Harmony Gold Mining Co. Ltd. · JSE:HAR

Harmony Gold Mining — H1 FY2025 Earnings Presentation

46 slides from Harmony Gold Mining's earnings presentation, Mar 4, 2025

  1. Slide 1: H1FY25 Results

    H1FY25 RESULTS Beyers Nel, CEO 4 March 2025 © Harmony JSE ticker code HAR NYSE ticker code HMY

  2. Slide 2: Safe Harbour Statement and Disclaimer

    2 PRIVATE SECURITIES LITIGATION REFORM ACT SAFE HARBOUR STATEMENT AND DISCLAIMER Interim Results for the six-month period ended 31 December 2024 FORWARD LOOKING STATEMENTS This presentation contains forward-looking statements within the meaning of the safe harbour provided by Section 21E of the Exch

  3. Slide 3: Stellar Interim Results

    3 STELLAR INTERIM RESULTS OPERATIONAL EXCELLENCE TRANSLATES INTO STRONG FREE CASH FLOWS Interim Results for the six-month period ended 31 December 2024 Group production AIC2 Underground recovered grades AISC1 well controlled at continue to increase to 24 816kg R972 261/kg R1 043 918/kg 6.40g/t (797

  4. Slide 4: Safe, profitable ounces and improving margins

    4 Interim Results for the six-month period ended 31 December 2024 SAFE, PROFITABLE OUNCES AND IMPROVING MARGINS… … by delivering on 4 strategic objectives SA SA underground underground high-grade optimised  Embedded responsible stewardship  Operational excellence International SA  Cash certainty

  5. Slide 5: Proactive Safety Culture

    5 PROACTIVE SAFETY CULTURE FOCUSED ON LEADING INDICATORS AND ACCOUNTABILITY Interim Results for the six-month period ended 31 December 2024 Ensuring risk-reduction Active learnings Safety leadership promoted Thibakotsi* Embedding our Harmony through personal from internal and industry through progra

  6. Slide 6: Solid mining discipline

    6 SOLID MINING DISCIPLINE RESULTS IN EXCELLENT GRADE CONTROL AND CONSISTENT PRODUCTION Interim Results for the six-month period ended 31 December 2024 South African Operations: Total gold production Underground recovered grade (g/t) 6,40 6,11 To achieve guidance: 5,78 21 839 kg (702 146oz) 46 236 kg

  7. Slide 7: Cash Operating Costs

    7 CASH OPERATING COSTS WELL MANAGED, LARGELY FIXED AND PREDICTABLE Interim Results for the six-month period ended 31 December 2024 Cash operating cost (R/kg) Cash operating cost (US$/oz) 813 791 1 434 1 411 735 634 758 736 701 024 1 288 1 262 1 213 600 592 © Harmony FY21 FY22 FY23 FY24 H1FY25 FY21 F

  8. Slide 8: All-in Sustaining Costs (AISC)

    8 ALL-IN SUSTAINING COSTS (AISC1) MOVING DOWN THE COST CURVE Interim Results for the six-month period ended 31 December 2024 Total all-in sustaining cost (R/kg) Total all-in sustaining cost (US$/oz) 1 686 972 261 1 558 1 500 1 403 901 550 889 766 843 043 © Harmony FY23 FY24 H1FY24 H1FY25 FY23 FY24 H

  9. Slide 9: A transformed company: higher margins

    9 A TRANSFORMED COMPANY: HIGHER MARGINS AS A RESULT OF DISCIPLINED CAPITAL ALLOCATION AND SOUND COST CONTROL Interim Results for the six-month period ended 31 December 2024 50% 50% 40% 36% 37% 34% 17% 19% 17% 14% 10% 11% © Harmony International (Hidden Valley) SA high-grade underground SA surface op

  10. Slide 10: Mapping our growth trajectory

    MAPPING OUR GROWTH TRAJECTORY Beyers Nel, CEO © Harmony

  11. Slide 11: Disciplined and responsible approach to capital allocation

    11 MAINTAIN DISCIPLINED AND RESPONSIBLE APPROACH TO CAPITAL ALLOCATION TO CREATE LONG-TERM VALUE Safety and production optimisation: Interim Results for the six-month period ended 31 December 2024 Aiming for ZERO loss-of-life Returning capital to Debt repayment: shareholders: Significant net cash po

  12. Slide 12: Long-life producer focusing on margin expansion

    12 LONG-LIFE PRODUCER FOCUSING ON MARGIN EXPANSION THROUGH HIGHER-QUALITY GOLD OUNCES AND NEAR-TERM COPPER Total Harmony - Life of mine ounce profile Interim Results for the six-month period ended 31 December 2024 1 800 1 600 Hidden Valley 1 400 Wafi-Golpu* 1 200 1 000 Oz'000 Eva Copper* 800 SA unde

  13. Slide 13: A de-risked and diversified production mix

    13 Interim Results for the six-month period ended 31 December 2024 A DE-RISKED AND DIVERSIFIED PRODUCTION MIX Production based on FY25 life of mine plans Optimised Hidden Valley Optimised operations 10% operations *1 9% 39% Copper-gold projects SA surface 33% operations 19% High grade FY24A FY34E op

  14. Slide 14: Major capital allocation directed to quality ounces

    14 MAJOR CAPITAL ALLOCATION DIRECTED TO QUALITY OUNCES DRIVES MARGIN EXPANSION AND GROWTH FY25 Major capital guidance per quadrant (Rm) Interim Results for the six-month period ended 31 December 2024 2 500 2 000 1 500 Rm 1 000 2 065 1 198 500 © Harmony 591 554 - SA underground high grade SA surface

  15. Slide 15: Investing in transformative assets: extension projects

    15 INVESTING IN OUR TRANSFORMATIVE ASSETS: EXTENSION PROJECTS Mine Waste Solutions Moab Khotsong extension Mponeng extension Interim Results for the six-month period ended 31 December 2024 Extension projects © Harmony • Life-of-mine extended to 14 years • Life-of-mine extended to at least 20 years •

  16. Slide 16: Investing in transformative assets: growth projects

    16 INVESTING IN TRANSFORMATIVE ASSETS: GROWTH PROJECTS Eva Copper* (Queensland, Australia) Wafi-Golpu (Papua New Guinea) Interim Results for the six-month period ended 31 December 2024 Growth projects © Harmony • Technical component of Feasibility Study Update mostly complete • Negotiating terms of

  17. Slide 17: Projects remain well-sequenced and manageable

    17 PROJECTS REMAIN WELL-SEQUENCED AND MANAGEABLE Estimated timeline of project delivery1 Interim Results for the six-month period ended 31 December 2024 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32+ MWS Kareerand Phase 2 completed Expansion projects Hidden Valley Complete Stage 8 stripping Moab Khotsong

  18. Slide 18: Financial Results

    FINANCIAL RESULTS Boipelo Lekubo, FD © Harmony Select US$ figures in annexures where applicable

  19. Slide 19: Outstanding earnings growth (Rand)

    19 OUTSTANDING EARNINGS GROWTH ON BACK OF OPERATIONAL CONSISTENCY AND HIGHER GOLD PRICE (RAND) Interim Results for the six-month period ended 31 December 2024 H1FY25 H1FY24 Group revenue up Metrics Change (Rm)1 (Rm)1 Group revenue2 18% 37 141 31 415 18% Net profit 33% 7 929 5 960 to R37bn EBITDA3 28

  20. Slide 20: Record interim operating free cash flows

    20 RECORD INTERIM OPERATING FREE CASH FLOWS WITH IMPRESSIVE MARGIN EXPANSION Interim Results for the six-month period ended 31 December 2024 Total operating free cash flow and margin (Rm) Total operating free cash flow and margin (US$m) 29% 29% 5 631 301 22% 22% 13% 12 743 13% 681 10 392 579 4 082 7

  21. Slide 21: High operating margins boost balance sheet

    21 Interim Results for the six-month period ended 31 December 2024 HIGH OPERATING MARGINS BOOST BALANCE SHEET 1 800 000 Spot gold R1 723 160/kg (US$2 901/oz)# FY25 CAPITAL INTENSITY OF 1 600 000 Average gold price received in H1FY25: R1 405 020/kg (US$2 437/oz) ~R225 000/KG OR ~US$400/OZ* 1 400 000

  22. Slide 22: Excellent EBITDA growth with net cash position

    22 EXCELLENT EBITDA* GROWTH WITH BALANCE SHEET IN NET CASH POSITION 24 000 1,0 NET DEBT TO EBITDA (RAND) 22 244 Interim Results for the six-month period ended 31 December 2024 18 942 19 000 0,7 14 000 12 296 Rand million Net debt to EBITDA 0,4 9 000 4 000 2 726 0,1 © Harmony -1 000 Jun-23 Jun-24 Dec

  23. Slide 23: Strong balance sheet and significant headroom

    23 Interim Results for the six-month period ended 31 December 2024 AGILE WITH A STRONG BALANCE SHEET AND SIGNIFICANT HEADROOM Headroom (ZAR million) Headroom (US$ million) 433 9 396 17 551 931 3 436 188 © Harmony 9 841 538 8 155 498 6 405 350 December 2023 December 2024 December 2023 December 2024 U

  24. Slide 24: Returning cash to shareholders: record interim dividend

    24 RETURNING CASH TO SHAREHOLDERS ALONGSIDE INVESTMENT IN OUR FUTURE RECORD INTERIM DIVIDEND PAYOUT Interim Results for the six-month period ended 31 December 2024 Confidence in our plans Delivering Solid cash flows and and ability to pay a dividend positive total shareholder returns alongside our g

  25. Slide 25: Conclusion

    CONCLUSION Beyers Nel, CEO © Harmony JSE ticker code HAR NYSE ticker code HMY

  26. Slide 26: De-risked and diversified asset portfolio

    26 Interim Results for the six-month period ended 31 December 2024 DE-RISKED AND DIVERSIFIED ASSET PORTFOLIO WITH NEAR-TERM COPPER Doornkop Kalgold (open-pit) Kusasalethu Mine Waste Solutions Mponeng Savuka Phoenix Eva Copper project Central Plant (proposed open pit) Hidden Valley mine Moab Khotsong

  27. Slide 27: FY25 guidance reiterated

    27 Interim Results for the six-month period ended 30 December 2024 FY25 GUIDANCE REITERATED Production Underground grade Group AISC3 © Harmony Between 1 2 4 1.4Moz to 1.5Moz Above 5.8g/t R1 020 000/kg 4 and R1 100 000/kg 1. Moz: million ounces 2. g/t: grams per tonne 3. AISC: all-in sustaining costs

  28. Slide 28: A specialist mining company with a gold and copper story

    28 Interim Results for the six-month period ended 31 December 2024 A SPECIALIST MINING COMPANY WITH A COMPELLING GOLD AND COPPER STORY EMBEDDED OPERATIONAL HIGHER-GRADE STELLAR DISCIPLINED AND SUSTAINABILITY EXCELLENCE ASSETS WITH CASH FLOW RESPONSIBLE with safety drives improved overall LONG LIFE G

  29. Slide 29: Thank You

    THANK YOU Contact us harmonyir@harmony.co.za JSE ticker code: HAR NYSE ticker code: HMY © Harmony

  30. Slide 30: Harmony | Mining with purpose

    HARMONY | 7 MINING WITH PURPOSE §&s

  31. Slide 31: FY25 cost and grade guidance per operation

    31 FY25 COST AND GRADE GUIDANCE (PER OPERATION) • Plan to produce ~1.4Moz to 1.5Moz in FY25, at • an average underground recovered grade of >5.80g/t, Interim Results for the six-month period ended 31 December 2024 • an all-in sustaining cost of R1 020 000/kg to R1 100 000/kg for total Harmony Adjust

  32. Slide 32: FY25 production guidance per operation

    32 FY25 PRODUCTION GUIDANCE (PER OPERATION) FY24 production FY25 guidance Life of mine Interim Results for the six-month period ended 31 December 2024 Operation (oz) (oz) (years) Mponeng 281 350 255 700 – 264 100 20 Moab Khotsong 212 162 188 900 – 203 300 20 Kusasalethu 123 523 117 300 – 130 300 3 T

  33. Slide 33: Hedge position as at December 2024

    33 HEDGE POSITION AS AT 31 DECEMBER 2024 FY2025 FY2026 FY2027 FY2028 H2 H1 H2 H1 H2 H1 Total Interim Results for the six-month period ended 31 December 2024 Rand Gold Forward Contracts koz 188 156 92 36 20 10 502 R'000/kg 1 365 1 396 1 561 1 669 1 735 1 792 1 455 Dollar Gold Forward Contracts koz 23

  34. Slide 34: Capital expenditure driven by ounce replacement and growth (Rand)

    34 CAPITAL EXPENDITURE DRIVEN BY OUNCE REPLACEMENT AND GROWTH Capital guidance¹ (Rand million) Interim Results for the six-month period ended 31 December 2024 On track with our capital spend 10 814 10 461 10 333 754 657 9 410 1 099 1 365 1 133 1 128 1 045 429 3 817 3 535 3 236 3 945 5 111 5 117 © Ha

  35. Slide 35: Capital expenditure driven by ounce replacement and growth (US$)

    35 CAPITAL EXPENDITURE DRIVEN BY OUNCE REPLACEMENT AND GROWTH Capital guidance¹ (US$) Interim Results for the six-month period ended 31 December 2024 ̴590 576 ̴570 41 36 75 520 60 62 62 57 23 209 195 177 216 280 282 © Harmony 255 212 * ** ** FY25 Guidance FY25 FC FY26 FC FY27 FC Sustaining capital

  36. Slide 36: FY25 capital guidance per operation (Rand)

    36 Interim Results for the six-month period ended 31 December 2024 FY25 CAPITAL GUIDANCE PER OPERATION (RAND)# 2 500 DRIVERS OF HIGHER SUSTAINING CAPITAL 2 000 • Development metres to maintain flexibility • Inflation 1 500 1 131 • IT1 expenditure 754 • TSF2 management Rm 1 000 934 591 563 1 198 328

  37. Slide 37: FY25 capital guidance per operation (US$)

    37 Interim Results for the six-month period ended 31 December 2024 FY25 CAPITAL GUIDANCE PER OPERATION (US$) # 140 DRIVERS OF HIGHER SUSTAINING CAPITAL 120 • Development metres to maintain flexibility 100 • Inflation 62 • IT1 expenditure 80 41 • TSF2 management US$m 60 51 32 40 31 66 18 7 © Harmony

  38. Slide 38: Sustaining capital necessary to maintain flexibility (Rm)

    38 SUSTAINING CAPITAL NECESSARY TO MAINTAIN FLEXIBILITY FOR FUTURE CASH FLOW GENERATION FY25 Capital guidance per quadrant (Rm) Interim Results for the six-month period ended 31 December 2024 4 000 3 616 3 606 3 500 554 3 000 2 500 2 065 Rm 2 000 1 853 1 706 1 500 3 052 754 1 198 1 000 1 551 591 © H

  39. Slide 39: Sustaining capital necessary to maintain flexibility (US$m)

    39 SUSTAINING CAPITAL NECESSARY TO MAINTAIN FLEXIBILITY FY25 Capital guidance per quadrant (US$m) Interim Results for the six-month period ended 31 December 2024 250 198 197 200 30 150 113 US$m 101 100 93 167 41 66 50 32 © Harmony 85 27 28 0 SA high grade SA optimised operations SA surface Hidden Va

  40. Slide 40: Globally significant resource base

    40 GLOBALLY SIGNIFICANT RESOURCE BASE OFFERS EXCEPTIONAL RESERVE CONVERSION POTENTIAL AND QUALITY OUNCES Interim Results for the six-month period ended 31 December 2024 Mineral Resources Mineral Reserves gold and copper1 gold and copper2 Papua New Guinea Papua New Guinea SA underground Australia gol

  41. Slide 41: Outstanding earnings growth (US$)

    41 OUTSTANDING EARNINGS GROWTH ON BACK OF OPERATIONAL EXCELLENCE AND HIGHER GOLD PRICES (US$) Interim Results for the six-month period ended 31 December 2024 H1FY25 H1FY24 Metrics Change Group revenue up ($m)1 ($m)1 Group revenue2 23% 2 071 1 681 23% Net profit 39% 445 320 to US$2.1bn EBITDA3 27% 1

  42. Slide 42: Stable rand-based cost structure

    42 STABLE RAND-BASED COST STRUCTURE ALL-IN SUSTAINING COSTS BREAKDOWN (H1FY25 VS H1FY24) Interim Results for the six-month period ended 31 December 2024 H1FY25 H1FY24 Sustaining Sustaining capital; 11% capital; 10% Other; -1% Other; -2% Royalties; 4% Labour, 36% Labour, 38% Royalties; 3% Electricity

  43. Slide 43: Silver and uranium by-product credits reduce unit costs

    43 Interim Results for the six-month period ended 31 December 2024 SILVER AND URANIUM BY-PRODUCT CREDITS REDUCE UNIT COSTS Silver (000oz)1 Uranium (lb)2 3,673 590,104 523,461 2,639 1,800 271,450 © Harmony FY23 FY24 H1FY25 FY23 FY24 H1FY25 H1FY25 vs H1FY24 H1FY25 vs H1FY24 • Silver mainly mined at Hi

  44. Slide 44: Excellent EBITDA growth with net cash position (US$)

    44 Interim Results for the six-month period ended 31 December 2024 EXCELLENT EBITDA* GROWTH WITH BALANCE SHEET IN NET CASH POSITION NET DEBT TO EBITDA (US$) 1 500 1,0 1 250 1 180 1 042 0,7 1 000 USD million Net debt to EBITDA 750 653 0,4 500 0,1 250 145 © Harmony - Jun-23 Jun-24 Dec-24 -0,2 - 250 -

  45. Slide 45: Sustainability: embedded in all we do

    45 Interim Results for the six-month period ended 31 December 2024 SUSTAINABILITY: IT IS EMBEDDED IN ALL WE DO ESG RATINGS AND RECOGNITION © Harmony ESG rating upgraded Harmony remained on a Harmony ranks in the Score of 71.71% and Score of ‘A-’ / Leadership Harmony conforms to 4.1 out of 5.0 B Top

  46. Slide 46: Revised renewable energy plan driving decarbonisation

    46 REVISED RENEWABLE ENERGY PLAN DRIVING DECARBONISATION SIGNIFICANTLY INCREASING CAPACITY Energy generating capacity increased from 363MW to 583MW to support asset life extension Interim Results for the six-month period ended 31 December 2024 PHASE 1 PHASE 2* PHASE 3 PHASE 4 WHEELED WIND 30MW 137MW

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