Harmony Gold Mining Co. Ltd. · JSE:HAR

Harmony Gold Mining — Deutsche Bank Virtual Conference March 2017

24 slides from Harmony Gold Mining's conference presentation, Mar 22, 2017

  1. Slide 1: Driven by Excellence – DB Virtual Conference March 2017

    © Harmony / DB Virtual Conference March 2017 1 22 March 2017 DRIVEN BY EXCELLENCE

  2. Slide 2: Global Gold Miner

    © Harmony Investor Brief | Feb / Mar 2017 2 GLOBAL GOLD MINER

  3. Slide 3: Where We Operate

    3 WHERE WE OPERATE 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 | 2016 1 open pit mine Multiple exploration area

  4. Slide 4: Quality Reserves (Gold Equivalent) Split

    4 QUALITY RESERVES (GOLD EQUIVALENT) SPLIT SA gold, 44%  Total reserves of 37.8 Moz1 16.8 Moz  Total resources of 107.6 Moz1 PNG copper as gold equivalents, 37% 14.1 Moz PNG gold, © Harmony | 2016 19% 7.0 Moz 1. Refer www.harmony.co.za for detail, Gold equivalent based on US$1150 oz Au, and US$3.0

  5. Slide 5: Our Strategy

    © Harmony / DB Virtual Conference March 2017 5 OUR STRATEGY

  6. Slide 6: Our Strategy

    6 OUR STRATEGY Our Our strategic strategy pillars  Safety first - living our values  Grade management The image part with relationship ID rId3 was not found in the file.  Maintaining disciplined cost management Operational  Positioned high cost operations for profitability Mining safe, excellenc

  7. Slide 7: Safety First - Working Towards Zero Harm

    7 SAFETY FIRST - 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 0.00 © Harmony | 2017 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 YTD

  8. Slide 8: Grade – No Mining Below Cut-off

    8 GRADE – NO MINING BELOW CUT-OFF Growth projects delivering good results  Phakisa, Tshepong decline on track with grades  Accessed higher grade areas through Doornkop and Kusasalethu deepening  Mining the Bambanani high grade pillar  Completion of Joel decline in FY17 will deliver additional hi

  9. Slide 9: Enhancing Our Value

    © Harmony / DB Virtual Conference March 2017 9 VALUE ENHANCING OUR

  10. Slide 10: Aspiration to Grow from 1.1 Moz to 1.5 Moz

    10 OUR ASPIRATIONS IS TO GROW FROM 1.1 MOZ TO 1.5 MOZ IN 3 YEARS Growth possibilities  Expansion in PNG, SA and Africa  Golpu Stage 2  PNG grass roots exploration Ounces  Exploration at Kalgold New / emerging business  Tshepong/Phakisa integration  Tailings re-treatment in Free State  Golpu S

  11. Slide 11: Growing Our Ounces Through Acquisition

    11 GROWING OUR OUNCES THROUGH ACQUISITION Acquisition criteria  Gold mines  1 - 2 Moz reserves  More than 100 000 oz per annum  Life of mine of 10 years  Low cost, cash generative asset (all-in sustaining cost of less than US$950/oz)  South Africa, the rest of Africa, PNG  NOT acquiring at al

  12. Slide 12: Golpu: Next Step to Realising Value

    12 GOLPU: NEXT STEP TO REALISING VALUE Exploration and Implementation Optimisation evaluation strategy strategy strategy Pre-feasibility Feasibility study study study commissioning Pre concept and scoping studies Concept Construction and Permitting Operations  Golpu is a large gold and copper resou

  13. Slide 13: Golpu (50% Held) – A Quality High Grade Reserve

    13 GOLPU (50% HELD) – A QUALITY HIGH GRADE RESERVE 1.8% Golpu ‐ Stage 1 1.6% Golpu (total) 1.4% 1.2% Cu wt (%) Grasberg 1.0% 0.8% Northparkes Ok Tedi 0.6% Namosi Batu Hijau Oyu Tolgoi 0.4% Didipio Kingking 0.2% Cadia Valley 0.0% 0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 0.90 1.00 1.10 1.20 © Harm

  14. Slide 14: Golpu (50% Held) - A Potential Game Changer

    14 GOLPU (50% HELD) - A POTENTIAL GAME CHANGER • Feasibility study results announced in Feb 2016 ‒ robust returns on large block cave mine ‒ staged development opportunities • Financial metrics of Stage 1*: − net present value (NPV): US$1.1bn − internal rate of return (IRR): ~16% − mine life 28 year

  15. Slide 15: Securing Sustainable Cash Flows

    © Harmony / DB Virtual Conference March 2017 15 FLOWS SECURING SUSTAINABLE CASH

  16. Slide 16: Reduction in Net Debt During the Past Months

    16 REDUCTION IN NET DEBT DURING THE PAST 12 MONTHS (US$) 250 225 64 200 175 15 170 150 USDm 125 100 162 75 50 50 25 © Harmony | 2017 21 - Dec 15 Dividends paid Overheads, Cash generated by Hedging gains Dec 16 exploration, operations after realised translation gain capital and other

  17. Slide 17: Currency Hedge (Spot vs Floor and Cap)

    17 CURRENCY HEDGE (SPOT vs FLOOR and CAP) 19 18 17 R394m (US$28m) cash received R/US$ exchange rate H1FY17 16 15 Unrealised mark-to-market value of R568m 14 (US$41m) 13 12 © Harmony | 2017 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 USDZAR spot close Floor Cap

  18. Slide 18: Gold Hedge (Average Hedge Price vs Spot Gold Price)

    18 GOLD HEDGE (AVERAGE HEDGE PRICE vs SPOT GOLD PRICE) R233m 700 000 (US$17m) cash received H1FY17 650 000 600 000 Unrealised mark-to-market value of R1.59bn R/kg 550 000 (US$116m) 500 000 450 000 400 000 © Harmony | 2017 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18

  19. Slide 19: Making a Lasting Impact

    © Harmony / DB Virtual Conference March 2017 19 IMPACT MAKING A LASTING

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

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

  21. Slide 21: Meeting Our Strategic Objectives

    21 MEETING OUR STRATEGIC OBJECTIVES Our strategy  Safe mines are profitable mines – fatality rates improved  Mining safe,  Majority of mines achieving or exceeding their plans  profitable ounces  Grade management – no mining below cut off   Growth – organic, exploration, acquisitions   Rema

  22. Slide 22: Solid Investment Case

    22 SOLID INVESTMENT CASE  Safer and more predictable production  Maintain increase in grade (mining closer to reserve grade)  Strong balance sheet, which allows for dividends (paid from profits only)  On track to produce in line with guidance (for a second consecutive year)  Growth (only acquis

  23. Slide 23: Contact Us

    23 © Harmony / DB Virtual Conference March 2017 CONTACT US www.harmony.co.za HarmonyIR@harmony.co.za Tel: +27 11 411 2314

  24. Slide 24: 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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