Harmony Gold Mining Co. Ltd. · JSE:HAR

Harmony Gold Mining — European Gold Forum 2017

23 slides from Harmony Gold Mining's conference presentation, Apr 5, 2017

  1. Slide 1: Driven by Excellence

    1 DRIVEN BY EXCELLENCE © Harmony / 2017 European Gold Forum 2017 5 April 2017

  2. Slide 2: Safe Harbour Statement

    2 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

  3. Slide 3: Global Gold Miner

    3 GLOBAL GOLD MINER © Harmony Investor Brief | Feb / Mar 2017 JSE (HAR); NYSE (HMY) Market cap of between US$1 to 1.2bn (end Mar 2017)

  4. Slide 4: Where We Operate

    4 WHERE WE OPERATE South Africa Papua New Guinea Limpopo Mpumalanga Gauteng North West Free State KwaZulu- Natal Northern Cape Eastern Cape Western Cape 1 open pit mine 9 underground operations Golpu project (50:50 JV) © Harmony | 2017 1 open pit mine Multiple exploration areas (50% and 100%) Multip

  5. Slide 5: Quality Reserves (Gold Equivalent) Split

    5 QUALITY RESERVES (GOLD EQUIVALENT) SPLIT  Total reserves of 37.8 Moz1 SA gold, 44%  Total resources of 107.6 Moz1 PNG copper 16.8 Moz as gold equivalents, 37% 14.1 Moz PNG gold, © Harmony | 2017 19% 6.9 Moz 1. Refer www.harmony.co.za for detail, Gold equivalent based on US$1150 oz Au, and US$3.0

  6. Slide 6: Our Strategy

    © Harmony / 2017 6 OUR STRATEGY

  7. Slide 7: Our Strategy

    7 OUR STRATEGY Our Our strategic strategy pillars Achieving what we set out to do…  Safe mines are profitable mines – fatality rates improved  Operational excellence  Majority of mines achieving or exceeding their plans  Mining safe, profitable  Grade management – no mining below cut off  ounc

  8. Slide 8: Safety First - Working Towards Zero Harm

    8 SAFETY FIRST - WORKING TOWARDS ZERO HARM Fatality Injury Frequency Rate 0.30 0.25 0.26 Per million hours worked 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 H1FY17

  9. Slide 9: Grade - No Mining Below Cut-off

    9 GRADE – NO MINING BELOW CUT-OFF  Planned average mining grades are being achieved  Medium to long term development strategies paying off © Harmony | 2017

  10. Slide 10: Enhancing Our Value

    10 ENHANCING OUR VALUE © Harmony / 2017

  11. Slide 11: Our Aspiration Is to Grow from 1.1 Moz to 1.5 Moz

    13 11 OUR ASPIRATION 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 exploration Ounces  Brownfields exploration (i.e. Kalgold) New / emerging business  Tshepong/Phakisa integration  Tailings re-treatment in Free State  G

  12. Slide 12: First Step to Grow - Acquiring 100% of Hidden Valley

    12 FIRST STEP TO GROW – ACQUIRING 100% OF HIDDEN VALLEY  Re-investment of net $70m in FY17, net $110m in FY18  Waste stripping at Stage 5 has commenced  Stockpile processing with Hamata ore, followed by mill shut down  Commercial levels of production post pre-strip will be achieved in June quart

  13. Slide 13: Potential to Extend Life of Mine Through Successive Cutbacks

    13 POTENTIAL TO EXTEND LIFE OF MINE THROUGH SUCCESSIVE CUTBACKS Hidden Valley Stages 5&6 (7 years) Reserve: 27Mt @ 1.8 g/t Au, 32 g/t Ag 1.4Moz Au, 27Moz Ag Stage 7 © Harmony | 2017 Prefeasibility study FY18 targeting 25Mt for 1.3Moz Au and 25Moz Ag

  14. Slide 14: Golpu (50% Held) - A Quality High Grade Reserve

    14 GOLPU (50% HELD) – A QUALITY HIGH GRADE RESERVE Ore Gold Copper 1.8% Tonnes Grade Metal Grade Metal Golpu - Stage 1 MT g/t Moz % Mt 1.6% Total probable ore reserves* 379 0.91 11.0 1.26% 4.78 Golpu (total) 1.4% 1.2% Cu wt (%) Grasberg 1.0% 0.8% Northparkes OkTedi 0.6% Namosi Batu Hijau OyuTolgoi 0

  15. Slide 15: Golpu (50% Held) - A Potential Game Changer

    15 GOLPU (50% HELD) - A POTENTIAL GAME CHANGER East West • Feasibility study results announced in Feb 2016 – robust returns on large block cave mine – staged development opportunities • Financial metrics of Stage 1*: Golpu 2005 resource area (yellow): 95Mt @ BC1 access 0.65 g/t Au, 1.4% Cu1 developm

  16. Slide 16: Securing Sustainable Cash Flows

    16 SECURING SUSTAINABLE CASH FLOWS © Harmony / 2017

  17. Slide 17: Reduction in Net Debt During the Past Months

    17 REDUCTION IN NET DEBT DURING THE PAST 12 MONTHS (US$) 250 225 64 200 175 15 170 150 US$ million 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

  18. Slide 18: Cash Certainty - Currency Hedge

    18 CASH CERTAINTY – 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 © Harmony | 2017 12 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 USDZAR spot close Floor Cap

  19. Slide 19: Cash Certainty - Gold Hedge

    19 CASH CERTAINTY - 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 R/kg R1.59bn 550 000 (US$116m) 500 000 450 000 © Harmony | 2017 400 000 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 D

  20. Slide 20: Making a Lasting Impact

    20 MAKING A LASTING IMPACT © Harmony / 2017

  21. Slide 21: De-risking the Company Through Healthy Relationships

    21 DE-RISKING THE COMPANY THROUGH HEALTHY RELATIONSHIPS Shareholders General Employees, public and unions communities NGOs and Government and industry regulators Partners, Media and customers and analysts suppliers © Harmony / 2017 Neighbours

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

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