Harmony Gold Mining Co. Ltd. · JSE:HAR
Harmony Gold Mining — Q3 FY2007 Earnings Presentation
18 slides from Harmony Gold Mining's earnings presentation, March 2007
Slide 1: Results presentation, Quarter ended March 2007
Results presentation Quarter ended – March 2007 Private Securities litigation reform act safe harbor 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 amend
Slide 2: Quarterly highlights
Quarterly highlights - Headline earnings 58 cents per share - Net profit R247 million - R/kg costs down by 2.1% - SA underground grades at 5.0g/t - Solid performance from Quality and Leverage Safety performance 0.4 0.35 0.3 0.25 0.2 0.15 0.1 0.05 0 2001 - 2002 2002 - 2003 2003 - 2004 2004 - 2005 200
Slide 3: Development / Quarter review
Development 45.0 40.0 35.0 30.0 25.0 20.0 15.0 10.0 5.0 0.0 MAR 06 JUN 06 SEP 06 DEC 06 MAR 07 Q-on-Q Total Metres ‘000 Mar 2007 Dec 2006 % Variance Quality 20.4 23.7 -13.9 Growth 6.2 5.7 8.8 Leverage 11.8 14.0 -15.7 Total 38.5 43.4 -11.3 Quarter review 3
Slide 4: Group operating results
Group operating results Rand/Metric Mar Dec % 2007 2006 VAR Gold produced - kg 18 010 18 724 (3.8) Revenue - R/kg 151 833 144 467 5.1 Exchange rate - R/US$ 7.24 7.32 (1.1) Cash costs - R/kg 103 608 104 132 (0.5) Cash operating profit - R (m) 868.5 755.3 15.0 Operating margin - (%) 31.8 27.9 14.0 Cas
Slide 5: Working profit by segment
Working profit by segment Working profit Mar 2007 Dec 2006 % VAR Rm Rm South African operations Quality assets 496.5 357.4 38.9 Growth projects 54.5 84.5 (35.5) Leverage assets 235.0 203.8 15.3 Surface operations 35.3 49.7 29.0 Total South African operations 821.3 695.4 18.1 Australian operations 47
Slide 6: Quarter on quarter cash operating profit variance analysis
Quarter on quarter cash operating profit variance analysis Cash operating profit – Dec 2006 R 755.3 million Variance attributed to change in: - volume (R 151.4 million) - working cost R 83.8 million - recovery grade R 47.5 million - gold price R 133.3 million - net variance R 113.2 million Cash oper
Slide 7: Operational review: Quality assets
Operational review Quality assets Operational results Mar Dec % 2007 2006 VAR U/g tonnes milled (‘000) 1 496 1 561 (4) U/g recovery grade (g/t) 5.5 5.1 8 U/g kilograms produced (kg) 8 158 7 953 3 U/g working costs (R/kg) 91 055 99 318 8 U/g working costs (R/t) 497 506 2 7
Slide 8: Quality assets and Leveraged assets
Quality assets - March 2007 quarter - Target performed excellent - Randfontein underperformed both in tonnes and grade - Safety related interruptions - June 2007 quarter forecast - Randfontein grades to improve to approximately 5.5g/t - Target to maintain March 2007 quarter performance Leveraged ass
Slide 9: Leverage assets and Growth projects
Leverage assets - March 2007 quarter - West shaft closed (- 30 000 tonnes) - Re-engineering at Joel mine North shaft - Orkney reported lower grades - June 2007 quarter forecast - Orkney grade will improve - Joel mine re-engineering at North shaft - 4 months to completion Growth projects Operational
Slide 10: Growth projects
Growth projects - March 2007 quarter - Both old mines had grade problems - Elandsrand – power supply interruptions - June 2007 quarter forecast - Grades should recover to around 5.0g/t Elandsrand 92 level turbine dam 10
Slide 11: SA Surface operations
SA Surface operations Operational results Mar Dec % 2007 2006 VAR Surface tonnes milled (‘000) 1 268 1 097 16 Surface recovery grade (g/t) 0.59 0.70 (16) Kilograms produced (kg) 747 770 (3) Working costs (R/kg) 104 299 79 000 (32) Working costs (R/t) 61 55 (11) SA Surface operations - Completely dif
Slide 12: Australian assets
Australian assets Operational results Mar Dec % 2007 2006 VAR Tonnes milled (‘000) 694 777 (11) Recovery grade (g/t) 2.3 2.4 (5) U/g kilograms produced (kg) 1 608 1 888 (15) U/g working costs (R/kg) 120 225 115 024 (5) U/g working costs (R/t) 279 279 - - Expect better June 2007 quarter Financial Rev
Slide 13: Extracts from Income Statement
Extracts from Income Statement 31 March 2007 31 Mar 2007 31 Dec 2006 31 Mar 2006 Unaudited Unaudited Unaudited R million R million R million Revenue 2 735 2 705 1 928 Cash operating costs (1 866) (1 950) (1 622) Cash operating profit 869 755 306 Amortisation and depreciation of mining properties (30
Slide 14: Balance Sheet as at March 2007
Balance Sheet as at 31 March 2007 March 2007 December 2006 March 2006 (Unaudited) (Unaudited) (Unaudited) Rm Rm Rm ASSETS NON-CURRENT ASSETS 31 214 30 775 29 052 CURRENT ASSETS 2 912 2 608 3 182 TOTAL ASSETS 34 126 33 383 32 234 EQUITY AND LIABILITIES SHARE CAPITAL AND RESERVES 24 488 24 132 22 758
Slide 15: Cash reconciliation January to March 2007
Cash reconciliation for the period January to March 2007 R million Cash and equivalents on 31 December 2006 903.7 Operational (175.6) Operating profit 868.5 Capex (net) (446.7) Development cost capitalised (263.5) Corporate / exploration expenditure (118.6) Care and maintenance costs (12.6) Interest
Slide 16: Current Progress: uranium drilling and Cooke Dump
Current Progress Understand uranium resources through an extensive drilling and data capturing exercise - Currently proving reasonable expectation for economic extraction in line with SAMREC conventions - Initiated extensive drilling exercises in the Free State and Randfontein - Drilling sampling an
Slide 17: Facts and assumptions
Facts and assumptions Pre-feasibility numbers Gold and Uranium base case figures Tailings Float plant Existing Uranium plant gold plant - All tailings are treated through uranium plant - Uranium tails are treated through a float plant (10% of mass concentrating 50% of the gold to gold plant) - Treat
Slide 18: Questions / Capital expenditure
Capital expenditure (Rm) ACTUAL ACTUAL FORECAST Dec 2006 Mar 2007 Jun 2007 Rm Rm Rm OPERATIONAL CAPEX South African Operations 303 349 329 Australasian Operations 42 62 77 Total Operational Capex 345 411 406 EXPENDITURE TO PROJECT CAPEX DATE Doornkop South Reef 57 65 50 506 Elandsrand New Mine 32 38
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