Harmony Gold Mining Co. Ltd. · JSE:HAR
Harmony Gold Mining — World Gold Forum April 2020
20 slides from Harmony Gold Mining's conference presentation, April 2020
Slide 1: World Gold Forum April 2020
TM WORLD GOLD FORUM APRIL 2020 © Harmony BOIPELO LEKUBO Financial Director JSE Ticker code: HAR NYSE Ticker Code: HMY
Slide 2: Safe Harbour Statement: Forward Looking Statements
2 PRIVATE SECURITIES LITIGATION REFORM ACT SAFE HARBOUR STATEMENT 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 Section 27A of the Securities Act of 1933, as amended (the “Securi
Slide 3: Who We Are
WHO WE ARE © Harmony
Slide 4: Where we are listed, where we operate
4 Where we operate Where we are listed Mines and exploration in: • South Africa JSE, NYSE listed (HAR; • Papua New Guinea HMY) World Gold Forum April 2020 Total reserves (gold equivalent): Market cap: US$1.8bn* • gold >23 Moz • copper >12 Moz * March 2020 SOUTH AFRICA (pre COVID-19) Gold* 65% 23.8Mo
Slide 5: Experienced emerging market gold miner
5 EXPERIENCED EMERGING MARKET GOLD MINER World Gold Forum April 2020 Operational Our strategy excellence Margins Growing margins 70 years’ experience Quality ounces Acquired remaining assets in operating emerging increase margin of SA peer market gold mines Producing safe, profitable Cost reduction
Slide 6: Operating free cash sensitivity to gold price
6 OPERATING FREE CASH* SENSITIVITY TO GOLD PRICE (H1FY20) 300 250 20202020 February 200 Forum April +89% Goldounces, +59% US$m 150 +29% quality World Growing 100 130 50 © Harmony - Operating 5% increase 10% increase 15% increase free cash in gold price in gold price in gold price H1FY20 • In calcula
Slide 7: Share price linked to gold price
7 SHARE PRICE LINKED TO GOLD PRICE 280 Harmony Gold Gold price (US$/oz) Gold price (ZAR/kg) 240 World Gold Forum April 2020 200 160 © Harmony 120 80 16-Apr-19 28-Jun-19 09-Sep-19 21-Nov-19 02-Feb-20 16-Apr-20 COVID-19 lockdown Factset as of 16 April 2020 announced in South Africa Last twelve months’
Slide 8: Impact of COVID-19
8 IMPACT OF COVID-19 “The health and safety of our employees are our highest priorities. I call on everyone to play their part, be courageous, be patient, and above all, to show compassion”, Peter Steenkamp, CEO SOUTH AFRICA PAPUA NEW GUINEA World Gold Forum April 2020 Lockdown (27 March 2020 to 30
Slide 9: Six steps to protect our balance sheet
1 SIX STEPS TO PROTECT OUR BALANCE SHEET Make draw-downs on the Rand and 1. Preserve cash 5. dollar facilities to secure liquidity World Gold Forum April 2020 Suspend all exploration, major capital 2. projects No new debt facilities 6. • net debt to EBITDA at 0.7x as at 31 December 2019 Declare ‘for
Slide 10: Growing Quality Ounces
GROWING QUALITY OUNCES © Harmony
Slide 11: Increasing our margins through acquisition
10 INCREASING OUR MARGINS THROUGH ACQUISITION • Assets acquired: • Mponeng* Adding quality ounces: • Above infrastructure reserves: 3.1Moz @ • 250 000 oz (Mponeng) 10.76g/t • 100 000 oz (MWS) • Total resource: 46.18Moz World Gold Forum April 2020 • Mine Waste Solutions* (MWS) • Tailings retreatment
Slide 12: Increasing the life of mine of our SA portfolio
11 INCREASING THE LIFE OF MINE OF OUR SA PORTFOLIO 9 000 8 000 7 000 World Gold Forum April 2020 6 000 5 000 Oz’000 4 000 3 000 6 to 18 months LOM left 2 000 1 000 © Harmony - Mineral resources *Important to note that Mponeng’s reserves and resources are based on Anglogold Ashanti Limited’s 2018 Res
Slide 13: Increase in quality ounces produced
12 INCREASE IN QUALITY OUNCES PRODUCED Production (‘000 oz) 2 000 World Gold Forum April 2020 350 1 500 80% 260 increase 1 000 73 182 500 1 009 Stable SA 958 © Harmony production - FY16 FY20 FC Stable SA production Hidden Valley Moab operations Mponeng and Mine Waste Solutions
Slide 14: Quality of our asset base improved
13 QUALITY OF OUR ASSET BASE IMPROVED Underground average recovered grade (g/t) 6.20 6.00 Increases Wold Gold Forum April 2020 5.80 Mponeng average grade 5.60 to 5.92g/t 5.40 Moab Increased average grade to 5.20 5.59g/t g/t 5.00 4.80 4.60 Stable SA 5.02 5.06 © Harmony production 4.40 4.20 4.00 FY16
Slide 15: Increasing our SA surface gold production
14 INCREASING OUR SA SURFACE GOLD PRODUCTION SA surface including MWS 250 000 200 000 World Gold Forum April 2020 150 000 Ounces 100 000 50 000 © Harmony - 3 year 3 year 5 year 5 year 7 year7 year 10 year 10 year 353year 37 year 3 year 310year 3 years years years 5 5year 710 yearyears year 3 year ye
Slide 16: Creating long term value for investors
15 CREATING LONG TERM VALUE FOR INVESTORS • Scaling up our ounces • Strengthening our cash flow • Increase the quality of our asset portfolio World Gold Forum April 2020 • Sustaining a profitable production profile • Increasing cash flows to build Golpu • Stronger cash flows should result in stronge
Slide 17: In Conclusion
IN CONCLUSION © Harmony
Slide 18: COVID-19 reinforces our commitment to ESG
17 COVID-19 REINFORCES OUR COMMITMENT TO ESG OUR FIVE SUSTAINABILITY DRIVERS* EXTERNAL RECOGNITION 1 Safety and health World Gold Forum April 2020 2 Environmental management and stewardship 3 Socio-economic development CDP 2019 Climate Change B © Harmony 4 Employee engagement Water A- 5 Stakeholder
Slide 19: H2FY20 focus areas
18 H2FY20 FOCUS AREAS Keeping our employees healthy OUR STRATEGY Safe, profitable ounces and mitigating the impact of Increasing margins COVID-19 STRATEGIC PILLARS World Gold Forum April 2020 01 02 03 04 OPERATIONAL CASH EFFECTIVE CAPITAL RESPONSIBLE EXCELLENCE CERTAINTY ALLOCATION STEWARDSHIP • COV
Slide 20: Contact us
CONTACT US HarmonyIR@harmony.co.za +27 (11) 411 2314 or +27 (82) 759 1775 OUR INVESTMENT CASE © Harmony ~1.8Moz Quality Leveraged to producer growth the gold price in FY21 prospects