Harmony Gold Mining Co. Ltd. · JSE:HAR
Harmony Gold Mining — PDAC 2009
11 slides from Harmony Gold Mining's conference presentation, February 2009
Slide 1: PDAC 2009
PDAC 2009 Graham Briggs, Chief Executive Officer 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 Securities Exchange Act of 1934, as ame
Slide 2: A leading gold mining company
A leading gold mining company – Founded in 1950 – Among the world’s top 10 gold-producing companies – Primary listing • JSE (share code: HAR) – Other listings • LSE (HRM) • NYSE & Nasdaq (HMY) • Euronext Paris (HG) • Brussels (HMY) • OTC Berlin (HAM1) – Operations O ti andd projects j t • in South A
Slide 3: Mineral resources and ore reserves
Mineral resources and ore reserves – Ore reserves • declaration of 50.5Moz of reserves (June 2008) • year-on-year depletion of 2Moz • decrease of 5.6Moz of reserves due to corporate activity, restructuring and geological changes • addition of 4.5Moz of reserves from surface stockpiles – Mineral reso
Slide 4: Vision and mission
Vision and mission Vision Creating C i an outstanding di company, generating i sustainable i bl earnings i that fund dividends and growth. Mission • Through sound asset portfolio management and operational efficiency we will create the necessary platform to grow efficiency, organically • We will exp
Slide 5: Improved margin (R/kg)
Net debt position 9 Improved margin R/kg R/kg 350000 R310 000/kg 300000 Growth Capex R/kg 250000 Operational Capex R/kg Cash cost R/kg 200000 Gold price R/kg 150000 Spot gold price on Feb 18, 2009 100000 50000 0 Jun‐08 2009 Sep‐07 Dec‐07 Mar‐08 Sep‐08 Dec‐08 Excluding PNG capital 10 5
Slide 6: Well-positioned for 2009
Improved margin $/oz $/oz 1200 1000 Growth Capex $/oz $970/0z Operational Capex $/oz 800 Cash cost $/oz 600 Gold price $/oz Spot gold price on Feb 18, 400 2009 200 0 Jun-08 Sep-07 Dec-07 Mar-08 Sep-08 Dec-08 2009 Excluding PNG capital 11 Well-positioned for 2009 – Management restructured, refocused
Slide 7: Our project pipeline: PNG Hidden Valley
Our project pipeline 13 PNG Hidden Valley – Construction 74% complete • focus on: • overland conveyor earthworks • power station • process plant areas – Mill commissioning on target for mid-2009 – Waste, ore mining on plan – Operational Readiness Plan prepared • enabling transition to full mining op
Slide 8: Growing project pipeline: Doornkop
Growing project pipeline: Doornkop DOORNKOP SOUTH REEF PROJECT 30 June 2008 South Reef .-412.500m Two main surface fans Howden Fantecnic WBF 390 2100 kW motor One currently operating: 310 m3/s @ 5.4 kPa Second fan to operate within six months 350m3/s – Resource: .-512.500m 21 1Mt @ 8.27g/t 21.1Mt 8
Slide 9: Growing project pipeline: Phakisa
Growing project pipeline: Phakisa – Reserve: 20Mt @ 8.31g/t (5.3Moz) – C Currentt production: d ti Surf ace 2 300oz per quarter – Full production (June 2011): 253 000oz pa HAULAGE TO NYALA 59L 63L 66L 69L 71L 73L 75L 77L 17 In conclusion 18 9
Slide 10: FY 2010 projections; Gold a safe haven?
FY 2010 projections – Throughput, grade, ounces • increasing as new mines ramp up – Costs • electricity, labour cost increases • possible decrease flowing from lower commodity prices – Gold price • higher gold price received 19 Gold a safe haven? – Stronger R/kg gold price despite highly volatile ti
Slide 11: Outlook; Questions
Outlook – Gold market volatility likely to continue • but price likely to be sustained – Management restructured to deliver improvements in 2.5 7.00 • safety 6.00 • tonnages 2.0 5.00 • grade 1.5 4.00 • development 3.00 10 1.0 – Costs continue to be critical 2.00 0.5 – Projects on track 1.00 – Target