Harmony Gold Mining Co. Ltd. · JSE:HAR

Harmony Gold Mining — Arlington Conference (February 2017)

23 slides from Harmony Gold Mining's conference presentation, Feb 3, 2017

  1. Slide 1: Unique Challenges for Underground Mines in Africa

    UNIQUE CHALLENGES FOR UNDERGROUND MINES IN AFRICA 3 February 2017 JSE (HAR) NYSE (HMY) Arlington Conference

  2. Slide 2: Agenda

    3 AGENDA 1 Mining in SA for more than 66 years 2 Safety and health 3 Deep level gold mining challenges 4 Sustainable cash flows 5 Conclusion © Harmony | 2017

  3. Slide 3: Mining in South Africa for More Than 66 Years

    MINING IN SOUTH AFRICA FOR MORE THAN 66 YEARS

  4. Slide 4: Mining in South Africa and PNG

    5 MINING IN SOUTH AFRICAN AND PNG South Africa Papua New Guinea Limpopo Mpumalanga Gauteng North West Free State KwaZulu- Natal Northern Cape Eastern Cape Western Cape Listed on JSE and NYSE 1 open pit mine 9 underground operations Golpu project (50:50 JV) © Harmony | 2017 1 open pit mine Multiple e

  5. Slide 5: Driven by our strategy to produce safe, profitable ounces

    6 DRIVEN BY OUR STRATEGY TO PRODUCE SAFE, PROFITABLE OUNCES Our strategic pillars  Safety rates improving – lower than combined rate for main gold producers Operational excellence  8% increase in gold production  Grade continues upward trend – 3% increase to 5.04g/t  Only a 4% increase in all-in

  6. Slide 6: Safety and Health

    SAFETY AND HEALTH

  7. Slide 7: Working Towards Zero Harm

    8 WORKING TOWARDS ZERO HARM Fatality Injury Frequency Rate 0.30 0.25 0.26 0.20 0.21 0.17 0.15 0.15 0.13 0.10 0.11 0.10 0.08 0.05 © Harmony | 2017 0.00 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 YTD

  8. Slide 8: Notable Safety Achievements

    9 NOTABLE SAFETY ACHIEVEMENTS  No underground fatality during the December 2016 quarter  Tshepong achieved its first ever 2 500 000 Fatality Free Shifts (FFS) on 27 October 2016, a total of 794 days fatal free  Doornkop achieved its first ever 2 000 000 FFS on 17 December 2016, a total of 872 day

  9. Slide 9: Holistic Approach to Health

    10 HOLISTIC APPROACH TO HEALTH  Promotion and awareness of risks Proactive  Prevention and assessment of risks  Intervention (awareness programs) Holistic approach  Health hub at each operation to wellness Proximity  Doctors on-site improves productivity  Doctors part of management team 1 000

  10. Slide 10: Deep Level Gold Mining Challenges

    DEEP LEVEL GOLD MINING CHALLENGES

  11. Slide 11: Anatomy of a Deep Level Underground Gold Mine

    12 ANATOMY OF A DEEP LEVEL UNDERGROUND GOLD MINE © Harmony | 2017

  12. Slide 12: Challenges

    13 CHALLENGES  Safety and health  Distance to the work place  Environmental conditions  Hard rock stress  Human resources  Ore body flexibility © Harmony | 2017

  13. Slide 13: Industry Trend of Increase in Unit Cost

    14 INDUSTRY TREND OF INCREASE IN UNIT COST Rand/kg $/oz and © Harmony | 2017 2007 2008 2009 2010 2011 2012 2013 2014 2015

  14. Slide 14: Declining Underground Grades and Depleting Reserves

    15 DECLINING UNDERGROUND GRADES AND DEPLETING RESERVES Underground recovered grade – SA gold mining industry 8 7 6 5 g/ton 4 3 2 1 © Harmony | 2017 0 2007 2008 2009 2010 2011 2012 2013 2014 2015

  15. Slide 15: Grade Continues Upward Trend

    16 GRADE CONTINUES UPWARD TREND Harmony SA underground recovered grade 5.5 5.0 5.04 5.02 4.77 4.75 4.5 © Harmony | 2017 4.0 FY14 FY15 FY16 H1FY17 FY14 FY15 FY16 H1FY17

  16. Slide 16: Sustainable Cash Flows

    SUSTAINABLE CASH FLOWS

  17. Slide 17: Solid Operational Cash Flow

    18 SOLID OPERATIONAL CASH FLOW (US$ million) Operational cash flow – six months ended December 2016 30 25 25 20 18 15 10 12 12 12 5 6 6 6 5 5 4 1 0 -5 -10 -11 © Harmony | 2017 -15 ¹ Hidden Valley excludes the amount received from Newcrest Mining Limited and a total of US$22 million re-investment cap

  18. Slide 18: EBITDA (US$)

    19 EBITDA* (US$) 600 500 400 235 300 US$m 24 200 95 212 282 284 100 175 70 101 40 49 © Harmony | 2017 0 FY12 FY13 FY14 FY15 FY16 FY17 H1 H2 EBITDA: excludes impairment and loss on scrapping of property, plant and equipment

  19. Slide 19: Conclusion

    CONCLUSION

  20. Slide 20: De-risking the Company Through Healthy Relationships

    21 DE-RISKING THE COMPANY THROUGH HEALTHY RELATIONSHIPS Shareholders General Employees / public & general unions communities NGOs and Government and industry regulators Partners, Media and customers and analysts suppliers Host © Harmony | 2017 communities/ neighbours

  21. Slide 21: Experienced South African Miners

    22 EXPERIENCED SOUTH AFRICAN MINERS  Share price uplift  Growth  Strong balance sheet, which allows for dividends  Robust margins  On track to produce in line with guidance  Maintain increase in grade © Harmony | 2017  Safer and more predictable production

  22. Slide 22: Questions

    QUESTIONS Contact us at: HarmonyIR@harmony.co.za

  23. Slide 23: Safe Harbour Statement

    1 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

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