Harmony Gold Mining Co. Ltd. · JSE:HAR

Harmony Gold Mining — 2017 Denver Gold Forum

23 slides from Harmony Gold Mining's conference presentation, Sep 25, 2017

Slide 1: 2017 Denver Gold Forum
© Harmony | 2017 Denver Gold Forum Presentation 1 2017 DENVER GOLD FORUM 25 September 2017, Colorado Springs Peter Steenkamp, CEO
Slide 2: Private Securities Litigation Reform Act Safe Harbour Statement
2 PRIVATE SECURITIES LITIGATION REFORM ACT SAFE HARBOUR STATEMENT This presentation contains forward-looking statements within the meaning of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended, with re
Slide 3: Why Invest in Harmony
3 WHY INVEST IN HARMONY Large, profitable producer Balance sheet strength © Harmony | 2017 Denver Gold Forum Presentation Quality growth prospects Share price uplift
Slide 4: Our Investment Proposition
4 OUR INVESTMENT PROPOSITION Large, profitable Balance sheet strength Quality growth prospects Share price uplift producer © Harmony | 2017 Denver Gold Forum Presentation  >1 Moz annual  Low net debt  Hidden Valley  Highly geared to gold production investment plan on price and Rand/US$  Success
Slide 5: Established Operations, Growth Opportunities
5 ESTABLISHED OPERATIONS, GROWTH OPPORTUNITIES PAPUA NEW GUINEA © Harmony | 2017 Denver Gold Forum Presentation Production split FY17 9% SOUTH AFRICA FY19E 15% Hidden Valley (open pit mine) Golpu copper-gold project (50:50 JV) Production split Multiple exploration areas FY17 91% (50% and 100%) FY19E
Slide 6: Quality Reserves – Gold and Copper
6 QUALITY RESERVES – GOLD AND COPPER Geographic diversification Mineral diversification1 Copper* (36%) Gold (63%) © Harmony | 2017 Denver Gold Forum Presentation PNG SA SA 13.2 Moz 16.3 Moz PNG Total reserves 44% 56% of 36.7 Moz1 PNG 6.9 Moz Silver (1%) 1 Copper and silver as gold equivalents based
Slide 8: Operational Excellence
8 OPERATIONAL EXCELLENCE Strategy Safe, profitable ounces and increasing margins Strategic Operational Cash certainty Effective capital © Harmony | 2017 Denver Gold Forum Presentation pillars excellence allocation  Safety performance improved  Achieved FY17 production guidance - 2nd consecutive ye
Slide 9: Consistently Improving Underground Grade
9 CONSISTENTLY IMPROVING UNDERGROUND GRADE Grade performance  Only South African gold 5.3 miner with improved underground grade profile 5.1 5.18  Grade discipline is key 5.07 5.02 4.9 − no mining below cut-off − mining to average © Harmony | 2017 Denver Gold Forum Presentation 4.7 4.74 4.73 reserv
Slide 10: Cash Certainty
10 CASH CERTAINTY Strategy Safe, profitable ounces and increasing margins Strategic Operational Cash Effective capital © Harmony | 2017 Denver Gold Forum Presentation pillars excellence certainty allocation  Reduced net debt – strong balance sheet leads to flexibility  Hedging strategy – secures c
Slide 11: Low Net Debt Leads to Flexibility
11 LOW NET DEBT LEADS TO FLEXIBILITY 300 250 1.8x 200 US$'million © Harmony | 2017 Denver Gold Forum Presentation 150 262 249 100 192 0.3x 0.3x 50 109 74 68 0 FY15 FY16 FY17 EBITDA Net debt Net debt/EBITDA ratio EBITDA: operating profit, excluding amortization and depreciation, impairment and loss o
Slide 12: Net Debt Compared to Major Peers
12 NET DEBT COMPARED TO MAJOR PEERS Net debt/EBITDA* 3.0 2.5 2.0 © Harmony | 2017 Denver Gold Forum Presentation 1.5 1.0 0.5 0.0 South Canadian Canadian South SouthPeers Canadian Australian Canadian American Canadian Harmony African African African ■ South African ■ Canadian ■ Australian ■ American
Slide 13: Successful Hedging Programmes Realise US$126 Million
13 SUCCESSFUL HEDGING PROGRAMMES REALISE US$126 MILLION 700,000 GOLD 650,000 FY17 cash flow: Unrealised mark-to-market 600,000 US$51m R/kg value at 30 June 2017: 550,000 US$102 million 500,000 450,000 400,000 © Harmony | 2017 Denver Gold Forum Presentation Profit Spot gold price Forward price 19 CUR
Slide 14: Effective Capital Allocation
14 EFFECTIVE CAPITAL ALLOCATION Strategy Safe, profitable ounces and increasing margins Strategic Operational Cash Effective capital © Harmony | 2017 Denver Gold Forum Presentation pillars excellence certainty allocation  Hidden Valley investment plan on budget and schedule (180koz)  Golpu study u
Slide 15: Hidden Valley Investment – 180koz by FY19
15 HIDDEN VALLEY INVESTMENT – 180 000OZ BY FY19 Strong fundamentals  Project economics – support FCF - IRR well exceeding 20% - LOM 6 years, AISC average US$850/oz to US$950/oz © Harmony | 2017 Denver Gold Forum Presentation - Steady state production: Au:180 000oz; Ag: 3Moz  Targeted commercial le
Slide 16: Investment Plan on Budget and Schedule
16 INVESTMENT PLAN ON BUDGET AND SCHEDULE  Ahead of schedule and operational performance in line with budget Milestones FY17 achievements Safety  No safety related work stoppages  Industry benchmark LTIFR achieved © Harmony | 2017 Denver Gold Forum Presentation Production  Operational ounces exc
Slide 17: Wafi-Golpu Is a World Class Orebody
17 WAFI-GOLPU IS A WORLD CLASS OREBODY 18.6Moz gold Large resource 8.6Mt copper1 Projected long mine Over 35 years life © Harmony | 2017 Denver Gold Forum Presentation Projected low operation Block-caving - low cost operating cost Close to the city of Close to infrastructure Lae - industrial hub, la
Slide 18: Golpu – A Quality High Grade Reserve
18 GOLPU – A QUALITY HIGH GRADE RESERVE (SE ASIA) 1.8% 1.6% Golpu Golpu 1.4% 1.2% Grasberg Cu wt (%) 1.0% In production © Harmony | 2017 Denver Gold Forum Presentation 0.8% Northparkes Ok Tedi 0.6% Namosi Batu Hijau Oyu Tolgoi 0.4% Didipio Project Kingking 0.2% Cadia Valley 0.0% 0.00 0.10 0.20 0.30
Slide 19: Wafi-Golpu Study Update
19 WAFI-GOLPU STUDY UPDATE  power supply options Current Geotechnical  reassessment of block cave levels and increased mining rates study focus interpretation  optimal tailings placement options © Harmony | 2017 Denver Gold Forum Presentation  business case to be updated and optimised − expected
Slide 21: Share Price Geared to Rand Gold Price
21 SHARE PRICE GEARED TO RAND GOLD PRICE 70 800,000 60 750,000 50 700,000 © Harmony | 2017 Denver Gold Forum Presentation 40 650,000 Rand/kg Rand 30 600,000 20 550,000 10 500,000 - 450,000 Dec-15 Jun-16 Dec-16 Jun-17 Harmony share price (Rand) Gold price Rand/kg Source: Factset,
Slide 22: Solid Investment Case
22 SOLID INVESTMENT CASE Large, profitable producer Balance sheet strength  safe, predictable production  low net debt allows for growth © Harmony | 2017 Denver Gold Forum Presentation  maintain increase in grade  hedging strategy protects margins Quality growth prospects Share price uplift  Go
Slide 23: Contact Us
23 © Harmony | 2017 Denver Gold Forum Presentation CONTACT US www.harmony.co.za HarmonyIR@harmony.co.za +27 11 411 2314

Harmony Gold Mining — 2017 Denver Gold Forum on 6ix

Harmony Gold Mining — 2017 Denver Gold Forum

Slide 1: 2017 Denver Gold Forum

Slide 2: Private Securities Litigation Reform Act Safe Harbour Statement

Slide 3: Why Invest in Harmony

Slide 4: Our Investment Proposition

Slide 5: Established Operations, Growth Opportunities

Slide 6: Quality Reserves – Gold and Copper

Slide 7: Increasing Margins

Slide 8: Operational Excellence

Slide 9: Consistently Improving Underground Grade

Slide 10: Cash Certainty

Slide 11: Low Net Debt Leads to Flexibility

Slide 12: Net Debt Compared to Major Peers

Slide 13: Successful Hedging Programmes Realise US$126 Million

Slide 14: Effective Capital Allocation

Slide 15: Hidden Valley Investment – 180koz by FY19

Slide 16: Investment Plan on Budget and Schedule

Slide 17: Wafi-Golpu Is a World Class Orebody

Slide 18: Golpu – A Quality High Grade Reserve

Slide 19: Wafi-Golpu Study Update

Slide 20: Conclusion

Slide 21: Share Price Geared to Rand Gold Price

Slide 22: Solid Investment Case

Slide 23: Contact Us