OceanaGold (OGC) Investor Day 2024 summary

Strategic direction and growth outlook

• Targeting 30% gold production growth over the next three years, with output expected to rise from 510–570 koz in 2024 to 620–680 koz by 2026, driven by organic, low-risk expansion at Haile and Macraes, and supported by Haile entering core harvest years and Didipio optimization.

• Focused on maximizing free cash flow and maintaining a clean balance sheet, with proceeds from IPO and asset sales enabling investment in growth, increased dividends, and potential share buybacks.

• Major projects include Palomino underground (Haile), Didipio underground optimization, and Wharekirauponga (WKP) in New Zealand, with PFS for WKP expected by year-end and potential fast-track permitting.

• Exploration remains a priority, with $30 million annual spend and a robust pipeline targeting both brownfield and greenfield opportunities, especially at WKP and Martha.

• External M&A opportunities are evaluated only if they create clear value, with a preference for assets in current jurisdictions, Canada, and Australia.

Financial management and capital allocation

• Achieved record $1 billion revenue in 2023, with ongoing free cash flow generation and positive FCF inflection expected in 2024, assuming robust gold prices.

• Net debt reduced to $72 million by end-2023 and $82 million by Q1 2024, with leverage ratio at 0.21x and further improvement expected from IPO and asset sale proceeds.

• Capital allocation prioritizes organic growth, debt repayment, maintaining a strong balance sheet, sustaining/increasing dividends, and considering share buybacks when shares trade below NAV.

• Disciplined investment criteria: high single-digit returns for sustaining projects, mid-teens for greenfield, and no strict IRR for safety/compliance/environmental spend.

• $100 million approved for organic growth projects in 2024, with further unapproved projects under evaluation.

Operational performance and portfolio overview

• Four operating mines: Haile (USA), Didipio (Philippines), Macraes and Waihi (New Zealand), with 2024 guidance of 510–570 koz gold and 12–14 kt copper.

• Haile is the largest asset, ramping up underground production and targeting over 300,000 oz/year by 2026, with Palomino and Horseshoe Extension as key growth drivers.

• Didipio delivers low-cost gold and copper, with optimization studies to increase underground mining rates and extend mine life.

• Macraes and Waihi focus on mine life extension and cost leadership, leveraging high mill throughput, low mining costs, and ongoing reserve conversion and exploration, with WKP as a high-grade development project.

• Exploration pipeline is robust, with low discovery costs and significant land holdings across all jurisdictions.