Harmony Gold Mining Co. Ltd. · JSE:HAR
Harmony Gold Mining — Gold Forum Americas 2019
22 slides from Harmony Gold Mining's conference presentation, September 2019
Slide 1: Gold Forum Americas 2019
TM GOLD FORUM AMERICAS 2019 © Harmony DENVER SEPTEMBER 2019 Peter Steenkamp, Chief Executive Officer Harmony Gold Mining Company Limited NYSE Ticker code: HMY
Slide 2: Safe Harbour Statement
2 PRIVATE SECURITIES LITIGATION REFORM ACT SAFE HARBOUR STATEMENT FORWARD LOOKING STATEMENTS Gold Forum Americas 2019, Denver, 15-18 September 2019 This presentation contains forward-looking statements within the meaning of the safe harbour provided by Section 21E of the Exchange Act and Section 27A
Slide 3: Who We Are
WHO WE ARE © Harmony
Slide 4: Harmony Today
4 HARMONY TODAY JSE, NYSE listed (HAR; HMY) Experienced operator Gold Forum Americas 2019, Denver, 15-18 September 2019 • 69+ years Market cap of close to US$2bn Mines in: • South Africa • Papua New Guinea Total reserves (gold equivalent) • gold >23 Moz • copper >12 Moz Copper* 34% Gold* 65% 12.5Moz
Slide 5: What We Do & How We've Done
WHAT WE DO & HOW WE'VE DONE © Harmony
Slide 6: Delivery on Strategy Since 2016
6 DELIVERY ON STRATEGY SINCE 2016 Safe, profitable ounces OUR STRATEGY Gold Forum Americas 2019, Denver, 15-18 September 2019 Increasing margins STRATEGIC PILLARS 01 02 03 04 OPERATIONAL CASH EFFECTIVE CAPITAL RESPONSIBLE EXCELLENCE CERTAINTY ALLOCATION STEWARDSHIP • journey to zero fatalities • suc
Slide 7: Asset Portfolio Quality Improved
7 ASSET PORTFOLIO QUALITY IMPROVED Underground recovered grade Production (g/t) (000oz) Gold Forum Americas 2019, Denver, 15-18 September 2019 6,00 1 500 271 5,60 A 5,59 73 200 1 000 5,20 4,80 500 1 009 967 B 5,02 5,10 © Harmony 4,40 4,00 - FY16 FY19 FY16 FY19 Stable SA production Hidden Valley Moab
Slide 8: Our Journey to Increased Margins
8 OUR JOURNEY TO INCREASED MARGINS Gold Forum Americas 2019, Denver, 15-18 September 2019 FY17 FY19 FY16 • Hidden Valley acquired, recapitalised FY18 • Moab Khotsong, Hidden Valley boost production, FY20 • Safer, more stable, cash flow and beyond predictable production • 1.45Moz delivered in line •
Slide 9: Funding Quality Growth
9 FUNDING QUALITY GROWTH Capital investment in growth Net debt/EBITDA ratio Gold Forum Americas 2019, Denver, 15-18 September 2019 4 1,4 1,2 1,3 1,2 2,3 1,0 0,8 0,9 R’billion Times 2 0,6 0,4 0,3 0,3 © Harmony 0,2 1,2 1,5 0 - Jun-15 Jun-16 Jun-17 Jun-18 Jun-19 Jun-15 Jun-16 Jun-17 Jun-18 Jun-19 Hidde
Slide 10: How We Plan to Invest Your Money
HOW WE PLAN TO INVEST YOUR MONEY © Harmony
Slide 11: Capital Allocation Aimed at Increasing Returns
11 CAPITAL ALLOCATION AIMED AT INCREASING RETURNS Opportunities Capital allocation Value realization Gold Forum Americas 2019, Denver, 15-18 September 2019 • Prioritise safety Debt repayment Hidden Valley extension Lower risk profile • Rank surface projects higher Target: <0.8x net • Scrutinise pill
Slide 12: The Gold Market
THE GOLD MARKET © Harmony
Slide 13: Gold Is Expected to Be Supported by Fundamentals
13 GOLD IS EXPECTED TO BE SUPPORTED BY FUNDAMENTALS Key gold Historical commodity and forecast golddrivers prices (US$/oz) Gold Forum Americas 2019, Denver, 15-18 September 2019 Current Economic tailwinds Current Broker expectations in 2 200 • Global data softening, volatility rising Today: US$1,519
Slide 14: Gold Mining Industry Is Evolving
14 GOLD MINING INDUSTRY IS EVOLVING Global gold mining industry Gold Forum Americas 2019, Denver, 15-18 September 2019 • Five to 10-year production cliff Today • years of under-investment in exploration, capital • Undeveloped ore bodies are deep • Mergers by majors have shaken up the industry • Shar
Slide 15: Harmony's Leverage to Surging Gold Prices
15 HARMONY’S LEVERAGE TO SURGING GOLD PRICES Price performance rebased to 100 Gold Forum Americas 2019, Denver, 15-18 September 2019 240 126% 200 160 25% 120 19% © Harmony 80 01-May-19 25-May-19 18-Jun-19 12-Jul-19 05-Aug-19 30-Aug-19 Harmony Gold (share price) Gold price (US$/oz) Gold price (ZAR/kg
Slide 16: We 'Get' ESG
WE ‘GET’ ESG © Harmony
Slide 17: Best-in-Class ESG Framework
17 BEST-IN-CLASS ESG FRAMEWORK US$20 trillion of assets managed globally now incorporate ESG screening* Gold Forum Americas 2019, Denver, 15-18 September 2019 Stakeholders Materiality Framework Implementation King IV ISO 14001, ICMM 15 significant, material Licence to operate 18001, 9000 Corporate p
Slide 18: How We Will Create Further Value
HOW WE WILL CREATE FURTHER VALUE © Harmony
Slide 19: FY20 Focus Areas
19 FY20 FOCUS AREAS Safe, profitable ounces OUR STRATEGY Gold Forum Americas 2019, Denver, 15-18 September 2019 Increasing margins STRATEGIC PILLARS 01 02 03 04 OPERATIONAL CASH EFFECTIVE CAPITAL RESPONSIBLE EXCELLENCE CERTAINTY ALLOCATION STEWARDSHIP • improve safety • repay debt • secure Wafi-Golp
Slide 20: Why We Offer Value
WHY WE OFFER VALUE © Harmony
Slide 21: Investment Case
21 INVESTMENT CASE Gold Forum Americas 2019, Denver, 15-18 September 2019 >1.45Moz producer Quality growth Leveraged to the Responsible mining prospects gold price company with experienced, at attractive returns and Rand hedge stock credible management team © Harmony
Slide 22: Contact Us
22 Gold Forum Americas 2019, Denver, 15-18 September 2019 CONTACT US HarmonyIR@harmony.co.za +27 (11) 411 2314 or +27 (82) 759 1775 © Harmony
Harmony Gold Mining Company — Gold Forum Americas 2019 on 6ix