Harmony Gold Mining Co. Ltd. · JSE:HAR

Harmony Gold Mining — Denver Gold Forum 2016

32 slides from Harmony Gold Mining's conference presentation, 2016

  1. Slide 1: Driven by Excellence

    DRIVEN BY EXCELLENCE 3(7(567((1.$03&(2 '(19(5*2/')2580 -6( +$5 1<6( +0<

  2. Slide 2: Safe Harbor Statement

    35,9$7(6(&85,7,(6/,7,*$7,215()250$&7 6$)(+$5%28567$7(0(17 7KLVSUHVHQWDWLRQFRQWDLQVIRUZDUGORRNLQJVWDWHPHQWVZLWKLQWKHPHDQLQJRIWKHVDIHKDUERU SURYLGHGE\6HFWLRQ(RIWKH6HFXULWLHV([FKDQJH$FWRIDV DPHQGHGDQG6HFWLRQ$RIWKH6HFXULWLHV$FWRIDVDPHQGHGZLWKUHVSHFWWRRXUILQDQFLDOFRQGLWLRQUHVXOWVRIRSHUDWLRQVEXVLQHVVVWUDW

  3. Slide 3: Contents

    &217(176 0LQLQJVDIHTXDOLW\RXQFHV 3RVLWLRQHGIRUJURZWK 6XVWDLQDEOHFDVKIORZV ‹+DUPRQ\_'HQYHU*ROG)RUXP &RQFOXVLRQ

  4. Slide 4: Mining Safe, Quality Ounces

    MINING SAFE, QUALITY OUNCES

  5. Slide 5: Where We Operate

    :+(5(:(23(5$7( 6RXWK$IULFD 3DSXD1HZ*XLQHD /LPSRSR 0SXPDODQJD *DXWHQJ 1RUWK:HVW )UHH6WDWH .ZD=XOX 1DWDO 1RUWKHUQ&DSH (DVWHUQ&DSH :HVWHUQ&DSH ‹+DUPRQ\_'HQYHU*ROG)RUXP /LVWHGRQ-6( +$5 DQG1<6( +0< RSHQSLWPLQH -9 XQGHUJURXQGRSHUDWLRQV *ROSX SURMHFW -9 RSHQSLWPLQH 0XOWLSOHH[SORUDWLRQDUHDV DQG 0XOWLSOHVXUI

  6. Slide 6: Quality Reserves

    48$/,7<5(6(59(6 *2/'(48,9$/(17 63/,7 6$JROG 31*FRSSHU 0R] DVJROG HTXLYDOHQWV 0R] ‹ 7RWDOUHVHUYHVRI0R] ‹ 7RWDOUHVRXUFHVRI0R] ‹+DUPRQ\_'HQYHU*ROG)RUXP 31*JROG 0R] 5HIHUZZZKDUPRQ\FR]D IRUGHWDLO *ROGHTXLYDOHQWEDVHGRQ86R] $XDQG86OE&X

  7. Slide 7: Underground Recovered Grade Increasing

    81'(5*5281'5(&29(5('*5$'(,1&5($6,1* JW ‹+DUPRQ\_'HQYHU*ROG)RUXP )< )< )< )< )< )< )< )< $FWXDO 3ODQ

  8. Slide 8: Grade is King

    *5$'(,6.,1* +DUPRQ\¶VJUDGHFRGH ‹ 1RPLQLQJEHORZFXWRII ‹ 0LQLQJWRDYHUDJHUHVHUYHJUDGH ‹ 2QO\TXDOLW\JUDGH *URZWKSURMHFWVGHOLYHULQJJRRGUHVXOWV ‹ 3KDNLVD7VKHSRQJGHFOLQHRQWUDFNZLWKJUDGHV ‹ $FFHVVHGKLJKHUJUDGHDUHDVWKURXJK'RRUQNRS DQG.XVDVDOHWKX GHHSHQLQJ 0LQLQJWKH%DPEDQDQL KLJKJUDGHSLOODU ‹+DUPRQ\_'HQYHU*RO

  9. Slide 9: Increasing Grades and Volumes at Phakisa

    ,1&5($6,1**5$'(6$1'92/80(6$73+$.,6$ ‹ 'HOLYHULQJRQSODQ ‹ &RQVLVWHQWGHOLYHU\RQGHYHORSPHQW WDUJHWVHQVXULQJIXWXUHIOH[LELOLW\ 7RQQHV ‹ *RRGXQGHUVWDQGLQJRIWKHRUHERG\ JW ‹ ,FHSODQWV± PRUHHIIHFWLYHFRROLQJ PHWKRGZLWKGHFUHDVHGSXPSLQJ UHTXLUHPHQWV ‹+DUPRQ\_'HQYHU*ROG)RUXP ‹ 5DLOYH\RU± VHPLDXWRPDWHG KRUL]RQWDO

  10. Slide 10: Positioned for Growth

    POSITIONED FOR GROWTH

  11. Slide 11: Our Strategy

    285675$7(*< 2XU VWUDWHJ\ 2XUVWUDWHJLF SLOODUV ‹ (QDEOLQJHQYLURQPHQW ‹ 0DLQWDLQLQJGLVFLSOLQHGFRVWPDQDJHPHQW ‹ 3RVLWLRQHGKLJKFRVWRSHUDWLRQVIRUSURILWDELOLW\ ‹ 'LVFLSOLQHGPLQLQJ 2SHUDWLRQDO ‹ /LYLQJRXUYDOXHV H[FHOOHQFH 0LQLQJVDIH ‹ ,QFUHDVLQJSURGXFWLYLW\ SURILWDEOH ‹ *UDGHPDQDJHPHQW RXQFHV ‹ $FKLHYLQJRS

  12. Slide 12: Aspiring to Grow

    $63,5,1*72*52:± 29(57+5((<($56 7202= $7/(667+$1862= +RZZHZLOO DFKLHYHWKLV &RUH EXVLQHVVDFWLYLWLHV 3URGXFLQJ 0R] 0R] 1HZHPHUJLQJ *URZWKSRVVLELOLWLHV DWOHVVWKDQ86R] RYHUD EXVLQHVV 7+5((<($53(5,2' 'HGLFDWHG ‹+DUPRQ\_'HQYHU*ROG)RUXP H[SHULHQFHG PLQLQJ WHDPV 1RWDFTXLULQJDWDOOFRVW«

  13. Slide 13: Growing Ounces

    *52:,1*281&(6± 21/<,),7675(1*7+(162850$5*,16 *URZWK SRVVLELOLWLHV ‹ ([SDQVLRQLQ6$DQGLQWR$IULFD ‹ *ROSX 6WDJH ‹ .LOL 7HNH SURVSHFW 2XQFHV ‹ 31*JUDVVURRWVH[SORUDWLRQ 1HZHPHUJLQJ EXVLQHVV ‹ 7VKHSRQJ3KDNLVDLQWHJUDWLRQ ‹ 7DLOLQJVUHWUHDWPHQWLQ)UHH6WDWH ‹ *ROSX 6WDJH ‹+DUPRQ\_'HQYHU*ROG)RUXP &RUH ‹ 'LYHUVL

  14. Slide 14: PNG Is an Exceptional Gold-Copper Country

    31*,6$1(;&(37,21$/*2/'&233(5&28175< Grasberg Ok Tedi Simberi 0R] $X0W&X 0R] $X0W&X 0R] $X Frieda Lihir 0R] $X0W&X 0R] $X Porgera 0R] $X Mt Kare 0R] $X0R] $J Yandera 0W&X Kili Teke 0R] $X0W&X Wafi-Golpu 0R] $X0W&X Panguna 0R] $X0W&X Hidden Valley 0R] $X0R] $J .LORPHWUHV ‹+DUPRQ\_'HQYHU*ROG)RUXP Woodl

  15. Slide 15: Major Discoveries

    0$-25',6&29(5,(6± 48$/,7<*2/'(48,9$/(17281&(6 ‹ *ROSX KHOG ± /RFDWHGLQWKH0RUREH3URYLQFHNPZHVWRI/DH ± :RUOGFODVVUHVRXUFHEDVH0R]JROG HTXLYDOHQW ± 6WDJHIHDVLELOLW\VWXG\FRPSOHWHG ± 6WDJHSUHIHDVLELOLW\SURYLGHVIXUWKHUYDOXHXSOLIW ± 6SHFLDO0LQLQJ/HDVHDSSOLFDWLRQORGJHG 5HVRXUFHJURZWKDW.LOL 7HNH KHOG ‹+DUPRQ\

  16. Slide 16: Golpu Hidden Among the Best

    *2/38 +(/' ± $021*677+(%(67 2UH *ROG &RSSHU 'ŽůƉƵ Ͳ ^ƚĂŐĞϭ 7RQQHV *UDGH 0HWDO *UDGH 0HWDO 07 JW 0R] 0W 'ŽůƉƵ ;ƚŽƚĂůͿ 7RWDOSUREDEOHRUHUHVHUYHV &XZW EŽƌƚŚƉĂƌŬĞƐ KŬdĞĚŝ 'ƌĂƐďĞƌŐ ŝĚŝƉŝŽ EĂŵŽƐŝ ĂƚƵ ,ŝũĂƵ KLJƵ dŽůŐŽŝ ‹+DUPRQ\_'HQYHU*ROG)RUXP <ŝŶŐŬŝŶŐ ĂĚŝĂ sĂůůĞLJ $X JW *ROSX ,QSURGXFWLRQ 3URMHFW ‡ 2QDEDVLV

  17. Slide 17: Sustainable Cash Flows

    SUSTAINABLE CASH FLOWS

  18. Slide 18: Focus on Cash Generation, Investment and Repayment of Debt

    )2&8621&$6+*(1(5$7,21,19(670(17$1'5(3$<0(172)'(%7 ϰϱϬ ϰϬϬ ϯϱϬ ϯϬϬ ϭϴϬ ϮϱϬ Ϯϵϳ h^Ψŵ ϮϬϬ &ĂĐŝůŝƚŝĞƐĂǀĂŝůĂďůĞ ϭϳϴ ϭϱϬ ϭϮϬ &ĂĐŝůŝƚŝĞƐĂǀĂŝůĂďůĞ ϳϰ ϭϬϬ ‹+DUPRQ\_'HQYHU*ROG)RUXP ϱϬ ϴϴ ϴϱ Ͳ &zϭϱ ĂƐŚŐĞŶĞƌĂƚĞĚďLJ ĂƐŚƵƚŝůŝƐĞĚďLJŝŶǀĞƐƚŝŶŐ ĞďƚƌĞƉĂŝĚ &zϭϲ ŽƉĞƌĂƚŝŶŐĂĐƚŝǀŝƚŝĞƐ ĂĐƚŝǀŝƚŝĞƐ

  19. Slide 19: Disciplined Cost Management

    ',6&,3/,1('&2670$1$*(0(17 7RWDOFDVKRSHUDWLQJFRVWDQG 86R] ‹ FDSLWDOLQ86WHUPVGHFUHDVHGE\ \RQ\ )< )< ‹+DUPRQ\_'HQYHU*ROG)RUXP 7RWDOFRVWDQGFDSLWDO 86R]

  20. Slide 20: Major Capital Spend in South Africa Behind Us

    0$-25&$3,7$/63(1',16287+$)5,&$%(+,1'86 &DSLWDOH[SHQGLWXUH 86P ‹+DUPRQ\_'HQYHU*ROG)RUXP 86 P )< )< )< )< )< )< *URZWKFDSLWDO6$ 0DLQWHQDQFHFDSLWDO6$ &HQWUDOSODQWUHFODPDWLRQ 2QJRLQJFDSLWDOGHYHORSPHQW6$ 31* * FY17-FY19 converted at an exchange rate of US$/R13.86

  21. Slide 21: Cash to Go Towards Debt Repayment, Dividends, Golpu and Acquisitions

    &$6+72*272:$5'6'(%75(3$<0(17«',9,'(1'6«*2/38 $1' $&48,6,7,216«,17+$725'(5 *ROSX IXQGLQJ *ROSX IXQGLQJ 1R31**RYHUQPHQWEX\LQ 31**RYHUQPHQWEX\LQ +DUPRQ\ +DUPRQ\ 3URMHFW FDVKIORZ 3URMHFW FDVKIORZ <HDU LQFOFDSH[ <HDU LQFOFDSH[ 86P 86P )< DQG )< DQG )< )< *UDQWRI60/DQG31* )< )< *RYHUQPHQWEX\VIRU 86P )< )<

  22. Slide 22: Conclusion

    CONCLUSION

  23. Slide 23: Harmony Outperforms Indices, Gold Price and Peers

    ‹+DUPRQ\_'HQYHU*ROG)RUXP -XO -XO -XO 5HEDVHGWR $XJ $XJ 6HS 6RXUFH)DFWVHW GDWDVLQFH-XO\WR$XJ %DUULFN *ROGFRUS 6HS 2FW 2FW 1RY $FDFLD 1HZFUHVW 1RY 'HF 'HF 'HF 1HZPRQW 5DQGJROG -DQ -DQ )HE .LQURVV )HE +DUPRQ\ 0DU 0DU $SU *ROG $SU $QJORJROG 0D\ 0D\ +$5021<2873(5)2506,1',&(6*2/'35,&($1'3((56 -XQ -XQ *ROG

  24. Slide 24: Net Operating Cash Flow

    1(723(5$7,1*&$6+)/2: 86VKDUH 86P 86VKDUH )< )< &DVKJHQHUDWHGE\RSHUDWLRQV 86P ‹+DUPRQ\_'HQYHU*ROG)RUXP

  25. Slide 25: Investment Case

    ,19(670(17&$6( ‹ )XUWKHUVKDUHSULFHXSOLIW ‹ *URZWKLQFRSSHUUHVRXUFHV *ROSX DQG.LOL 7HNH ‹ 6WURQJFDVKIORZVUHSD\LQJGHEW ‹ ,QFUHDVHGPDUJLQV ‹ $FKLHYHGSURGXFWLRQJXLGDQFH ‹+DUPRQ\_'HQYHU*ROG)RUXP ‹ ,QFUHDVHGJUDGH ‹ ,PSURYHGVDIHW\

  26. Slide 26: Questions

    QUESTIONS ZZZKDUPRQ\FR]D +DUPRQ\,5#KDUPRQ\FR]D

  27. Slide 27: Appendices

    APPENDICES

  28. Slide 28: Competent Person Statement

    &203(7(173(562167$7(0(17 7KHLQIRUPDWLRQLQWKHSUHVHQWDWLRQWKDWUHODWHVWR([SORUDWLRQ5HVXOWVZDVFRPSLOHGE\0LNH+XPSKULHV0U +XPSKULHVLVDIXOOWLPHHPSOR\HHRI +DUPRQ\*ROG0LQLQJ&RPSDQ\/LPLWHG0U +XPSKULHVLVDPHPEHURIWKH$XVWUDOLDQ,QVWLWXWHRI*HRORJLVWVDQGKDVVXIILFLHQWH[SHULHQFHZKLFKLV UHOHYDQWWRWKHVW\OHVRIPLQHUDOLVD

  29. Slide 29: Classification of Cash Operating Costs Excluding Capital

    &/$66,),&$7,212)&$6+23(5$7,1*&2676(;&/8',1*&$3,7$/ 7RWDO+DUPRQ\)< 7RWDO/DERXU 5R\DOWLHV (OHFWULFLW\DQG ZDWHU &RQWUDFWRUV ‹+DUPRQ\_'HQYHU*ROG)RUXP &RQVXPDEOHV 1RWH,Q6RXWK$IULFDRXUFRVWVDUHPRVWO\5DQGEDVHGZKLOHLQ31*WKHFRVWVDUHHTXDOO\EDVHGLQ31*.LQD$XVWUDOLDQGROODUDQGWKH86GROODU

  30. Slide 30: FY17 Production Guidance

    )<352'8&7,21*8,'$1&( 3ODQWRSURGXFHa0R] LQ)<DW ± DQDYHUDJHUHFRYHUHGJUDGHRIaJWDQG ± DQDOOLQVXVWDLQLQJFRVWRIaR] a5NJDWDQ H[FKDQJHUDWHRI586 )<*5$'(*8,'$1&( 5HVHUYHJUDGH $GMXVWHGUHVHUYH $FWXDOJUDGH JW )<JUDGH 2SHUDWLRQ JW JUDGH DFKLHYHGLQ)< JXLGDQFH JW 7VKHSRQJ 3KDNLVD %DPEDQDQL 7DUJHW ‹+DUPRQ\_'HQYHU*RO

  31. Slide 31: FY17 Production Guidance per Operation

    )<352'8&7,21*8,'$1&( SHURSHUDWLRQ )<SURGXFWLRQ )<DFWXDO /LIHRIPLQH 2SHUDWLRQ R] R] \HDUV 7VKHSRQJ 3KDNLVD %DPEDQDQL 7DUJHW 'RRUQNRS -RHO .XVDVDOHWKX 0DVLPRQJ ‹+DUPRQ\_'HQYHU*ROG)RUXP 8QLVHO 8QGHUJURXQGRSHUDWLRQV 6$ VXUIDFH +LGGHQ9DOOH\ 7RWDO a0R] &RQVLGHULQJVWUDWHJLFRSWLRQV

  32. Slide 32: FY17 AISC Guidance

    )<$,6&ï*8,'$1&( 862= SHURSHUDWLRQ )< )< $YJJXLGDQFH $FWXDO 2SHUDWLRQ 86R] 86R] 7VKHSRQJ 86R] 86R] 3KDNLVD 86R] 86R] %DPEDQDQL 86R] 86R] 7DUJHW 86R] 86R] 'RRUQNRS 86R] 86R] -RHO 86R] 86R] .XVDVDOHWKX 86R] 86R] 0DVLPRQJ 86R] 86R] ‹+DUPRQ\_'HQYHU*ROG)RUXP 8QLVHO 86R] 86R] 8QGHUJURXQGRSHUDWLRQV 86R] 86R

Harmony Gold Mining Company — Denver Gold Forum 2016 on 6ix