Corporate Presentation

Transcription

1 Consistently Delivering On Commitments October 2017 Corporate Presentation

2 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 to issue, securities of OGC or other financial products. The information contained herein is not investment or financial product advice and has been prepared without taking into account the investment objectives, financial situation or particular needs of any particular person. The views, opinions and advice provided in this presentation reflect those of the individual presenters only. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusion contained in this presentation. To the maximum extent permitted by law, none of OGC or any of its directors, officers, employees or agents accepts any liability, including, without limitation, any liability arising out of fault or negligence, for any loss arising from the use of the information contained in this presentation. Furthermore, this presentation does not constitute an offer of shares for sale in the United States or to any person that is, or is acting for the account or benefit of, any U.S. person (as defined in Regulation S under the United States Securities Act of 1933, as amended (the "Securities Act")) ("U.S. Person"), or in any other jurisdiction in which such an offer would be illegal. OGC s shares have not been and will not be registered under the Securities Act. Cautionary Statement Concerning Forward Looking Information Certain information contained in this presentation may be deemed forward-looking within the meaning of applicable securities laws. Forward-looking statements and information relate to future performance and reflect OGC s expectations regarding the generation of free cash flow, execution of business strategy, future growth, future production, estimated costs, results of operations, business prospects and opportunities of OGC and its related subsidiaries. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as expects or does not expect, is expected, anticipates or does not anticipate, plans, estimates or intends, or stating that certain actions, events or results may, could, would, might or will be taken, occur or be achieved) are not statements of historical fact and may be forward-looking statements. Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those expressed in the forward-looking statements and information. They include, among others, the accuracy of mineral reserve and resource estimates and related assumptions, inherent operating risks, and those risk factors identified in OGC s most recent annual information forms prepared and filed with securities regulators which are available on SEDAR at under OGC s name. There are no assurances OGC can fulfil forward-looking statements and information. Such forward-looking statements and information are only predictions based on current information available to management of OGC as of the date that such predictions are made; actual events or results may differ materially as a result of risks facing OGC, some of which are beyond OGC s control. Although OGC believes that any forward-looking statements and information contained in this presentation are based on reasonable assumptions, readers cannot be assured that actual outcomes or results will be consistent with such statements. Accordingly, readers should not place undue reliance on forward-looking statements and information. OGC expressly disclaims any intention or obligation to update or revise any forward-looking statements and information, whether as a result of new information, events or otherwise, except as required by applicable securities laws. The information contained in this release is not investment or financial product advice. Technical Disclosure The exploration results were prepared in accordance with the standards set out in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves ( JORC Code ) and in accordance with National Instrument Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators ( NI ). The JORC Code is the accepted reporting standard for the Australian Stock Exchange Limited ( ASX ). For further scientific and technical information (including disclosure regarding mineral resources and mineral reserves) relating to the Haile Mine, the Macraes Mine and the Didipio Mine please refer to the NI compliant technical reports available at sedar.com under the Company s name. General Presentation Notes All AISC and cash costs are net of by-product credits unless otherwise stated All financials are denominated in US Dollars unless otherwise stated 2

3 OCEANAGOLD OVERVIEW CONSOLIDATED 2017 GUIDANCE Gold 550, ,000 ounces Copper 18,000 19,000 tonnes AISC US$600 US$650 per ounce 2017 GUIDANCE ASSUMPTIONS Copper = $2.50/lb NZD:USD = 0.70 UNITED STATES NEW ZEALAND PHILIPPINES Auckland Waihi Manila Didipio Haile Macraes Wellington Christchurch Dunedin Davao City 2017 PRODUCTION 2017 AISC GUIDANCE Gold (oz) Copper (t) USD/oz sold HAILE WAIHI MACRAES DIDIPIO 110, , , , , , , ,000 18,000 19,000 $600 $650 $740 $790 $950 $1,000 $70 - $120 RESERVES (1) / Gold (Moz) 3.46 / / / / 2.06 RESOURCES (1)(2) Copper (kt) 0.18 / 0.24 MINE LIFE As at 31 Dec 2016 except Haile which is from 1 Jan Inclusive of reserves & Inferred resources 3

4 INVESTOR INFORMATION Shareholder Geographic Composition LARGEST SHAREHOLDERS ANZ 10.5% Asia 3.2% United States 46.1% 1 Blackrock (London) 2 Van Eck Associates (New York) 3 Franklin (San Francisco) Europe 31.03% 4 Ingalls & Snyder (New York) 5 Commonwealth Bank (Sydney) 6 Royal Bank Investment (Toronto) 7 Taylor Asset Management (Toronto) Canada 8.8% 8 Tocqueville (New York) TICKER TSX/ASX: OGC OTC: OCANF 9 Dimensional Fund (Austin) MARKET CAP (1) C$2.2 billion A$2.2 billion 10 Vanguard Group (Sydney) 11 Deutsche Bank (Frankfurt/New York) AVG. DAILY TRADING VOLUMES (1) C$14 million 12 M&G Investment (London) CASH (2) US$61 million 13 Newton (London) NET DEBT (2) US$255 million 14 Oppenheimer (New York) 15 Fidelity (Boston) 1. On 25 Oct As at 30 Sep

5 OPERATIONS OVERVIEW ON TRACK TO DELIVER ON GROUP 2017 GUIDANCE FOR SIXTH STRAIGHT YEAR GOLD PRODUCTION (oz) SEP Q JUN Q YTD (SEP) GUIDANCE 136, , , , ,000 COPPER PRODUCTION (t) SEP Q JUN Q YTD (SEP) GUIDANCE 4,387 4,322 14,664 18,000 19,000 AISC (USD / oz sold) SEP Q JUN Q YTD (SEP) GUIDANCE $748 $681 $644 $600 $650 HAILE DecQ production expected to be higher on continued ramp-up, fine tuning DIDIPIO U/G Developing on-going with first ore expected late 2017/early 2018 WAIHI Steady production and continued advancement of Martha Project MACRAES High-grade ore from Coronation North to be processed in DecQ 5

6 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 the OceanaGold safety standards FOCUSSED RESPONSE Refocus each operation to identify site specific risks, history of exposures and drive accountability Continued engagement of the leadership team & workforce to improve the safety culture across all sites Total Recordable Injury Frequency Rate* YTD 2017 *Note. Total Recordable Injury Frequency Rate = (number of recordable injuries / number of hours worked) x 1,000,000 6

7 GOLD MINER OF CHOICE COMPELLING VALUE PROPOSITION FROM GROWING, HIGH-MARGIN GOLD PRODUCER 2018E AISC (1) (per oz) OGC $595 Producer Avg. $781 60% 50% 40% 30% EBITDA Margin (3) OceanaGold Peer Average 20% 10% 2018E FCF Yield (1) 0% OGC Producer Avg. -10% % 5 % Return on Invested Capital (3) 20% OceanaGold Peer Average 2018E P/CF (2) OGC Producer Avg. 15% 10% 5.3 x 8.7 x 5% 0% Notes: 1. BMO Research (18 Sep 2017) 2. Macquarie Research (17 Sep 2017) 3. Bloomberg, Company data -5%

8 Northern Star Evolution St Barbara OceanaGold Agnico Eagle Centerra Gold Regis SEMFAO B2Gold Newmont Detour Barrick Gold Alamos Kinross Tahoe Alacer New Gold Yamana Eldorado LONG-TERM OUTPERFORMER SHORT TERM UNDERPERFORMANCE PRESENTS INVESTMENT OPPORTUNITY 5-YR TSR (1) % 5 Year Total Shareholder Return OGC TSX Global Gold % 40 % YR TSR (1) 20 OGC TSX Global Gold 0 46 % 11 % YTD (1) OGC TSX Global Gold % 4 % -100 Notes: 1. As at 25 Oct 2017 GDXJ GDX Gold Spot TSX Global Gold 8

9 ROBUST STRATEGY POSITIONED WELL TO DELIVER ON HIGH MARGIN GROWTH OPPORTUNITIES 9

10 UNLOCKING VALUE FROM ASSETS HAILE PRIMARY OBJECTIVE Advance expansion through permitting EXPLORATION Expand resource within Haile footprint Grow regional exploration pipeline WAIHI PRIMARY OBJECTIVE Deliver incremental 7 10 year mine life extension STUDIES Advance the Martha Project EXPLORATION Increase resource base and advance regional exploration pipeline DIDIPIO PRIMARY OBJECTIVE Annual reserve replenishment EXPLORATION Infill & extensional drilling Advance near-mine exploration targets MACRAES PRIMARY OBJECTIVE Achieve a ~ 10 year mine life extension STUDIES Advance the Round Hill Project EXPLORATION Annual reserve replenishment 10

11 OceanaGold Alamos Agnico Eagle Northern Star Alacer Barrick Eldorado Centerra Evolution Newmont Yamana Regis Newcrest New gold Detour Global Reserves (Moz) OceanaGold Reserves (Moz) BUCKING THE GLOBAL TREND INCREASED COMPANY RESERVES WITH HIGH MARGIN OUNCES OGC Avg +38 % RESERVE CHANGE ( ) Global Gold Avg (6.2) % 1,600 1,550 1,500 1,450 Global Reserves vs OceanaGold Reserves (1)(2) 1,563 Global Reserves OGC Reserves (3) 1,531 1,459 1,445 1, % 250% 200% 150% 100% 50% 0% Change in Proportion of Exploration Spend to Revenue (2)(4)(5) ( ) 1, % -100% Source: 1. SNL 2. Bloomberg OGC Reserves include increased Haile reserves that were effective 1 Jan See Haile Technical Report dated 9 Aug RBC research 5. Company analysis 11

12 12 EXPLORATION PIPELINE

13 STRATEGICALLY POSITIONED POSITIONED IN MULTIPLE GOLD PROVINCES AMERICAS CAROLINAS, USA NEVADA, USA SANTA CRUZ, ARGENTINA STRATEGIC INVESTMENTS GSV 15% NUG 16% 5 1 HAILE AUSTRALASIA 2 COROMANDEL, NZ 7 3 DIDIPIO STRATEGIC INVESTMENT 4 OTAGO, NZ LOCRIAN 35% RESOURCES ASIA WAIHI 2 JOINT VENTURES 3 CAGAYAN, PHILIPPINES 4 MACRAES GOLDFIELD LA CURVA CLAUDIA 6 7 LAOS & MYANMAR 13

14 Haile Operations Overview INCREASED PRODUCTION ON HIGHER THROUGHPUTS & RECOVERIES GOLD PRODUCTION GOLD (ounces) PRODUCTION SALES (1) 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 YTD 17 68,332 60,267 Waste Mined Mt Mill Feed Mt IMPROVED PERFORMANCE Plant ramp-up and fine-tuning progressing well Gold Head Grade g/t Gold Recoveries % GUIDANCE On track to achieve guidance on back of continued higher production 1. Haile revenue was capitalised during the pre-commercial production phase 14

15 HAILE EXPANSION HIGHLIGHTS OPTIMISATION STUDY RESULTS DEMONSTRATED INHERENT VALUE OPTIMISED DESIGN ORIGINAL DESIGN Gold Reserves Moz Average Annual Production koz 189 (1) 127 Life of Mine Years 18 (1) Net Cash flows US$ 1.8 billion (1),(2),(3) 1.1 billion (4) HORSESHOE UNDERGROUND Maiden reserve of 0.44 Moz announced LARGE OPEN PITS Optimised to $1,150/oz PLANT EXPANSION Increase to 4 Mtpa NEXT STEPS Advance permitting in Q4/17 1. Based on total mineable inventory 2. Pre-tax & undiscounted 3. Based on a $1,300/oz gold price assumption 4. Based on a $1,250/oz gold price assumption 15

16 Tonnes ( 000) Gold Production ( 000 oz) Gold Grade (g/t) INCREASED PRODUCTION AVG ANNUAL PRODUCTION BASED ON RESERVES LOM (16-years) Open Pit & U/G 180,000 ounces 213,000 ounces AVG ANNUAL PRODUCTION INCL. MINEABLE INVENTORY LOM (18-years) 189,000 ounces LOM Gold Production and Grade Profile Payable Gold Gold Grade Processed (g/t) Gold production > 200,000 oz Process Plant Ore Feed Profile OP Ore to Mill UG Ore to Mill Production when in full U/G feed rate (700ktpa) 5,000 4,000 3,000 2,000 1,

17 USDm LOM CASH FLOWS STRONG CASH FLOW GENERATION, SELF-FINANCED EXPANSION Pre-tax cash flows (1) based on Reserves $1.4 billion Pre-tax cash flows (1) based on total mineable inventory $1.8 billion 400 Pre-tax Cash Flow Profile Revenue Operating Cost Expansion Capex Sustaining Capex Net Cash Flow Undiscounted 17

18 HAILE EXPLORATION EXTENSIVE DRILLING ON NUMEROUS TARGETS AT HAILE A A 18

19 DDH0618 UNDERGROUND DRILLING Champion Small Reserve Design >0.4 g/t Au Mill Zone Ledbetter Snake Horseshoe Palomino Red Hill Palomino Section A-A DDH g/t Au grade shell Snake Snakeshoe Horseshoe Metavolcanic rocks Au grade (g/t) < > 5.00 Palomino & Snake Drilling September, 2016 June, 2017 Assays reported Assays pending Metasedimentary rocks Metased/Metavol contact 100 m Northwest view 700 m thickness 19

20 Waihi Operations Overview STRONG PRODUCTION ON MINING OF HIGHER GRADE ZONE IN UNDERGROUND PRODUCTION SALES OPERATING STATISTICS GOLD (ounces) Q3/17 35,904 36,167 Operating Costs YTD 17 Mining costs USD / t mined Q2/17 25,559 24,743 Processing costs USD / t milled YTD 17 87,323 87,667 Site G&A costs USD / t milled AISC (per oz sold) Q3/17 Q2/17 YTD 17 $659 $913 (NZD:USD exchange rate 0.73 Q3/17) 2017 GUIDANCE On track to achieve guidance Q4 production in-line with Q3 $786 Operating Physicals Q3/17 Q2/17 YTD 17 Ore Mined Mt Waste Mined Mt Mill Feed Mt Gold Head Grade g/t Gold Recoveries %

21 WAIHI EXPLORATION SUCCESS EXPLORATION CONTINUES TO UNLOCK VALUE December 31, 2014 Total Resource (1) 360,000 ounces December 31, 2015 Total Resource (1) 430,000 ounces December 31, 2016 Total Resource (1) 570,000 ounces ~300 koz mined during 2015 and Total Resources = M&I and Inferred Resources. M&I Resources are inclusive of reserves. 21

22 MARTHA PROJECT DRILLING EXTENSIVE DRILL PROGRAM UNDERWAY FROM 800RL DRILL DRIVE Martha Open Pit RECENT MARTHA DRILL RESULTS 7.9 g/t Au 8.1 g/t Au Daybreak Historic Underground Development Drilling from initial 920RL drill point expected in Q4/17 Exploration targets coloured blocks Currently drilling from initial 800RL drill point 22

23 COROMANDEL EXPLORATION COROMANDEL GOLD DISTRICT PRODUCTION >12 MOZ AU, 52 MOZ AG Dome Field North & South Map/sample/geophysics Twin Hills Map/sample/target generation Sinter deposits Water table Hydrothermal silica breccia Ohui Map/sample/target generation/access White Bluffs Geophysics/target generation/access Glamorgan Map/sample/geophysics/target generation/access Hauraki Map/sample/geophysics - drilling at WKP 23

24 WKP DRILLING RECENT OCEANA WKP DRILL RESULT YIELD 10.8 g/t Au SIGNIFICANT HISTORICAL DRILL RESULTS (1) Drill Hole Length (m) Gold Grade (g/t) West WKP32A Source: Newmont drill results T-stream East Graben WKP24* WKP24* WKP25* WKP WKP WKP WKP WKP29* WKP29* WKP WKP31* WKP32A* WKP32A WKP32A WKP32A WKP33* WKP WKP WKP WKP WKP * >50 gm-m intercepts 24

25 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 YTD , ,804 AISC (per oz sold) Q3/17 Q2/17 YTD 17 Processing costs USD / t milled 7.58 Site G&A costs USD / t milled 1.55 Operating Physicals Q3/17 Q2/17 YTD 17 Ore Mined Mt $1,262 $1,140 (NZD:USD exchange rate 0.73 Q3/17) $1,188 Waste Mined Mt Mill Feed Mt GUIDANCE Q4 production expected to be 40-50% higher than in previous quarters Gold Head Grade g/t Gold Recoveries %

26 CORONATION NORTH CONTINUE TO GROW THE RESOURCE BASE Coronation North Coronation Golden Point Recent Coronation North Drilling Round Hill FRUG 26

27 MACRAES REDEVELOPMENT MACRAES ROUND HILL PROJECT REPRESENTS POTENTIAL MINE LIFE INCREASE ROUND HILL/GOLDEN POINT RESOURCE Recent Golden Point Drilling ~1.38 Moz (1)(2) STUDY ADVANCING Technical & economic work underway CONCEPT New location + build of smaller process plant w/tungsten circuit MINE LIFE EXTENSION Potential for mine life of years 1. As at 31 Dec Total Resources = M&I and Inferred Resources. M&I Resources are inclusive of reserves 27

28 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 YTD , ,308 COPPER (tonnes) Q3/17 4,387 3,273 Q2/17 4,322 5,828 YTD 17 14,664 13,249 AISC (per oz sold) Q3/17 Q2/17 YTD 17 $137 $147 $40 Processing costs USD / t milled 6.68 Site G&A costs USD / t milled 6.67 Operating Physicals Q3/17 Q2/17 YTD 17 Ore Mined Mt Waste Mined Mt Mill Feed Mt Gold Head Grade g/t Copper Head Grade % Gold Recoveries % Copper Recoveries %

29 Didipio Underground TRANSITION TO UNDERGROUND MINING CONTINUES TO ADVANCE WELL Didipio paste fill plant under construction MILL FEED TRANSITION Currently processing stockpiles Blending with high grade U/G feed in 2018 PROGRESSING UNDERGROUND INFRATRUCTURE Commissioned surface batch plant Paste fill plant >80% complete UG primary pump station construction commenced 29

30 Looking Ahead ON TRACK TO ACHIEVE FULL YEAR PRODUCTION PRODUCTION Production expected to be higher in Q4 with increased contribution from Haile & Macraes; partly offset by lower production at Didipio Continued ramp-up and fine-tuning of Haile process plant 2017 GUIDANCE Gold Production 550, ,000 ounces DEVELOPMENT Advance Haile expansion to permitting Advance Martha project to permitting Copper Production 18,000 19,000 tonnes Continued development of Didipio U/G to first ore EXPLORATION Continued drilling of high priority targets across business All-In Sustaining Costs US$600 US$650 per ounce 30

31

32 HAILE EXPANSION COSTS STUDY CONFIRMS HIGH-MARGIN BUSINESS OVER LIFE OF MINE Operating Costs Open Pit Mining costs $ / t mined Underground Mining costs $ / t mined Processing costs $ / t milled Site G&A costs $ / t milled 3 4 LOM AISC $ per oz Capital Costs (US$m) Initial Capital LOM Sustaining Capital Open Pit Underground Process Plant Site Infrastructure Total Capital

33 Financial Results Overview REVENUE (excludes Haile) Q3/17 $145 million Q2/17 $172 million YTD 17 $478 million EBITDA Q3/17 $73 million Q3 impacted by timing of sales around quarter end Didipio reduction, offset by Haile increase which was capitalised Average prices relatively flat Continuing strong EBITDA margin (>50%) Gold Price Received (per oz.) $1,262 $1,276 Q2/17 Copper Price Received (per lb) $2.82 $2.45 Q2/17 Q3/17 Q3/17 Q2/17 $85 million YTD 17 $260 million Lower overall costs including G&A Also impacted by timing of sales 130 Gold Sales (koz) 131 Q2/17 Q3/17 NET PROFIT Q3/17 $22 million Q2/17 $25 million YTD 17 $83 million Lower D&A profile with change in sales mix Copper Sales (t) 5,828 3,273 Q2/17 Q3/17 33

34 Cash Flows Overview OPERATING CASH FLOW (excludes Haile) Q3/17 $38 million Higher receivables and inventories and lower payables Q2/17 $88 million Timing of sales YTD 17 $179 million Lower Didipio and higher New Zealand contribution Continued capitalisation of Haile across Q3 INVESTING CASH FLOW Q3/17 $(50) million Didipio Underground development Q2/17 $(72) million Increased exploration spend YTD 17 $(188) million Lower sustaining capex and higher capitalised revenue FINANCING CASH FLOW Q3/17 $(14) million Q2/17 $(7) million YTD 17 $(10) million Repayment of $12 million of the revolving credit facility Remaining 2017 debt repayments to be made progressively in Q4 34

35 YTD (Sep 30) 2017 Capex YTD 2017 Capex Breakdown (USDm) Haile Didipio Macraes Waihi YTD 2017 Capex Breakdown (USDm) Non-Sustaining Sustaining Exploration $24 $56 $23 $42 TOTAL $196m $55 TOTAL $196m $118 $74 YTD 2017 Growth Capex (1) (USDm) Haile Didipio Macraes Waihi $1 $2 YTD 2017 Sustaining Capex (USDm) Didipio Macraes Waihi YTD 2017 Exploration Capex (USDm) Haile Didipio Macraes Waihi $65 TOTAL $118m $50 $12 TOTAL $55m $7 $10 TOTAL $21m $7 $2 $36 $5 1. Net of capitalised revenue from Haile 35