Harmony approves Eva Copper Project for development
Harmony Gold completed the updated Feasibility Study and the approval of the Final Investment Decision (FID) by the Board of Directors for the Eva Copper Project in Queensland, Australia.
Eva Copper is a 100%-owned, high-margin, long-life asset located in Northwest Queensland. The proposed low strip ratio open pit development is expected to produce approximately 65 000 tonnes of copper in concentrate per year during the first five years, with an expected life-of-mine average production profile of around 60 000 tonnes of copper and 19 000 ounces of gold per annum. This will be achieved by processing on average 18 million tonnes per annum of ore over its currently estimated 15-year mine life, at a very attractive margin with an all-in sustaining cost (AISC) of approximately US$ 2.50/lb, delivering robust cash flow generation at strong margins over the life of this asset.
“The Eva Copper Feasibility Study delivers a strong, high-confidence outcome that positions Harmony for the next phase of growth as we continue building a high-quality, low-cost portfolio. Over the past three years, we have received strong support from the Queensland Government and key stakeholders as we systematically de-risked this project, driving resource and reserve expansion at exceptionally low discovery costs and unlocking further upside potential.
Eva Copper, together with our recent MAC Copper acquisition, creates a compelling platform that brings together the enduring value of gold with the future-facing strength of copper, enhancing cash flow resilience across commodity cycles. In addition to our significant gold production, our two Australian copper assets are expected to deliver a combined total of approximately 100 000 tonnes of copper annually once fully commissioned.
The Project provides compelling exposure to robust copper fundamentals and, when combined with the current strength in gold prices, offers significant upside potential. We have confidence in the long-term outlook for copper and gold, and Eva Copper is poised to deliver strong free cash flows and attractive margins, while reducing our overall risk profile. Harmony’s diversification into a Tier 1 mining jurisdiction strengthens our long-term value proposition as a global gold and copper producer,” says Beyers Nel, Harmony CEO.
Project capital
Project capital is estimated at US$1.55 billion (AUD2.3 billion) to US$1.75 billion (AUD2.6 billion), expressed in real terms. The capital profile remains highly manageable, with expenditure phased over a three-year construction period. We expect a competitive capital intensity of approximately US$26 000 to US$29 000 per tonne of copper produced, reinforcing the project’s capital efficiency.
Funding and credit ratings
Harmony has maintained a strong balance sheet with net debt to EBITDA comfortably below 1.0x after the recent acquisition of MAC Copper. As previously communicated, Harmony is reviewing its balance sheet structure to align funding with longer-term projects and sustainable cash flow generation. This approach is designed to maintain financial flexibility while continuing to prioritise shareholder returns. Our commitment to dividends remains an integral part of our capital allocation framework. The Project will therefore be funded through a balanced mix of internal cash flows and capital-efficient debt instruments.
To enhance funding flexibility for long-term projects, Harmony has obtained inaugural public credit ratings with the three major rating agencies as shown below:
- Fitch Ratings: BB / Stable
- Moody’s: Ba1 / Stable
- S&P Global: BB / Stable
These ratings include the financial impact of the Eva Copper project capital and the MAC Copper acquisition and reflect Harmony’s strong operational performance and balance sheet, prudent financial management and sound market position.
