Harmony Gold Mining Co. Ltd. · JSE:HAR
Harmony Gold Mining — Corporate Update (December 2013)
19 slides from Harmony Gold Mining's corporate update, Dec 6, 2013
Slide 1: Update on the Wafi-Golpu project
Update on the Wafi-Golpu project Graham Briggs Chief Executive Officer 6 December 2013 1 www.harmony.co.za www.harm w onwyw. c. hoa. zr m a ony.co.za 6 DECEMBER 2013
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: Strategic review of Golpu
Strategic review of Golpu • Regardless of quality of ore body, Golpu as presented in 2012 pre-feasibility does not deliver an adequate return on investment in the current gold and copper price climate • Prudent to re-position Golpu • Seeking options to potentially develop a project with lower capita
Slide 4: Where we were – 2012 Pre-feasibility study (PFS)
Where we were – 2012 Pre-feasibility study (PFS) Technical PFS completed August 2012 – world class Greenfield copper porphyry resource – size, grade of ore body, Golpu is feasible based upon the economic assumptions published. Description Result LOM Capital US$9.8b Process Plant Ventilation Shafts C
Slide 5: Where we need to progress to
Where we need to progress to 2012 Pre-feasibility outcome New targeted outcome „Big Bang‟ solution Modular expandable solution Capital intensive Lower total capital cost Sustainable long term operation Lower life-cycle cost Schedule driven Achievable but competitive schedule Technically complex Reli
Slide 6: The Wafi-Golpu story
The Wafi-Golpu story • Wafi-Golpu is a globally significant resource • Next phase for the Wafi-Golpu project - commencement of underground exploration SECTION VIEW SECTION VIEW 2009 Today Surface Diatreme Surface Diatreme 5250mRL 5250mRL 5000mRL 5000mRL 800 m 4750mRL 4750mRL 2009 GOLPU 2012 GOLPU +1
Slide 7: Golpu is a world-class resource
Golpu is a world-class resource PLAN VIEW PLAN VIEW ZIMAKE Miapilli Zenapu 157m @ 1.0g/t Au 85m @ 3.2g/t Au 10m @ 9.1g/t Au 97m @ 0.75g/t Au, Bavaga 0.15% Cu 8m @ 4.6g/t Au Golpu M Zone Northern Nambonga 20.3Moz Au Zone 1.0Moz Au 9.0Mt Cu 721,000mN Zenapu 0.1Mt Cu Northern 65m @ 6.4g/t Au Margin Nam
Slide 8: Wafi-Golpu: a globally significant deposit
Wafi-Golpu: a globally significant deposit • Wafi-Golpu - top ten1 in global undeveloped gold/copper deposits 1. Contained metal in resources, inclusive of reserves 2. Source: IntierraRMG, October 2013 8 www.harmony.co.za 6 DECEMBER 2013
Slide 9: Golpu: a globally significant resource
Golpu: a globally significant resource Porphyry copper-gold deposits – Asia and Pacific region (bubble size represents total Au-equivalent ounces1) 1.30 Golpu is in the Optimal Quartile for Cu & Au 1.20 Oyu Tolgoi 248 Moz 1.10 Golpu Project 1.00 69 Moz 0.90 0.80 Tampakan 0.70 94 Moz Cu (wt %) Northp
Slide 10: What is underground exploration?
What is underground exploration? • De-risking the Project • Reserve definition driven • Bulk sample – essential for ore body knowledge • Establishment of proposed exploration shaft • Establishment of underground staging platforms for further exploration drilling 10 10 www.harmony.co.za 6 DECEMBER 20
Slide 11: What activities can be expected?
What activities can be expected? • Surface drilling will now focus on hydrological and geotechnical information • Planning and permitting for underground exploration anticipated to take approximately 6 - 12 months • Community programs are ongoing – building on a solid foundation over the past 5 year
Slide 12: Sustainability – working with our communities
Sustainability – working with our communities Preparation for eventual mining operation Education • New/renovated facilities • Elementary education • Capacity building Health • New health clinics • Community health patrols • Program supporting outcomes of survey work Community infrastructure • Meeti
Slide 13: Sustainability – environmental stewardship
Sustainability – environmental stewardship Getting out of the water • Major community and environmental achievement • Travelling through rivers and creeks posed a safety risk for us and the community • Constructed three Bailey bridges and four culverts • Constructed roads to divert traffic away from
Slide 14: Government as a stakeholder for Wafi-Golpu
Government as a stakeholder for Wafi-Golpu • Government support • Regulatory environment • Approvals and permits • Development framework 14 14 www.harmony.co.za 6 DECEMBER 2013
Slide 15: Appointment of CEO for MMJV
Appointment of CEO for MMJV Greg Jackson has been appointed CEO of the MMJV based in Lae • Management team based in Lae The MMJV comprises 3 unincorporated joint ventures between subsidiaries of Harmony and Newcrest • Wafi-Golpu Exploration Project – Wafi-Golpu JV • Hidden Valley Mine – Hidden Valle
Slide 16: Next steps
Next steps • Feasibility study for proposed exploration shaft • WorleyParsons TWP engaged to: – Prepare feasibility study for proposed exploration shaft – Continue review of lower capital cost project options • Approvals and permits • Development framework • Ongoing community consultation and invest
Slide 17: Wafi-Golpu video
Wafi-Golpu video PLAY WAFI- GOLPU STORY (VIDEO – 2 MINUTES) http://www.harmony.co.za/investors/news-and-events/videos 17 www.harmony.co.za 6 DECEMBER 2013
Slide 18: Increasing value – indicative timeline
Indicative timeline Commissioning and ramp-up 1st production Progress underground development and cave establishment Increasing value January 2018 onwards Advance feasibility studies, on-mine infrastructure / early works July 2017 - July 2019 Advance underground access, underground resource definiti
Slide 19: Contact us
Contact us: HarmonyIR@harmony.co.za 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.
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