JOHANNESBURG (miningweekly.com) – During this financial year, South Africa’s largest gold mining company will be investing more than R3-billion in its South African assets.

“We're on an exciting growth path,” Harmony Gold Mining Company CEO Beyers Nel enthused during the Johannesburg Stock Exchange-listed company’s half-year results presentation covered by Mining Weekly. (Also watch attached Creamer Media video.)

More than R2-billion is going into high-grade underground gold mining projects and over R1-billion into high-margin surface operation projects.

The projects under way at Moab Khotsong and Mponeng will extend the lives of each of these major high-grade gold mines to at least 20 years, with Mponeng producing 250 000 oz/y of gold and Moab Khotsong 200 000 oz/y over that period.

Phase 2 of the Kareerand tailings storage facility expansion is on track for year-end completion at Mine Waste Solutions, where life-of-mine steady-state production will be 100 000 oz/y of gold.

“These projects demonstrate our commitment to gold mining in South Africa, ensuring that they continue delivering excellent margins for years to come,” Nel outlined.

Harmony’s strong net-cash balance sheet is enabling its major capital allocation to be directed towards portfolio derisking through investment in the high-grade underground, surface and international assets.

EVA COPPER

At Eva Copper in Australia, the feasibility study update is progressing, technical aspects have been completed and final permitting amendments, are awaited.

Eva Copper is expected to produce between 55 000 t and 60 000 t of copper a year and 14 000 oz of gold a year for 15 years.

“Conceptually, this translates to a mine of a similar size to some of our high-grade underground assets,” Nel pointed out.

Eva’s all-in sustaining costs are anticipated to be in the middle of the global industry cost curve.

First copper is expected in the 2029 calendar year, subject to the completion of the study and board approval.

At Wafi-Golpu in Papua New Guinea, negotiations of the special mining lease are ongoing.

The project pipeline is timed to ensure that project expenditure does not put pressure on the balance sheet.

Harmony Gold FD Boipelo Lekubo reported a 33% net profit increase to R7.9-billion, while the rolling 12-month earnings before tax, depreciation and amortisation increased by 28% to more than R22-billion.

Exceptional half-year free cash flow generation from operations shifted the balance sheet further into a net cash position of R7.3-billion.

Harmony has delivered a three-fold expansion in margins since financial year (FY) 2022.

Total operating free cash flow increased by 46% to R10.4-billion in the first half of FY2025.

Gold prices have further increased to around R1.7-million per kilogramme compared with the average of R1.4-million per kilogramme Harmony received during the six months to December 31.

Harmony, which continues to protect and lock in margins through a hedging programme, typically hedges between 10% and 30% of production over 36 months.

Financial headroom of more than R18-billion is made up of cash and undrawn facilities, and various capital demands are being funded from within the company.

“As it stands, we're able to fund Eva from our own cash flows and available facilities,” Lekubo noted.

Geared year-on-year dividends continue to be delivered, with R1.4-billion being returned to shareholders in the first half of FY2025.

As South Africa’s largest gold producer, Harmony is now also offering near-term copper optionality amid its nigh 75 years of South African gold mining experience and a rallying gold price.

With an Australian presence, Harmony has, through Hidden Valley, been operating for more than two decades in Papua New Guinea, where it has high hopes for the go-ahead of  Wafi-Golpu, which it regards as a Tier 1 copper/gold block cave mining asset.

“The quicker we can bring that to value for our shareholders the better,” Nel commented during question time.

Meanwhile, Harmony’s suite of operating assets continues to have good forward momentum.