Harmony Gold Mining Co. Ltd. · JSE:HAR
Harmony Gold Mining — GMP Conference (February 2012)
21 slides from Harmony Gold Mining's conference presentation, Feb 3, 2012
Slide 1: Harmony Gold Mining Company Limited - GMP Conference
HARMONY GOLD MINING COMPANY LIMITED (HARMONY) GMP Conference 3 February 2012 JSE(HAR) NYSE (HMY) 1 w w w . h a r mw onwyw. c. hoa. zr m a ony.co.za
Slide 2: Private Securities Litigation Reform Act 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: Our strategy
Our strategy www.harmony.co.za
Slide 4: Delivering long-term value
Delivering long-term value Creating a sustainable company – generating earnings that fund dividends and growth…a company with free cash flow Growth assets Growth in quality Geographic diversity Generate free cash flow Grow the company Grow through partnerships Exploration Optimise asset portfolio, I
Slide 5: Harmony's operating profit
Harmony’s operating profit Operating profit Rm Operating profit US$m 1 400 190 170 1 200 150 1 000 130 800 110 90 600 70 400 50 Sep 09 Dec 09 Mar 10 Jun 10 Sep 10 Dec 10 Mar 11 Jun 11 Sep 11 Sep 09 Dec 09 Mar 10 Jun 10 Sep 10 Dec 10 Mar 11 Jun 11 Sep 11 Rm US$m Increase in operating profit margins 3
Slide 6: Operational cash flow (US$/oz)
Operational cash flow (US$/oz) US$/oz Total Harmony 1 900 1 700 1 500 1 300 1 100 900 700 500 Sep 10 Dec 10 Mar 11 Jun 11 Sep 11 Cash cost US$/oz Ongoing capital US$/oz Growth capital US$/oz Abnormal and shaft capital US$/oz Revenue US$/oz 6 www.harmony.co.za
Slide 7: Global shareholders
Global shareholders Shareholding as at 31 December 2011 South Africa United States 38% United Kingdom 32% Rest of Europe 1% 3% Rest of the World 8% 18% Canada 7 www.harmony.co.za
Slide 8: Growing globally
Growing globally www.harmony.co.za
Slide 9: Global production
Global production Gold production FY2011 Gold equivalent* resource ounces (30 June 2011) 21% 8% 92% 79% South Africa PNG South Africa PNG Gold resources 30 June 2011 10% 90% South Africa PNG * Gold equivalent based on US$1150/oz Au, US$2.50/lb Cu and US$13.50oz Ag at 100% recovery for all metals 9 w
Slide 10: Producing better quality, lower costs (metric)
Producing better quality, lower costs (metric) Kilograms produced - Growth shafts (y-on-y) (metric) Kg R/Kg 35 000 250 000 30 000 200 000 25 000 150 000 20 000 15 000 100 000 10 000 50 000 5 000 0 - FY11 FY12 (FC) FY13 (FC) FY14 (FC) FY15 (FC) FY16 (FC) FY17 (FC) FY18 (FC) Hidden Valley Doornkop Pha
Slide 11: Wafi-Golpu…a world-class Cu-Au resource
Wafi-Golpu…a world-class Cu-Au resource 11 www.harmony.co.za
Slide 12: Wafi-Golpu update
Wafi-Golpu update • Drilling to support future reserve upgrade and pre-feasibility studies continues • Latest drilling extends the system at depth – WR406(2) 861m @ 1.51g/t Au, 1.48% Cu including 199m @ 2.87g/t Au and 2.57% Cu from 1286m • Two additional large capacity drill rigs to commence drillin
Slide 13: Copper-gold porphyry deposits
Copper-gold porphyry deposits Cu Grade (%) 1.2 1.0 Wafi-Golpu Los Pelambres Oyu Tolgoi 0.8 Grasberg Cerro Colorado Sarcheshmeh Reko Diq Salobo Tampakan 0.6 Frieda River Esperanza Pebble Namosi 0.4 Tujuh Bukit Agua Rica KSM Conga 0.2 Bingham Canyon Cadia East Cobre Panama Batu Hijau Cerro Casale Bodd
Slide 14: Capital expenditure (US$)
Capital expenditure (US$) 14 www.harmony.co.za
Slide 15: Funding
Funding (forecasted cumulative cash flow after Wafi-Golpu capital) 15 www.harmony.co.za
Slide 16: Exploration projects Harmony 100%
Exploration projects Harmony 100% AMANAB: (granted tenement; 466 km2) Target: Sediment hosted gold vein stock-work Activities: Drill target generation / recce mapping Results: Rock chip results to 39.6 g/t Au from vein outcrop at Yup East. MT HAGEN: (granted tenements; 666.6km2) Target: Porphyry Cu
Slide 17: Conclusion
Conclusion www.harmony.co.za
Slide 18: Increasing project value
Increasing project value Exploration Target definition Resource definition Pre-feasibility study Feasibility Wafi-Golpu Project construction Commissioning Production gap and build-up Continue to increase project value Doornkop, Phakisa www.harmony.co.za Steady state production Hidden Valley, Kusasal
Slide 19: SA gold price environment
SA gold price environment • From 2008 the gold price R/kg gold price 500 000 – in US$/oz increased by 111% 450 000 – in R/kg increased by 73% 400 000 • From June 2011 the gold price 350 000 – in US$/oz increased by 12% to 300 000 US$1 684/oz 250 000 – in R/kg increased by 33% to R438 407/kg 200 000
Slide 20: Future upside – for gold and Harmony
Future upside – for gold and Harmony Gold cash cost Production ($/oz) (million oz) Gold cash cost * ^ Production from 1100 2.5 • SA – 1.4Moz • Wafi-Golpu¹ - 400 000oz • Hidden Valley¹ – 200 000oz 900 2.0 p 700 1.5 500 Further decrease Production from SA and Hidden Valley under current copper price s
Slide 21: 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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