Harmony Gold Mining Co. Ltd. · JSE:HAR
Harmony Gold Mining — Q4 FY2006 Earnings Presentation
24 slides from Harmony Gold Mining's earnings presentation, Aug 7, 2006
Slide 1: Results Presentation Quarter ended – June 2006
T2CP01922_cover 8/4/06 7:19 PM Page 1 Results Presentation Quarter ended – June 2006 7 August 2006
Slide 2: Private Securities Litigation Reform Act Safe Harbor Statement
T2CP01922_text 8/4/06 8:10 PM Page 1 Private Securities Litigation Reform Act Safe Harbor 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 ar
Slide 3: Quarterly highlights
T2CP01922_text 8/4/06 8:10 PM Page 2 Quarterly highlights - Kalgold successfully integrated the new mining contractor - Australian production back on track - Australian hedge book reduced by 75 000 oz - Hidden Valley road reaches the mine lease boundary - Significant upgrade of Wafi and Golpu resour
Slide 4: Safety performance; Quarter on quarter analysis
T2CP01922_text 8/4/06 8:10 PM Page 3 Safety performance Fatality Injury Rate (Per Million Hours Worked) 0.40 0.35 0.30 0.25 0.20 0.15 0.10 0.05 0.00 02 03 04 05 60 20 20 20 20 20 go Pr Quarter on quarter analysis JUN MAR % 2006 2006 VAR Gold produced - kg 17 243 17 464 (1.3) Revenue - R/Kg 131 358 1
Slide 5: Quarter on quarter and year on year analysis
T2CP01922_text 8/4/06 8:10 PM Page 4 Quarter on quarter analysis JUN MAR % 2006 2006 VAR Gold produced - oz 554 373 561 477 (1.3) Revenue - US$/oz 631 559 12.9 Exchange Rate - R/US$ 6.47 6.15 5.2 Cash costs - $/oz 452 470 3.8 Cash operating profit - US$ (m) 100 50 100.0 Operating margin - (%) 28.5 1
Slide 6: Quarter on quarter performance comparison
T2CP01922_text 8/4/06 8:10 PM Page 5 Quarter on quarter performance comparison WORKING PROFIT (Rm) OPERATION Jun-06 Mar-06 % Var South African operations Quality assets 439.9 245.7 79 Growth projects 19.9 (21.0) 195 Leverage assets 89.4 36.2 147 Surface operations 36.1 13.0 178 Total SA Operations 5
Slide 7: Cash reconciliation March 2006 to June 2006
T2CP01922_text 8/4/06 8:10 PM Page 6 Cash reconciliation for the period March 2006 to June 2006 Cash and equivalents on 31 March 2006 (R’million) 1781 Repayment of 2001 Bond (918) Payment BOE loan (ARMgold) (90) Cash and cash equivalents after bond/loan payment 773 Operating profit 645 Less: Operati
Slide 8: Capital expenditure; Operational results - Quality Assets
T2CP01922_text 8/4/06 8:10 PM Page 7 Capital expenditure (Rm) Actual Forecast Operational Capex June 2006 September 2006 South African Operations 319 340 Australasian Operations 32 36 Total Operational Capex 351 376 Project Capex Doornkop South Reef 33 42 Elandsrand New Mine 35 41 Tshepong North Dec
Slide 9: Quality Assets; Operational results – Growth Projects
T2CP01922_text 8/4/06 8:10 PM Page 8 Quality Assets Highlights -Tshepong picks up production to design capacity (+150 000 t/m) - Sill intrusion at Evander 7 still impact on grade - CONOPS take Masimong square meters up by 17% Outlook Grade improvements towards year end Operational results – Growth P
Slide 10: Growth Projects and Project Phoenix
T2CP01922_text 8/4/06 8:10 PM Page 9 Growth Projects Highlights - Ore pass changeover on Elandsrand completed - Development at Elandsrand improve by 30% and reef tonnes milled improved by 11% Outlook Elandsrand volume and grade expected to increase towards year end Project Phoenix - Slimesdam re-tre
Slide 11: Leveraged Assets operational results
T2CP01922_text 8/4/06 8:10 PM Page 10 Operational results - Leveraged Assets JUN MAR % 2006 2006 Var U/g tonnes milled (‘000) 1 119 1 055 6.1 U/g recovery grade (g/t) 4,26 4,74 (10.1) U/g kilograms produced (kg) 4 768 4 996 (4.6) U/g working costs (R/kg) 113 074 102 857 (9.9) U/g working costs (R/t)
Slide 12: Operational results – Surface Operations
T2CP01922_text 8/4/06 8:10 PM Page 11 Operational results – Surface Operations (includes KALGOLD) JUN MAR % 2006 2006 VAR Surface tonnes milled (‘000) 1 054 783 34.6 Surface recovery grade (g/t) 0.66 0.98 (32.7) Kilograms produced (kg) 700 766 (8.6) Working costs (R/kg) 77 184 92 535 16.6 Working co
Slide 13: Operational results - Australian Assets
T2CP01922_text 8/4/06 8:10 PM Page 12 Operational results - Australian Assets JUN MAR % 2006 2006 VAR Tonnes milled (‘000) 775 763 1.6 Recovery grade (g/t) 2,38 2,02 17.8 Kilograms produced (kg) 1 844 1 543 19.5 Working costs (R/kg) 92 760 91 876 (1.0) Working costs (R/t) 221 186 (18.8) Australian A
Slide 14: Hidden Valley highlights and outlook
T2CP01922_text 8/4/06 8:11 PM Page 13 Drilling at Shirl pit Hidden Valley Highlights - The Access Road reaches the mine lease boundary - EPCM contract signed off - Appropriate engineering solution found for project conveyor system - General Manager Operations recruited - Third party audit of the tai
Slide 15: Hidden Valley parameters
T2CP01922_text 8/4/06 8:11 PM Page 14 Hidden Valley parameters Ore (40.5 Mt) (M tonnes/yr) 4.2 Recovery Grade (Au g/t) 2.21 Recovery Grade (Ag g/t) 35.7 Gold production per annum (‘000 oz) 280 Silver production per annum (‘000 oz) 3 900 Equivalent gold production (‘000 oz) 350 LOM gold production (‘
Slide 16: Signing off the EPCM contract
T2CP01922_text 8/4/06 8:11 PM Page 15 Signing off the EPCM contract Crusher run for Hidden Valley road construction 15
Slide 17: Access road can take traffic
T2CP01922_text 8/4/06 8:11 PM Page 16 Access road can take traffic More proof that the access road CAN take traffic 16
Slide 18: World class growth projects
T2CP01922_text 8/4/06 8:11 PM Page 17 World class growth projects LOM CAPITAL CASH OUNCES COST US$ COST oz/ PROJECT g/t (‘000/OZ) (US$M) COST/OZ $/oz ANNUM Masimong (SA) 2 530 30 12 370 5,2 260 000 Phakisa (SA) 3 960 99 25 275 7,3 250 000 Elandsrand (SA) 6 220 123 20 241 8,9 509 000 Doornkop South R
Slide 19: Wafi/Golpu
T2CP01922_text 8/4/06 8:11 PM Page 18 Wafi/Golpu Table 1 – Updated Golpu resource Copper Gold Mt Cu% Au g/t MO ppm metal (MT) Ounces Porphry Indicated 86.55 1.4 0.6 108 1.18 1.8 Inferred 2.98 1.8 1.1 68 0.05 0.1 Sub total 89.53 1.4 106 1.24 1.9 Peripheral Inferred 56.66 0.7 0.5 166 0.38 0.8 minerali
Slide 20: Continuing with the right strategy
T2CP01922_text 8/4/06 8:11 PM Page 19 Continuing with the right strategy The righ t stra tegy the tion king ssets sp ec - M a of o ur a c us Intro tabilit y most er ton fo fi tp th g pr o y - Cos nic grow x ainin it a deto - Reg g flexibil cus s - Org isitions pany in fo lume u Com - Min lopment uct
Slide 21: NOTES
T2CP01922_text 8/4/06 8:11 PM Page 20 NOTES 20
Slide 22: NOTES
T2CP01922_text 8/4/06 8:11 PM Page 21 NOTES 21
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Slide 24: T2CP01922_cover 7:19 PM Page 2
T2CP01922_cover 8/4/06 7:19 PM Page 2 PRINTED BY INCE (PTY) LTD W2CF01173
Harmony Gold Mining — Q4 FY2006 Earnings Presentation on 6ix