Harmony Gold Mining Co. Ltd. · JSE:HAR
Harmony Gold Mining — Merrill Lynch 2012 Global Metals, Mining and Steel Conference
25 slides from Harmony Gold Mining's conference presentation, May 16, 2012
Slide 1: Merrill Lynch 2012 Global Metals, Mining and Steel conference
Merrill Lynch 2012 Global Metals, Mining and Steel conference Graham Briggs Chief executive officer 16 May 2012 JSE(HAR) NYSE (HMY) 1 w w w . h a r mw onwyw. c. hoa. zr m a ony.co.za
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: 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 4: Asset portfolio
Asset portfolio South Africa – Underground – 9 mines – Open-pit – 1 mine – Surface retreatment operations – Several projects PNG – Open-pit (JV) – 1 mine – Wafi-Golpu pre-feasibility – Exploration and projects Equity holding – Wits Gold Ltd (12.7%) 4 www.harmony.co.za
Slide 5: Growing the company (build-up of quality ounces)
Growing the company (build-up of quality ounces) Oz‟s Growth shafts (6 monthly) US$/oz 250 000 1 200 1 000 200 000 800 150 000 600 100 000 400 50 000 200 0 - Dec 07 Jun 08 Dec 08 Jun 09 Dec 09 Jun 10 Dec 10 Jun 11 Dec 11 Hidden Valley Doornkop Phakisa Kusasalethu Cash operating cost US$/oz 5 www.har
Slide 6: Growing our cash flow
Growing our cash flow www.harmony.co.za
Slide 7: Growing operational cash flow (US$/oz)
Growing operational cash flow* (US$/oz) US$/oz …Harmony continues to generate free operating cash flow* (US$/oz) 1 800 1 600 1 400 1 200 1 000 800 600 400 Sep 10 Dec 10 Mar 11 Jun 11 Sep 11 Dec 11 Mar 12 Cash operating cost US$/oz Capital US$/oz Revenue US$/oz *Operational cash flow: revenue after c
Slide 8: Headline earnings trend (US$)
Headline earnings trend (US$) US$m Headline earnings (US$m) 140 120 100 80 60 40 20 0 -20 -40 Sep 09 Dec 09 Mar 10 Jun 10 Sep 10 Dec 10 Mar 11 Jun 11 Sep 11 Dec 11 Mar 12 8 www.harmony.co.za
Slide 9: Profit margins
Profit margins Cash operating profit margin %¹ 43% 45% 40% 33% 35% 31% 31% 29% 29% 30% 27% 26% 25% 25% 21% 20% 20% Sep 09 Dec 09 Mar 10 Jun 10 Sep 10 Dec 10 Mar 11 Jun 11 Sep 11 Dec 11 Mar 12 Net profit margin %² 40% 28% 30% 22% 20% 12% 11% 8% 10% 4% 3% 0% 0% -1% -1% -10% -12% -20% Sep 09 Dec 09 Mar
Slide 10: Growing globally
Growing globally www.harmony.co.za
Slide 11: 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 11
Slide 12: Global shareholders
Global shareholders Shareholding at 31 March 2012 39% South Africa United States 30% United Kingdom Rest of Europe 4% Rest of the World 8% 19% 12 www.harmony.co.za
Slide 13: PNG exploration projects (Harmony 100%)
PNG 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: Porphy
Slide 14: World-class Cu-Au resources in SE Asia (JV)
World-class Cu-Au resources in SE Asia (JV) 14 www.harmony.co.za
Slide 15: Wafi-Golpu
Wafi-Golpu www.harmony.co.za
Slide 16: Wafi-Golpu resource
Wafi-Golpu resource Au Grade Contained metal Equiv³ Mt Au g/t Cu% Au Moz Cu Mt Moz Golpu resource 2010¹ 501 0.54 0.96 8.8 4.8 32 2011² 870 0.69 1.03 19.3 9.0 62 Growth 368 0.15 0.07 10.5 4.2 30 Wafi-Golpu resource (includes Wafi and Nambonga) 2010¹ 677 0.77 0.75 16 4.8 40 2011² 1 012 0.82 0.89 26.6
Slide 17: Golpu – drilling validates the model
Golpu – drilling validates the model • Recent drilling validates the model – WR408 extends the system but closes off the high grade to the north – WR418 confirms the high grade domain – WR415_W2 confirms the southern margin at depth • System remains open at depth, towards the east and west • Drillin
Slide 18: Wafi Transfer Zone – Porphyry Corridor
Wafi Transfer Zone – Porphyry Corridor • Search for new discoveries commenced • Two drill rigs operating within the highly prospective Wafi Transfer Zone • Drill testing of the Kesiago and the newly identified Zimake target underway ¹Refer www.harmony.co.za for Statement of Mineral Resources and Ore
Slide 19: Wafi transfer zone – more to be found
Wafi transfer zone – more to be found • Drilling commenced at Kesiago and Zimake ¹ Refer www.harmony.co.za for Statement of Mineral Resources and Ore Reserves at 30 June 2011 Resource figures quoted on 100% basis Note: Cu = copper; Au = gold 19 www.harmony.co.za
Slide 20: 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 21: Conclusion
Conclusion www.harmony.co.za
Slide 22: 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 23: Securing the future (US$)
Securing the future (US$) 9 months YTD* (US$m) A company with free operating cash flow Cash generated from operating activities¹ 500 Rewarding stakeholders Dividends (57) Taxes (32) Corporate social investment (CSI) expenditure (7) Funding our own growth Capital expenditure (292) Exploration expendi
Slide 24: An exciting investment proposition
An exciting investment proposition 1 Wafi-Golpu „find of the century‟ 2 Unhedged 3 Builder of new underground and open pit mines 4 Experienced, focused mining and exploration teams 5 A company with free cash flow, low debt 6 Pays dividends 24 www.harmony.co.za
Slide 25: 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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