Harmony Gold Mining Co. Ltd. · JSE:HAR

Harmony Gold Mining — H1 FY2022 Earnings Presentation

45 slides from Harmony Gold Mining's earnings presentation, February 2022

Slide 2: Safe Harbour Statement
2 PRIVATE SECURITIES LITIGATION REFORM ACT SAFE HARBOUR STATEMENT Interim results for the six-month period ended 31 December 2021 FORWARD LOOKING STATEMENTS This presentation contains forward-looking statements within the meaning of the safe harbour provided by Section 21E of the Exchange Act and Se
Slide 4: Our Strategy and Values
SAFE, 4 DELIVERY AGAINST STRATEGY PROFITABLE OUNCES Interim results for the six-month period ended 31 December 2021 OUR STRATEGY To produce safe, profitable ounces and improve margins through operational excellence and value-accretive acquisitions OUR VALUES © Harmony STRATEGIC PILLARS RESPONSIBLE O
Slide 5: Delivery against strategy: H1FY22 key features
DELIVERY 5 H1FY22 vs H1FY21 KEY FEATURES AGAINST STRATEGY Interim results for the six-month period ended 31 December 2021 RESPONSIBLE OPERATIONAL CASH EFFECTIVE CAPITAL STEWARDSHIP EXCELLENCE CERTAINTY ALLOCATION ESG OPERATIONAL FINANCIAL CAPITAL Included in FTSE4Good index Production saw a 4% incre
Slide 6: Quality portfolio and improved earnings
DE-RISKED 6 QUALITY PORTFOLIO AND PORTFOLIO IMPROVED EARNINGS Interim results for the six-month period ended 31 December 2021 FY16 operational free Cash H1FY22 operational free cash Hidden Valley 6% SA surface Existing operations underground 8% 18% Acquired and SA surface reinvested assets* operatio
Slide 7: Structural profitability and short-term headwinds
RISK BASED 7 IMPROVED STRUCTURAL PROFITABILITY PLANNING LONG-TERM FOCUSED Interim results for the six-month period ended 31 December 2021 SHORT-TERM HEADWINDS Safety-related stoppages Adverse ground conditions Electricity and water supply constraints Unplanned labour stoppages C R E AT I N G M AR G
Slide 8: Key production metrics (Rand)
DISCIPLINED 8 KEY PRODUCTION METRICS (RAND) MINING H1FY22 vs H1FY21 Interim results for the six-month period ended 31 December 2021 t'000 Tonnes milled g/t kgs Gold produced Underground recovered grade 30 000 27 638 6,00 5,58 5,39 30 000 25 000 24 226 5,00 20 863 25 000 23 183 20 000 20 000 4,00 15
Slide 9: Key production metrics (US$)
DISCIPLINED 9 KEY PRODUCTION METRICS (US$) MINING H1FY22 vs H1FY21 Interim results for the six-month period ended 31 December 2021 t’000 oz g/t Tonnes milled Gold produced Underground recovered grade 35 000 1 000 000 5,58 30 476 6,00 5,39 30 000 778 879 800 000 745 347 5,00 25 000 23 007 4,00 20 000
Slide 10: Capital project pipeline
CAPITAL 10 PROJECT PIPELINE PROJECTS INCREASE VALUE ~4,10g/t ~1.44 g/t Interim results for the six-month period ended 31 December 2021 >55koz pa 160-200koz pa ~4,0g/t ~4,6g/t Enhanced 2.5 year LOM ~60koz pa production ~0,27g/t >230 koz pa 7 year LOM R10.1m >98koz pa 20 year LOM R416.6m (US$0.7m) ~9g
Slide 11: Renewable energy rollout
DIVERSIFYING 11 RENEWABLE ENERGY ROLLOUT OUR ENERGY MIX Interim results for the six-month period ended 31 December 2021 PHASE 1 PHASE 2 PHASE 3 30MW 137MW 56MW FY24 FY25 FY26 Energy generated Energy generated Energy generated per annum: 75GWh* per annum: 343GWh per annum: 139GWh Operations – peak PV
Slide 12: Sustainable mining, positive shareholder returns
SHAREHOLDER 12 VALUE CREATION THROUGHOUT THE CYCLE RETURNS Interim results for the six-month period ended 31 December 2021 Optimisation of existing operations and asset mix Integrated ESG Robust yet flexible POSITIVE practices balance sheet SHAREHOLDER RETURNS THROUGH A war chest to deploy SUSTAINAB
Slide 14: Operational focus areas
14 OPERATIONAL FOCUS AREAS BIG 5 KEY Interim results for the six-month period ended 31 December 2021 1 Safety and health 2 Production excellence aimed at enhanced productivity SAFETY 3 Capital allocation prioritised to drive margin growth S300 4 Ensuring infrastructure reliability PRODUCTION © Harmo
Slide 15: Safety imperative: road to zero loss of life
15 SAFETY ZERO HARM IMPERATIVE ROAD TO ZERO LOSS OF LIFE AND PREVENT INJURIES Interim results for the six-month period ended 31 December 2021 Development of safety Embedded practices – Improved employee Positively impacting leadership capability routines and habits engagement and employee's relation
Slide 16: Improved trend illustrates progress
16 IMPROVED TREND ILLUSTRATES PROGRESS CRITICAL RISK MANAGEMENT Total Injury Accident Frequency Rate (TIAFR*) – Group Interim results for the six-month period ended 31 December 2021 18,00 15,90 16,00 15,29 14,00 12,20 12,00 11,14 10,33 9,96 10,00 8,95 8,27 8,00 7,86 8,00 7,45 6,99 6,00 © Harmony 4,0
Slide 17: De-risked asset portfolio
INVESTING IN 17 DE-RISKED ASSET PORTFOLIO LONG LIFE AND SURFACE OPERATIONS Harmony gold production – H1FY22 Interim results for the six-month period ended 31 December 2021 • LTIFR of 0.0 Hidden Valley • Conveyor belt fixed 8% • High grade ore reserve • >6 years life-of-mine SA surface Long-life asse
Slide 18: Effective capital allocation
EFFECTIVE 18 INVESTING IN OUR LONG-LIFE ASSETS CAPITAL ALLOCATION AND HARVESTING OUR SHORT-LIFE MINES Capital Allocation by grouping of assets – Harmony (Rm) Interim results for the six-month period ended 31 December 2021 Capitalised stripping 16% Hidden Valley 4% Long-life assets 59% ORD, 34% • Mpo
Slide 19: Optimising our higher cost mines
19 OPTIMISING OUR HIGHER COST MINES OPERATIONAL EXCELLENCE Interim results for the six-month period ended 31 December 2021 KALGOLD TARGET 1 TSHEPONG JOEL • Lower grades and tonnes • Improved grades due to • Excellent development • Decline project and chairlift due to C-mill replacement, higher grade
Slide 20: Bambanani: years of shared value created
BAMBANANI: 20 12 YEARS OF SHARED VALUE CREATED ESG IN ACTION Interim results for the six-month period ended 31 December 2021 BAMBANANI • Last guided life of mine was 3 years • 17% of the shaft pillar remains • Increase in large seismic events, every month for the last five months recorded • We will
Slide 21: Bambanani: excellent return on capital
21 BAMBANANI = ESG* IN ACTION EXCELLENT RETURN ON CAPITAL Bambanani capital investment and return (FY10 to H1FY22) Rm Interim results for the six-month period ended 31 December 2021 5 000 R4 491m 4 500 Employees and 4 000 unions 3 500 3 000 Investors and General public and media providers of capital
Slide 22: Hidden Valley provides future upside
LONG TERM 22 HIDDEN VALLEY PROVIDES FUTURE UPSIDE VALUE What happened Where we are now Where we are going Interim results for the six-month period ended 31 December 2021 • Mining geotechnical impacts • Overland conveyor belt replacement • Operational performance in line with restricted volumes and h
Slide 23: Cash operating cost variance H1FY22 vs H1FY21
COST 23 CASH OPERATING COST VARIANCE (RAND) MANAGEMENT H1FY22 VS H1FY21 Interim results for the six-month period ended 31 December 2021 Overall cash operating costs +7% excluding Unisel, Mponeng and related assets R 126m R 1 696m R 160m R 19m R 202m R 5m R 96m R 285m R 179m R 129m R 16 178m R 455m ©
Slide 24: Cash operating cost variance H1FY22 vs H2FY21
COST 24 CASH OPERATING COST VARIANCE (RAND) MANAGEMENT H1FY22 VS H2FY21 Interim results for the six-month period ended 31 December 2021 Cost Variance Rm (6m-on-6m) R 18m R 59m R 178m R 95m R 549m R 36m R 44m R 233m R 653m Total cash operating costs +9% compared to H2FY21 R 16 178m © Harmony R 14 863
Slide 25: Cost containment: AISC by operation (Rand)
COST 25 LONG-LIFE GROWTH ASSETS TO UNDERPIN CONTAINMENT A PRIORITY COST REDUCTION (RAND) Interim results for the six-month period ended 31 December 2021 AISC (R/kg) 1 300 000 AISC – H1FY22 Target 1 1 100 000 Hidden Valley Tshepong operations Kalgold Joel 900 000 Bambanani MM Gold price received - R8
Slide 26: Cost containment: AISC by operation (US$)
COST 26 LONG-LIFE GROWTH ASSETS TO UNDERPIN CONTAINMENT A PRIORITY COST REDUCTION (US$) Interim results for the six-month period ended 31 December 2021 AISC (US$/oz) AISC – H1FY22 3 000 2 500 Target 1 Hidden Tshepong operations Valley 2 000 Gold price received - US$1 782/oz Kalgold Joel Bambanani MM
Slide 28: Disciplined financial management (Rand)
KEY FEATURES (H1FY22 vs H1FY21) – RAND DISCIPLINED 28 FINANCIAL MANAGEMENT Interim results for the six-month period ended 31 December 2021 GOLD PRICE HEPS EBITDA NET PROFIT RECEIVED Decreased by 65% Decreased by 24% Decreased by 69% Decreased by 4% to 248 SA cents to R4.2bn from R5.6bn to R1.4bn fro
Slide 29: Disciplined financial management (US$)
KEY FEATURES (H1FY22 vs H1FY21) – US$ DISCIPLINED 29 FINANCIAL MANAGEMENT Interim results for the six-month period ended 31 December 2021 GOLD PRICE HEPS EBITDA NET PROFIT RECEIVED Decreased by 61% Decreased by 24% Decreased by 69% Increased by 4% to 17 US cents to US$283m from to US$96m to US$1 782
Slide 30: Securing our future through investment criteria
CLEAR 30 SECURING OUR FUTURE THROUGH INVESTMENT CRITERIA STRATEGIC TRADE-OFFS Interim results for the six-month period ended 31 December 2021 Capital allocation Value realisation Projects Debt repayment Lower risk profile Hidden Valley extension Target: (Prioritise safety) <1x net debt/EBITDA Improv
Slide 31: Delivering shareholder returns
RETURNING 31 DELIVERING SHAREHOLDER RETURNS CASH TO SHAREHOLDERS WHILE GROWING OUR OUNCES Interim results for the six-month period ended 31 December 2021 H1 FY22 Revenue 5% 1% 4% 2% Dividend: 40 SA cents (2.7 US cents) 15% per share declared for the Operating expenditure reporting period Capital exp
Slide 32: Operating cash flow sensitivity (R/kg)
GEARED TO 32 OPERATING CASH FLOW SENSITIVITY* (R/KG) THE RAND GOLD PRICE Interim results for the six-month period ended 31 December 2021 FY22 Operational free cash flow at various gold prices R4.3bn R3.8bn R3.2bn R2.7bn R2.1bn © Harmony R800 000/kg R850 000/kg R900 000/kg R950 000/kg R1 000 000/kg *
Slide 33: Operating cash flow sensitivity (US$/oz)
GEARED TO 33 OPERATING CASH FLOW SENSITIVITY* (US$/OZ) THE RAND GOLD PRICE Interim results for the six-month period ended 31 December 2021 FY22 Operational free cash flow at various gold prices US$290m US$252m US$215m US$177m US$140m © Harmony US$1 656/oz US$1 759/oz US$1 862/oz US$1 966/oz US$2 069
Slide 35: Margin expansion catalysts
INVESTING IN 35 MARGIN EXPANSION CATALYSTS QUALITY ASSETS Interim results for the six-month period ended 31 December 2021 Bambanani end of life Masimong MARGINS end of life Kusasalethu end of life Franco-Nevada streaming contract ends and MWS major capex complete Tshepong Doornkop major capex comple
Slide 36: Embedded sustainability practices
RESPONSIBLE 36 EMBEDDED SUSTAINABILITY PRACTICES STEWARDSHIP ENVIRONMENTAL SOCIAL GOVERNANCE Interim results for the six-month period ended 31 December 2021 Decarbonising Harmony Creating a safe working ETHICAL LEADERSHIP through energy efficiencies and environment to prevent loss of green energy mi
Slide 37: A sound investment case
MINING WITH 37 A SOUND INVESTMENT CASE PURPOSE Interim results for the six-month period ended 31 December 2021 01 02 03 04 Embedded ESG Geared to Margin Re-engineered the Rand expansion portfolio © Harmony gold price through growth Creating lasting legacies Rand costs; 1.6Moz gold producer plus Dele
Slide 40: Hedge book
CASH 40 HEDGE BOOK WELL POSITIONED CERTAINTY THROUGH HEDGING Interim results for the six-month period ended 31 December 2021 © Harmony www.harmony.co.za
Slide 41: External recognition for responsible stewardship
ESG IN ACTION 41 EXTERNAL RECOGNITION FOR RESPONSIBLE STEWARDSHIP Interim results for the six-month period ended 31 December 2021 ESG Ratings ESG Recognition ESG rating 3.7 out of 5.0 Harmony upgraded from Harmony ranks in the Score of 64.17% and Score of ‘A’ for our CCC to B Top 50 under the disclo
Slide 42: Environmental targets: energy
ESG IN ACTION 42 ENVIRONMENTAL TARGETS Interim results for the six-month period ended 31 December 2021 Five-year baseline target Year on year (FY18-FY22) Cumulative Ten-year target KPIs Target Target Actual Achieved actual (FY18-FY27) ENERGY Reduce absolute electricity consumption 5 (57) 1 (30) 7% (
Slide 43: Environmental targets: water, waste, land
ESG IN ACTION 43 ENVIRONMENTAL TARGETS Interim results for the six-month period ended 31 December 2021 Five-year baseline target Year on year (FY18-FY22) Cumulative Ten-year target KPIs Target Target Actual Achieved actual (FY18-FY27) WATER Reduce water used for primary activities (%kl) 7 (67) 1.4 (
Slide 44: Revised FY22 cost and grade guidance
COST AND 44 REVISED FY22 COST AND GRADE GUIDANCE GRADE GUIDANCE Plan to produce ~1.48 Moz to 1.56 Moz in FY22, at • an average underground recovered grade of ~5.40g/t to 5.57g/t, Interim results for the six-month period ended 31 December 2021 • an all-in sustaining cost of R805 000/kg to R835 000/kg
Slide 45: Revised FY22 production guidance and LOM
45 REVISED FY22 PRODUCTION GUIDANCE PRODUCTION GUIDANCE AND LOM (PER OPERATION) FY21 production Life of mine FY22 guidance Interim results for the six-month period ended 31 December 2021 (oz) (years) Operation (oz) Tshepong operations 238 526 228 000 – 240 000 20 Moab Khotsong* 230 391 216 000 – 227

Harmony Gold Mining Company — H1 FY2022 Earnings Presentation on 6ix

Harmony Gold Mining — H1 FY2022 Earnings Presentation

Slide 1: H1FY22 Results Presentation

Slide 2: Safe Harbour Statement

Slide 3: Strategy and Update

Slide 4: Our Strategy and Values

Slide 5: Delivery against strategy: H1FY22 key features

Slide 6: Quality portfolio and improved earnings

Slide 7: Structural profitability and short-term headwinds

Slide 8: Key production metrics (Rand)

Slide 9: Key production metrics (US$)

Slide 10: Capital project pipeline

Slide 11: Renewable energy rollout

Slide 12: Sustainable mining, positive shareholder returns

Slide 13: Operational Performance

Slide 14: Operational focus areas

Slide 15: Safety imperative: road to zero loss of life

Slide 16: Improved trend illustrates progress

Slide 17: De-risked asset portfolio

Slide 18: Effective capital allocation

Slide 19: Optimising our higher cost mines

Slide 20: Bambanani: years of shared value created

Slide 21: Bambanani: excellent return on capital

Slide 22: Hidden Valley provides future upside

Slide 23: Cash operating cost variance H1FY22 vs H1FY21

Slide 24: Cash operating cost variance H1FY22 vs H2FY21

Slide 25: Cost containment: AISC by operation (Rand)

Slide 26: Cost containment: AISC by operation (US$)

Slide 27: Financial

Slide 28: Disciplined financial management (Rand)

Slide 29: Disciplined financial management (US$)

Slide 30: Securing our future through investment criteria

Slide 31: Delivering shareholder returns

Slide 32: Operating cash flow sensitivity (R/kg)

Slide 33: Operating cash flow sensitivity (US$/oz)

Slide 34: Conclusion

Slide 35: Margin expansion catalysts

Slide 36: Embedded sustainability practices

Slide 37: A sound investment case

Slide 38: Thank You

Slide 39: Annexures

Slide 40: Hedge book

Slide 41: External recognition for responsible stewardship

Slide 42: Environmental targets: energy

Slide 43: Environmental targets: water, waste, land

Slide 44: Revised FY22 cost and grade guidance

Slide 45: Revised FY22 production guidance and LOM