HMY

Business Context and Reporting Period

Company: Harmony Gold Mining Company Limited
Filing Type: Form 6-K (Report of Foreign Private Issuer)
Date: November 24, 2025
Subject: Approval of the Final Investment Decision (FID) for the Eva Copper Project in Queensland, Australia, following the completion of an updated Feasibility Study.

Key Financial Metrics and Project Economics

Project Capital: Estimated at US$1.55 billion to US$1.75 billion (AUD2.3 billion to AUD2.6 billion) in real terms, phased over three years.
Capital Intensity: US$26,000 to US$29,000 per tonne of copper produced.
Production Profile:

• Copper: ~65,000 tonnes per annum (Years 1-5); ~60,000 tonnes per annum (Life-of-Mine average).
• Gold: ~19,000 ounces per annum (Life-of-Mine average).
• Processing Capacity: 18 million tonnes per annum.

Costs and Margins:

• All-in Sustaining Cost (AISC): ~US$2.50/lb (first 5 years).
• C1 Net Cash Cost: US$2.07/lb (first 5 years).
• Free Cash Flow Margin: Estimated at 40% over the life-of-mine.

Financial Returns (Base Case):

• After-tax NPV: AUD445 million (real 2025).
• Internal Rate of Return (IRR): 11%.
• Payback Period: 7 years from FID.

Balance Sheet: Net debt to EBITDA remains below 1.0x following the MAC Copper acquisition.

Material Changes and Strategic Developments

Project Approval: The Board has approved the FID for Eva Copper, transitioning the project from Early Works to execution.
Resource Expansion: Since acquisition in October 2022, 166,000 meters of drilling increased Mineral Resources and Reserves. The project holds 1.021Mt of Copper Reserves and 5.317koz of Gold Reserves.
Commodity Diversification: Combined with the MAC Copper acquisition, Harmony expects to produce ~100,000 tonnes of copper annually once fully commissioned, diversifying from a gold-only focus to a gold-copper portfolio.
Credit Ratings: Harmony secured inaugural public credit ratings: Fitch (BB/Stable), Moody's (Ba1/Stable), and S&P Global (BB/Stable).

Guidance, Outlook, and Risks

Timeline: Construction mobilization expected in Q3 FY26; first production targeted for the second half of 2028.
Management Commentary: CEO Beyers Nel states the project positions Harmony for growth with high margins and low execution risk, enhancing cash flow resilience across commodity cycles.
Funding Strategy: Project will be funded via a mix of internal cash flows and capital-efficient debt instruments.
Key Risks and Contingencies:

• Regulatory: Subject to an amendment of the current Environmental Authority.
• Market: Sensitivity to copper and gold price fluctuations (Base case assumes US$4.50/lb copper; Upside case assumes US$5.50/lb).
• Operational: Risks include power supply constraints, labor disruptions, and geotechnical challenges.
• Macroeconomic: Inflation, supply chain issues, and currency exchange rate volatility (AUD/USD).

Unusual Items: The project includes a bespoke hybrid power solution (solar, battery, diesel) achieving 40% renewable penetration.

Investor Verification Checklist

• Environmental Authority: Confirm the status and timeline for the required amendment to the Environmental Authority.
• Capital Expenditure: Monitor actual capital spend against the US$1.55B–US$1.75B estimate during the three-year construction phase.
• Commodity Prices: Assess sensitivity of project NPV to deviations from the assumed long-term copper price of US$4.50/lb.
• Debt Structure: Verify the specific terms of the "capital-efficient debt instruments" to be utilized for funding.
• Production Ramp-up: Track progress toward the H2 2028 first production target and the 18Mtpa processing capacity.