Slide 1: Analyst presentation
Analyst presentation Graham Briggs, Chief Executive Officer Quarter 2, FY 2008/2009 Private securities litigation reform act safe harbour statement This presentation contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and 21E of the Secu
Slide 2: Strategy; Important considerations in turmoil times
Strategy Organic-Acquisition Strategy Refocusing Organic Growth Strategy Revitalising Back-to-Basics Re-organising Renewing Stabilisation Recovery Growth Phase Phase Phase Aug 07 Dec 07 Jun 09 Jun 2012+ 5 months 18 months 36 months + 3 Important considerations in turmoil times – Depth of downturn •
Slide 3: Harmony's positioning; Safety
Harmony’s positioning – Preserve our cash • but complete our projects – Have a reasonable margin – Be debt free – Keep the company as simple as possible – Reward our shareholders 5 Safety – Goal is zero fatals • 3 fatal accidents during the quarter – Reportable Injury Frequency Rate • best-ever achi
Slide 4: December 2008 projections: SA total
Projections 7 December 2008 projections SA total – Production (quarter on quarter) • tonnes milled decreased • recovered grade decreased • decrease in production • gold inventory sold – Cash costs • decrease in electricity and labour costs • increase in insurance premiums year on year • increase in
Slide 5: December 2008 projections: South Region; Bambanani
December 2008 projections South Region – Tshepong • volumes decreased – Target a get • recovering well, but more work is needed – Masimong • performance not in line with previous quarter – Joel • good safety and production performance – Bambanani • 3 fires, resulting in lower gold production – Virgi
Slide 6: Target; North Region
Target – Recovering well • gold production higher • recovery grade increasing • development in Block 3 stopped, Block 4 targeted • better planning to address current ore body understanding 11 December 2008 projections North Region – Doornkop • good quarter • managed to improve volumes – Elandsrand •
Slide 7: Elandsrand; PNG Hidden Valley
Elandsrand – Dedicated COO from October 2008 – New safety programme introduced • aim is to change safety behaviour – Production volumes decreased • decision to stop all working places with a high risk rating – Recovered grade higher – Objective • change behaviour permanently • impact production posi
Slide 8: In conclusion: Share performance
In conclusion 15 Share performance Rebased to 100 180 160 140 38.6% 120 -4.2% 100 -26.6% -26.9% 80 60 40 2-Jan-08 20-Feb-08 11-Apr-08 4-Jun-08 24-Jul-08 11-Sep-08 31-Oct-08 31-Dec-08 HAR JSE Gold Index JSE All Share JSE Top40 16
Slide 9: Strengthened balance sheet; Gold a safe haven?
Strengthened balance sheet – Capital raising: R979 m • 10 504 975 shares, 2.6% of issued shares • Average subscription price R93.20 (VWAP R92.79) – Nedbank loan: repaid p R1.25 bn • Balance of R750 m due in Dec 2009 17 Gold a safe haven? – Stronger R/kg gold price despite highly volatile times – Evi
Slide 10: Outlook; Questions
Outlook – Gold market volatility likely to continue • but price likely to be sustained – Management restructuring to deliver improvements in • safety • tonnages • grade • development – Costs continue to be critical – Projects on track – Target of 2.2Moz by 2012 19 Questions www.harmony.co.za 20