Harmony Gold Mining Co. Ltd. · JSE:HAR
Harmony Gold Mining — Denver Gold Forum 2012
22 slides from Harmony Gold Mining's conference presentation, Sep 11, 2012
Slide 1: Harmony Gold Mining Company Limited - Denver Gold Forum
Harmony Gold Mining Company Limited Denver Gold Forum Graham Briggs, CEO 11 September 20121 w w w . h a r mw onwyw. c. hoa. zr m a ony.co.za
Slide 2: Private Securities Litigation Reform Act Safe Harbour Statement
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 amended, that are intended to be covered by the safe
Slide 3: Agenda
Agenda 1 Strategy 2 Wafi-Golpu project 3 Investment case 3 www.harmony.co.za
Slide 4: Strategy
Strategy www.harmony.co.za
Slide 5: Strategy
Strategy A global gold mining and exploration company - growing gold production, reserves and profits Delivering on projects Growth Global opportunities Grow the company Generate profits Exploration Growth in reserves Improve cash costs Optimise operational delivery and quality of ounces Experienced
Slide 6: Harmony today
Harmony today • Operating in South Africa and Papua New Guinea (PNG) • Building world class mines in South Africa and PNG – 10 underground mines, one open pit operation and several surface sources in SA – 50% joint venture in PNG with Newcrest Mining Ltd • Hidden Valley open pit mine • Wafi-Golpu •
Slide 7: Unlocking value
Unlocking value Production gap and build-up Commissioning Steady state production Project construction Masimong, Tshepong, Increasing project value Joel, Target 1,Unisel, Kalgold Kusasalethu, Doornkop, Feasibility Phakisa, Target 3 Pre-feasibility study Hidden Valley Bambanani/Steyn 2 Resource defin
Slide 8: Geographical diversification (Reserves)
Geographical diversification (Reserves)¹ Gold Reserves FY11 Gold equivalent* Reserves FY11 PNG, 6% PNG, 11% South South Africa, 94% Africa, 89% Note: Reserves as at 30 June 2011 includes Evander Note: Reserves as at 30 June 2011 includes Evander Gold Reserves FY12 Gold equivalent* Reserves FY12 PNG,
Slide 9: More geographic diversification to come
More geographic diversification to come AMANAB – (EL1708: 464km²) MT HAGEN – (EL1596/1611, EL1864/5/66/7: 986km2) • Target: +4MOz Au Vein array • Target: +10 Moz Epithermal Au • Field work including mapping, surface sampling (8 300) • Campaign style fieldwork to develop Yup East to drill testing • D
Slide 10: Wafi-Golpu project
Wafi-Golpu project www.harmony.co.za
Slide 11: Wafi-Golpu resources at 30 June 2012
Wafi-Golpu resources at 30 June 2012 PLAN VIEW Miapilli Porphyry Golpu Target Northern Zone Golpu(1) • 1000Mt @ 0.63g/t Au, 0.90% Cu WR426 157m @ 1.0g/t Au 20.3Moz Au (20.3Moz Au, 9.0Mt Cu) 9.0Mt Cu Wafi WR397 10m @ 9.1g/t Au • 132Mt @1.69g/t Au (6.9Moz Au) WR426 WR433 WR432 721,000mN Nambonga WR392
Slide 12: World class Golpu resource
World class Golpu resource Porphyry Copper - Gold Deposits - SE Asia (bubble size represents total Au-equivalent ounces1) 1.30 1.20 Oyu Tolgoi 248 Moz 1.10 1.00 Golpu Project 69 Moz 0.90 0.80 Tampakan 0.70 94 Moz Cu (wt %) Northparkes Grasberg Ok Tedi 0.60 12 Moz 329 Moz 20 Moz 0.50 Frieda River Did
Slide 13: Golpu mine access layout – preferred option
Golpu mine access layout – preferred option • Two block cave lifts: sequential mining of lifts • Rock mass preconditioning by hydraulic fracturing and conditioning techniques • Mine development plan further optimised in feasibility study • Remains open at depth 13 www.harmony.co.za
Slide 14: Golpu production profile: PFS base case
Golpu production profile: PFS base case, 22 Mtpa Potential Lift 3 14 www.harmony.co.za
Slide 15: Golpu indicative pre-feasibility parameters
Golpu indicative pre-feasibility parameters Pre-feasibility 22Mtpa capacity Units Result Production life Years 26 Annual Cu production1 kt pa 290 Gold cash cost2 US$/oz Negative 2,600³ Copper cash cost2 US$/lb 0.54³ Total initial capital US$ m 4 845 Total capital US$ m 9 747 500 2019 Copper Mine C1
Slide 16: Upside potential at Golpu
Upside potential at Golpu • Higher grade and recovery in Lift 1- recently 3 holes in upper section of Golpu deposit returned high grade intercepts • Optimise metallurgical recovery for gold - during the feasibility study the metallurgical studies will test an increase in gold recovery • Ramp up and
Slide 17: Golpu project summary
Golpu project summary • World-class project, long life, generating strong cash flows • Lowest industry quartile operating cost (gold and copper) • Technically and financially viable development model identified • Strong support from local community, Provincial and State Governments • Significant ups
Slide 18: Cash flow funding Golpu (US$m)
Cash flow funding Golpu (US$m) US$m 900 800 700 US$1 600/oz gold price 600 500 US$1 500/oz gold price 400 US$1 400/oz gold price 300 200 100 - FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 Actual Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Net cash generated
Slide 19: Investment case
Investment case www.harmony.co.za
Slide 20: Achieving our strategic objectives
safe Achieving our strategic objectives Growth • Ore reserve growth - increased by 27% • Dividend growth – increased by 50% • Lowered net debt by R823m (US$123m) • Operations funded all capital expenditure (R3.2bn; US$414m) Exploration • Increased expenditure by 54% • Increased number of gold and co
Slide 21: Achieving our strategic objectives | continued
safe Achieving our strategic objectives| continued Optimising operational delivery • Improved safety • Disposed of non-core assets • Improved margin – 26% in FY11, 35% in FY12 • Leverage to gold price - 36% increase in R/kg gold price, resulting in an 80% increase in Rand profit - 23% increase in US
Slide 22: An exciting investment proposition
Henrika Basterfield Investor Relations Manager Tel: +27 (0)11 411 2314 Mobile: +27 (0)82 759 1775 Email: henrika@harmony.co.za Marian van der Walt Executive: Corporate and Investor Relations Tel: +27 (0)11 411 2037 Mobile: +27 (0)82 888 1242 Email: marian@harmony.co.za An exciting investment proposi