Harmony Gold Mining Co. Ltd. · JSE:HAR
Harmony Gold Mining — BMO Capital Markets 22nd Global Metals & Mining Conference 2013
24 slides from Harmony Gold Mining's conference presentation, Feb 25, 2013
Slide 1: Harmony Gold Mining Co. Ltd – BMO Capital Markets Conference 2013
Harmony Gold Mining Co. Ltd BMO Capital Markets 22nd Global Metals & Mining Conference 2013 Graham Briggs, CEO 25 February 2013 JSE (HAR) NYSE (HMY) www.harmony.co.za1 w w w . h a r mw onwyw. c. hoa. zr m a ony.co.za BMO CONFERENCE 2013 25 FEBRUARY 2013
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: Agenda
Agenda 1 Strategy 2 Mineral Reserves and Golpu 3 We put back more than we take out 4 Investment rationale 3 www.harmony.co.za BMO CONFERENCE 2013 25 FEBRUARY 2013
Slide 4: Strategy
Strategy www.harmony.co.za
Slide 5: Who we are
Who we are • Operating in South Africa and Papua New Guinea (PNG) • Building world class mines in South Africa and PNG – 10 underground mines, one open pit operation and several surface sources in SA – 50% joint venture in PNG with Newcrest Mining Ltd • Hidden Valley open pit mine • Wafi-Golpu Unite
Slide 6: Our strategy
Our strategy A global gold mining and exploration company - growing gold production, reserves and profits Delivering on projects Growth Global opportunities Grow the company Generate profits Exploration Growth in reserves Improve cash costs Optimise operational delivery and quality of ounces Experie
Slide 7: Executing our strategy – headline earnings
Executing our strategy – headline earnings Headline earnings/loss (Rm) 1 200 1 000 800 600 400 200 0 -200 Sep 09 Dec 09 Mar 10 Jun 10 Sep 10 Dec 10 Mar 11 Jun 11 Sep 11 Dec 11 Mar 12 Jun 12 Sep 12 Dec 12 Headline earnings/loss (US$m) 140 120 100 80 60 40 20 0 -20 -40 Sep 09 Dec 09 Mar 10 Jun 10 Sep
Slide 8: Executing our strategy – increasing grade
Executing our strategy – increasing grade g/t Harmony underground recovery grade (g/t) 5.00 4.80 4.60 4.40 4.20 4.00 3.80 3.60 Mar 12 Jun 12 Sep 12 Dec 12 Recovered grade 8 www.harmony.co.za BMO CONFERENCE 2013 25 FEBRUARY 2013
Slide 9: Executing our strategy – healthy margins (US$/oz)
Executing our strategy – healthy margins (US$/oz) US$/oz Total Harmony (continuing operations) 2 000 1 800 1 600 US$261/oz¹ 1 400 US$607/ozª 1 200 1 000 800 600 400 200 - Sep 10 Dec 10 Mar 11 Jun 11 Sep 11 Dec 11 Mar 12 Jun 12 Sep 12 Dec 12 Cash Operating Cost US$/oz Maintenance capital US$/oz Growt
Slide 10: Executing our strategy – unlocking value
Executing our strategy – unlocking value Production gap and build-up Commissioning Steady state production Project construction Masimong, Tshepong, Increasing project value Joel, Target 1,Unisel, Kalgold Kusasalethu, Doornkop, Feasibility Phakisa, Target 3 Pre-feasibility study Hidden Valley Bambana
Slide 11: Labour issues addressed
Labour issues addressed • After unlawful labour disruptions in Q2 FY13, Kusasalethu mine was temporarily closed − Section 189 process and bilateral discussions with unions commenced on 7 January 2013 • Ground-breaking union agreement reached with the unions on 14 February 2013 – Unions committed to
Slide 12: Planned production ounces
Planned production ounces *Excluding Evander 12 www.harmony.co.za BMO CONFERENCE 2013 25 FEBRUARY 2013
Slide 13: Mineral reserves and Golpu
Mineral reserves and Golpu www.harmony.co.za
Slide 14: Reserves reconciliation y-on-y
Reserves reconciliation y-on-y Gold equivalent Mineral Reserves reconciliation - FY11 vs FY12 60 50 Equivalent 40 13.9 1.3 5.6 8.0 Moz 30 1.5 52.9 41.6 20 33.6 10 0 Balance at Evander held Resultant Mined during Geological & PNG Gold & Balance at June 2011 for sale 0.0 FY12 Scope changes Gold June 2
Slide 15: World class Golpu resource
World class Golpu resource Porphyry Copper - Gold Deposits - SE Asia (bubble size represents total Au-equivalent ounces1) 1.30 1.20 Oyu Tolgoi 248 Moz 1.10 Golpu 1.00 Project 69 Moz 0.90 0.80 Tampakan 0.70 94 Moz Northparkes Cu (wt %) Grasberg Ok Tedi 0.60 20 Moz 12 Moz 329 Moz 0.50 Frieda River Did
Slide 16: We put back more than we take out
We put back more than we take out www.harmony.co.za
Slide 17: Creating sustainable mining through…
Responsible mining Creating sustainable mining through… Job Skills development, Economic creation education and training upliftment Value Poverty Corporate social creation alleviation investment Local economic Social and economic Infrastructure development transformation development 17 www.harmony.c
Slide 18: Environmental management – Rehabilitation
Environmental management Rehabilitation • The Free State rehabilitation project commenced in FY10 • To date, we have – reduced the environmental footprint, land reclamation, waste recycling, metal reclamation and recycling – restored the affected area to support alternative land use – advanced socio
Slide 19: Environmental management – Rehabilitation continued
Environmental management Rehabilitation | continued • Rehabilitation project has resulted in a liability reduction of R24m in FY13 and a total liability reduction of R125m since the inception of the programme • 17 headgear demolitions completed (8 of these already rehabilitated and further 7 will be
Slide 20: Masimong housing project
Masimong housing project • 26 hectares of land transferred to local council • 461 rental units completed • Green theme – borehole and dam for gardens, waste recycling unit envisaged, solar power water heating for all units • Complex includes – Sport area for different sport codes – Crèche for pre sc
Slide 21: Investment rationale
Investment rationale www.harmony.co.za
Slide 22: Achieved our strategic objectives
Achieved our strategic objectives Growth Golpu • Ore reserves increased • World-class gold/copper project, long life • Dividends increased • Lowest industry quartile operating cost (gold and copper) • Net debt lowered • Significant upside potential – Golpu and the • Capital expenditure funded entire
Slide 23: Harmony remains undervalued
Harmony remains undervalued One of the world’s largest gold miners Building low-cost, high-grade mines: SA and PNG World-class exploration project: Golpu (PNG) Supporting meaningful and responsible corporate social investment Minimising and mitigating the impacts to the environment Unhed
Slide 24: An exciting investment proposition
Henrika Basterfield Investor Relations Manager 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 JSE (HAR) An exciting NYSE (HM
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