Harmony Gold Mining Co. Ltd. · JSE:HAR
Harmony Gold Mining — European Gold Forum 2019
21 slides from Harmony Gold Mining's conference presentation, Apr 10, 2019
Slide 1: European Gold Forum 2019
EUROPEAN GOLD FORUM 2019 Boipelo Lekubo, Chief financial officer 10 April 2019 JSE (HAR); NYSE (HMY)
Slide 2: Safe Harbour Statement: Forward Looking Statements
2 PRIVATE SECURITIES LITIGATION REFORM ACT SAFE HARBOUR STATEMENT FORWARD LOOKING STATEMENTS This presentation contains forward-looking statements within the meaning of the safe harbor provided by Section 21E of the Exchange Act and Section 27A of the Securities Act of 1933, as amended (the “Securit
Slide 3: Experienced Gold Miner with a Significant Copper Prospect
EXPERIENCED GOLD MINER WITH A SIGNIFICANT COPPER PROSPECT
Slide 4: Established Operations, Quality Growth Opportunities
4 ESTABLISHED OPERATIONS, QUALITY GROWTH OPPORTUNITIES PAPUA NEW GUINEA Production split: FY19E ~200koz (14%) Hidden Valley (open pit mine) © Harmony | European Gold Forum – 10 April 2019 Wafi-Golpu project (50:50 JV) Multiple exploration areas SOUTH AFRICA Production split: FY19E ~1.3Moz (86%) 9 un
Slide 5: Gold Miner with a Quality Copper Prospect
5 GOLD MINER WITH A QUALITY COPPER PROSPECT Copper (34%) Gold (65%) 12.7 Moz © Harmony | European Gold Forum – 10 April 2019 23.8 Moz Reserves1* Silver (1%) Wafi-Golpu gold and copper reserves* 1Reserves at 30 June 2018. Copper and silver as gold equivalents based on: US$1 275/oz Au, US$3.0/lb Cu, U
Slide 6: Wafi-Golpu Has a Large Production Profile
6 WAFI-GOLPU HAS A LARGE PRODUCTION PROFILE 2,500 300 250 2,000 200 1,500 © Harmony | European Gold Forum – 10 April 2019 000’t 150 000’oz 1,000 100 500 50 - - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 Au metal recovered (koz) Au equivalent of copper (koz
Slide 7: Wafi-Golpu Is a Game Changer
7 WAFI-GOLPU IS A GAME CHANGER Large resource and long life − Mine life of over 28 years Large − Steady state production: in excess of 1.2 million gold equivalents ounces production profile per annum © Harmony | European Gold Forum – 10 April 2019 High grade = − High average grades: Au = 0.90g/t, Cu
Slide 8: Focused on Creating Value
© Harmony | European Gold Forum – 10 April 2019 8 FOCUSED ON CREATING VALUE
Slide 9: Harmony's Strategy
9 HARMONY’S STRATEGY Strategy Strategic pillars Progress Risk-based safety approach delivers improvement in safety rates Production guidance achieved for past three consecutive years, on track to achieve Operational excellence annual production guidance of 1.45Moz in FY19 © Harmony | European Go
Slide 10: Growing the Quality of Our Portfolio
10 GROWING THE QUALITY OF OUR PORTFOLIO Moab Khotsong: +250koz High grade, cash generative Hidden Valley: +200koz Successful re-investment, life of mine average AISC <US$950/oz © Harmony | European Gold Forum – 10 April 2019 South Africa: Operational excellence focus to achieve safe, consistent, 1Mo
Slide 11: Production and Cash Flow Boosted in H1FY19
11 PRODUCTION AND CASH FLOW BOOSTED IN H1FY19 Underground recovered grade (g/t) Production (oz) 751,008 5.65 501,519 5.12 + 10% + 50% "Old" Harmony Harmony today "Old" Harmony Harmony today © Harmony | European Gold Forum – 10 April 2019 All-in sustaining cost (US$/oz) Operational free cash flow (US
Slide 12: Operational Excellence
© Harmony | European Gold Forum – 10 April 2019 12 OPERATIONAL EXCELLENCE
Slide 13: Operational Excellence Core to Generating Cash Flows
13 OPERATIONAL EXCELLENCE CORE TO GENERATING CASH FLOWS Grade and Cost Safety and Infrastructure Capital flexibility management health management allocation management © Harmony | European Gold Forum – 10 April 2019 Focused cost Focused No mining management Risk-based capital below cut-off and proje
Slide 14: Focused on Safety
14 FOCUSED ON SAFETY Key outcome of risk based safety approach SA lost time injury frequency rate (LTIFR) (per million hours) 8.00 Identification of key controls to prevent significant 7.00 7.13 unwanted events 6.75 6.00 6.45 6.05 6.17 © Harmony | European Gold Forum – 10 April 2019 Control monitori
Slide 15: Effective Capital Allocation
© Harmony | European Gold Forum – 10 April 2019 15 EFFECTIVE CAPITAL ALLOCATION
Slide 16: Capital Allocation Priorities
16 CAPITAL ALLOCATION PRIORITIES Debt Opportunity Wafi-Golpu repayment evaluation © Harmony | European Gold Forum – 10 April 2019 Targeting net debt/ebitda ratio below Organic growth 1. Permitting 0.8x Value accretive 2. Funding Improve M&A balance sheet flexibility
Slide 17: Disciplined Project Evaluation and Management
17 DISCIPLINED PROJECT EVALUATION AND MANAGEMENT Key areas Rationale - Safety a priority Lower risk profile - Surface projects ranked higher - Pillar mining is intensely scrutinized Improving margins - Ounce replacement and growth are aimed at increasing margins © Harmony | European Gold Forum – 10
Slide 18: Conclusion
© Harmony | European Gold Forum – 10 April 2019 18 CONCLUSION
Slide 19: An Experienced, Responsible Emerging Market Miner
19 AN EXPERIENCED, RESPONSIBLE EMERGING MARKET MINER Environmentally Focused on energy efficiency and water conservation responsible Land restoration and value creation Multi-stakeholder engagement and collaboration critical © Harmony | European Gold Forum – 10 April 2019 Socially responsible
Slide 20: ESG Video
© Harmony | European Gold Forum – 10 April 2019 20 ESG VIDEO
Slide 21: Contact Us
21 © Harmony | European Gold Forum – 10 April 2019 CONTACT US HarmonyIR@harmony.co.za +27 (11) 411 2314/+27 (82) 759 1775