Harmony Gold Mining Co. Ltd. · JSE:HAR
Harmony Gold Mining — Technical Presentation (March 2012)
43 slides from Harmony Gold Mining's technical presentation, Mar 13, 2012
Slide 1: Doornkop site visit
Doornkop site visit Jacques du Triou General manager Wednesday 13 March 2012 www.harmony.co.za
Slide 2: 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: Welcome and introduction
Welcome and introduction www.harmony.co.za
Slide 4: Agenda
Agenda Activity Time Arrival and Coffee 07H25 to 08H00 Welcome and induction training 08H00 to 08H20 Change into underground clothing 08H20 to 08H45 Proceed to Lamp house and Sky Bank 08H45 to 09H00 Descent to 76 level Station – 30 minute discussion 09H00 to 09H45 Descent to 197 level Station – 30 m
Slide 5: Doornkop management team
Doornkop management team Name Designation Jacques Du Triou General Manager Rickus Nel Financial Manager Charel Olivier Ore Reserve Manager Ernest Carney Human Resources Leader Elvis Maribe Mining Manager Berty Thompson Shaft Engineer Carel Oosthuizen Production Engineer Danie Human Chief Safety Offi
Slide 6: Safety induction and training
Safety induction and training www.harmony.co.za
Slide 7: Proceed to change house and underground
Proceed to change house and underground
Slide 8: Background information
Background information www.harmony.co.za
Slide 9: Historical overview
Historical overview • Exploration at Doornkop started in the 1930‟s • Doornkop shaft was sunk to 1 127m below collar by 1983 and the first gold pour took place in 1986* • After several stoppages the main shaft deepening to access the South Reef commenced in 2004* • The main shaft deepening to final
Slide 10: Doornkop's location and overview
Doornkop‟s location and overview • Located 30 kilometers west of Johannesburg in Gauteng, Doornkop is a single-shaft operation mining to a depth of just less than 2 000m • Doornkop mines the Kimberley and South reefs by means of both narrow-reef conventional mining and mechanised board-and-pillar mi
Slide 11: Infrastructure
Infrastructure Plant Office Shaft Hostel 11 www.harmony.co.za
Slide 12: Workplaces visited: 76 level
Workplaces visited: 76 level 12 www.harmony.co.za
Slide 13: Workplaces visited: 197 level
Workplaces visited: 197 level 13 www.harmony.co.za
Slide 14: Surface area visited: Rock winder
Surface area visited: Rock winder 14 www.harmony.co.za
Slide 15: Surface area visited: Processing plant
Surface area visited: Processing plant 15 www.harmony.co.za
Slide 16: Shaft schematic
Shaft schematic Old mine New mine 16 www.harmony.co.za
Slide 17: Benefits of Doornkop's shaft infrastructure
Benefits of Doornkop‟s shaft infrastructure As a medium depth shaft the infrastructure is • Uncomplicated • Modern with reliable applicable technology • Energy efficient • Has sufficient buffer capacity for flexibility • Will have a low operating cost 17 www.harmony.co.za
Slide 18: Shaft configuration
Shaft configuration Shaft configuration 400nb Pump Columns 50nb Potable 212 to 106 Level Water Column 15.5 Ton Skip 300nb Service Water Columns 100nb Mud Column 212 to 126 Level 11 Ton Skip and 3 Deck Man Cage Cage (Dual Purpose) 11 Ton Skip and 3 Deck Man Cage Cage (Dual Purpose) 2 X 150nb Air Colu
Slide 19: Shaft schematic – South reef
Shaft schematic – South reef 19 www.harmony.co.za
Slide 20: Rock handling system
Rock handling system Rock flow Hoppers 202 level Tip Ore pass Silo Reef & Waste conveyors To Surface 207 level Waste Reef silo silo 212 Level Belt feeders Reef & Waste conveyors Chute system Weighing flask Discharge chutes Skip 20 www.harmony.co.za
Slide 21: Water system
Water system Water reticulation Water to Feed mining areas control 192 Level dam Water to Feed mining areas control Drain hole Water to Feed mining areas control Launder to settlers 2 x Settlers 207 Level dams 207 Level pumping 6 x Circulating pumps 2 x Dewatering pumps not shown 2 x Mud pumps not s
Slide 22: Doornkop: Stratigraphic column
Doornkop: Stratigraphic column 22 www.harmony.co.za
Slide 23: Doornkop: Stratigraphic column | continued
Doornkop: Stratigraphic column | continued 23 www.harmony.co.za
Slide 24: Dual sink nearing - 212 level
Dual sink nearing - 212 level 24 www.harmony.co.za
Slide 25: Then….solid bottom sinking 212L
Then….solid bottom sinking 212L 25 www.harmony.co.za
Slide 26: Values, safety and safety initiatives
Values, safety and safety initiatives www.harmony.co.za
Slide 27: Our values
Our values • Safety is our number 1 priority • Commitment • Accountability • Honesty • Discipline • Respect • Teamwork − From September 2008 quarterly value surveys are performed to establish weather management and supervisors are still abiding to these values − Formal feedback is given to all super
Slide 28: Safety: programs and initiatives
Safety: programs and initiatives Behavioral safety program • We initiated our „Siyanqoba‟ program in 2007 with the support of our Unions and Associations and has never looked back • Initially all crews and their supervisors attended a three day course that covered various behavioral topics. • Today
Slide 29: Safety: programs and initiatives | continued
Safety: programs and initiatives | continued Training • Research was conducted into the latest training methodologies and it was decided to adopt E-Learning on Doornkop in late 2006 due to the versatility and reliability of the system • Our first learners went through E-Learning in 2008 and a study
Slide 30: Safety achievements
Safety achievements 1 000 000 Fatality free shifts 14 August 2009 1 000 000 Fatality free shifts 21 September 2010 1 500 000 Fatality free shifts 7 April 2011 4 000 000 Fall of ground (FOG) fatality free shifts 19 April 2011 Best safety improvement - shield 2008 Best FOG improvement – shield 2008 Be
Slide 31: Lost Time Injury Frequency Rate (LTIFR)
Lost Time Injury Frequency Rate (LTIFR) 35 30 25 20 15 10 5 0 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 Jul Aug Sep Oct Nov Dec Jan Feb YTD 11 11 11 11 11 11 12 12 YTD: Year to date 31 www.harmony.co.za
Slide 32: Reserves, resources and production figures
Reserves, resources and production figures www.harmony.co.za
Slide 33: Mineral Reserves and Resources (30 June 2011)
Mineral Reserves and Resources (30 June 2011) Tonnes Gold Gold Operations (Mt) (g/t) (000kg) (000oz) Total Mineral Resources Kimberly Reef 11.5 2.37 27 879 South Reef 23.1 8.25 191 6 137 Grand Total 34.6 6.30 218 7 016 Total Mineral Reserves Kimberly Reef 5.4 2.23 12 390 South Reef 3.2 5.33 17 552 G
Slide 34: Key production statistics (annually)
Key production statistics (annually) Production FY11 FY10 FY09 ‟000 (metric) 718 540 549 Volumes milled ‟000 (imperial) 792 595 605 kg 2 512 1 950 1 311 Gold produced oz 80 763 62 694 42 150 g/t 3.50 3.61 2.38 Average grade Oz/t 0.102 0.105 0.070 Financial R million 781 517 343 Revenue US$ million 1
Slide 35: Statistics | continued
Statistics | continued FY11 FY10 People Number of employees Employees 2 838 1 645 Contractors 853 1 004 Total 3 691 2 649 HDSA in management % 35 38 Women in mining % 9 8 Training & dev. expenditure R million 19 10 Safety Fatalities 0 2 LTIFR Per million hours worked 8.04 5.50 Environment Electricit
Slide 36: Production and cash operating costs (R/kg)
Production and cash operating costs (R/kg) Kg’s R/kg 1 000 300 000 900 250 000 800 700 200 000 600 500 150 000 400 100 000 300 200 50 000 100 - - Dec 08 Mar 09 Jun 09 Sep 09 Dec 09 Mar 10 Jun 10 Sep 10 Dec 10 Mar 11 Jun 11 Sep 11 Dec 11 Kilograms produced R/kg cash operating cost Linear (Kilograms p
Slide 37: Latest quarterly results (Q2 of FY12)
Latest quarterly results (Q2 of FY12) Indicator Units Dec 2011 Sept 2011 % variance Tonnes 000 232 277 (16) Grade g/t 3.87 3.13 24 Gold produced Kg 897 866 4 Cash operating costs R/kg 237 007 270 487 12 Operating profit R‟000 179 225 118 607 51 37 www.harmony.co.za
Slide 38: Upgrade of infrastructure at the South reef
Upgrade of infrastructure at the South reef • Press release 17 February 2012 • The build-up in production on the South reef reached a plateau • Design changes were required and ways of improving production from the South reef • Production at South reef was stopped for 17 days at end of February 2012
Slide 39: Development and the way forward
Development and the way forward www.harmony.co.za
Slide 40: Development metres and square metres mined
Development metres and square metres mined Development metres Square metres mined 1 300 19 000 1 200 17 000 1 100 15 000 1 000 13 000 900 800 11 000 700 9 000 600 7 000 500 5 000 Feb-11 Sep-11 Jan-11 Apr-11 Jul-11 Nov-11 Mar-11 Aug-11 Dec-11 Jun-11 Oct-11 May-11 Dec-11 Jan-11 Apr-11 Jul-11 Feb-11 Ma
Slide 41: The way forward
The way forward • Expected potential ounces: 190 000-220 000oz • Cash operating cost* R/kg: R200 000-220 000/kg • Cash operating cost* US$/oz: US$820-905/oz • Life of mine (LOM) ~14 years *Future costs are calculated in real terms and using an exchange rate of R7.57/US$ 41 www.harmony.co.za
Slide 42: Thank you for visiting Doornkop
Thank you for visiting Doornkop www.harmony.co.za
Slide 43: An exciting investment proposition
Henrika Basterfield Investor Relations Officer 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.co.za An exciting investment proposi
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