Slide 1: Q2 2018 Results Presentation
Q2 2018 RESULTS PRESENTATION July 27, 2018 CONSISTENTLY DELIVERING ON COMMITMENTS INNOVATION I PERFORMANCE I GROWTH
Slide 2: Cautionary and Technical Statements
2 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 off
Slide 3: Results Highlights
3 Results Highlights H1/18 REVENUE OF $402.4 MILLION, 21% HIGHER THAN H1/17 H1/18 NET PROFIT OF $89.1 MILLION, 45% HIGHER THAN H1/17 CASH BALANCE OF $129 MILLION, 45% INCREASE QoQ, 58% INCREASE YoY SECOND HALF SEMI-ANNUAL DIVIDEND DECLARED WAIHI MINE LIFE EXTENSION ON TRACK, HAILE EXPANSION IN PROGR
Slide 4: Increased 2018 Gold Guidance
4 Increased 2018 Gold Guidance Gold Production Copper Production All-In Sustaining Costs 500,000 – 540,000 15,000 – 16,000 US$725 – US$775 ounces tonnes per ounce (was 480,000 – 530,000 oz) HAILE DIDIPIO WAIHI MACRAES Production: Production: Production: Production: • 140,000 – 155,000 oz Au • 95,000
Slide 5: Dividend Declared
5 Dividend Declared SECOND HALF SEMI-ANNUAL DIVIDEND DISTRIBUTION OF $0.02 PER COMMON SHARE OR CDI INCLUDES DISCRETIONARY AMOUNT REFLECTING BOARD CONFIDENCE IN PERFORMANCE DIVIDEND EX-DATE: 7 AUG 2018 (TSX) / 8 AUG 2018 (ASX) RECORD DATE: 9 AUG 2018 PAYMENT DATE: 14 SEP 2018
Slide 6: Results Overview
6 Results Overview Q2 2018 OPERATING RESULTS Quarter-on-Quarter Gold Production Q2 2018 H1 2018 GOLD PRODUCTION 142,950 268,597 oz 14% GOLD SALES 138,948 266,421 oz COPPER PRODUCTION 3,919 7,808 tonnes COPPER SALES 3,979 7,172 tonnes H1/18 vs. H1/17 Revenue AISC $696 $744 per oz sold Q2 2018 FINANCI
Slide 7: Solid Margins & Returns
7 Solid Margins & Returns 33 CONSECUTIVE QUARTERS OF DELVERING A POSITIVE ROIC ONE OF A FEW GOLD COMPANIES TO ACHIEVE THIS RESULT EBITDA MARGIN* RETURN ON INVESTED CAPITAL* OceanaGold Peer Average OceanaGold Peer Average 60% 20% 50% 15% 40% 30% 10% 20% 5% 10% 0% 0% -10% 2011 2012 2013 2014 2015 2016
Slide 8: Operational Results
8 OPERATIONAL RESULTS Macraes Gold Mine, New Zealand
Slide 9: Health & Safety Performance
9 Health & Safety Performance Total Recordable Injury Frequency Rate (12MMA)* 14 13.06 12 10 8.09 8 6 5.49 4.56 4.60 3.99 3.99 4 2.69 2 0 2011 2012 2013 2014 2015 2016 2017 H1 2018 ▪ Continued training and positive engagement focusing on principle hazard identification and controls across all sites
Slide 10: Haile Operations Overview
10 Haile Operations Overview Q2 2018 H1 2018 Q2 PERFORMANCE TRIFR – 11.6 per million work hours ▪ Improved plant utilisation and increased throughput GOLD PRODUCTION 38,644 75,693 oz ▪ Plant improvements partially offset by GOLD SALES 42,889 75,534 oz lower grades CASH COSTS $276 $365 per oz sold ▪
Slide 11: Didipio Operations Overview
11 Didipio Operations Overview Q2 2018 H1 2018 Q2 PERFORMANCE TRIFR – 1.2 per million work hours ▪ Underground ramp-up progressing well GOLD PRODUCTION 33,140 58,797 oz ▪ Production higher QoQ due to; • Increased head grade GOLD SALES 27,943 59,494 oz • Better recoveries COPPER PRODUCTION 3,919 7,80
Slide 12: Waihi Operations Overview
12 Waihi Operations Overview Q2 2018 H1 2018 Q2 PERFORMANCE TRIFR – 6.7 per million work hours ▪ Increased tonnage and mill feed from better mine productivity GOLD PRODUCTION 20,798 39,320 oz ▪ Slightly lower head grade and recoveries GOLD SALES 19,901 40,884 oz ▪ Margins remain robust CASH COSTS $6
Slide 13: Macraes Operations Overview
13 Macraes Operations Overview Q2 2018 H1 2018 Q2 PERFORMANCE TRIFR – 7.1 per million work hours ▪ Improved safety performance GOLD PRODUCTION 50,368 94,786 oz ▪ Higher grades ▪ Better recoveries at ~86% YTD GOLD SALES 48,215 90,510 oz ▪ Stronger QoQ margins CASH COSTS $535 $595 per oz sold OUTLOOK
Slide 14: Financial Results
Reefton Rehabilitation, New Zealand 14 FINANCIAL RESULTS
Slide 15: Financial Results Overview
15 Financial Results Overview Q2 2018 Q1 2018 Q2 2017 FINANCIAL DRIVERS Revenue million $206 $197 $172 ▪ Higher QoQ revenue from stronger sales volumes EBITDA million $110 $101 $85 ▪ Continued strong EBITDA margin of 53% Net Profit million $45 $45 $25 ▪ Steady net profit with higher operating Avg Go
Slide 16: Cash Flows Overview
16 Cash Flows Overview Q2 2018 Q1 2018 Q2 2017 FINANCIAL DRIVERS Operating cash flow million $109 $77 $89 ▪ Strong operating cash flows driven by higher sales volumes and positive working Investing cash flow million ($60) ($59) ($72) capital movement Financing cash flow million ($8) ($4) ($7) ▪ Stea
Slide 17: Capital Expenditure Overview
17 Capital Expenditure Overview CONSOLIDATED (USDm) Q2 / 18 Q1 / 18 H1/18 2018 GUIDANCE GROWTH 21.3 20.0 41.3 102 – 116 GENERAL OPERATING 6.1 4.8 10.9 20 – 27 PRE-STRIP & CAPITALISED MINING 20.2 20.9 41.1 64 – 78 EXPLORATION 7.5 6.8 14.3 24 – 34 TOTAL 55.1 52.5 107.6 210 – 255 Q2 2018 (USDm) HAILE D
Slide 18: Robust Balance Sheet
18 Robust Balance Sheet (1) Quarter-on-Quarter Year-on-Year Cash Balance Net Debt Cash Balance $129m 45% 58% Total Liquidity $149m Credit Facility (Undrawn) $20m ROBUST BALANCE SHEET ▪ Increase in cash balance and overall liquidity ▪ Net debt of $104m Credit Facility (Drawn) ▪ Amended Revolving Cred
Slide 19: New Zealand Exploration Highlights
19 NEW ZEALAND EXPLORATION HIGHLIGHTS Macraes Exploration, New Zealand
Slide 20: Significant Waihi Exploration Results Continue
20 Significant Waihi Exploration Results Continue DRILLING FROM TWO DRILL DRIVES BENEATH MARTHA PIT YIELDING POSITIVE RESULTS RECENT SIGNIFICANT INTERCEPTS FROM MARTHA AND EMPIRE VEINS(1) ▪ 5.0 metres @ 65.3 g/t gold, 100 g/t silver, ▪ 9.0 metres @ 29.4 g/t gold, 288 g/t silver, ▪ 3.6 metres @ 31.9
Slide 21: WKP Exploration
21 WKP Exploration COROMANDEL GOLD DISTRICT PRODUCTION >12 MOZ AU, 52 MOZ AG RECENT SIGNIFICANT INTERCEPTS FROM Tenements EAST GRABEN VEIN (1) ▪ 8.7 metres @ 24.5 g/t gold, 32.0 g/t silver, ▪ 7.6 metres @ 10.8 g/t gold, 12.3 g/t silver, Dome Field North ▪ 7.0 metres @ 11.2 g/t gold, 10.6 g/t silver,
Slide 22: 2018 Priorities
22 2018 Priorities ON TRACK TO ACHIEVE 2018 GUIDANCE GENERATE STRONG CASH FLOWS AND DELIVER ON ORGANIC GROWTH INITIATIVES OPERATIONS GROWTH ▪ Continued improvement of safety leadership ▪ Advancing the Waihi extension plans ▪ Identifying and implementing productivity ▪ Advancing the Haile expansion p
Slide 23: Corporate Headquarters
Corporate Headquarters Americas Corporate Office Level 14, 357 Collins Street 777 Hornby Street Suite 1910 Melbourne, Victoria, 3000 Vancouver, British Columbia V6Z 1S4 Australia Canada PO Box 355, E: info@oceanagold.com Flinders Lane Post Office Melbourne, Victoria, 3000 Australia T: +61 3 9656 530