Oceanagold Corporation · TSX:OGC
Oceanagold — Investor Day (June 2024)
61 slides from Oceanagold's investor day presentation, Jun 11, 2024
Slide 1: Investor Day
Investor Day June 11, 2024 Delivering Growth and Generating Returns CARE | RESPECT | INTEGRITY | PERFORMANCE | TEAMWORK
Slide 2: Cautionary Statements
Cautionary Statements Cautionary Note Regarding Forward-Looking Statements This presentation contains certain “forward-looking statements” and “forward-looking information” (collectively, “forward-looking statements”) within the meaning of applicable Canadian securities laws which may include, but i
Slide 3: Today's Agenda
Gerard Bond Delivering Growth & Generating Returns 9:05am President and CEO Megan Saussey Committed to Responsible Mining 9:35am EVP, Chief Sustainability Officer Michelle Du Plessis Building a Winning Culture 9:40am EVP, Chief People and Technology Officer David Londono Delivering on Production in
Slide 4: Delivering Growth and Generating Returns
Delivering Growth and Generating Returns GERARD BOND President and Chief Executive Officer 4
Slide 5: OceanaGold at a Glance
OceanaGold at a Glance OceanaGold is a growing intermediate gold and copper producer committed to safely and responsibly maximizing the generation of Free Cash Flow from our operations and delivering strong returns for our shareholders Four operating mines, located in the United States of America, t
Slide 6: Diversified Portfolio
Diversified Portfolio HAILE, United States of America 195-225koz Four operating 40% 24% DIDIPIO, Philippines assets producing 2024 120-135koz GOLD & Guidance1 COPPER with significant 510 – 570 koz GOLD MACRAES, New Zealand organic growth 12 – 14 kt COPPER 120-135koz opportunities 12% 24% WAIHI, New
Slide 7: Over 30 Years of Global Operating, Development & Exploration Experience
Over 30 Years of Global Operating, Development & Exploration Experience Commenced First production at Acquired Waihi in underground Macraes in Listed Listed NZ & the Haile in production at New Zealand on the ASX on the TSX USA Haile 1990 2004 2007 2015 2023 2024+ Significant FCF Inflection Point 200
Slide 8: Key Achievements Over the Past ~2 Years
Key Achievements Over the Past ~2 Years • Permitted & delivered • Achieved • Safely delivered • Strengthened • Resumed dividend the Haile Underground; exploration production guidance, management team payment to • Strong production success at WKP, generated Free shareholders delivery from Didipio Hai
Slide 9: Well Positioned for the Next Stage of Our Growth
Well Positioned for the Next Stage of Our Growth Executing our strategy Investing in low-risk organic growth within our portfolio Balance sheet is strong Supported by FCF generation, Didipio IPO and sale of non-core asset The right leaders in place Strong, capable and aligned leaders to deliver the
Slide 10: Strong Market Dynamics for Gold & Copper
Strong Market Dynamics for Gold & Copper GOLD DEMAND COPPER DEMAND 5,000 2000 25,000 +11% 4,500 1950 4,000 20,000 +19% 3,500 1900 +7% 3,000 15,000 US$/oz 1850 Tonnes +0.5% kt 2,500 1800 2,000 10,000 1,500 1750 1,000 5,000 1700 500 0 1650 0 2020 2021 2022 2023 2020 2025 2030 2035 2040 Central Banks I
Slide 11: Strong, Capable & Aligned Leadership Team
Strong, GERARD MICHELLE CRAIG DAVID BHUVANESH Capable & BOND President & DU PLESSIS EVP, Chief People & FEEBREY EVP, Chief Exploration LONDONO EVP, Chief Operating MALHOTRA EVP, Chief Technical Aligned Chief Executive Officer Technology Officer Officer Officer - Americas & Projects Officer Leadershi
Slide 12: Our Purpose, Vision and Values
Our Purpose Mining gold for a better future Our Vision To be a company people trust, want to work and partner with, supply and invest in, to create value Our Values Care Respect Integrity Performance Teamwork 12
Slide 13: Executing on Our Corporate Strategy
Executing on Our Corporate Strategy Five Pillars to Increase and Sustain a Higher Value for OceanaGold Shares 1 2 3 4 5 Safely and A Caring, Increase Deliver Financial Premium Responsibly Deliver Inclusive and Resources and Strength and Rating with Gold Production Winning Culture Reserves Cost Retur
Slide 14: Safely and Responsibly Deliver Gold Production
Organic, low-risk, Achieved Effective cost production growth production management of 30% over the guidance 3 years in next 3 years2 a row 1 Gold Production & All In Sustaining Costs (AISC)1,2 $1,587 $1,475 - $1,600 $1,425 - $1,575 $1,250 - $1,400 Safely and Responsibly Deliver +30% Gold Production
Slide 15: A Caring, Inclusive and Winning Culture
Launched a new culture survey and Strength in technical achieved strong employee engagement expertise and across our scores (above benchmark) sites Created an inclusive and Living Our Values program respectful workplace experience celebrates outstanding role 2 for our workforce models of our Values
Slide 16: Increase Resources & Reserves Cost Effectively
Increasing exploration Began outside the gate Considering all means investment across our exploration at of increasing sites Didipio reserves and resources 3 Resource Replacement1 M&I Resource Additions Exploration Spend Increase $30M Resources & Reserves $25M $22M Cost Effectively 1,120koz 190koz U
Slide 17: Deliver Financial Strength and Returns
Significant Recommenced Disciplined capital improvement in dividend payments in allocation to drive financial performance 2023 shareholder returns and strength since 2021 4 Actuals Free Cash Flow ($M)1 Consensus Outlook2 Capital Allocation Framework Growth Deliver Financial with attractive returns S
Slide 18: A Focus on Per Share Metrics and Respect of Equity Capital
A Focus on Per Share Metrics and Respect of Equity Capital Production (oz/‘000 share) Operating Cash Flow (¢/share) 0.7 0.7 52 55 0.5 37 Free Cash Flow per share was lower in 2023 as we invested in the Haile Underground 2021 2022 2023 2021 2022 2023 Expect per share metrics to Free Cash Flow1 (¢/sha
Slide 19: A Premium Rating with the Investment Community
Independent Chair Strengthened Head Office moved to and new technical Management team Vancouver Directors 5 Increased access to senior management Upgraded US OTCQX® Consensus Price to Net Asset Value Consensus P/NAV A Premium Rating with the Investment Peer Community Range3 0.79x 0.57x 1 2 Q1 2021 A
Slide 20: Medium Term Outlook
Medium Term Outlook Didipio Underground Palomino in Haile underground full ramped up optimization complete production 2030+ Obtain consents (permits) for Construction WKP in 2024 WKP begins at WKP production Didipio optimization starts Commence Palomino development 20
Slide 21: Investment Thesis
Global intermediate gold and copper producer with deep expertise in operations, development and exploration Attractive organic growth opportunities within a diversified portfolio Focused on growing reserves and resources Investment through increased exploration, with WKP representing a significant o
Slide 22: Sustainability is Central to Business Performance
Sustainability is Central to Business Performance High importance on delivering 25% of 2023 short-term incentive KPIs were results in a responsible way sustainability related 31.25% of 2024 short-term incentive KPIs are sustainability related Safety of the workforce, care for the environment, positi
Slide 23: Committed to Responsible Mining
Committed to Responsible Mining MEGAN SAUSSEY EVP, Chief Sustainability Officer Link to watch: click here 23
Slide 24: Building a Winning Culture
Building a Winning Culture MICHELLE DU PLESSIS EVP, Chief People & Technology Officer 24
Slide 25: Building a Winning Culture for the Future
Building a Winning Culture for the Future Culture Survey 2023 Highlights Strategy • Have a culture that drives performance and fosters belonging • Have capable people with the right skills and potential to Higher than benchmark engagement outcome perform and grow 75% engagement Collaboration is the
Slide 26: Delivering on Production in North America
Delivering on Production in North America DAVID LONDONO EVP, Chief Operating Officer – Americas 26
Slide 27: Haile Overview
HAILE HAILE Growth in the USA 40% Location South Carolina, of OGC’s Annual Production2 USA Metals Gold OVERVIEW Mine Type Open Pit & 2024 Guidance Underground 195-225 koz Au Processing Carbon-in-leach Type flotation plant Mine Life1 2035+ 1. Based on reported Annual Information Form for the year end
Slide 28: Powering our Near-Term Growth
Powering our Near-Term Growth HAILE Strategic Position Current Operations Largest gold producer in the portfolio Established U.S.A. based asset Experienced workforce Significant production growth profile though 2026 Horseshoe Underground built within ~12 months 28
Slide 29: Opportunity to Continue Delivering Underground Growth
Opportunity to Continue Delivering Underground Growth HAILE Grade driven production growth to 315 koz in 20261 Cost improvements through value capture programs Opportunity Palomino as a future source of underground ore Significant exploration upside Advance Palomino Ledbetter 4 Exploration Deliver o
Slide 30: Delivering on Production in Asia Pacific
Delivering on Production in Asia Pacific PETER SHARPE EVP, Chief Operating Officer – Asia Pacific 30
Slide 31: Didipio Overview
DIDIPIO DIDIPIO A Strong Free Cash Flow Generator with Upside Location Luzon Island, 24% of OGC’s Annual Production2 Philippines Metals Gold & Copper Ownership 80% OceanaGold, OVERVIEW 20% PSE Listed 2024 Guidance 120-135 koz Au Mine Type Stockpile & 12-14 kt Cu Underground Processing Gravity, Flota
Slide 32: Steady Producer With Two Ore Sources
Steady Producer With Two Ore Sources DIDIPIO Strategic Position Current Operations Established operating 18 Mt of stockpiles + current underground ore asset feeds the 4 Mtpa mill Dual ore sources provides consistency First FTAA in the country, licensed until 2044 Underground 40% Our lowest cost mine
Slide 33: Potential to Increase Production from Underground
Potential to Increase Production from Underground DIDIPIO Optimization work suggests ability to Underground Reserve Grades2: increase mining rates from 40% 60% 1.38 g/t Au underground1 Current Potential 0.41% Cu Goal is to increase the contribution of mill feed mill feed Opportunity mix1 mix1 higher
Slide 34: Delivering on our Commitments
Delivering on our Commitments JOAN D. ADACI-CATTILING President of OGP, GM External Affairs and Social Performance Link to watch: click here 34
Slide 35: Macraes Overview
MACRAES MACRAES The Foundation Asset Location South Island, New Zealand Metals Gold OVERVIEW Mine Type Open Pit & 2024 Guidance Underground 120-135 koz Au Processing Carbon-in-leach, Type Pressure oxidation Mine Life1 2027 (Reserves only, at $1,500/oz) 24% of OGC’s Annual Production2 1. Based on rep
Slide 36: Over Three Decades of Continuous Production
Over Three Decades of Continuous Production MACRAES Strategic Position Current Operations Over 30 years in operation Open pit and underground mining Since 2000, gold production has averaged 170 koz1/yr Reaching record mill throughput through continuous improvement initiatives Low open pit mining cos
Slide 37: Potential for Mine Life Extension
Potential for Mine Life Extension MACRAES Spot Gold Price2 vs Reserve & Resource Price1 2,400 Current gold prices are significantly 2,200 higher than reserve prices 2,000 US$/oz 1,800 Opportunity Potential for pit shell expansions 1,600 at higher gold prices 1,400 1,200 Current measured and indicate
Slide 38: Waihi Overview
WAIHI WAIHI The Gateway to WKP Location North Island, New Zealand Metals Gold, Silver OVERVIEW 2024 Guidance Mine Type Underground 55-75 koz Au Processing Carbon-in-pulp Type Mine Life1 2028+ 12% of OGC’s Annual Production2 1. Based on reported Annual Information Form for the year ended December 31,
Slide 39: Continuing Operations in a Historic Mining District
Continuing Operations in a Historic Mining District WAIHI Strategic Position Current Operations Waihi district has mined >8Moz1 historically Currently mining Martha Underground remnant and fresh ore Experienced and capable local workforce Underground optimization work ongoing to Supports the WKP pro
Slide 40: Future High-Grade Feed to Existing Process Plant
Future High-Grade Feed to Existing Process Plant WAIHI WKP is ~10km north of the Waihi process plant Exceptional high-grade deposit, with Measured and Indicated grade of 15.9 g/t1 Opportunity Drilling to-date focused largely on the East Graben vein zone only The deposit is open along strike and at d
Slide 41: Economic and Environmental Stewardship in New Zealand
Economic and Environmental Stewardship in New Zealand ALISON PAUL SVP, New Zealand Legal and Public Affairs Link to watch: click here 41
Slide 42: Leveraging Technical Capability to Advance our Projects
Leveraging Technical Capability to Advance our Projects BHUVANESH MALHOTRA EVP, Chief Technical and Projects Officer 42
Slide 43: Technical & Projects Mandate
Technical & Projects Mandate Expertise ready to deploy Technical Capability Assist with site operational challenges, project studies and M&A evaluation Technical Major hazard governance Governance Application of technical standards Major Projects Leading and advancing project studies and Studies Eva
Slide 44: Organic Growth Projects
Organic Growth Projects Projects Study Level NI 43-101 Timing Palomino Feasibility HAILE Ledbetter 4 Internal trade off TBD MACRAES Potential mine life extensions Internal trade off TBD DIDIPIO Underground optimization Pre-feasibility Q1 2025 WAIHI WKP Pre-feasibility Q4 2024 44
Slide 45: WKP: A World-Class Development Opportunity
WKP: A World-Class Development Opportunity Widths up to 20m in the EG Vein More than 1km mineralized corridor Geometry amenable to AVOCA mining method Current Measured & Indicated Resource1: 2.0 Mt @ 15.9 g/t for 1.01 Moz 45 1. Based on reported Resources and Reserves for the year ended 2023, see Fe
Slide 46: Advancing WKP
Advancing WKP Pre-Feasibility Study Exploration upside OPPORTUNITIES Fast track approvals bill Primary vent raises Access Tunnels Tailings storage optionality Access declines Access, decline and ventilation Geotechnical
Slide 47: Discovering Ounces in Our Portfolio and Beyond
Discovering Ounces in Our Portfolio and Beyond CRAIG FEEBREY EVP, Chief Exploration Officer 47
Slide 48: Growing the Exploration Pipeline
48 GROWING THE EXPLORATION PIPELINE A pipeline of projects across our operations Exploration Framework Project Status Haile Didipio Waihi Macraes Studies Wharekirauponga EG 1 Reserve Conversion 1 .z Palomino 1 .z Didipio Panel 2 & 3 1 .z Vein 1 .z Open Pit and GPUG 1 Ledbetter UG 2 Didipio Panel 3 2
Slide 49: Haile
HAILE Strategic Multi-million ounce mine with further Position upside potential Only gold producer in under-explored gold district History of low $28 discovery cost per ounce1 Opportunity Continue exploration with focus on underground Leverage growing knowledge of deposit scale controls on mineraliz
Slide 50: Didipio
DIDIPIO Strategic High-margin Copper - Gold porphyry Position Multi-million ounce deposit with large and prospective land holding ~7,000 ha Low $9 discovery cost per ounce1 Opportunity Continued growth through resource conversion and discovery Regional discovery potential across the FTAA and adjacen
Slide 51: Macraes
MACRAES Strategic 5 Moz produced from 11 deposits1 Position 30km highly mineralized structure Large >14,000 ha prospective land holding Opportunity Significant ounce potential with leverage to higher gold prices Continuing target generation utilizing data-rich environment and artificial intelligence
Slide 52: Waihi
WAIHI Strategic 8 Moz high-grade epithermal district1 Position Large land holding centered on 3 major epithermal deposits History of low $40 discovery cost per ounce2 Opportunity Significant reserve growth potential at WKP and Martha Additional discovery opportunity across other contiguous tenements
Slide 53: Delivering Financial Strength
Delivering Financial Strength MARIUS VAN NIEKERK EVP, Chief Financial Officer 53
Slide 54: Strong balance sheet
Revenue Net Debt3 $1,026M Strong balance sheet $967M $125M driven by operating performance $745M $72M $77M No punitive royalties or streams 2021 2022 2023 2021 2022 2023 Asset sales have further Free Cash Flow1,2 Leverage Ratio4 strengthened the balance sheet Net proceeds of $30M for Blackwater $58M
Slide 55: Value Capture Programs
Value Capture Programs Increase runtime and reduce Effective cost Asset Management unplanned costs management underpins our Identifying volume uplift and cost maximization of Continuous Improvement reduction opportunities across the business Free Cash Flow Strategic planning and market Procurement e
Slide 56: Nearing a Free Cash Flow Inflection Point
Gold Production & All In Sustaining Costs (AISC)1,2 Production $1,587 $1,475 - $1,600 $1,425 - $1,575 $1,250 - $1,400 growth of 30%2 over the next three years with +30% decreasing AISC 620 - 680 510 - 570 540 - 600 472 477 363 Nearing 2021 2022 2023 2024E 2025E 2026E Positioned to generate strong a
Slide 57: Disciplined Capital Allocation – Framework and Priorities
Disciplined Capital Allocation – Framework and Priorities To increase and sustain a higher value for OceanaGold shares Growth Organic growth Exploration Inorganic growth with attractive returns projects Strong Low leverage ratio of 0.21x at March 31, 2024 Balance Sheet Expect to be in a Net Cash pos
Slide 58: Potential to Invest in High Return Growth Projects
Potential to Invest in High Return Growth Projects 2024 2030 Horseshoe UG Complete Haile UG Optimization ~$100M Didipio to $130M1 Palomino UG ~$100M2 Haile Including Open Pit Mine Life Extensions $TBD Organic Macraes Growth Wharekirauponga (WKP) Projects Waihi $TBD Exploration ~$30M in All sites 202
Slide 59: Evaluating External Opportunities
Evaluating External Opportunities BRIAN MARTIN SVP, Business Development & Investor Relations 59
Slide 60: Supported by Well-Targeted Potential M&A Opportunities
Supported by Well-Targeted Potential M&A Opportunities Strategy Three ways to Seeking opportunities Patiently looking Primarily focused in add production units to create shareholder at operating, existing jurisdictions drill them, buy them, value: development or and Canada or unlock via exploration
Slide 61: Investment Thesis
Global intermediate gold and copper producer with deep expertise in operations, development and exploration Attractive organic growth opportunities within a globally diversified portfolio Focused on growing reserves and resources Investment through increased exploration, with WKP representing a sign