YTD 2017 Results Summary(1) OPERATING RESULTS Q3/17 Q2/17 YTD 17 2017 Guidance GOLD PRODUCTION koz 136.0 124.4 408.4 550 – 600 GOLD SALES koz 131.1 129.8 387.0 – COPPER PRODUCTION kt 4.39 4.32 14.66 18 – 19 COPPER SALES kt 3.27 5.83 13.25 – AISC $ per ounce sold 748 681 644 600 – 650 AISC MARGIN $ p
Slide 5: Financial Results Overview
Financial Results Overview TIMING OF SALES AND HAILE CAPITALISATION IMPACT REVENUE & PROFIT FINANCIAL RESULTS Q3/17 Q2/17 YTD 17 YTD 16 (1) REVENUE $m 144.8 171.7 478.3 481.2 EBITDA $m 73.4 84.8 259.8 216.7 (2) NET PROFIT $m 21.7 25.4 83.1 93.9 AVG. GOLD PRICE RECEIVED $ per ounce 1,276 1,262 1,254
Slide 6: TRIFR Performance
TRIFR Performance FOCUSSING ON OPERATIONAL EXPOSURES AND ACCOUNTABILITY FOR SAFETY WORKPLACE EXPOSURE MANAGEMENT Since 2015 workplace exposures have increased due to: • Commencement of higher risk construction programs (Haile & Didipio Underground) • Upskilling the Haile labour force to align with t
Slide 7: Environmental, Social and Governance
Environmental, Social and Governance STRONG ESG PERFOMANCE REMAINS AN INTEGRAL PILLAR OF THE COMPANY Corporate: Appointed Sharon Flynn as EVP, Head of External Affairs & Social Performance Responsible for strengthening relationships with key Community and Government stakeholders Further enhancements
Slide 8: Haile Operations Overview
Haile Operations Overview INCREASED PRODUCTION ON HIGHER THROUGHPUTS & RECOVERIES PRODUCTION SALES (1) GOLDGOLD (ounces)PRODUCTION OPERATING STATISTICS Q3/17 31,374 32,506 Operating Physicals Q3/17 Q2/17 YTD 17 Q2/17 16,160 15,558 Ore Mined Mt 0.625 0.537 1.540 Waste Mined Mt 4.475 3.513 12.57 YTD 1
Slide 9: Growth at Haile
Growth at Haile HAILE EXPANSION PERMITTING TO COMMENCE IN EARLY 2018 Champion Small Mill Zone Ledbetter Snake Reserve Design >0.4 g/t Au Horseshoe Palomino HAILE EXPANSION Advancing permitting application for submission HAILE EXPLORATION Drilling currently focused at Ledbetter, Mustang, Mill Zone, S
Slide 10: Didipio Operations Overview
Didipio Operations Overview PRODUCTION IN LINE WITH EXPECTATIONS; SOFTER Q4 PRODUCTION EXPECTED PRODUCTION SALES OPERATING STATISTICS GOLD (ounces) Operating Unit Costs YTD 17 Q3/17 31,887 25,656 Mining costs USD /t mined 4.23 Q2/17 42,899 47,185 Processing costs USD / t milled 6.68 Site G&A costs U
Slide 11: Didipio Underground
Didipio Underground TRANSITION TO UNDERGROUND MINING CONTINUES TO ADVANCE WELL Didipio paste fill plant under construction PROGRESSING UNDERGROUND MILL FEED TRANSITION INFRASTRUCTURE Currently processing stockpiles Commissioned surface batch plant Blending with high grade U/G feed in 2018 Paste fill
Slide 12: Waihi Operations Overview
Waihi Operations Overview STRONG PRODUCTION ON MINING OF HIGHER GRADE ZONE IN UNDERGROUND PRODUCTION SALES OPERATING STATISTICS GOLD (ounces) Operating Costs YTD 17 Q3/17 35,904 36,167 Mining costs USD / t mined 44.89 Q2/17 25,559 24,743 Processing costs USD / t milled 29.17 YTD 17 87,323 87,667 Sit
Slide 13: Martha Project Drilling
MARTHA PROJECT DRILLING EXTENSIVE DRILL PROGRAM UNDERWAY FROM 800RL DRILL DRIVE Martha Open Pit RECENT MARTHA DRILL RESULTS 18.1m @ 7.9 g/t Au 11.1m @ 8.1 g/t Au Daybreak Historic Underground Development Drilling from initial 920RL drill point expected in Q4/17 Currently drilling Exploration targets
Slide 14: Macraes Operations Overview
Macraes Operations Overview HIGH GRADE CORONATION NORTH MILL FEED TO COMMENCE IN Q4 PRODUCTION SALES OPERATING STATISTICS GOLD (ounces) Operating Costs YTD 17 Q3/17 36,878 36,742 O/P Mining costs USD / t mined 1.40 Q2/17 39,778 42,264 U/G Mining costs USD / t mined 39.07 Processing costs USD / t mil
Slide 15: Financial Results Overview
Financial Results Overview REVENUE (excludes Haile) Gold Price Received Q3/17 $145 million ▶ Q3 impacted by timing of sales around (per oz.) $1,262 $1,276 quarter end Q3/17 Q2/17 Q2/17 $172 million ▶ Didipio reduction, offset by Haile increase YTD 17 $478 million which was capitalised ▶ Average pric
Slide 16: Cash Flows Overview
Cash Flows Overview OPERATING CASH FLOW (excludes Haile) Q3/17 $38 million ▶ Higher receivables and inventories and lower payables ▶ Timing of sales Q2/17 $88 million ▶ Lower Didipio and higher New Zealand contribution YTD 17 $179 million ▶ Continued capitalisation of Haile across Q3 INVESTING CASH
Slide 17: YTD (Sep 30) 2017 Capex
YTD (Sep 30) 2017 Capex YTD 2017 Capex Breakdown YTD 2017 Capex Breakdown (USDm) (USDm) Haile Didipio Macraes Waihi Non-Sustaining Sustaining Exploration $24 $23 $56 $42 TOTAL $55 TOTAL $196m $196m $118 $74 YTD 2017 Growth Capex(1) YTD 2017 Sustaining Capex YTD 2017 Exploration Capex (USDm) (USDm) (
Slide 18: Financial Position (as at Sep 30, 2017)
Financial Position (as at Sep 30, 2017) SEMI-ANNUAL DIVIDEND $0.01/sh DECLARED; $13.7M IN DEBT REPAID IN Q3 CASH $61 million (does not include ~$70m in marketable MACRAES HEDGING Total Liquidity securities) $118m Total 2018 ounces hedged: 144 koz UNDRAWN FACILITIES Put-option strike price: NZ$1,750
Slide 19: Looking Ahead
Looking Ahead ON TRACK TO ACHIEVE FULL YEAR PRODUCTION PRODUCTION 2017 GUIDANCE ▶ Production expected to be higher in Q4 with increased contribution from Haile & Macraes; partly offset by lower Gold Production production at Didipio 550,000 – 600,000 ounces ▶ Continued ramp-up and fine-tuning of Hail
Slide 20: www.oceanagold.com
y / www.oceanagold.com 4) Innovation ¢ Performance ¢ Growth OCEANAGOLD