BUILDING A SUCCESSFUL INTERNATIONAL GOLD MINING ORGANISATION€¦ · successful international gold mining organisation 2018 imarc - melbourne mick wilkes president & ceo ... newmont

Macraes, New Zealand

BUILDING A SUCCESSFUL INTERNATIONAL GOLD MINING ORGANISATION2018 IMARC - MELBOURNE

Mick WilkesPresident & CEO

November 1, 2018

CONSISTENTLY DELIVERING ON COMMITMENTS

INNOVATION I PERFORMANCE I GROWTH

HAILE (UNITED STATES)

OPEN PIT W/ PROPOSED

UNDERGROUND

▪ MINE LIFE: 2033+

EXPANSION UNDERWAY

▪ NOMINAL PRODUCTION →

150,000 TO 200,000 OZ

▪ AISC → $700 TO $800 / OZ

DIDIPIO (PHILIPPINES)

UNDERGROUND

▪ MINE LIFE: 2032+

UNDERGROUND EXPANSION

▪ NOMINAL PRODUCTION →

100,000 TO 110,000 OZ AU +

12,000 TO 15,000 T CU

▪ AISC → $250 TO $350 / OZ

WAIHI (NEW ZEALAND)

UNDERGROUND

▪ MINE LIFE: 2019+

PERMITTING 10-YR EXTENSION

▪ NOMINAL PRODUCTION →

80,000 TO 110,000 OZ AU

▪ AISC → $700 TO $800 / OZ

MACRAES (NEW ZEALAND)

OPEN PIT & UNDERGROUND

▪ MINE LIFE: 2021+

SEEKING LOM EXTENSION

▪ NOMINAL PRODUCTION →

150,000 TO 200,000 OZ AU

▪ AISC → $900 TO $1,100 / OZ

2

High Quality Assets

SUCCESSFUL GLOBAL BUSINESS UNDERPINNED BY HIGH QUALITY ASSETS

3

History of the OceanaGold

BUILDING A SUSTAINABLE BUSINESS ONE STEP AT A TIME

2007

REEFTON

1999

AUTOCLAVE AT MACRAES

1990

MACRAES

2006

MERGER WITH CLIMAX

2008

FRASERS

UNDERGROUND

2013

DIDIPIO

2017

HAILE

2015

ROMARCO & WAIHI

ACQUISITIONS

4

Creating Value and Real Growth

1. Reefton entered Closure in December 2016

2. Fully diluted

3. EPS adjusted = Earnings after tax before gains/losses on undesignated hedges and

impairments

$145m

$408m

2012 2017

EBITDA GROWTH

$0.32

$0.07

2012 2017

EPS GROWTH

36%

Growth per share

372%

Growth per share

19%

Growth per share

PRODUCTION GROWTH

2016 201720142012 20152013

HAILE DIDIPIO WAIHI MACRAES REEFTON(1)

GOLD PRICE PERFORMANCE(2012 to 2017)

25%

5

Consistent Margin & Return on Capital

-10%

0%

10%

20%

30%

40%

50%

60%

2011 2012 2013 2014 2015 2016 2017 YTD 2018

OceanaGold Peer Average

EBITDA MARGIN*

-5%

0%

5%

10%

15%

20%

2011 2012 2013 2014 2015 2016 2017 YTD 2018

OceanaGold Peer Average

RETURN ON INVESTED CAPITAL*

*Source: Bloomberg. YTD data based on Company estimates

34 CONSECUTIVE QUARTERS OF DELIVERING A POSITIVE ROIC

6

Industry Leading Profitability

$1,228

$516

$425

$403

$273

$153

($10)

($40)

($176)

($177)

($244)

($631)

($652)

($683)

($730)

($980)

($1,345)

($2,081)

($2,401)

($2,582)

($3,494)

($5,056)

($6,964)

($8,211)

RandgoldCenterra

OceanaGoldNorthern Star

Regis ResourcesTahoe

SaracenEvolution

AgnicoSt Barbara

DetourAlamosB2 Gold

EndeavourGold Fields

New GoldIAMGOLDEldorado

AngloGoldNewmont

YamanaKinross

NewcrestGoldcorp

Barrick

Net Income – GAAP (5-Yr Total) Adjustments (5-Yr Total) Net Income - Adjusted (5-Yr Total)

$1,228

$700

$611

$447

$462

$352

$27

$114

$579

$108

($240)

($144)

$133

$65

$380

($207)

($366)

$62

$1,168

$2,955

($108)

($522)

$1,432

$118

$3,339

($13,512)

$0

$184

$186

$44

$188

$199

$37

$154

$755

$285

$4

$487

$785

$748

$1,110

$895

$979

$2,143

$3,569

$5,537

$3,385

$4,533

$8,396

$8,329

$17,363

M&A Adjustments

Impairment

Income Tax Charge (Benefit)

Other

($USM) ($USM) ($USM)

Source: Barclays and Bloomberg, data as of May 3, 2018.

Note: Bloomberg adjustments were combined into the following groups: M&A Adjustments (Disposal of Assets, Sale of Business, and Sale of Investments), Impairment (Asset Write-Down, and Impairment of Goodwill), Income Tax Charge/Benefit,

Other (Unrealized Investments, Abnormal Derivatives, Merger Expense, Restructuring Expense, Legal Settlement, Insurance Settlement, Early Extinguishment of Debt, and Other Abnormal Items).

7

A Recipe for Success

HIGH QUALITY ASSETS✅

LONG TERM FOCUS✅

BUILD INTERNAL CAPABILITY✅

GO WHERE THE GOLD IS✅

RESPONSIBLE MINER✅

CREATE OPTIONALITY✅

BUILD AND ENHANCE THE BRAND✅

BE COUNTER CYCLICAL✅

8

Growing Our People

ATTRACT AND DEVELOP THE BEST PEOPLE IN THE INDUSTRY

EFFECTIVE LEADERSHIP

BECOME THE COACH

EMBRACE DIVERSITY

2068 EMPLOYEES - 16% WOMEN

RESPECT

BE A VALUES BASED ORGANISATION

INTEGRITY

TEAMWORK INNOVATION

ACTION ACCOUNTABILITY

9

Playing to Our Strengths

▪Mine building

▪ Processing refractory ore

▪ Operating in sensitive locations

▪ Strong balance sheet

▪ Low net debt

▪ De-centralised business

TECHNICAL

ORGANISATIONAL READINESS

LEVERAGE OUR CAPABILITY TO EXPAND OUR BUSINESS & MANAGE RISKS

10

DIDIPIO PHILIPPINES

MACRAES NEW ZEALAND

WAIHI NEW ZEALAND

HAILE UNITED STATES

COMMISSIONED

(2013)

COMMISSIONED

(1990)

PURCHASED (2015)

PURCHASED (2015)

COMMISSIONED (2017)

Going Where the Gold Is

MIRASOL JV’S ARGENTINA

JOINT VENTURES

(2017)

GSV & NUG UNITED STATES

STRATEGIC INVESTMENTS

(2015 & 2016)

CORPORATE OFFICE

CORPORATE

OFFICE

DECENTRALISED BUSINESS PROVIDES A PLATFORM TO GROW INTERNATIONALLY

11

Investing at Opportune Times in the Cycle

$1,000

$1,100

$1,200

$1,300

$1,400

$1,500

$1,600

$1,700

$1,800

$1,900

$2,000

1/0

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01

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8

DIDIPIO

CONSTRUCTION

ROMARCO ACQUISITION

WAIHI ACQUISITION

INVESTING IN ORGANIC

GROWTH & EXPLORATIONSTRATEGIC

INVESTMENT(GSV)

STRATEGIC INVESTMENT

(NUG)

12

Making Quality Investments

Patient, disciplined and diligent

Waihi (2015)

Investment:

• $101m (cash)

Purchased:

• 3 year LOM

• Significant exploration upside

Portfolio impact:

• 10-year+ LOM potential

• Strong FCF generation

Strategic Investments

Investment:

• GSV: $16m

• NUG: $5m

Purchased:

• 16% equity in GSV and NUG

Portfolio impact:

• Early stage

• Prolific gold region

• Current value: ~US$77m

12

Romarco (2015)

Investment:

• $417 million (scrip)

Purchased:

• Haile Gold Mine (2 Moz reserve)

Portfolio impact:

• High-margin, long-life asset (3.4Moz)

• Desirable jurisdiction

• Top-tier asset

0

100

200

300

400

500

600

700

0

5

10

15

20

25

30

35

2012 2013 2014 2015 2016 2017

Go

ld P

rod

uct

ion

(ko

z)

Exp

lora

tio

n S

pen

d (

USD

m)

OGC EXPLORATION & PRODUCTION PROFILE

Annual Production Exploration Expenditure

13

Investing in the Long Term

OPERATING & EXPLORING NUMEROUS TARGETS IN MULTIPLE GOLD DISTRICTS

▪ Carolina Terrane

▪ Great Basin

▪ Coromandel

▪ Otago Terrane

▪ Cagayan Valley

▪ Philippine fault zone

▪ Deseado Massif*

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

1,250

1,300

1,350

1,400

1,450

1,500

1,550

1,600

2010 2011 2012 2013 2014 2015 2016 2017

OG

C R

eser

ves

(Mo

z)

Glo

bal

Res

erve

s (M

oz)

GLOBAL AND OGC RESERVES

Global Reserves OGC Reserves

* The La Curva and Claudia Projects are owned and operated by Mirasol Resources Ltd. Oceana is earning an interest in each of these

projects pursuant to two Option and Joint Venture Agreements which it entered into with Mirasol in 2017.

14

RESPONSIBLE MINER

PROVEN TRACK RECORD OF OPERATING SUSTAINABLY FOR OVER 28 YEARS

SUPERIOR ENVIRONMENTAL MANAGEMENT &

PERFORMANCE

ENVIRONMENTAL STEWARDSHIP

Protection and promotion of biodiversity

Water management and efficiency

Strategic partnerships

Closure and rehabilitation planning

15

RESPONSIBLE MINER

OPERATING SUCCESSFULLY IN SOCIALLY COMPLEX JURISDICTIONS

STRONG SOCIAL LICENSE TO OPERATE

BUILDING CAPACITY NOT DEPENDANCY

Focus on local employment and

procurement

Significant economic contributor

Investing in social infrastructure

Strong stakeholder engagement

Corporate Headquarters

Level 14, 357 Collins Street

Melbourne, Victoria, 3000

Australia

T: +61 3 9656 5300

F: +61 3 9656 5333

[email protected]

oceanagold.com @OceanaGold

Americas Corporate Office

Suite 3504725 South Monaco StreetDenver, Colorado, 80237United States of America