Harmony Gold Mining Co. Ltd. · JSE:HAR
Harmony Gold Mining — PNG Mining and Petroleum Investment Conference 2016
31 slides from Harmony Gold Mining's conference presentation, 2016
Slide 1: Hidden Valley - PNG Mining and Petroleum Investment Conference 2016
HIDDEN VALLEY PNG MINING AND PETROLEUM INVESTMENT CONFERENCE 2016 Gary Davies General Manager Hidden Valley 2016
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: Where We Operate
3 WHERE WE OPERATE South Africa Papua New Guinea Limpopo Mpumalanga Gauteng North West Free State KwaZulu- Natal Northern Cape Hidden Valley Eastern Cape Western Cape Listed on JSE and NYSE Hidden Valley open pit mine 9 underground operations Wafi Golpu project (50:50 JV) © Harmony | 2016 1 open pit
Slide 4: Location
4 LOCATION Hidden Valley tenements located in the Morobe Province PNG Mine site is 140km from Lae via road Goods come in through Lae and transported along Lae – Bulolo Highway (100km) and via Mine Access road (40km) River crossing at Kumalu River © Harmony | 2016
Slide 5: Resource and Reserves
5 RESOURCE AND RESERVES Hidden Valley Section 75225N Mt g/t Moz g/t Ag Moz Au Au Ag Reserve* 28 1.6 1.4 31 27 Resource* 78 1.6 4.0 29 73 Stage 7 25 1.6 1.3 31 25 Inventory** *as of 30 June 2016 **included in Resource Stages 5&6 (7 Years) Reserve © Harmony | 2016 Stage 7 Prefeasibility study FY18
Slide 6: Harmony - PNG History
6 HARMONY – PNG HISTORY Established presence in Papua New Guinea since 2004 Hidden Valley – access road construction commenced July 2006 Harmony and Newcrest establish Joint venture in Morobe Province PNG May 2008 Hidden Valley officially opened September 2010 Harmony acquired 100% of Hidd
Slide 7: Summary of Hidden Valley Acquisition
7 SUMMARY OF HIDDEN VALLEY ACQUISITION Transaction announced September 2016, concluded October 2016 with all conditions met 100% ownership of producing gold and silver mine in PNG – a proven gold province Attractive reserve life with extension possible within the current open pit resource Es
Slide 8: Our Strategy
OUR STRATEGY
Slide 9: Our Strategy
9 OUR STRATEGY Enabling environment Maintaining disciplined cost management Positioned high cost operations for profitability Disciplined mining Operational Living our values excellence Increasing productivity Grade management Mining safe, profitable ounces Achieving operational plan
Slide 10: Our Aspiration Is to Grow... But Not at All Cost
10 OUR ASPIRATION IS TO GROW….BUT NOT AT ALL COST How we will achieve this Core business activities Producing 1.05 Moz 1.5 Moz at less than US$950/oz. within a New / emerging Growth possibilities business THREE YEAR PERIOD Our strong experienced mining teams © Harmony | 2016
Slide 11: Growing from 1.1 Moz to 1.5 Moz
11 11 GROWING FROM 1.1 MOZ TO 1.5 MOZ Growth possibilities Expansion in SA and into Africa Golpu Stage 2 Kili Teke prospect Ounces PNG grass roots exploration New / emerging business Tshepong/Phakisa integration Tailings re-treatment in Free State Golpu Stage 1 100% Acquisition of Hi
Slide 12: Safety, Health and Security
HARMONY SAFETY, HEALTH AND SECURITY
Slide 13: Safety, Health and Security - Our Top Priority
13 SAFETY, HEALTH AND SECURITY – OUR TOP PRIORITY © Harmony | 2016
Slide 14: Health, Safety & Security - Our Top Priority
14 HEALTH, SAFETY & SECURITY – OUR TOP PRIORITY 143 LTI free days, 273 recordable injury free days Management of major hazards, fatal risk and high risk activities ‒ High risk task assessments ‒ Vehicle operations, vehicle/pedestrian interaction, tree felling, working at heights ‒ Ensure critica
Slide 15: All Injury Frequency Rate Continues to Decline
15 ALL INJURY FREQUENCY RATE CONTINUES TO DECLINE © Harmony | 2016
Slide 16: Health
16 HEALTH Well equipped and accredited on site medical centre Employee medicals conducted on site Health monitoring programs ‒ Human Immunodeficiency Virus (HIV) ‒ Tuberculosis and hypertension Occupational hygiene monitoring Initiatives ‒ Cancer awareness ‒ HIV © Harmony | 2016
Slide 17: Community and Regional Development
17 COMMUNITY AND REGIONAL DEVELOPMENT Sustainable development plan and program initiated in 2010 Development planning aligned with Community, Ward, LLG and District priorities Ongoing investment in community and regional development ‒ Health ‒ Birth attendant training, logistic support, mediva
Slide 18: Mining Hidden Valley
HARMONY MINING HIDDEN VALLEY
Slide 19: Hidden Valley Mine - Overview
19 HIDDEN VALLEY MINE - OVERVIEW Ridgeline Process plant camp & offices TSF Waste dumps Stage 5 Stage 6 Stage 4 © Harmony | 2016
Slide 20: Hidden Valley Life of Mine
20 HIDDEN VALLEY LIFE OF MINE Seven year life of mine Investment of up to Kina 560 million in the next 2 years Stage 5 and 6 life-of-mine production of 1.2Moz gold and 18Moz of silver Planned production at steady state of 180,000oz of gold and 3Moz of silver © Harmony | 2016
Slide 21: Hidden Valley Plan Progress
21 HIDDEN VALLEY PLAN PROGRESS Waste stripping at Stage 5 has commenced Investment in additional and replacement mobile fleet underway – 9 additional mining trucks purchased Stockpile processing with Hamata ore continues – SAG reline completed during November Planning for plant maintenance a
Slide 22: Mining Progress
22 MINING PROGRESS Hidden Valley Kaveroi Main pit Stage 5 and 6 are push backs onto current highwall Mine rate ramps up to 28Mtpa Four main production diggers (1 x 300t and 3 x 200t) 35 x 96t dump trucks Fully engineered waste dumps designed for life of mine © Harmony | 2016
Slide 23: Mining Stage
23 MINING STAGE 5 Hidden Valley Kaveroi Main pit Stage 5 and 6 are push backs onto current highwall Mine rate ramps up to 28Mtpa Four main production diggers (1 x 300t and 3 x 200t) 35 x 96t dump trucks Fully engineered waste dumps designed for life of mine © Harmony | 2016
Slide 24: Mining Stage
24 MINING STAGE 6 Hidden Valley Kaveroi Main pit Stage 5 and 6 are push backs onto current highwall Mine rate ramps up to 28Mtpa Four main production diggers (1 x 300t and 3 x 200t) 35 x 96t dump trucks Fully engineered waste dumps designed for life of mine © Harmony | 2016
Slide 25: Processing
25 PROCESSING 4 million tonnes per annum SAG mill, gravity, flotation and CIL High reliability Gold recovery ~85% Silver recovery ~75% INCO and CAROS cyanide destruction circuits Power from grid (15MW) ‒ 100% backup via on site diesel generation © Harmony | 2016
Slide 26: Tailings Storage Facility
26 TAILINGS STORAGE FACILITY Terrestrial tailing storage facility (TSF) Capacity for current Reserve Detailed engineered structure ‒ four main zones, built up in 450mm compacted lifts Water pond kept to a minimum Regular 3rd party audits 7.1 magnitude earthquake ‒ 2011, 30km from dam no
Slide 27: Regional Economic Impact of Mine Re-Investment
27 REGIONAL ECONOMIC IMPACT OF MINE RE-INVESTMENT Direct benefit streams (average annualized) ‒ Total employee salaries PGK 85M ‒ Salary and wage tax PGK 38M ‒ Royalties and production levy PGK15M ‒ Local procurement (excluding PPL power) PGK 410M ‒ Power purchased from PPL (PNG) PGK 38M ‒ Total a
Slide 28: In Conclusion
Jronnony IN CONCLUSION
Slide 29: Harmony in PNG
29 HARMONY IN PNG We have a long history in PNG and understand the challenges of operating in a developing country We have a significant portfolio of assets in PNG covering the whole mining value chain, from an operating mine in Hidden Valley, the Wafi Golpu project as well as exciting brownfiel
Slide 30: Contact Us
CONTACT US www.harmony.co.za HarmonyIR@harmony.co.za Tel: +27 411 2011
Slide 31: Competent Person Statement
31 COMPETENT PERSON STATEMENT The information in the presentation that relates to Exploration Results was compiled by Mike Humphries. Mr Humphries is a full time employee of Harmony Gold Mining Company Limited. Mr Humphries is a member of the Australian Institute of Geologists and has sufficient exp
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