Consistently Delivering On Commitments - OceanaGold · SAG Mill grate Aperture of grate is...

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Corporate Presentation July 2017 Consistently Delivering On Commitments

Transcript of Consistently Delivering On Commitments - OceanaGold · SAG Mill grate Aperture of grate is...

Page 1: Consistently Delivering On Commitments - OceanaGold · SAG Mill grate Aperture of grate is inadequate ... CIL Tank Liners De-lamination of CIL tank liners Removal and re-apply new

Corporate PresentationJuly 2017

Consistently Delivering On Commitments

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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 www.sedar.com

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 43-101 – Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators (“NI 43-101”). 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 43-101 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

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Copper18,000 – 19,000 tonnes

(was 15,000 to 17,000 tonnes)

Melbourne

Vancouver

Didipio

Waihi

Macraes

Haile

Corporate CommissioningOperation

LOM: 2032+

LOM: 2019+

LOM: 2020+

LOM: 2034+

OceanaGold Overview

Revised 2017 Guidance

Gold550,000 – 600,000 ounces

(was 550,000 to 610,000 ounces)

AISC

US$600 – US$650 per ounce(unchanged)

PORTFOLIO OF HIGH-QUALITY, GLOBALLY DIVERSE ASSETS

United States44%

Canada14%

Europe29%

ANZ9%

Asia

3%Other1%

Shareholder Geographic Composition

Market CapitalisationC$2.6 billion

Trading Liquidity (3-Mo Ave)~C$24 million / day

Market Metrics(1)

1. As at 26 Jun 2017

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Financial Position (as at Mar 31, 2017)

Total Liquidity$85.8m

CASH

$70.6 million(does not include ~$90m in marketable securities)

UNDRAWN FACILITY

$15.2 million

Total Debt$332.8m

EQUIPMENT LEASES

$48.0 million

DRAWN FACILITY

$284.8 million

STRONG BALANCE SHEET & CASH FLOWS UNDERPINS SELF-FINANCING CAPABILITY

NET DEBT / TOTAL ASSETS

13%

NET DEBT

$262m

NET DEBT / EBITDA(1)

0.3(2017E Consensus)

1. Source: Bloomberg

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Gold Mining Company of Choice

AISC Margin(1)

(2017E)

$575 / oz

Significant cash flow generation

Free Cash Flow Yield(2)

(2017E)

10.6 %

Solid pipeline of organic growth opportunities

Haile ExpansionWaihi Martha Project

Extensive global exploration

Delivering consistent positive results & value

Return on Invested Capital(3)

(3-Year Average)

13.3 %

EBITDA Margin(4)

(Q1 2017)

62.8 %

Notes:

1. Based on the midpoint of Company’s 2017 Guidance at a gold price of $1,200/oz

2. CIBC Research (24 Apr 2017)

3. Bloomberg

4. Company results

COMPELLING VALUE PROPOSITION FROM GROWING, HIGH-MARGIN GOLD PRODUCER

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CONTINUE DELIVERING ON OUR COMMITMENTS

Consistent Positive Performance

-6

-4

-2

0

2

4

6

8

10

AEM

KG

C

OG

C

PAAS

ABX

SSRI

ED

V

CG

TH

O

NEM HL

NG

D

DPM

KD

X

PPP

BTO KL

EG

O

CD

E

GU

Y

GG

TG

Z

TXG

RO

XG

AG

I

AR

AKG

PG

AU

Y

ASR

IAG

DG

C

PVG

TM

R

ALO

5-Year Production and Cost Guidance Track Record

Number of Hits Number of Misses

Source: RBC Capital Markets

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Strong Margins

Compelling Returns & Margins

-10%

0%

10%

20%

30%

40%

50%

60%

2010 2011 2012 2013 2014 2015 2016 2017E

EBITDA Margin(1)

OceanaGold Peer Average

-5%

0%

5%

10%

15%

20%

25%

2010 2011 2012 2013 2014 2015 2016 2017E

Return on Invested Capital(1)

OceanaGold Peer Average

Solid Returns

0%

2%

4%

6%

8%

10%

2016

Return on Invested Capital(1)

OceanaGold Peer Average

0%

10%

20%

30%

40%

50%

2016

EBITDA Margin(1)

OceanaGold Peer Average

(3)(2)

(1) Bloomberg (2) Capital IQ (3) Barclays Research

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Strong Cash Flow Margins

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

TM

R*

PVG

*

OG

C

RO

XG

BTO

TXG

GU

Y

AEM

KD

X

NG

D

GG

ASR

ABX

ED

V

AG

I

EG

O

CD

E

PAAS

TH

O KL

NEM AR

HL

SSR

I

AU

Y

TG

Z

DG

C

DPM

KG

C

AKG

IAG

CG

ALO

PG

PPP

Sustaining Free Cash Flow Margins(2017E to 2019E)

SOLID BUSINESS WITH TOP TIER ASSETS SET TO DELIVER STRONG MARGINS

Source: RBC Capital Markets

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OceanaGold Strategy

POSITIONED WELL TO DELIVER ON HIGH MARGIN GROWTH OPPORTUNITIES

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Focus on organic growth

M&A in 2015Didipio construction

2011 to 2017E Capex Variance(1)

~240%

0

5

10

15

20

25

30

35

40

2011 2012 2013 2014 2015 2016 2017E

USD

m

Annual Exploration Capital Spend Profile

A Focus on Organic Growth

1. Based on the midpoint of exploration capex guidance range of $30m to $40m

SIGNIFICANT ORGANIC GROWTH POTENTIAL UNDERPINS DEEP VALUE

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Growing Existing Assets

Brownfields & Greenfields explorationHAILE 2032

Annual Reserve

replenishment

DIDIPIO 2032Annual Reserve

replenishment

Extensional drilling at DidipioNear-mine targets

WAIHI 2019 10+ yearsMartha Project, Brownfields &

Greenfields exploration

MACRAES 2020 10+ yearsRound Hill Project,

Brownfields exploration

CURRENT MINE LIFE

OBJECTIVE FOR INCREASED MINE LIFE

AREAS OF FOCUS

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Growth Opportunities

POSITIONED IN MULTIPLE GOLD PROVINCES

HAILE

CAROLINA TERRANEDIDIPIO

CAGAYAN VALLEYPHILIPPINE FAULT ZONE

MACRAES

COROMANDEL VOLCANIC ZONE

WAIHI

OTAGO TERRANE

LOCRIAN RESOURCES

MYANMARLAOS

GSV & NUG

CARLIN TRENDCORTEZ TREND

LA CURVA JV

DESEADO MASSIF

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UNITED STATES PRODUCTION

2017 GUIDANCE(1)

Gold(oz)

110,000 – 130,000(was 150,000 – 170,000)

AISC(per oz sold)

$600 – $650(2)

(was $500 – $550)

RESOURCES

P&PReserves

Gold(Moz)

3.46

Total Resources

(2)Gold(Moz)

4.35

1. Production includes both commercial and non-commercial production2. Total Resources = M&I and Inferred Resources. M&I Resources are inclusive of reserves

Haile

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Area Issue SolutionEstimated

CostExpected Completion

SAG Mill grate Aperture of grate is inadequate Replace with larger grate $50k July 2017

Regrind inflowSub-optimal density of fine grind material

Close the feed circuit $200k July 2017

CIL Piping SystemInadequately sized piping system

Redesign and install a new piping system

$700k August 2017

CIL Tank Liners De-lamination of CIL tank liners Removal and re-apply new liner Nil (warranty) December 2017

Control systemSystem response slower than expected due to volume of data; longer to tune circuits

Review and upgrade over time $2M - $3M Staged upgrades over time

SOME COMMMISSIONING ISSUES BUT CLEAR PATH FORWARD

Commissioning Focus Areas

Achieved nameplate throughput capacity numerous times in Q2

Team has identified a pathway forward

Confident in our revised timeframe

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Haile Optimisation Study

OPTIMISATION STUDY RESULTS DEMONSTRATES INHERENT VALUE

UPGRADED RESERVES70% increase in Reserves (3.46 Moz reserves vs. 2.02 Moz previously)

ENHANCED ECONOMICS(1)

Cash flows of $1.4 billion based on current reserves, $1.8 billion based on current total mineable inventory(2)

CONTINUED HIGH MARGINSLOM AISC $650 – $700 per ounce

1. Pre-tax and undiscounted 2. Mineable inventory includes Inferred Resources in mine plan 3. Based on mineable inventory

Ledbetter SnakeMill ZoneChampion Small

Horseshoe

LONGER MINE LIFE, HIGHER PRODUCTIONIncreased mine life to 2034(3) at nominal LOM gold production of 189,000 oz (vs. 13.25 years @ 127 koz)

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New Mine Plan

NEW MINE PLAN DRIVES ENHANCED VALUE AT HAILE

Pit shells based on $1,150/oz gold price

OPEN PIT PHYSICALS

Total Resources 3.66 Moz

Reserves 3.02 Moz

LOM Strip Ratio 8.7 : 1

Mining rate 30 Mtpa

Mining cost $1.45 - $1.55 / t mined

Initial Capex (including site infrastructure & mining fleet)

$132m

LOM Sustaining Capex $194m

UNDERGROUND PHYSICALS

Total Resources 0.69 Moz

Maiden Reserves 0.44 Moz

Mining rate 0.7 Mtpa

Mining cost $35 – $40 / t milled

Mining method Long-hole open stope

Pre-production Capex $55m

LOM Sustaining Capex $25m

HORSESHOE UNDERGROUND

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Production & Process Scheduling Profile

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032

Process Plant Ore Feed Profile(‘000 tonnes)

OP Ore to Mill UG Ore to Mill

-

0.50

1.00

1.50

2.00

2.50

3.00

0

50

100

150

200

250

2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032

Gold

Gra

de (

g/t

)

Gold

Pro

duct

ion (

‘000 o

z)

LOM Gold Production and Grade Profile

Payable Gold Gold Grade Processed (g/t)

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Cost Overview

Operating Costs

Open Pit Mining costs $ / t mined 1.45 – 1.55

Underground Mining costs $ / t mined 35 – 40

Processing costs $ / t milled 10 – 11

Site G&A costs $ / t milled 3 – 4

LOM AISC $ per oz 650 – 700

STUDY CONFIRMS HIGH-MARGIN BUSINESS OVER LIFE OF MINE

Capital Costs (US$m) Initial Capital LOM Sustaining Capital

Open Pit 67 75

Underground 55 26

Process Plant 67 25

Site Infrastructure 65 119

Total Capital 254 245

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Haile LOM Cash Flows

5931

8 14

157135

118

75 68

114144

116

76 63

177

70

-300

-200

-100

0

100

200

300

400

2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032

USD

m

Pre-tax Cash Flow Profile

Revenue Operating Cost Expansion Capex Sustaining Capex Net Cash Flow

STRONG CASH FLOW GENERATION PROFILE

Pre-tax cash flows(1) based on Reserves

$1.4 billion

Pre-tax cash flows(1) based on total mineable inventory

$1.4 billion

1. Undiscounted

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Project Timelines

ESTIMATED TIMING FOR THE EXPANSION

2016 2017 2018 2019 2020 2021

Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Permitting Process

Underground development

Optimisation Study

Plant expansion

Preparing permit applications

Engineering & procurement

First underground ore processed

Today

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Haile Drilling

$8M+ BUDGET – GROWING THE RESOURCE BASE

A

A’

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Haile 2017 Exploration

Ledbetter Snake

Mill Zone

Champion Small

Horseshoe

Palomino

Reserve Design

>0.4 g/t Au

Palomino

Snake

Horseshoe

Metavolcanic rocks

Metasedimentary rocks

RedHill

1 g/t Augrade shell

Palomino & Snake DrillingSeptember, 2016 – June, 2017

Assays pending

Assays reported

Metased/Metavol contact

100 m Northwest view700 m thickness

< 0.0350.035 – 0.150.15 – 0.400.40 – 0.800.80 – 1.501.50 – 3.003.00 – 5.00> 5.00

Au grade(g/t)

DD

H06

18

DD

H0

621

Section A-A

Snakeshoe

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1. As at 31 Dec 2016 – refer to www.oceanagold.com2. Total Resources = M&I and Inferred Resources. M&I Resources are

inclusive of reserves

NEW ZEALAND

Auckland

Wellington

Christchurch

Blackwater

DunedinGold-TungstenProject

Waihi

Reefton

Macraes

PRODUCTION

2017GUIDANCE

WAIHI

Gold(oz)

110,000 – 120,000

AISC(per oz sold)

$740 – $790

MACRAES

Gold(oz)

180,000 – 190,000

AISC(per oz sold)

$950 – $1,000

RESOURCES(1)

WAIHI MACRAES

P&PReserves

Gold(Moz)

0.35 1.21

Silver(Moz)

1.31 -

Total Resources

(2)

Gold(Moz)

0.57 4.79

Silver(Moz)

1.58 -

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Waihi - A Top Tier Asset

December 31, 2015

Total Resource(1)

430,000ounces

December 31, 2016

Total Resource(1)

570,000ounces

December 31, 2014

Total Resource(1)

360,000ounces

1. Total Resources = M&I and Inferred Resources. M&I Resources are inclusive of reserves.

EXPLORATION CONTINUES TO UNLOCK VALUE

~300 koz mined during 2015 and 2016

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Waihi 2017 Exploration

Significant exploration program planned for Waihi in 2017

Other Opportunities

SIGNIFICANT GROWTH PIPELINE & DRILL PROGRAM

Brownfields drilling: 17,000m+Greenfields drilling: 6,000m+

Martha Project

DRILL DRIVE 1Construction status(1): 75% completeCompletion: Q3 2017Diamond drilling planned: 12,200m

DRILL DRIVE 2Construction status(1): 40% completeCompletion: Q4 2017

Underground Drilling

Infill and extensional: 18,000m+

1. As at 31 May 2017

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Waihi - Martha Project

Daybreak

Development as

at 31 May 2017

Martha Open Pit

Resource targetscoloured blocks

Historic Underground

Development

800m RL DRILL PROGRAM – 12,200m

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Waihi - Martha Project

Resource targetscoloured blocks

Daybreak

Development as

at 31 May 2017

Historic Underground

Development

Martha Open Pit

EXTENSIVE DRILL PROGRAM PLANNED

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Regional Exploration Projects

Dome Field North & SouthMap/sample/geophysics

OhuiMap/sample/target generation/access

Twin HillsMap/sample/target generation

White BluffsGeophysics/target generation/access

GlamorganMap/sample/geophysics/target generation/access

HaurakiMap/sample/geophysics - drilling at WKP

Sinter

depositsWater table silicaHydrothermal breccia

COROMANDEL GOLD DISTRICT PRODUCTION >12 MOZ AU, 52 MOZ AG

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Coronation North

Coronation

Golden Point

Round Hill

FRUG

Macraes – Coronation North

CONTINUE TO GROW THE RESOURCE BASE

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Coronation North

Coronation

Golden Point

Round Hill

FRUG

OPPORTUNITY TO ADD OUNCES TO ROUND HILL PROJECT

Macraes – Golden Point

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Macraes Beyond

Round HillDeposit

Relocated Process Plant

STUDY ADVANCING: Additional technical & economic work underway

CONCEPT: New location + build of smaller process plant w/Tungsten circuit

MINE LIFE EXTENSION: Potential for mine life of 10-12 years

ROUND HILL/GOLDEN POINT

~1.38 Moz Resource(1)(2)

1. As at 31 Dec 2016

2. Total Resources = M&I and Inferred Resources. M&I Resources are inclusive of reserves

ADVANCING THE MACRAES ROUND HILL PROJECT

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PHILIPPINES

San Fernando (Port)

Far Southeast(Goldfields/Lepanto)

Manila

Island of Mindanao

Island of Luzon

Masbate (B2Gold)

Co-O(Medusa)

Didipio

PRODUCTION

2017GUIDANCE

Gold(oz)

150,000 – 160,000(was 110,000 – 130,000)

Copper(t)

18,000 – 19,000(was 15,000 – 17,000)

AISC(per oz sold)

$70 – $120(1)

(was $130 – $180)

1. Costs based on a copper price assumption of $2.50 / lb and a gold price of $1,2002. As at 31 Dec 2016 – refer to www.oceanagold.com3. Total Resources = M&I and Inferred Resources. M&I Resources are inclusive of reserves

RESOURCES(2)

P&PReserves

Gold(Moz)

1.46

Copper(Mt)

0.18

Total Resources

(3)

Gold(Moz)

2.06

Copper(Mt)

0.24

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Didipio Mining Transition

UNDERGROUNDFirst ore expected at end of 2017

PROJECT INFRASTRUCTUREVentilation, water pumping and paste plant on track

TRANSITION TO UNDERGROUND MINING ADVANCING WELL AT DIDIPIO

Didipio paste fill plant under construction

OPEN PITNear completion

STOCKPILES>24 million tonnes @ 0.54 g/t Au, 0.37% Cu expected after completion of open pit

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INFILL AND EXTENSIONAL DRILLING CONTINUES

Didipio Drill Program

DESIGNED DRILLHOLESInfill drilling across 500m verticalFive levels and two panels

TOTAL METERAGE~300 drill holes for >51km of drilling

UPSIDETesting depth extensionsNear mine targets

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STAKEHOLDERS

DEVELOPMENTOPERATIONS

GROWTH

CONTINUED FOCUS ON CREATING VALUE, DELIVERING ON COMMITMENTS & STAKEHOLDER ENGAGEMENT

2017 Priorities

Commercial production at Haile

Continue to advance Didipio U/G construction

Increase resource base through exploration

Advance technical and optimization studies

Further improve on safety

Continue to deliver meaningful benefits to our host communities

Deliver on guidance and cash flows

Continued strong stakeholder engagement

Increase global ESG engagement

REVISED 2017 GUIDANCE

Gold Production

550,000 – 600,000ounces

Copper Production

18,000 – 19,000tonnes

All-In Sustaining Costs

US$600 – US$650per ounce

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Executive Management Team

A MANAGEMENT TEAM WITH BROAD AND DEEP EXPERIENCE

Mick Wilkes

President & Chief

Executive Officer

Mark Cadzow

EVP and

Chief Development Officer

Scott McQueen

EVP and

Chief Financial Officer

Michael Holmes

EVP and Chief Operating

Officer

Craig Feebrey

EVP Exploration

Mark Chamberlain

EVP Corporate Development

Yuwen Ma

EVP Human Resources

Liang Tang

Company Secretary &

Corporate Counsel

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Board of Directors

• Mining engineer with over 35 years broad international experience as a Director/CEO for a wide range of international publicly listed mining, mining finance, and other mining related companies

• Served on the board of numerous resource public companies, which currently include Evolution Mining, Asian Mineral Resources Ltd and Syrah Resources where he serves as the non-executive Chairman

• Over 30 years industry experience

• Developed major projects in Australia & SE Asia

• Strong Operations background in hard rock mining

• Strong in Community and Government relations

• Extensive SE Asian experience

• Over 20 years of senior management and financial expertise in the field of natural resources

• Most recently she held the position of President and CEO of Romarco Minerals

• Dr. Garrett is currently CEO of Wellgreen Platinum and also a director of TriStar Gold. Inc.

• Dr. Garrett holds a PhD in Engineering in addition to a Master of Arts (MA) in Mineral Economics from the University of Texas at Austin.

Jim Askew

Chairman

Mick Wilkes

President & CEODiane Garrett

Director

• Chairman of OceanaGold (Philippines), Inc. and Philippine resident of the Australia-Philippines Business Council

• Appointed by Philippine President as private sector member of Governing Council of the Philippines Council for Agriculture, Aquatic & Natural Resource.

Joey Leviste

Director

• Mining engineer with over 30 years’ experience in mine development and operations

• Former Chairman of Quadra FNX Mining Ltd., until its takeover in 2012, a company he co-founded as CEO in 2002

• Currently on the Board for First Point Minerals and San Marco Resources

Bill Myckatyn

Director

• Former Australian Ambassador to The People’s Republic of China from 2007 – 2011

• Joined the Australian public service in 1986 and has held various postings throughout Asia and Europe prior to his posting in Beijing

• Serving as the non-executive director of ASX listed Fortescue and SmartTrans

Dr. Geoff Raby

Director

• Over 35 years in financial management of mining & renewable energy companies

• Management roles with Placer Dome & Gibraltar Mines, board roles with Pan American Silver & New Gold

• Currently on the boards of Tahoe Resources & Grenville Strategic Royalty

Paul Sweeney

Director

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Argentina – New Opportunities

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Mineral Resource and Reserves

PROJECT

AREA

PROVEN PROBABLE PROVEN & PROBABLE RESERVE

Mt Au g/t Ag g/t Cu % Mt Au g/t Ag g/t Cu % Mt Au g/t Au Moz Ag g/t Ag Moz Cu % Cu Mt

MACRAES Open Pit 12.2 1.08 - - 18.1 1.12 - - 30.3 1.10 1.07 - . - -

MACRAES Underground 0.54 2.70 - - 1.31 2.30 - - 1.85 2.42 0.14 - . - -

WAIHI Open Pit 0.16 3.05 30.5 - 0.66 2.91 29.1 - 0.81 2.94 0.08 29.4 0.77 - -

WAIHI Underground 0.37 9.14 18.1 - 0.76 6.56 13.1 - 1.13 7.40 0.27 14.7 0.54 - -

DIDIPIO Open Pit 28.6 0.47 2.5 - 2.40 0.94 2.3 0.45 31.1 0.51 0.51 2.5 2.46 0.35 0.11

DIDIPIO Underground 2.3 2.48 2.6 - 13.7 1.76 2.5 0.43 15.9 1.86 0.95 2.5 1.27 0.44 0.07

HAILE 19.6 2.19 - - 10.9 1.82 - - 30.5 2.06 2.02 - - - -

TOTAL 63.7 1.26 - - 47.8 1.60 - - 112 1.41 5.04 - 5.0 - 0.18

PROJECT

AREA

MEASURED INDICATED MEASURED & INDICATED INFERRED RESOURCE

Mt Au g/t Ag g/t Cu % Mt Au g/t Ag g/t Cu % Mt Au g/t Au Moz Ag g/t Ag Moz Cu % Cu Mt Mt Au g/t Au Moz Ag g/t Ag Moz Cu % Cu Mt

MACRAES Open Pit 17.5 1.11 - - 65.1 0.95 - - 82.5 0.99 2.62 - - - - 39 0.9 1.1 - - - -

MACRAES Underground 3.88 3.11 - - 7.34 2.06 - - 11.2 2.42 0.87 - - - - 3.5 1.4 0.2 - - - -

REEFTON 1.26 1.83 - - 6.55 1.49 - - 7.8 1.54 0.39 - - - - 1.4 1.1 0.0 - - - -

BLACKWATER - - - - - - - - - - - - - - - 0.9 23 0.7 - - - -

WAIHI Open Pit 0.16 3.05 30.5 - 0.66 2.91 29.1 - 0.8 2.94 0.08 29.4 0.77 - - - - - - - - -

WAIHI Underground 0.37 9.13 15.5 - 0.88 6.57 11.5 - 1.2 7.33 0.29 12.7 0.51 - - 0.7 6.9 0.2 13.5 0.3 - -

DIDIPIO Open Pit 28.9 0.48 2.48 0.34 7.1 0.65 2.15 0.30 36.0 0.51 0.59 2.41 2.79 0.33 0.12 2.4 0.5 0.0 2.0 0.2 0.2 0.01

DIDIPIO Underground 2.57 2.50 2.58 0.48 17.2 1.74 2.38 0.46 19.8 1.84 1.17 2.41 1.53 0.46 0.09 6.5 1.3 0.3 1.6 0.3 0.4 0.02

HAILE Open Pit 36.8 1.78 - - 33.6 1.68 - - 70.3 1.73 3.92 - - - - 19 1.1 0.7 - - - -

TOTAL 91.3 1.35 - - 138 1.34 - - 229.7 1.34 9.93 - 5.6 - 0.21 73 1.3 3.1 - 0.8 - 0.03

PROJECT

AREA

MEASURED INDICATED MEASURED & INDICATED INFERRED RESOURCE

Mt Au g/t Ag g/t Cu % Mt Au g/t Ag g/t Cu % Mt Au g/t Au Moz Ag g/t Ag Moz Cu % Cu Mt Mt Au g/t Au Moz Ag g/t Ag Moz Cu % Cu Mt

SAMS CREEK . . . . 2.0 1.77 . . 2.0 1.77 0.11 . . . . 2.0 1.3 0.1 . . . .

TOTAL . . . . 2.0 1.77 . . 2.0 1.77 0.11 . . . . 2.0 1.3 0.1 . . . .

Notes:

1. Reserves are reported within current mine designs using economic assumptions unless otherwise noted: US$1,300/oz gold, US$3.00/lb copper and US$19/oz silver.

2. Didipio reserves based on US$1,250/oz gold and US$3.20/lb copper.

3. Haile reserves based on US$950/oz gold price.

4. Estimates of contained metal do not make allowances for processing losses.

Notes:

1. Mineral Resources include Mineral Reserves.

2. Macraes and Reefton open pit resources constrained by a NZ$2,200/oz gold price pit shell. Macraes underground resources are geologically constrained.

3. The commencement of Reefton closure and rehabilitation was announced on 19 December 2016.

4. The Waihi open pit resources are reported to a 0.5 g/t Au cut-off within a pit design to the 890mRL. The underground resources are based on a NZ$1,857/oz gold price.

5. For Didipio, open pit resources are reported above the 2,460mRL and underground resources between the 2,460mRL and 2,070mRL. Open pit resources use AuEq cut-off based on US$1,300/oz gold and US$3.00/lb copper. Underground resources use AuEq cut-off based on

US$1,450/oz gold and US$3.80/lb copper

6. Haile open pit resources are reported to a 0.41 g/t Au cut-off within a US$1,200/oz gold price pit shell

Notes:

OceanaGold has a 20% interest in the Sams Creek Project. The tabulated resource is factored by the percentage ownership.

RESERVE STATEMENT (31 December 2016)

RESOURCE STATEMENT (31 December 2016)

MINORITY INTEREST RESOURCE STATEMENT (31 December 2016)

Does not include recently updated Haile Resources