Harmony Gold Mining Co. Ltd. · JSE:HAR
Harmony Gold Mining — African Mining Investor CEO dinner (February 2016)
15 slides from Harmony Gold Mining's conference presentation, Feb 9, 2016
Slide 1: Harmony Gold Mining Company Limited
Harmony Gold Mining Company Limited African Mining Investor CEO dinner Peter Steenkamp, CEO 9 February 2016 1 www.harmony.co.za Q2 FY16
Slide 2: Safe Harbour Statement
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 resp
Slide 3: Agenda
Agenda 1 About Harmony 2 Creating value 3 Conclusion 3 www.harmony.co.za Q2 FY16
Slide 4: About Harmony
ABOUT HARMONY 4 www.harmony.co.za Q2 FY16
Slide 5: We mine only safe, profitable ounces
We mine only safe, profitable ounces • Our strategy is to create value by increasing our margins • Safety is our key priority • Exposure to South Africa, Papua New Guinea, gold and copper • Mineral reserves of 42.6Moz* and resources of 110.3Moz* Gold production Q2FY16 • World class mines in South Af
Slide 6: Outperforming all indices
Outperforming all indices • Listed on the JSE (HAR) and NYSE • Net debt – R2.5 billion (HMY) • Enterprise value (EV) R9 329 million • Market cap - R14.4 billion • Market cap/Resource tonne – R7.33/tonne • Share price – R 37.00 • Revenue – R15.4 billion in FY15 Financial numbers are quoted as at 31 D
Slide 7: Creating Value
CREATING VALUE 7 www.harmony.co.za Q2 FY16
Slide 8: ….through ticking all the boxes
….through ticking all the boxes UP 7% PRODUCTION HEADLINE Quarter on quarter GRADE EARNINGS PROFIT UP 84% R74m Quarter on quarter 2% Quarter on quarter PRODUCTION DOWN NET AISC 7% DEBT MARGIN ALL-IN SUSTAINING COSTS Quarter on quarter REDUCED 17% 8 www.harmony.co.za Q2 FY16
Slide 9: …through leverage against the R/kg gold price
…through leverage against the R/kg gold price R/kg Operational cash flow margin 600 000 580 000 550 000 507 490 500 000 463 910 473 567 460 569 450 000 432 963 435 000 400 000 350 000 300 000 250 000 Dec 14 Mar 15 Jun 15 Sep 15 Dec 15 FY16 Guidance with higher R/kg gold price Total capital R/kg Cash
Slide 10: …through exploration
…through exploration Asian porphyry copper-gold deposits (bubble represents total Resource – gold equivalent ounces) …Golpu a game changer for Harmony Gold Equivalent is based on a gold price of US$1250/oz and a copper price of US$3.10/lb Source: WoodMcKenzie 10 www.harmony.co.za Q2 FY16
Slide 11: …copper diversification in the long term
…copper diversification in the long term Kili Teke Golpu (100%) (50%) 20 Drill holes 500 (~10 850m) (~300 000m) 2015: Initial intercepts very encouraging after 1990: Copper mineralisation discovered in 95th only 7 holes and 13th hole returning: hole (Wafi gold prospect) KTDD013: 480m @ 0.63% Cu, 0.4
Slide 12: Conclusion
CONCLUSION 12 www.harmony.co.za Q2 FY16
Slide 13: De-risking the company through healthy relationships
De-risking the company through healthy relationships Shareholders General public Employees/ general unions communities Government NGOs and regulators Media and Industry analysts organisations Host Partners, communities/ customers and neighbours suppliers 13 www.harmony.co.za Q2 FY16
Slide 14: Our investment case
Our investment case Harmony, a company worth investing in Replacing ounces Golpu and Kili Teke potential game changers FY16 guidance realistic and safe profitable ounces Financial results cash is king (no compromises) Our operations positioned for profitability Our strategy creating value, increasin
Slide 15: Our key value drivers
OUR KEY VALUE DRIVERS We are efficient miners We are positioned for future growth and profitability We are experienced explorers, mine developers and operators in emerging economies CONTACT US Email: Golpu will develop into a world-class HarmonyIR@harmony.co.za copper-gold mine www.harmony.c
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