Harmony Gold Mining Co. Ltd. · JSE:HAR
Harmony Gold Mining — Denver Gold Forum 2018
19 slides from Harmony Gold Mining's conference presentation, Sep 25, 2018
Slide 1: Denver Gold Forum 2018
DENVER GOLD FORUM 2018 Peter Steenkamp 25 September 2018
Slide 2: Safe Harbour Statement - Forward Looking Statements
2 PRIVATE SECURITIES LITIGATION REFORM ACT SAFE HARBOUR STATEMENT FORWARD LOOKING STATEMENTS 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 o
Slide 3: Harmony Today
HARMONY TODAY
Slide 4: Harmony Today
4 HARMONY TODAY Delivering consistent, Achieved production guidance for a third consecutive year predictable production Improved the quality of © Harmony | Denver Gold Forum 2018 Hidden Valley and Moab Khotsong add ~500koz asset portfolio at average AISC below US$950/oz Improving margins AISC unit c
Slide 5: Established Operations, Quality Growth Opportunities
5 ESTABLISHED OPERATIONS, QUALITY GROWTH OPPORTUNITIES PAPUA NEW GUINEA Production split FY19E ~200koz (14%) Hidden Valley (open pit mine) Wafi-Golpu project (50:50 JV) Multiple exploration areas © Harmony | Denver Gold Forum 2018 SOUTH AFRICA Production split FY19E ~1.3Moz (86%) 10 underground oper
Slide 6: Gold Miner with a Quality Copper Prospect
6 GOLD MINER WITH A QUALITY COPPER PROSPECT Copper* (34%) Gold (65%) 12.7 Moz 23.8 Moz Reserves © Harmony | Denver Gold Forum 2018 Silver* (1%) 1 Reserves at 30 June 2018 Grade Cu Grade Au Copper and silver as gold equivalents based on: % Mt g/t Moz US$1 275/oz Au, US$3.0/lb Cu, US$17.00/oz Ag Wafi-
Slide 7: Increased Quality of Asset Portfolio
INCREASED QUALITY OF ASSET PORTFOLIO
Slide 8: Journey of Excellence
8 JOURNEY OF EXCELLENCE FY18 • Momentum maintained at SA operations FY18 • Acquired and successfully integrated Moab Khotsong • Re-capitalised Hidden Valley on schedule and within budget FY17 © Harmony | Denver Gold Forum 2018 • Delivered safer, more stable and predictable production FY17 • Acquired
Slide 9: Hidden Valley - Delivered Under Budget and in Time
9 HIDDEN VALLEY – DELIVERED UNDER BUDGET AND IN TIME Safe Fatality free, no lost time injuries in FY18 Budget: investment of US$180 million Below budget Actual: investment of US$175 million © Harmony | Denver Gold Forum 2018 Commercial levels of production achieved in On schedule the June 2018 month
Slide 10: Impact of Moab Khotsong in Only Four Months
10 IMPACT OF MOAB KHOTSONG IN ONLY FOUR MONTHS Underground recovered grade (g/t) Gold produced (000oz) 5.50 1,400 5.48 1,200 1,228 5.25 1,118 5.20 1,000 5.00 800 FY18 excl. MK Harmony FY18 FY18 excl. MK Harmony FY18 © Harmony | Denver Gold Forum 2018 AISC (R/kg) Operational free cash flow (Rm) 520,0
Slide 11: Cash Certainty and Effective Capital Allocation
CASH CERTAINTY AND EFFECTIVE CAPITAL ALLOCATION
Slide 12: Operational Excellence Core to Securing Cash Flows
12 OPERATIONAL EXCELLENCE CORE TO SECURING CASH FLOWS Grade and Cost Safety and Infrastructure Capital flexibility management health management allocation management Focused cost Focused © Harmony | Denver Gold Forum 2018 No mining management Risk-based capital below cut-off and project proactive Re
Slide 13: Growing the Quality of Our Portfolio
13 GROWING THE QUALITY OF OUR PORTFOLIO Underground recovered grade (g/t) Production (Koz) 6.00 1,500 5.85 AISC 5.60 <US$950/oz 1,000 5.20 © Harmony | Denver Gold Forum 2018 4.80 Focused on 5.28 500 operational 5.02 excellence 4.40 4.00 - FY16 FY19FC FY16 FY19FC ■ Stable SA production ■ Moab Khotson
Slide 14: Funding Quality Growth - Prudent Financial Gearing
14 FUNDING QUALITY GROWTH - PRUDENT FINANCIAL GEARING 2.5x 2.3x 2.0x 2.0x 1.6x Net debt/EBITDA ratio 1.5x 1.5x 1.5x 1.2x 1.2x © Harmony | Denver Gold Forum 2018 1.0x 1.0x 0.8x 0.5x 0.5x 0.4x 0.4x 0.1x – Harmony FY18 ■ International gold mining peers ■ SA gold mining peers Targeting net debt/ebitda r
Slide 15: Looking Forward
LOOKING FORWARD
Slide 16: Wafi-Golpu Is a Game Changer
16 WAFI-GOLPU* IS A GAME CHANGER Large production − Steady state production: in excess of 1.4 million gold equivalents ounces profile per annum High grade = − High average recovery grades: Au = 0.90g/t, Cu = 1.27% low unit cost production − Lowest decile cost quartile copper production, Negative AIS
Slide 17: Pipeline of Quality Organic Growth Opportunities
17 PIPELINE OF QUALITY ORGANIC GROWTH OPPORTUNITIES Permitting Concept/ Feasibility Pre-feasibility phase exploration Wafi-Golpu Central Plant Kalgold Mispah Tailings Copper-gold project Reclamation Near mine brownfields Tailings retreatment (PNG, mechanised Tailings expansion exploration (SA, surfa
Slide 18: Why Invest in Harmony
18 WHY INVEST IN HARMONY ~1.5Moz consistent, profitable Quality growth prospects Offer share price uplift © Harmony | Denver Gold Forum 2018 producer
Slide 19: Contact Us
CONTACT US HarmonyIR@harmony.co.za +27 (11) 411 2314/+27 (82) 759 1775