Slide 1: 2017 Results Presentation
Consistently Delivering On Commitments February 22, 2018 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: Highlights
Highlights RECORD ANNUAL & QUARTERLY NET PROFIT & REVENUE REDUCED NET DEBT BY ~$88M IN Q4/17 PAID $6M IN DIVIDENDS IN Q4/17, DECLARED ADDITIONAL $6M IN DIVIDENDS IN Q1/18 STRONG OPERATIONAL PERFORMANCE AT HAILE CONTINUED POSITIVE EXPLORATION RESULTS AT WAIHI 3
Slide 4: 2017 Overview
2017 Overview RECORD ANNUAL REVENUE AND NET PROFIT IN 2017 2017 FINANCIAL RESULTS EBITDA MARGIN* OceanaGold Peer Average REVENUE $724 million 60% 56% 50% EBITDA $408 million 40% 30% NET PROFIT $172 million 20% $0.32 10% ADJUSTED EPS (fully diluted) 0% ADJUSTED CFPS (fully diluted) $0.62 -10% 2010 20
Slide 5: 2017 Financial Results
2017 FINANCIAL RESULTS
Slide 6: 2017 Financial Results
2017 Financial Results Gold Price Received Copper Price Received REVENUE (per oz) (per lb) $1,276 $1,275 $3.17 $2.82 Q4 2017 $246 million Q3/17 Q2/17 Q4/17 Q3/17 Q4/17 Q3 2017 $145 million Gold Sales Copper Sales (koz) (t) 2017 $724 million 131 169 3,273 4,842 Q3/17 Q4/17 Q3/17 Q4/17 EBITDA Q4 2017
Slide 7: 2017 Cash Flows
2017 Cash Flows CASH FLOW FROM OPERATIONS CASH BALANCE INCREASED Q4 2017 $179 million ▶ Cash increased from $61m to $73m ▶ Total liquidity of $103m Q3 2017 $38 million 2017 $358 million CASH FLOW USED IN INVESTING DEBT REDUCED Q4 2017 $75 million ▶ Debt facility repayments totalling $73m in Q4/17 ▶
Slide 8: 2017 Capital Investment
2017 Capital Investment Q4/17 (USDm) CONSOLIDATED HAILE DIDIPIO WAIHI MACRAES GROWTH 46.3 11.5 30.0 2.4 2.4 SUSTAINING 12.5 2.8 6.8 1.2 1.7 PRE-STRIP & CAPITALISED 16.6 5.3 - 1.4 9.9 MINING CAPITALISED REVENUE (9.7) (9.7) - - - EXPLORATION 7.0 2.0 0.3 3.2 1.5 TOTAL 72.7 11.9 37.1 8.3 15.6 FULL YEAR
Slide 9: 2017 Operational Results
2017 OPERATIONAL RESULTS
Slide 10: Health & Safety Performance
Health & Safety Performance FOCUSING 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) ▶ Introduction and implementation of wor
Slide 11: Haile
Haile STRONG Q4/17 PRODUCTION UNDERPINNED BY STEADY-STATE OPERATIONS 2017 OPERATING RESULTS INCREASED PRODUCTION ▶ 60% increase QoQ TRIFR 8.45 per million work hours GOLD PRODUCTION 118,466 oz GOLD SALES 109,532 oz HIGHER THROUGHPUT RATES CASH COSTS $272 per oz sold ▶ ~1.2 Mt processed in first nine
Slide 12: Didipio
Didipio RECORD ANNUAL PRODUCTION WITH STRONG CASH FLOW GENERATION 2017 OPERATING RESULTS STRONG SAFETY PEFORMANCE TRIFR 0.51 per million work hours ▶ Lower YoY TRIFR (0.51 vs 1.76 per million work hrs) at operations GOLD PRODUCTION 176,790 oz ▶ Lowered YoY TRIFR (14.0 vs 5.14 per million GOLD SALES
Slide 13: Waihi
Waihi STRONG PRODUCTION WITH CONTINUED EXPLORATION UPSIDE 2017 OPERATING RESULTS SOLID CASH FLOW GENERATION TRIFR 6.24 per million work hours ▶ Generated $55m in Free Cash Flow in 2017 GOLD PRODUCTION 119,084 oz FURTHER MINE PRODUCTIVITY & COST GOLD SALES 117,721 oz IMPROVEMENTS ▶ Mining costs CASH
Slide 14: Macraes
Macraes ADVANCED MINING OF CORONATION NORTH TO END 2017; READY FOR 2018 2017 OPERATING RESULTS ADVANCED CORONATION NORTH TRIFR 7.09 per million work hours ▶ Delay in accessing higher grade ore from Coronation North resulted in lower than GOLD PRODUCTION 160,266 oz expected production in Q4/17 GOLD S
Slide 15: 2017 Exploration Overview
2017 EXPLORATION OVERVIEW
Slide 16: Haile Exploration
Haile Exploration SIGNIFICANT RESOURCE EXTENSIONAL OPPORTUNITIES AT HAILE DDH0678 DDH0659 DDH0644 77.7m @ 4.0 g/t Au from 173.2m 87.3m @ 1.4 g/t Au from 200.1m 30.2m @ 4.6 g/t Au from 168.2m DDH0637 DDH0610 156.8m @ 4.9 g/t Au from 275.2m 61.1m @ 15.4 g/t Au from 377.2m DDH0635 DDH0653 27.9m @ 1.6 g
Slide 17: Mill Zone – Ledbetter Trend
Mill Zone – Ledbetter Trend 300 m DDH0673 DDH0715 99.1 m @ 1.1 g/t Au from 107.6 m 45.0 m @ 1.17 g/t Au from 91.9 m 200 m Mill Zone Mustang Ledbetter A A’ 100 m metavolcanics 0m 0.45g/t 0.45g/t 0.45g/t -100 m metasediments -200 m DDH0661 DDH0677 41.2 m @ 1.79 g/t Au from 258.7 m 56.3 m @ 1.4 g/t Au
Slide 18: Extend Mine Life Potential
Extend Mine Life Potential MARTHA PIT EMPIRE 920 DD CHRISTINA 800 DD REX DAYBREAK CORRENSO MARTHA FAVONA UNDERGROUND TARGET GLADSTONE MOONLIGHT 18
Slide 19: Martha Project - Underground
Martha Project - Underground 800mRL 19.7m @ 7.8 g/t Au 12.9m @ 5.3 g/t Au Martha Vein Empire Vein 19.7m @ 7.8 g/t Au 800DD 9.5m @ 7.4 g/t Au 12.9m @ 5.3 g/t Au 13.3m @ 8.6 g/t Au 6.0m @ 6.0 g/t Au 1.7m @ 7.2 g/t Au 6.5m @ 6.6 g/t Au Au g/t 2.5m @ 9.1 g/t Au 0.50 – 3.0 3.0 – 10.0 3.6m @ 4.4 g/t Au >1
Slide 20: Macraes Exploration
Macraes Exploration CONTINUE TO GROW THE RESOURCE BASE Coronation North Recent Golden Point Drilling Coronation Surface 7.9m @ 10.02 g/t 14m @ 3.76 g/t 20m @ 1.52 g/t 7m @ 5.16 g/t Golden Point DDH6446 8.7m @ 1.30 g/t Round Hill DDH6473 RCD6450 DDH6458 10.9m @ 4.21 g/t 7.2m @ 2.12 g/t 26.2m @ 1.63 g
Slide 21: 2018 Outlook
2018 OUTLOOK
Slide 22: Haile 2018
Haile 2018 2018 GOLD PRODUCTION GUIDANCE INCREASED THROUGHPUT RATES 135,000 – 150,000 oz ▶ Expecting to exceed nameplate capacity in 2018 ▶ Ramping-up to 4 Mtpa 2018 AISC GUIDANCE ▶ Crushing and grinding facilities to achieve higher $725 – $775 per oz sold rates ROBUST AISC MARGINS ENHANCE RECOVERIE
Slide 23: Didipio 2018
Didipio 2018 2018 GOLD PRODUCTION GUIDANCE UNDERGROUND RAMP-UP 80,000 – 90,000 oz ▶ Steadily increasing ore production rates expected 2018 COPPER PRODUCTION GUIDANCE ▶ 2018: 500 – 600 kt 15,000 – 16,000 tonnes ▶ 2019: 1.2 – 1.3 Mt ▶ 2020 and beyond: 1.6 Mt 2018 AISC GUIDANCE ▶ Second mining domain u
Slide 24: Didipio Underground
Didipio Underground aaaiaene PORTAL sine (-RL 2661) ee RETURN AIR RAISE NORTH MAIN DECLINE 4st PRODUCTION STOPE CAPITAL STORAGE STOPE (2310-2280L) —_ Gas es CURRENT DECLINE ADVANCE “ERGs (RL 2250 EOY 17°) HE winco (= 5 1m
Slide 25: Waihi 2018
Waihi 2018 2018 GOLD PRODUCTION GUIDANCE MINING LOWER GRADES 75,000 – 85,000 oz ▶ YoY decrease in production due to mining lower grade zones of the underground 2018 AISC GUIDANCE ▶ 2019 production expected to be similar $750 – $790 per oz sold MARTHA PROJECT ROBUST AISC MARGINS ▶ Permitting to comme
Slide 26: Macraes 2018
Macraes 2018 2018 GOLD PRODUCTION GUIDANCE MINING HIGHER GRADES 190,000 – 200,000 oz ▶ YoY increase in production from mining higher grade ore from Coronation North 2018 AISC GUIDANCE ▶ Mining from Coronation North expected for next two years $950 – $1,000 per oz sold ROBUST AISC MARGINS EXPLORATION
Slide 27: 2018 Priorities
2018 Priorities OPERATIONS GROWTH ▶ Continue improvement of safety ▶ Advance the Waihi extension plans leadership ▶ Advance the Haile expansion plans ▶ Identify and implement productivity improvements and cost reductions ▶ Continue development & ramp-up of Didipio UG ▶ Seek out innovation opportunit
Slide 28: Valuation Disconnect
Valuation Disconnect SHARE PRICE PERFORMANCE $6.00 OGC Gold Spot $1,400 $5.50 $1,350 $5.00 $1,300 Gold Spot Price (US$/oz.) OGC Share Price (C$/sh) $4.50 $1,250 $4.00 $1,200 $3.50 $1,150 $3.00 $1,100 $2.50 $1,050 $2.00 $1,000 Source: Bloomberg AVG GOLD PRICE: $1,300/oz AVG GOLD PRICE: $1,294/oz AVG
Slide 29: www.oceanagold.com
y / www.oceanagold.com 4) Innovation ¢ Performance ¢ Growth OCEANAGOLD