Harmony Gold Mining Co. Ltd. · JSE:HAR

Harmony Gold Mining — H1 FY2024 Earnings Presentation

44 slides from Harmony Gold Mining's earnings presentation, Feb 28, 2024

  1. Slide 1: H1FY24 Results Presentation

    H1FY24 RESULTS PRESENTATION Peter Steenkamp, CEO 28 February 2024 © Harmony

  2. Slide 2: Safe Harbour Statement and Disclaimer

    2 PRIVATE SECURITIES LITIGATION REFORM ACT SAFE HARBOUR STATEMENT AND DISCLAIMER Interim results for the six-month period ended 31 December 2023 FORWARD LOOKING STATEMENTS This presentation contains forward-looking statements within the meaning of the safe harbour provided by Section 21E of the Exch

  3. Slide 3: Strategy

    STRATEGY Peter Steenkamp, CEO © Harmony

  4. Slide 4: Harmony asset overview and key operating statistics

    4 Doornkop Kalgold (open pit) Kusasalethu Mine Waste Solutions Mponeng Savuka Phoenix Eva Copper project (proposed open pit) Hidden Valley mine Moab Khotsong Central Plant Reclamation (open pit) Tshepong North Tshepong South Wafi-Golpu Target 1 (block cave Joel mining project) Masimong LEGEND Surfac

  5. Slide 5: Goals achieved: H1FY24 operational and financial results

    5 GOALS ACHIEVED H1FY24 OPERATIONAL AND FINANCIAL RESULTS Interim results for the six-month period ended 31 December 2023 A safe mine is a Returning capital to Net cash position Increased margins Added quality ounces profitable mine shareholders Focus on Record interim Working towards increasing Met

  6. Slide 6: Operational Results

    OPERATIONAL RESULTS Peter Steenkamp, CEO © Harmony

  7. Slide 7: Operational excellence and flexibility

    7 Strong Operational Excellent Stable and Partners Substantial safety and flexibility and underground predictable of resource to operational culture predictability grades – from cost structure reserve © Harmony driven by high grade choice conversion experienced underground opportunities in managemen

  8. Slide 8: Continuous improvement in safety

    8 CONTINUOUS IMPROVEMENT IN SAFETY Lost time injury frequency rate (LTIFR) – Group Interim results for the six-month period ended 31 December 2023 7,21 6,23 6,26 6,16 6,33 6,18 5,65 5,49 5,38 5,19 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 H1FY23 H1FY24 Loss of life injury frequency rate (LLIFR) – Grou

  9. Slide 9: Excellent grade growth and production consistency since 2016

    9 Interim results for the six-month period ended 31 December 2023 EXCELLENT GRADE GROWTH AND PRODUCTION CONSISTENCY SINCE 2016 South African Operations Total gold production (kgs) underground recovered grade (g/t) 6,29 FY24 5,78 Guidance: 5,48 5,59 5,51 47 755 5,45 5,37 46 236 45 651 46 033 44 734 5

  10. Slide 10: Driving real all-in sustaining costs down

    10 DRIVING REAL ALL-IN SUSTAINING COSTS DOWN SECURING HIGHER MARGINS Interim results for the six-month period ended 31 December 2023 Total All-in sustaining cost (R/kg) Total All-in sustaining cost (US$/oz) 1 709 889 766 1 558 1 403 843 043 835 891 © Harmony FY22 FY23 H1FY24 FY22 FY23 H1FY24 H1FY24

  11. Slide 11: Strong positive free cash flow generation enables growth

    11 Interim results for the six-month period ended 31 December 2023 STRONG POSITIVE FREE CASH FLOW GENERATION ENABLES GROWTH Total operating free cash flow (Rm) Total operating free cash flow (US$m) 424 7 112 381 6 528 6 031 339 228 3 573 207 191 3 008 2 905 122 1 735 86 1 166 59 755 © Harmony FY16 F

  12. Slide 12: Higher margins drive significant operating free cash flows

    12 Interim results for the six-month period ended 31 December 2023 HIGHER MARGINS DRIVE SIGNIFICANT OPERATING FREE CASH FLOWS % production, operating free cash flow and operating free cash flow margins contribution per asset grouping 50% 45% 40% 34% 31% 25% 19% 17% 17% 11% 11% 12% © Harmony SA high-

  13. Slide 13: Responsible Stewardship

    RESPONSIBLE STEWARDSHIP Peter Steenkamp, CEO © Harmony

  14. Slide 14: Sustainable benefits through tailings retreatment and water stewardship

    14 SUSTAINABLE BENEFITS THROUGH TAILINGS RETREATMENT AND WATER STEWARDSHIP – SUPPORTING CIRCULAR ECONOMY Interim results for the six-month period ended 31 December 2023 Decarbonisation BALANCING • Energy efficiencies • Renewable energy programme E Effective waste • Green energy Benefit sharing manag

  15. Slide 15: Mining with purpose: ESG ratings and recognition

    15 Interim results for the six-month period ended 31 December 2023 © Harmony MINING WITH PURPOSE: IT IS WHAT WE ARE ALL ABOUT ESG RATINGS AND RECOGNITION ESG rating upgraded Score of 71.71% and disclosure to 4.1 out of 5.0 Harmony remained on a Harmony ranks in the score of 100% Score of ‘A’ Signifi

  16. Slide 16: Growing Our Quality Ounces

    GROWING OUR QUALITY OUNCES Peter Steenkamp, CEO © Harmony

  17. Slide 17: Globally significant resource base including copper

    17 GLOBALLY SIGNIFICANT RESOURCE BASE WHICH INCLUDES COPPER PRESENTS EXCELLENT RESERVE CONVERSION POTENTIAL Interim results for the six-month period ended 31 December 2023 Mineral Resources: gold and copper1 Mineral Reserves: gold and copper2 Australia copper 6% Papua New Guinea gold Papua New Guine

  18. Slide 18: Long term value creation: investing in our own resources

    18 LONG TERM VALUE CREATION INVESTING IN OUR OWN RESOURCES Interim results for the six-month period ended 31 December 2023 Execution Moab Khotsong – Zaaiplaats extension • 9g/t Permitting • 225koz per annum • 22-year life-of-mine (LOM) Mine Waste Solutions – Feasibility Kareerand • 14-year LOM • Str

  19. Slide 19: Mponeng extension: extracting maximum value

    MPONENG EXTENSION: EXTRACTING MAXIMUM VALUE TO CREATE LASTING BENEFITS 19 FOR ALL STAKEHOLDERS MEETS ALL INVESTMENT CRITERIA Interim results for the six-month period ended 31 December 2023 Lower risk profile: • Good safety record to be maintained, safety remains priority! All ESG1 factors considered

  20. Slide 20: A de-risked, modular approach to access three high-grade blocks

    20 A DE-RISKED, MODULAR APPROACH TO ACCESS THREE HIGH-GRADE BLOCKS TauTona Mponeng m bd Interim results for the six-month period ended 31 December 2023 Collar: 176.2mbd Collar: 275.8mbd North Driefontein boundary Ventilation Shaft Service Shaft Main Shaft Main Shaft 58 Level Sub Shaft 61 Level 66 Le

  21. Slide 21: Sustaining our future through continuous investment

    21 Interim results for the six-month period ended 31 December 2023 SUSTAINING OUR FUTURE THROUGH CONTINUOUS INVESTMENT 1 800 1 000 000 1 600 900 000 800 000 1 400 700 000 1 200 600 000 1 000 Oz'000 R/kg 500 000 800 400 000 600 300 000 400 200 000 © Harmony 200 100 000 - 0 FY16A FY17A FY18A FY19A FY2

  22. Slide 22: Affordable growth capital intensity including Mponeng extension

    22 AFFORDABLE GROWTH CAPITAL INTENSITY INCLUDING MPONENG EXTENSION Capital guidance (Rand)¹ Interim results for the six-month period ended 31 December 2023 10 000 9 530 9 429 9 000 1 277 972 8 000 7 598 1 155 1 425 7 000 1 514 844 6 442 6 192 6 000 407 983 1 096 2 733 Rm 5 000 327 2 236 957 2 049 22

  23. Slide 23: Project capital remains well-sequenced and manageable

    23 Interim results for the six-month period ended 31 December 2023 PROJECT CAPITAL1 REMAINS WELL-SEQUENCED AND MANAGEABLE FY25 FY27 FY29 Wafi-Golpu3 Hidden Valley Doornkop1 and Eva Copper 2,3 Stage 8 stripping • Doornkop 207/202 levels First production subject complete • Eva Copper in production to

  24. Slide 24: Financial Results

    FINANCIAL RESULTS Boipelo Lekubo, FD © Harmony

  25. Slide 25: Excellent H1FY24 financial performance and earnings growth

    25 EXCELLENT H1FY24 FINANCIAL PERFORMANCE AND OUTSTANDING EARNINGS GROWTH Interim results for the six-month period ended 31 December 2023 H1FY24 H1FY23 Metrics Change Group revenue up (Rm)1 (Rm)1 Group revenue2 35% 31 415 23 259 35% Net profit 220% 5 960 1 861 to R31bn EBITDA3 114% 17 432 8 139 Head

  26. Slide 26: Balance sheet strong with R9.8 billion in available headroom

    26 BALANCE SHEET STRONG WITH R9.8 BILLION IN AVAILABLE HEADROOM Interim results for the six-month period ended 31 December 2023 Headroom (ZAR) 3 436 2 867 R9.8bn R7.3bn 6 405 © Harmony 4 383 FY23 H1FY24 Undrawn facilities Cash and cash equivalents

  27. Slide 27: Well-positioned to absorb adverse movements in gold price

    27 WELL-POSITIONED TO ABSORB ADVERSE MOVEMENTS IN GOLD PRICE Protection against adverse movement Interim results for the six-month period ended 31 December 2023 R1 200 000/kg spot gold price in gold price through: 33% AIC margin 42% AISC margin 68% cash operating cost margin • Effective hedging prog

  28. Slide 28: Returning cash to shareholders alongside investment

    28 RETURNING CASH TO SHAREHOLDERS ALONGSIDE INVESTMENT IN OUR FUTURE Interim results for the six-month period ended 31 December 2023 RECORD INTERIM DIVIDEND DECLARED Solid cash flows and Confidence in our plans Delivering and ability to pay a dividend strong balance sheet positive total shareholder

  29. Slide 29: Conclusion

    CONCLUSION Peter Steenkamp, CEO © Harmony

  30. Slide 30: This is Harmony: a specialist gold producer with growing copper footprint

    30 THIS IS HARMONY: A SPECIALIST GOLD PRODUCER WITH A GROWING INTERNATIONAL COPPER FOOTPRINT Interim results for the six-month period ended 31 December 2023 R Embedded Quality ounces Geared exposure Significant Gold mining Flexible sustainability and to the copper exposure specialists with balance s

  31. Slide 31: Thank You

    THANK YOU CONTACT US harmonyir@harmony.co.za © Harmony

  32. Slide 32: Annexures

    32 PNG MINING AND PETROLEUM CONFERENCE 2022 © Harmony ANNEXURES

  33. Slide 33: South African underground high-grade operations

    33 SOUTH AFRICAN UNDERGROUND HIGH-GRADE OPERATIONS*: DRIVING GROWTH AND LOWERING COSTS PER UNIT (H1FY24 VS H1FY23) Interim results for the six-month period ended 31 December 2023 Production increased All-in sustaining costs Operating free cash by improved by flow increased by SA SA 21% 7% >100% unde

  34. Slide 34: South African underground optimised operations

    SOUTH AFRICAN UNDERGROUND OPTIMISED OPERATIONS*: 34 SUBSTANTIAL INCREASE IN OPERATING FREE CASH FLOWS (H1FY24 VS H1FY23) Interim results for the six-month period ended 31 December 2023 All-in sustaining costs Operating free cash flow Production increased by increased by SA SA -2% 11% 71% underground

  35. Slide 35: South African surface operations

    35 SOUTH AFRICAN SURFACE OPERATIONS*: LOWERING RISK AND IMPROVING MARGINS (H1FY24 VS H1FY23) Operating Interim results for the six-month period ended 31 December 2023 All-in sustaining costs free cash flow increased Production improved by by SA underground high-grade SA underground optimised +24% 10

  36. Slide 36: International: Big Red delivers exceptional results

    36 INTERNATIONAL: AS PLANNED, BIG RED DELIVERS EXCEPTIONAL RESULTS (H1FY24 VS H1FY23) Interim results for the six-month period ended 31 December 2023 Production increased All-in sustaining costs Operating free by decreased by cash flow increased by SA SA 52% 46% >100% underground underground high-gr

  37. Slide 37: Strong H1FY24 financial performance (US$)

    37 STRONG H1FY24 FINANCIAL PERFORMANCE AND OUTSTANDING EARNINGS GROWTH Interim results for the six-month period ended 31 December 2023 H1FY24 H1FY23 Group revenue up Metrics Change (US$’m)1 (US$’m)1 25% Group revenue2 27% 1 681 1 343 Net profit 196% 320 108 to US$1.7bn EBITDA3 99% 954 479 Headline e

  38. Slide 38: Balance sheet flexible with US$385 million headroom

    38 BALANCE SHEET REMAINS FLEXIBLE WITH US$385 MILLION IN AVAILABLE HEADROOM (US$) Interim results for the six-month period ended 31 December 2023 Headroom (US$) 187 152 US$537m US$385m 350 © Harmony 233 FY23 H1FY24 Undrawn facilities Cash and cash equivalents

  39. Slide 39: Hedge table as at December 2023

    39 HEDGE TABLE AS AT 31 DECEMBER 2023 FY24 FY2025 FY2026 Interim results for the six-month period ended 31 December 2023 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Total Rand gold Forward contracts koz 78 78 78 78 72 72 68 34 558 R'000/kg 1 134 1 165 1 190 1 234 1 316 1 362 1 361 1 394 1 256 Dollar gold Forward Contra

  40. Slide 40: FY24 cost and grade guidance per operation

    40 FY24 COST AND GRADE GUIDANCE (PER OPERATION) • Plan to produce ~1.38Moz to 1.48Moz in FY24, at • an average underground recovered grade of ~5.60g/t to 5.75g/t, Interim results for the six-month period ended 31 December 2023 • an all-in sustaining cost of R975 000/kg for total Harmony Adjusted re

  41. Slide 41: FY24 production guidance per operation

    41 FY24 PRODUCTION GUIDANCE (PER OPERATION) FY23 production FY24 guidance Life of mine Interim results for the six-month period ended 31 December 2023 Operation (oz) (oz) (years) Moab Khotsong 214 381 187 600 – 195 600 21 Mponeng 239 490 232 900 – 245 200 20 Tshepong North 107 834 99 300 – 104 500 7

  42. Slide 42: FY24 capital guidance per operation (Rand)

    42 Interim results for the six-month period ended 31 December 2023 FY24 CAPITAL GUIDANCE PER OPERATIONS - UNCHANGED (RAND) 3 000 2 500 2 000 1 277 Rm 1 500 1 000 370 732 1 396 90 © Harmony 389 256 18 500 578 92 56 272 170 140 369 152 7 453 142 281 328 309 287 96 88 207 81 58 152 187 124 133 135 20 -

  43. Slide 43: FY24 capital guidance per operation (US$)

    43 Interim results for the six-month period ended 31 December 2023 FY24 CAPITAL GUIDANCE PER OPERATIONS - UNCHANGED (US$) 140 120 100 69 80 US$m 60 20 40 5 75 40 21 14 1 © Harmony 31 5 3 15 9 20 20 8 8 24 8 18 17 15 5 5 11 15 4 3 8 10 7 7 7 1 5 - - - Hidden MWS Moab Mponeng Doornkop Target 1 Tshepon

  44. Slide 44: Securing our future by investing in our assets

    44 Interim results for the six-month period ended 31 December 2023 SECURING OUR FUTURE BY INVESTING IN OUR ASSETS Moab Khotsong Hidden Valley Project Target 1 optimisation Kareerand Doornkop 207/212 Renewables extension (Zaaiplaats) extension • Project is now • Project on track • Project on track •

Harmony Gold Mining Company — H1 FY2024 Earnings Presentation on 6ix