Harmony Gold Mining Co. Ltd. · JSE:HAR
Harmony Gold Mining — Investor Presentation (January 2010)
13 slides from Harmony Gold Mining's investor presentation, Jan 26, 2010
Slide 1: Analyst breakfast
Analyst breakfast Graham Briggs Briggs, CEO 26 January 2010 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 1
Slide 2: Agenda
Agenda 1 December quarter FY10 projections 2 Restructuring 3 PZG Free State assets 4 Hidden Valley 5 Exploration 6 Going forward 3 December quarter FY10 projections 4 2
Slide 3: Quarter at a glance
Quarter at a glance (q-on-q) – Safety – five fatalities; continued focus on safety improvement – ‘Fixing the mix’ – restructuring for more lower-cost ounces – closure of Brand 3, Evander 7 – Production – Underground tonnes slightly lower, grade flat, ounces down – Surface tonnes up, lower recovered
Slide 4: Capital expenditure Dec 09 Qtr
Capital expenditure Dec 09 Qtr Elandsrand 14% Phakisa Doornkop 16% 9% Target 9% Tshepong PNG 6% 20% Evander 6% Kalgold Virginia 0% 5% Masimong Bambanani Other capital 5% Joel 3% 3% Free state surface sources 4% 0% 7 Restructuring 8 4
Slide 5: Production ounces; Rationale; actions taken
Production ounces 3,500 3 000 3,000 2,500 Australia, Orkney, Welkom, Sable, Kudu, Randfontein, St Helena 4 & 8 Steyn, St Helena 10, Tailings 2,000 Hidden Valley Doornkop 1,500 Phakisa Virginia Elandsrand Evander 1,000 500 Masimong, Bambanani, Tshepong, Target , Joel, Kalgold - 2004/5 2005/6 2006/7 2
Slide 6: PZG Free State assets: Transaction status
PZG Free State assets 11 Transaction status – Transaction status – rock dump and plant sale agreements unconditional; R125 million paid – sale l off North N h and dSSouth hAAssets agreement not yet unconditional di i l – conditions precedent expected to be concluded end-January 2010: – entering into
Slide 7: Production parameters
Production parameters – Production parameters – rock dump milling, processing at Target – 35 000tpm, recovering 0.55g/t – Producing 18 kg/month at a planned R140 000/kg – plant clean-up started December 2009, demolition to start February 2010 – recovery of 800kg expected over 18 months – underground
Slide 8: Hidden Valley
Hidden Valley – Process plant construction completed October 2009, commissioning continuing – Overland conveyor completed early December 2009 – All contractors demobilised in December 2009 – 754 full time employees – Reasonable progress on hydro-electric power line – December quarter yields good pro
Slide 9: PNG tenement portfolio; View of ore deposits
PNG tenement portfolio Amanab Project 0 • Harmony 100% 200 VANIMO • 863 km2 of granted tenure Kilometres Lihir Mount Hagen Project • Harmony 100% • 1,100 km2 of granted tenure Porgera Ok Tedi MOUNT HAGEN Panguna LAE Wafi / Golpu Morobe Mining Joint Venture • Harmony 50% 3 276 km2 of granted tenure •
Slide 10: Significant intercepts; Golpu / Golpu West
Significant intercepts Hole ID Interval Grade Gold eqv. grade (g/t) WR321 0.51 g/t Au 331 0.93 % Cu 2 44 2.44 Includes 0.88 g/t Au 155 1.51% Cu 3.99 WR327A 0.85 g/t Au 478 1.36 % Cu 3.67 Includes 1.47 g/t Au 155 2.29% Cu 6.22 WR328 0.57 0 57 g/t Au 597 0.96 % Cu 2.56 Includes 1.13 g/t Au 198 1.87 %
Slide 11: Golpu West implications; Current drilling programme
Golpu West implications – Existing Golpu Mineral Resource – 163Mt @ 0.6g/t Au and 1.1% Cu for 2.9Moz Au and 1.76Mt Cu Golpu – 2007 PFS Mine Plan West – 101Mt @ 0.54g/t Au and 0.95% Cu for 1.7Moz Au and 1.0Mt Cu (at spot ~ US$9B contained value) – Golpu West expansion has added 30 – 50% to the mineab
Slide 12: The way forward
The way forward 23 We remain focused Grow organically Grow through acquisition, partnerships Increase operational creasing ounces efficiency, productivity Golpu exploration Optimise asset portfolio Pamodzi Free State transaction close to completion Inc Commissioning of capital projects Restructuring
Slide 13: Outlook
Outlook – R/kg gold price likely to be sustained – Management committed to improving: – safety – tonnages – grade – development – Costs continue to be critical – Profitable ounces = free cash flow 25 Ticker codes JSE : HAR NYSE : HMY NASDAQ : HMY LSE : HRM BER : HAM1 Euronext Paris : HG Euronext Bru
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