OceanaGold Maps 30% Production Growth With Waihi North, Ausgold Deal

Key Points

• OceanaGold targets substantial production growth, with 2026 gold output expected at 520,000–590,000 ounces and a longer-term path to roughly 650,000 ounces, representing about 30% growth. The plan includes the Ausgold acquisition and Macraes expansion.
• Waihi North is the company’s flagship organic growth project. Development of the high-grade WKP ore body is under way, with first ore targeted for 2032 and a potential mill expansion under evaluation.
• OceanaGold generated $739 million in free cash flow over the 12 months ended June 30 and returned more than $200 million to shareholders in 2025. It is also pursuing up to $350 million in buybacks, although the Ausgold deal could require as much as $137 million in cash.

OceanaGold TSE: OGC outlined a growth strategy centered on its Waihi North project in New Zealand, a proposed acquisition of Ausgold and continued exploration, while highlighting free-cash-flow generation and shareholder returns.

The company said it operates four producing mines across three countries and expects to add a fifth asset through its planned acquisition of Ausgold, owner of the Katanning Gold Project in Western Australia. OceanaGold said it is targeting 2026 gold production of 520,000 to 590,000 ounces, with the midpoint representing a 12% increase from its stated 2025 actual production.

OceanaGold said its Haile Gold Mine in the United States is expected to contribute about 45% of 2026 production. Didipio in the Philippines is expected to account for about 17% of gold output and all copper production, while Macraes and Waihi in New Zealand are also expected to contribute to the production profile.

The company reported that it held close to 6 million ounces of gold reserves and nearly 9 million ounces of gold resources at the end of the prior year. It said it expects to add to those figures through exploration and the Ausgold transaction.

Cash Flow, Capital Returns and Balance Sheet

OceanaGold said it generated $739 million in free cash flow during the 12 months ended June 30, representing approximately 12% of its market capitalization. Return on capital employed was 29% for the period, according to the presentation.

The company said it has no gold hedges, gold prepayments or gold royalty financings, which it said has allowed it to retain exposure to higher gold prices. It described its capital-allocation program as balancing sustaining investment, growth spending, exploration, shareholder returns and balance-sheet strength.

OceanaGold said it returned more than $200 million to shareholders in 2025. At the midpoint of the current year, it had returned $174 million through dividends and buybacks, equivalent to about 26% of operating cash flow. The company also said cash rose 37% from December to $655 million at the half-year point.

In response to a question from Scotiabank analyst Ovais Habib on whether stronger cash generation could support higher buybacks or dividends, the company said it had completed just under $200 million of a program targeting up to $350 million. It said there could be potential to increase returns if cash generation materializes, though the Ausgold transaction could require up to $137 million in cash for the portion of consideration that may be elected in cash.

Waihi North Development Advances

OceanaGold identified Waihi North as its flagship organic growth project. The project is centered on the Wharekirauponga, or WKP, ore body, located about 10 kilometers north of the existing Waihi operation.

The company said WKP had a reserve of 1.2 million ounces grading 9.2 grams per tonne at the end of 2024. It said the project was fully permitted in December 2025 and that decline development began in May, with more than 350 meters advanced to date. Construction of the first ventilation shaft is under way.

OceanaGold expects to reach the level needed to begin development of a twin decline toward WKP during the first half of 2027. The project remains on track to deliver first ore in 2032, according to the company.

The company is also evaluating an expansion of the Waihi mill that could allow continued processing of ore from the existing Waihi mine while adding high-grade WKP material. OceanaGold said it plans to release an updated technical report in January 2027 incorporating mill-sizing considerations and exploration results from the prior 18 months.

Recent drilling at WKP included a highlighted intercept of 6.3 meters grading 97 grams per tonne, the company said. It described the EG vein as one of three identified vein zones and said mineralization remains open to the north and south.

Macraes Extension and Katanning Acquisition

At Macraes, OceanaGold said the operation produced its 6 millionth ounce of gold in July after 35 years of continuous operation. Its current reserve life extends to 2032, but the company has submitted an updated application for the Macraes Phase 4 project, which it said could support annual production of more than 100,000 ounces into the late 2030s.

OceanaGold also said it sees potential to extend Macraes into the 2040s through additional exploration, technical work and permitting.

The company announced in August that it would acquire Ausgold for $549 million. Katanning is expected to provide a conventional open-pit development project with potential annual production exceeding 100,000 ounces over an initial 10-year mine life. OceanaGold expects first gold from Katanning in 2029.

The transaction is expected to be presented to Ausgold shareholders in late November and close in early December, according to OceanaGold. The company said it believes its financial position and operating cash flow will allow it to fund the acquisition, Katanning development, other growth projects, exploration and shareholder returns.

Looking across its development plans, OceanaGold said it sees a path to increasing production by 30% to approximately 650,000 ounces. That outlook includes expected contributions from Macraes and Katanning but excludes the potential effect of a Waihi mill expansion. The company said the anticipated production growth is expected to be self-funded through operating cash flow or cash on hand.

About OceanaGold (TSE:OGC)

OceanaGold is a global intermediate gold and copper producer committed to safely and responsibly maximizing the generation of Free Cash Flow from our operations and delivering strong returns for our shareholders. We have a portfolio of four operating mines: the wholly-owned Haile Gold Mine in the United States of America ; the wholly-owned Macraes and Waihi operations in New Zealand ; and the 80%-owned Didipio Mine in the Philippines.

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