Harmony Gold Mining Co. Ltd. · JSE:HAR
Harmony Gold Mining — Deutsche Bank Virtual Conference 2017
17 slides from Harmony Gold Mining's conference presentation, Nov 15, 2017
Slide 1: Deutsche Bank Virtual Conference
DEUTSCHE BANK VIRTUAL CONFERENCE 15 November 2017 JSE (HAR); NYSE (HMY)
Slide 2: Safe Harbour Statement
2 PRIVATE SECURITIES LITIGATION REFORM ACT SAFE HARBOUR STATEMENT This presentation contains forward-looking statements within the meaning of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended, with re
Slide 3: Why Harmony?
WHY HARMONY?
Slide 4: What We Believe In
© Harmony | Deutsche Bank Virtual Conference – 15 November 2017 4 WHAT WE BELIEVE IN Safely, producing Being financially sound 1.5Moz of gold Creating a future Creating shareholder value (growth)
Slide 5: We Invest in Gold and Copper
5 WE INVEST IN GOLD AND COPPER Geographic diversification Mineral diversification1 © Harmony | Deutsche Bank Virtual Conference – 15 November 2017 Copper* (36%) Gold (63%) PNG SA SA 13.2 Moz PNG 16.3 Moz Total reserves 44% 56% of 36.7 Moz1 PNG 6.9 Moz Silver (1%) 1 Copper and silver as gold equivale
Slide 6: Proven Track Record in Mining and Exploration
6 PROVEN TRACK RECORD IN MINING AND EXPLORATION PAPUA NEW GUINEA © Harmony | Deutsche Bank Virtual Conference – 15 November 2017 Production split FY17 9% SOUTH AFRICA Hidden Valley (open pit mine) Golpu copper-gold project (50:50 JV) Multiple exploration areas Production split (50% and 100%) FY17 91
Slide 7: Safe, Profitable Producer with Strong Margins
7 SAFE, PROFITABLE PRODUCER WITH STRONG MARGINS Moab Khotsong acquisition 250koz+ © Harmony | Deutsche Bank Virtual Conference – 15 November 2017 1.5Moz producer 180koz+ Hidden Valley on track +15koz Central plant tailings 1Moz SA production –12% increase q-on-q (Sep-17 quarter), –6% decrease in AIS
Slide 8: Creating Shareholder Value
CREATING SHAREHOLDER VALUE
Slide 9: We Deliver
9 WE DELIVER Strategy Safe, profitable ounces and increasing margins © Harmony | Deutsche Bank Virtual Conference – 15 November 2017 Strategic Operational Cash Effective capital pillars excellence certainty allocation Safety performance Successful hedging Hidden Valley improved strategy – secu
Slide 10: Growing Ounces and Margins – Acquiring Quality Assets
10 GROWING OUNCES AND MARGINS – ACQUIRING QUALITY ASSETS 1 3 Transaction The assets are world expected to class and well run. increase earnings © Harmony | Deutsche Bank Virtual Conference – 15 November 2017 Focus on and cash flow from optimisation year one 2 4 Repositions Harmony – with Benefits al
Slide 11: The Acquisition Repositions Harmony from Day One
11 THE ACQUISITION REPOSITIONS HARMONY FROM DAY ONE FY17* free cash flow1 – top 6 mines – of which Harmony will own three 150 US$m 100 US$92m © Harmony | Deutsche Bank Virtual Conference – 15 November 2017 50 US$46m US$49m 0 Bambanani Tshepong Tshepong Peer UG Beatrix 1 MoabMoab Khotsong Peer 1 UG D
Slide 12: Consistently Improving Underground Grade, Further Upside
12 CONSISTENTLY IMPROVING UNDERGROUND GRADE, FURTHER UPSIDE 9 8.2 8 7.8 © Harmony | Deutsche Bank Virtual Conference – 15 November 2017 7 6 5.7 g/t 5.35 5.0 5.1 5 4.7 4 3 FY15 FY16 FY17 FY18 - Q1 Future Harmony Moab Khotsong Zaaiplaats LOM incl. Moab LOM forecast forecast LOM: life of mine
Slide 13: Low Net Debt Compared to Peers – Flexible Balance Sheet
13 LOW NET DEBT COMPARED TO PEERS – FLEXIBLE BALANCE SHEET Net debt/EBITDA* 3.0 2.5 © Harmony | Deutsche Bank Virtual Conference – 15 November 2017 2.0 1.5 1.0 0.5 0.0 South Canadian Canadian South SouthPeers Canadian Australian Canadian American Canadian Harmony African African African ■ South Afri
Slide 14: Future Growth – Golpu Is World Class
14 FUTURE GROWTH – GOLPU IS WORLD CLASS 1.8% 1.6% Golpu Golpu 1.4% © Harmony | Deutsche Bank Virtual Conference – 15 November 2017 1.2% Grasberg Cu wt (%) 1.0% In production 0.8% Northparkes Ok Tedi 0.6% Namosi Batu Hijau Oyu Tolgoi 0.4% Didipio Project Kingking 0.2% Cadia Valley 0.0% 0.00 0.10 0.20
Slide 15: Conclusion
CONCLUSION
Slide 16: Compelling Investment Case
16 COMPELLING INVESTMENT CASE © Harmony | Deutsche Bank Virtual Conference – 15 November 2017 Financially sound Safe, profitable Real growth Offering share price 1.5Moz producer opportunities uplift • Strong free cash • Increased grades • Golpu – world • Potential to re-rate flows • All growth below
Slide 17: Contact Us
CONTACT US HarmonyIR@harmony.co.za +27 (11) 411 2314/+27 (82) 759 1775
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