Oceana Gold Update | Gerard Bond and Jimmy Connor

Oceanana Gold: A Detailed Overview

Key Concepts:

• All-In Sustaining Cost (AISC): The total cost of producing an ounce of gold, including operating costs, capital expenditures, and sustaining capital.
• Reserve/Resource: A Reserve is a proven quantity of ore that is economically mineable. A Resource is a broader estimate of potentially mineable ore.
• Open Pit vs. Underground Mining: Open pit mining involves extracting ore from an open excavation, while underground mining accesses ore through tunnels and shafts.
• Precious Metal (Gold & Copper): Valuable metals often used as stores of value and in industrial applications.
• Drive-In Drive-Out (DIDO) Operation: A mining operation where the workforce lives in nearby communities and commutes to the site daily.
• Preey Deposit: A mineral deposit containing both precious metals (like gold) and base metals (like copper).
• Hectare: A unit of area equal to 10,000 square meters.

I. Company Overview & Production Profile

Oceanana Gold has been operating for 35 years and currently has four producing mines across three countries: the United States (South Carolina), New Zealand, and the Philippines. The company’s 2025 production guidance is between 450,000 to 520,000 ounces of gold. A significant portion of this production comes from:

• Hail (South Carolina, USA): Accounts for approximately 40% of total gold production.
• New Zealand Mines (McCrae & Waihi): Collectively contribute around 40% of production.
• Dipio (Philippines): Represents the remaining portion of production.

Oceanana Gold anticipates near-term production growth and a substantial long-term growth trajectory driven by exploration and project development.

II. Hail Mine (South Carolina, USA)

Hail is an open-pit and underground gold mine located in the northern part of South Carolina, an area with a 200-year history of gold mining, dating back to discoveries near Charlotte, North Carolina. The mine benefits from a residential workforce (DIDO operation), leading to lower turnover and a dedicated team.

• 2025 Production Guidance: 170,000 to 200,000 ounces.
• All-In Sustaining Cost (AISC): Approximately $1,850 per ounce.
• Growth Strategy: A completed open-pit waste stripping campaign in Q3 2025 provides access to higher-grade ore, driving strong performance in Q4 2025 and beyond. The underground mine is also performing well.
• Exploration: Significant investment in exploration has yielded promising results, including the discovery of:
  • Pisces: A high-grade discovery located between the Horseshoe underground mine and Palamino.
  • Palamino: Expected to enter production in 2028.
  • Clydesdale: A new exploration target identified in September 2025, located behind Palamino.
  • Brewer: A gold-copper property 13 kilometers from Hail, subject to an earning agreement with a third party for exploration.
• Potential: Exploration suggests the possibility of a new underground source under the existing lead open pit.

III. McCrae Mine (New Zealand)

McCrae is Oceanana Gold’s oldest asset, operating for 35 years and demonstrating the potential for continued discovery within a favorable geological district.

• 2025 Production Guidance: 135,000 to 150,000 ounces.
• All-In Sustaining Cost (AISC): Approximately $2,000 per ounce (relatively high due to the low-grade nature of the ore).
• Growth Strategy: An open-pit stripping campaign in 2025 is expected to increase production in 2026.
• Exploration: A significant increase in exploration spending is planned for 2026, focusing on the 30-35 kilometers of strike length surrounding the mine. The company is revising its reserve price upwards, anticipating the identification of additional economically viable mineralization.

IV. Dipio Mine (Philippines)

Dipio is a copper-gold mine, benefiting from the lower production costs associated with processing two metals simultaneously.

• 2025 Production Guidance: 85,000 to 105,000 ounces.
• All-In Sustaining Cost (AISC): Approximately $800 per ounce.
• Exploration: Extensive exploration potential exists both near the mine and further afield, including targets like True Blue, Fox, and Napatan (9 km away). The ore body remains open at depth, offering opportunities for increased underground mining and free cash flow generation.
• Land Package: Oceanana Gold controls approximately 7,000 hectares of land around the Dipio mine for exploration.

V. Waihi Mine (New Zealand)

Waihi was acquired from Newmont in 2015 and has already recouped its purchase price.

• 2025 Production Guidance: 55,000 to 70,000 ounces.
• Growth Strategy: The key growth driver is the Wahhi North Project (WMP), a high-grade ore body located 10 kilometers north of the existing Waihi operation.
• Wahhi North Project (WMP): A 4-kilometer tunnel will be constructed to access the ore body and transport it to the existing processing plant, minimizing surface impact due to its location within a forest park. WMP is projected to increase Waihi’s production to 220,000-250,000 ounces annually once fully operational.
• Permitting: All necessary permits for the WMP have been secured as of December 18, 2025. Tunneling contractor mobilization and infrastructure upgrades are planned for the first half of 2026, with ore production expected in the early 2030s.

VI. Financial Position & Future Outlook

As of September 30, 2025, Oceanana Gold held $335 million in cash with no debt. Strong gold prices are expected to further bolster the company’s cash position in Q4 2025. The company’s capital allocation strategy prioritizes:

1. Investing in high-return organic growth projects.
2. Funding exploration activities.
3. Maintaining a strong balance sheet.
4. Returning capital to shareholders through dividends and share buybacks (e.g., a doubled dividend and $175 million in share buybacks in 2025).

Oceanana Gold plans to list on the New York Stock Exchange in April 2026, increasing accessibility for US investors.

VII. Strategic Considerations & Potential Acquisitions

Oceanana Gold is open to considering acquisitions of assets in the United States or Canada, recognizing the trend towards investing in politically stable jurisdictions. The company believes it possesses the expertise to successfully grow its business in North America.

VIII. Investment Highlights

Oceanana Gold presents a compelling investment opportunity due to its:

• Strong, low-risk organic growth profile.
• Significant free cash flow generation.
• Proven track record of value creation through exploration.
• Commitment to shareholder returns.
• Upcoming NYSE listing.

Notable Quote:

“The best Christmas present that I've ever received was, uh, received on the 18th of December, 2025 when the New Zealand government, um, gave us the permits for that project in its entirety.” – Gerard, regarding the Wahhi North Project permits.