Harmony Gold Mining Co. Ltd. · JSE:HAR

Harmony Gold Mining — FY2024 Earnings Presentation

56 slides from Harmony Gold Mining's earnings presentation, Sep 5, 2024

  1. Slide 1: FY24 Annual Results

    FY24 ANNUAL RESULTS Peter Steenkamp, CEO 5 September 2024 © Harmony JSE ticker code HAR NYSE ticker code HMY

  2. Slide 2: Safe Harbour Statement and Disclaimer

    2 PRIVATE SECURITIES LITIGATION REFORM ACT SAFE HARBOUR STATEMENT AND DISCLAIMER 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 amend

  3. Slide 3: Strategy

    STRATEGY Peter Steenkamp, CEO © Harmony JSE ticker code HAR NYSE ticker code HMY

  4. Slide 4: Gold mining specialist with a growing international copper footprint

    4 GOLD MINING SPECIALIST WITH A GROWING INTERNATIONAL COPPER FOOTPRINT © Harmony Results for the financial year ended 30 June 2024 Doornkop Kalgold (open-pit) Kusasalethu Mine Waste Solutions Mponeng Savuka Phoenix Eva Copper project Central Plant (proposed open pit) Hidden Valley mine Moab Khotsong

  5. Slide 5: Our strategy: safe, profitable ounces and improving margins

    5 © Harmony Results for the financial year ended 30 June 2024 OUR STRATEGY: SAFE, PROFITABLE OUNCES AND IMPROVING MARGINS… …through operational SA SA underground underground excellence and high-grade optimised value-accretive acquisitions International copper-gold SA surface growth high-margin Inves

  6. Slide 6: Proactively managing safety through leading indicators

    6 PROACTIVELY MANAGING SAFETY THROUGH LEADING INDICATORS FOCUS ON INTEGRATION, SUSTAINABILITY AND PERSONAL OWNERSHIP Real-time dashboard monitoring Monitoring Embracing a culture of © Harmony Results for the financial year ended 30 June 2024 leading indicators 9 million + learning Digitisation and m

  7. Slide 7: Excellent full-year results as we achieve our goals

    7 EXCELLENT FULL-YEAR RESULTS AS WE ACHIEVE OUR GOALS (FY24 VS FY23) Operational © Harmony Results for the financial year ended 30 June 2024 Embedded safety Delivery on ESG excellence strategy commitments AISC2 • Group LTIFR1 of 5.53 per million • R1.2 billion Employee Share • Production exceeded re

  8. Slide 8: Mining with purpose: ESG ratings and recognition

    8 © Harmony Results for the financial year ended 30 June 2024 MINING WITH PURPOSE: WHAT WE ARE ALL ABOUT ESG RATINGS AND RECOGNITION ESG rating upgraded Harmony remained on a Harmony ranks in the Score of 71.71% and disclosure Score of ‘A’ Harmony conforms to 4.1 out of 5.0 B Top 50 under the score

  9. Slide 9: Growing quality ounces

    GROWING QUALITY OUNCES Peter Steenkamp, CEO © Harmony

  10. Slide 10: Globally significant resource base includes copper

    10 GLOBALLY SIGNIFICANT RESOURCE BASE INCLUDES COPPER EXCEPTIONAL RESERVE CONVERSION POTENTIAL Mineral Resources: gold and copper1 Mineral Reserves: gold and copper2 © Harmony Results for the financial year ended 30 June 2024 Australia copper & gold Papua New Guinea gold 6% 15% Papua New Guinea gold

  11. Slide 11: Targeted growth: strict investment criteria

    11 TARGETED GROWTH: WE ONLY PURSUE OPPORTUNITIES THAT MEET OUR STRICT INVESTMENT CRITERIA AND IMPROVE QUALITY OF PORTFOLIO CREATING LONG-TERM VALUE Lower risk profile: © Harmony Results for the financial year ended 30 June 2024 • All ESG1 factors considered especially safety and impact of climate ch

  12. Slide 12: Investing in our transformative assets

    12 INVESTING IN OUR TRANSFORMATIVE ASSETS Mine Waste Solutions Moab Khotsong extension Mponeng extension © Harmony Results for the financial year ended 30 June 2024 Project in execution Key numbers • Life-of-mine extended to over 14 years • Life-of-mine extended to at least 20 years • Life-of-mine e

  13. Slide 13: Investing in transformative assets (cont'd): Eva Copper and Wafi-Golpu

    13 INVESTING IN TRANSFORMATIVE ASSETS (CONT’D) FEASIBILITY UPDATE PERMITTING Eva Copper* Wafi-Golpu © Harmony Results for the financial year ended 30 June 2024 Project • Conditional grant funding of A$20.7 million from Queensland Government Converting signed framework Memorandum of Understanding int

  14. Slide 14: Capital expenditure drives ounce replacement and growth (Rand)

    14 CAPITAL EXPENDITURE DRIVES OUNCE REPLACEMENT AND GROWTH Capital guidance¹ (Rand million) © Harmony Results for the financial year ended 30 June 2024 10 814 10 333 754 1 099 1 365 9 373 8 600 8 306 1 128 not utilised 1 045 909 429 892 927 3 817 865 3 236 3 945 2 739 2 764 5 111 4 652 4 018 3 773 3

  15. Slide 15: Capital expenditure drives ounce replacement and growth (US$)

    15 CAPITAL EXPENDITURE DRIVES OUNCE REPLACEMENT AND GROWTH Capital guidance¹ (US$ million) © Harmony Results for the financial year ended 30 June 2024 590 41 570 60 75 520 465 445 62 not utilised 57 49 23 48 50 209 46 177 216 148 148 280 255 217 203 212 FY24 revised guidance FY24 * FY25 FC** FY26

  16. Slide 16: FY25 capital guidance per operations (Rand)

    16 FY25 CAPITAL GUIDANCE PER OPERATIONS (RAND)# 2 500 © Harmony Results for the financial year ended 30 June 2024 DRIVERS OF HIGHER SUSTAINING CAPITAL 2 000 • Development metres to maintain flexibility • Inflation 1 500 1 131 • IT1 expenditure 754 • TSF2 management Rm 1 000 934 591 563 1 198 328 126

  17. Slide 17: FY25 capital guidance per operations (US$)

    17 FY25 CAPITAL GUIDANCE PER OPERATIONS (US$) # 140 © Harmony Results for the financial year ended 30 June 2024 DRIVERS OF HIGHER SUSTAINING CAPITAL 120 • Development metres to maintain flexibility 100 • Inflation 62 • IT1 expenditure 80 41 • TSF2 management US$m 60 51 32 40 31 66 18 7 11 5 14 20 17

  18. Slide 18: Life-of-mine ounce profile: sustainable 1.4Moz producer

    18 CONTINUOUS INVESTMENT IMPROVES THE QUALITY OF OUNCES WHILE REMAINING A SUSTAINABLE 1.4MOZ PRODUCER Total Harmony: life-of-mine ounce profile 2 000 © Harmony Results for the financial year ended 30 June 2024 1 800 FY24 1 600 1 400 1 200 oz'000 1 000 800 600 400 200 - FY16A FY17A FY18A FY19A FY20A

  19. Slide 19: Operational results

    OPERATIONAL RESULTS Beyers Nel, GCOO © Harmony

  20. Slide 20: Operational excellence underpins our success

    20 OPERATIONAL EXCELLENCE UNDERPINS OUR SUCCESS Strong safety and Operational flexibility Excellent Stable and predictable Partner Substantial resource to operational culture and predictability grades cost structure of choice reserve conversion opportunities © Harmony Results for the financial year

  21. Slide 21: Proactive safety strategy ensures ongoing improvement

    21 PROACTIVE SAFETY STRATEGY ENSURES ONGOING IMPROVEMENT Lost-time injury frequency rate (LTIFR) – Group 6,33 6,18 © Harmony Results for the financial year ended 30 June 2024 5,65 5,49 5,53 FY20 FY21 FY22 FY23 FY24 Loss-of-life injury frequency rate (LLIFR) – Group 0,13 0,11 0,08 0,07 0,06 FY20 FY21

  22. Slide 22: Operational excellence and good mining discipline

    22 OPERATIONAL EXCELLENCE AND GOOD MINING DISCIPLINE RESULTS IN EXCELLENT GRADE CONTROL AND PRODUCTION GROWTH South African Operations: Total gold production (kgs) Underground recovered grade (g/t) © Harmony Results for the financial year ended 30 June 2024 6,11 47 755 48 578 46 236 45 651 5,78 37 8

  23. Slide 23: Record silver and uranium production

    23 RECORD SILVER AND URANIUM PRODUCTION BY-PRODUCT CREDITS REDUCE UNIT COSTS Silver (000oz1) Uranium (lb2) © Harmony Results for the financial year ended 30 June 2024 3 673 590 104 3 129 523 461 2 639 2 164 369 706 1 913 332 408 302 690 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 FY24 vs FY23

  24. Slide 24: Lower all-in sustaining costs ensuring higher margins

    24 LOWER ALL-IN SUSTAINING (AISC) COSTS ENSURING HIGHER MARGINS Total all-in sustaining cost (R/kg) Total all-in sustaining cost (US$/oz) © Harmony Results for the financial year ended 30 June 2024 901 550 1 709 889 766 835 891 1 558 1 500 1 460 723 054 1 293 651 356 FY20 FY21 FY22 FY23 FY24 FY20 FY

  25. Slide 25: Record operating free cash flows

    25 RECORD OPERATING FREE CASH FLOWS Total operating free cash flow (Rm) Total operating free cash flow (US$m) © Harmony Results for the financial year ended 30 June 2024 12 743 681 6 031 339 191 2 905 FY22 FY23 FY24 FY22 FY23 FY24 FY24 vs FY23 FY24 vs FY23 • Operating free cash flows: 111% increase

  26. Slide 26: South African high-grade operations

    26 SOUTH AFRICAN HIGH-GRADE OPERATIONS: LONG-LIFE, QUALITY OUNCES FY24 HIGHLIGHTS: OUTLOOK: • Progress life-of-mine extension projects at Mponeng and Moab Khotsong © Harmony Results for the financial year ended 30 June 2024 • FY25 major capital expenditure: R2.1 billion Gold production Operating Tot

  27. Slide 27: South African optimised operations: funding growth

    27 SOUTH AFRICAN OPTIMISED OPERATIONS: FUNDING GROWTH FY24 HIGHLIGHTS: OUTLOOK: • Contributes significantly to group cash at current gold prices • Continued focus on achieving © Harmony Results for the financial year ended 30 June 2024 planned production and reducing costs Gold production Operating

  28. Slide 28: South African surface operations: low risk, high margins

    28 SOUTH AFRICAN SURFACE OPERATIONS: LOW RISK, HIGH-MARGINS FY24 HIGHLIGHTS: OUTLOOK: • Mine Waste Solutions streaming contract with Franco-Nevada to conclude in H1FY25 resulting in © Harmony Results for the financial year ended 30 June 2024 >R900 million increase in cash flow Gold production Operat

  29. Slide 29: International: Hidden Valley and diversifying into copper

    29 INTERNATIONAL: HIDDEN VALLEY AND DIVERSIFYING INTO COPPER FY24 HIGHLIGHTS: OUTLOOK: • Progress Stage 8 stripping • Life-of-mine extension © Harmony Results for the financial year ended 30 June 2024 pre-feasibility studies for potential Gold production Operating Total capital Stage 9 which will ex

  30. Slide 30: Higher margins drive significant operating free cash flows

    30 HIGHER MARGINS DRIVE SIGNIFICANT OPERATING FREE CASH FLOWS 47% © Harmony Results for the financial year ended 30 June 2024 39% 35% 32% 32% 25% 20% 19% 17% 16% 11% 9% SA high-grade underground SA optimised underground SA surface operations International (Hidden Valley) % of total production in FY2

  31. Slide 31: Financial results

    FINANCIAL RESULTS Boipelo Lekubo, FD © Harmony

  32. Slide 32: Outstanding earnings growth (Rand)

    32 OUTSTANDING EARNINGS GROWTH ON BACK OF OPERATIONAL EXCELLENCE AND HIGHER GOLD PRICES (RAND) © Harmony Results for the financial year ended 30 June 2024 FY24 FY23 Group revenue up Metrics Change (Rm)1 (Rm)1 Group revenue2 25% 61 379 49 275 25% Net profit 78% 8 688 4 883 to R61bn EBITDA3 54% 18 942

  33. Slide 33: Outstanding earnings growth (US$)

    33 OUTSTANDING EARNINGS GROWTH ON BACK OF OPERATIONAL EXCELLENCE AND HIGHER GOLD PRICES (US$) © Harmony Results for the financial year ended 30 June 2024 FY24 FY23 Metrics Change Group revenue up (US$m)1 (US$m)1 Group revenue2 18% 3 282 2 774 18% Net profit 67% 459 275 to US$3.3bn EBITDA3 60% 1 042

  34. Slide 34: Balanced capital allocation framework

    34 BALANCED CAPITAL ALLOCATION FRAMEWORK Safety and production optimisation: © Harmony Results for the financial year ended 30 June 2024 Aiming for ZERO loss-of-life Debt repayment: <1x net debt/EBITDA1 Organic growth and investment: Focus on increasing grade and margins Inorganic growth: Value-accr

  35. Slide 35: Strong revenue and headline earnings per share growth

    35 STRONG REVENUE AND HEADLINE EARNINGS PER SHARE GROWTH 70 000 1 852 2 000 © Harmony Results for the financial year ended 30 June 2024 60 000 1 500 50 000 987 1 000 40 000 800 SA cents Rm 30 000 499 500 298 221 204 171 20 000 - 10 000 ( 154) 18 334 19 494 20 452 26 912 29 245 41 733 42 645 49 275 6

  36. Slide 36: All-in sustaining costs breakdown (Rands)

    36 ALL-IN SUSTAINING COSTS BREAKDOWN (RANDS) FY24 VS FY23 FY24 FY23 © Harmony Results for the financial year ended 30 June 2024 Sustaining capital; 10% Sustaining capital; 10% Other; -2% Other; 1% Royalties; 3% Royalties; 2% Labour, 38% Labour, 37% Electricity and water; 18% Electricity and water; 1

  37. Slide 37: Overall cash operating costs remain well-managed (Rand)

    37 OVERALL CASH OPERATING COSTS REMAIN WELL-MANAGED (RAND) Cash operating cost (R/kg) © Harmony Results for the financial year ended 30 June 2024 +3% 26 283 14 292 Cost breakdown 99 605 • Cash operating costs in R/kg increased by 96 368 3% driven mainly by annual salary increases, electricity costs

  38. Slide 38: Overall cash operating costs remain well-managed (US$)

    38 OVERALL CASH OPERATING COSTS REMAIN WELL-MANAGED (US$) Cash operating cost (US$/oz) © Harmony Results for the financial year ended 30 June 2024 -2% Cost breakdown 25 44 • Cash operating costs in US$/oz decreased 169 166 by 2% partially due to a 5% weakening of the Rand against US Dollar 243 • Tot

  39. Slide 39: Capital expenditure critical to sustainability

    39 CAPITAL EXPENDITURE CRITICAL TO SUSTAINABILITY OUR ALLOCATION STRATEGY SECURES FUNDING OF KEY PROJECTS Life-of-mine operating free cash flow margins @ gold price of R1 250 000/kg** © Harmony Results for the financial year ended 30 June 2024 44% 29% 27% 22% High grade Optimised Surface Hidden Vall

  40. Slide 40: Double-digit margins ensure we are well-positioned

    40 DOUBLE-DIGIT MARGINS ENSURE WE ARE WELL-POSITIONED HEADING INTO NEW FINANCIAL YEAR Average gold price received: R1 201 653/kg (US$1 999/oz) © Harmony Results for the financial year ended 30 June 2024 FY24 AIC margin: 19% FY24 AISC margin: FY24 Cash operating 25% cost margin: 37% Protecting margin

  41. Slide 41: Balance sheet in net cash position (Rand)

    41 BALANCE SHEET IN NET CASH POSITION NET DEBT TO EBITDA (RAND) 25 000 1,5 © Harmony Results for the financial year ended 30 June 2024 20 000 1,2 15 000 0,9 Rand million Net debt to EBITDA 10 000 0,6 5 000 0,3 - 0,0 Jun-18 Jun-19 Jun-20 Jun-21 Jun-22 Jun-23 Jun-24 -5 000 -0,3 Net debt EBITDA Ratio

  42. Slide 42: Balance sheet in net cash position (US$)

    42 BALANCE SHEET IN NET CASH POSITION NET DEBT TO EBITDA (US$) 1 250 1,5 © Harmony Results for the financial year ended 30 June 2024 1 000 1,2 750 0,9 USD million Net debt to EBITDA 500 0,6 250 0,3 - 0,0 Jun-18 Jun-19 Jun-20 Jun-21 Dec-21 Jun-22 Jun-23 Jun-24 -250 -0,3 Net debt EBITDA Ratio

  43. Slide 43: Robust balance sheet with significant headroom

    43 © Harmony Results for the financial year ended 30 June 2024 ROBUST BALANCE SHEET WITH SIGNIFICANT HEADROOM Headroom (ZAR million) Headroom (US$ million) 258 4 693 695 12 649 2 867 152 437 7 956 7 250 385 4 383 233 June 23 June 24 June 23 June 24 Undrawn facilities Cash and cash equivalents Undraw

  44. Slide 44: Returning cash to shareholders

    44 RETURNING CASH TO SHAREHOLDERS ALONGSIDE INVESTMENT IN OUR FUTURE FINAL DIVIDEND DECLARED © Harmony Results for the financial year ended 30 June 2024 R Confidence in our plans Delivering Solid cash flows and and ability to pay a dividend positive total shareholder returns alongside our growth asp

  45. Slide 45: Conclusion

    CONCLUSION Peter Steenkamp, CEO © Harmony

  46. Slide 46: FY25 guidance

    46 FY25 GUIDANCE Production Underground grade Group AISC3 © Harmony Results for the financial year ended 30 June 2024 1 2 Between 1.4Moz to 1.5Moz Above 5.8g/t 4 R1 020 000/kg 4 and R1 100 000/kg 1. Moz: million ounces 2. g/t: grams per tonne 3. AISC: all-in sustaining costs 4. kg: kilogram

  47. Slide 47: FY25 all-in sustaining cost guidance

    47 © Harmony Results for the financial year ended 30 June 2024 FY25 ALL-IN SUSTAINING COST GUIDANCE +3% 1 020 000 – 1 100 000 +8% +7% • Total Harmony AISC increase from the original FY24 guidance to FY25 guidance is 8.7% • Hidden Valley’s impact on total Harmony AISC due to lower production and cost

  48. Slide 48: Harmony, a solid investment

    48 HARMONY, A SOLID INVESTMENT A COMPELLING GOLD-COPPER STORY © Harmony Results for the financial year ended 30 June 2024 Lower risk profile Improving Long, diversified Strong and flexible Clear capital operational metrics production profile balance sheet allocation framework • Prioritising safety •

  49. Slide 49: Thank you

    THANK YOU Contact us harmonyir@harmony.co.za © Harmony

  50. Slide 50: Annexures

    Jrossonr ANNEXURES PURPOSE ' MINING WITH @===

  51. Slide 51: FY25 cost and grade guidance (per operation)

    51 FY25 COST AND GRADE GUIDANCE (PER OPERATION) • Plan to produce ~1.4Moz to 1.5Moz in FY25, at • an average underground recovered grade of >5.80g/t, • an all-in sustaining cost of R1 020 000/kg to R1 100 000/kg for total Harmony © Harmony Results for the financial year ended 30 June 2024 Adjusted r

  52. Slide 52: FY25 production guidance (per operation)

    52 FY25 PRODUCTION GUIDANCE (PER OPERATION) FY24 production FY25 guidance Life of mine Operation (oz) (oz) (years) © Harmony Results for the financial year ended 30 June 2024 Mponeng 281 350 255 700 – 264 100 20 Moab Khotsong 212 162 188 900 – 203 300 20 Kusasalethu 123 523 117 300 – 130 300 3 Tshep

  53. Slide 53: Revised renewable energy plan driving decarbonisation

    53 REVISED RENEWABLE ENERGY PLAN DRIVING DECARBONISATION SIGNIFICANTLY INCREASING CAPACITY Energy generating capacity increased from 363MW to 583MW to support asset life extension PHASE 1 PHASE 2* PHASE 3 PHASE 4 WHEELED WIND © Harmony Results for the financial year ended 30 June 2024 30MW 137MW 56M

  54. Slide 54: Hedging table as at June 2024

    54 HEDGING TABLE AS AT 30 JUNE 2024 FY2025 FY2026 FY2027 H1 H2 H1 H2 H1 H2 Total Rand Gold Forward Contracts koz 192 188 152 82 14 10 638 © Harmony Results for the financial year ended 30 June 2024 R'000/kg 1 253 1 365 1 389 1 550 1 679 1 734 1 373 Dollar Gold Forward Contracts koz 20 19 18 11 5 2 7

  55. Slide 55: Mineral Resources of 136.5Moz

    55 MINERAL RESOURCES OF 136.5MOZ Mineral Resources Reconciliation June 23 vs June 24 Mponeng (+0.920Moz) (Moz1) • Estimation model increased in Booysens Shale © Harmony Results for the financial year ended 30 June 2024 area and Extension project area 137.8 2.2 136.5 140 Tshepong North (+0.509Moz) 2.

  56. Slide 56: Mineral Reserves increased to 40.3Moz

    56 MINERAL RESERVES INCREASED TO 40.3MOZ Mineral Reserves Reconciliation June 23 vs June 24 Mponeng (+3.010Moz) (Moz1) • Mponeng Extension project approval increased © Harmony Results for the financial year ended 30 June 2024 life-of-mine to 20 years 39.3 40.3 40 Tshepong North (+0.325Moz) 3.6 0.8 •

Harmony Gold Mining Company — FY2024 Earnings Presentation on 6ix