Harmony Gold's Strategic Transition: Leveraging Gold Strength to Fund Copper Expansion

Harmony Gold Mining Company Limited is undergoing a strategic transformation that positions it as a dual-commodity leader, leveraging its record gold performance to fund a high-conviction copper expansion. In FY25, the company achieved a 54% surge in adjusted free cash flow to R11.1 billion (US$614 million), driven by a 27% increase in average gold prices and improved underground grades at its Mponeng mine, which delivered 11.27g/t and a 19% production boost [1]. This financial strength has created a robust foundation for capital allocation, with Harmony now redirecting a portion of its gold-derived cash flow toward copper—a critical metal for the energy transition.

The company’s copper strategy is anchored in two pillars: the $1.03 billion acquisition of MAC Copper, owner of the high-grade CSA Mine in Australia, and the development of the Eva Copper Project in Queensland. The CSA Mine, which produced 41,000 tonnes of copper in 2024, offers immediate production and cash flow, with cash costs 30% below the global average [1]. Meanwhile, the Eva Project’s 31% increase in mineral resources to 1.93 million tonnes of contained copper positions it as a long-term growth engine, with production slated for 2028 [4]. By 2026, Harmony anticipates producing 55,000–60,000 tonnes of copper annually, diversifying its revenue base and reducing exposure to gold price volatility [2].

This transition aligns with a seismic shift in global copper demand. Renewable energy and electric vehicles (EVs) are projected to account for 61% of total copper demand by 2040, with the IEA estimating demand could exceed 35 million tonnes by 2035 under current climate policies and reach nearly 40 million tonnes by 2050 under a net-zero scenario [2]. Copper’s role in EVs (100 kg per vehicle) and power grids—where underground wiring requires 50% more copper than overhead lines—further underscores its strategic importance [3]. Harmony’s timing is critical: as supply-side constraints (declining ore grades, permitting delays) outpace demand, companies with low-cost, high-grade assets like CSA and Eva will capture market share.

The financial discipline demonstrated in FY25—recording a record net cash balance of R11.1 billion and a 285% increase in dividends—proves Harmony’s ability to fund growth without overleveraging [1]. By prioritizing copper, the company is not only hedging against gold market cycles but also capitalizing on a structural tailwind. For investors, this represents a rare inflection point: a gold producer with the balance sheet to execute a high-conviction pivot into a metal central to the energy transition.

**Source:[1] Results for the year ended 30 June 2025 and a final ... [https://www.harmony.co.za/investors/news/company-announcements/2025/fy25-results-final-dividend-28aug2025/][2] Copper, Powering the Energy Transition and the AI Era [https://news.samsungcnt.com/en/features/trading-investment/2025-07-global-commodities-outlook-copper-powering-the-energy-transition-and-the-ai-era/][3] Copper's role in the energy transition grows as demand ... [https://www.ey.com/en_us/insights/mining-metals/coppers-role-in-the-energy-transition-grows-as-demand-surges][4] It's records all round for Harmony Gold, Mponeng ... [https://www.miningweekly.com/article/its-records-all-round-for-harmony-gold-mponeng-performance-phenomenal-2025-08-28]