The good momentum at Harmony Gold Mining Company’s South African and Papua‑New Guinean operations has enabled the company to replace ounces and grow the company.

Even with the funding of the company’s anticipated acquisition of MAC Copper, owner of the CSA copper mine in New South Wales, Australia, through a binding all-cash deal valued at about R18.4-billion, Harmony’s net debt to earnings before interest, taxes, depreciation and amortisation ratio would remain within its targeted leverage range of about 0.5 times post‑closing, Harmony Gold CEO Beyers Nel said at the London Indaba, on June 25.

“Harmony’s strong balance sheet will enable the pursuit of further growth opportunities through CSA, while maintaining our dividend policy,” he told delegates.

“CSA is one of the highest‑grade copper mines in Australia. We are familiar with operating deeper underground mines. This is what we do. And given its different market drivers, copper introduces counter‑cyclical diversification to our gold portfolio.

"This includes strategic relevance in energy, energy transition and digitalisation.

“For Harmony, acquiring the CSA mine is a great strategic fit. It’s a game‑changing acquisition that aligns seamlessly with our long‑term strategy,” Nel explained.

With the CSA acquisition advancing and the feasibility study on the Eva copper mine project, in Queensland, nearing completion, Nel said Harmony was poised to become a significant copper producer in Australia, adding immediate copper production of about 40 000 t/y.

“If we proceed with the Eva copper project, Harmony will produce close to 100 000 t/y of copper, anchored by the high‑grade CSA mine and supported by our strong balance sheet.

“Harmony is at the forefront of Australia’s copper sector, capitalising on rising global demand and delivering substantial long‑term value to our shareholders.”

He said Harmony was currently producing about 1.5-million ounces a year of gold. Based on long‑term prices, Nel said the acquisition of CSA would illustratively add 180 000 to 200 000 gold‑equivalent ounces a year to the company’s production profile.

Nel stated that this expansion was made possible through the continued striving to improve efficiencies through business improvement initiatives, with project‑execution discipline remaining critical for the significant project pipeline.

“Driving our portfolio towards quality and profitability means prioritising projects that expand margins and boost free cash flow generation. Our significant investments in Moab Khotsong, Mponeng and Mine Waste Solutions in South Africa, and our reinvestment in the Hidden Valley gold mine in Papua New Guinea, are examples,” he said.

However, Nel advised that mining in emerging markets was not for the faint‑hearted.

“It is a bold declaration that we, as mining leaders, see value where others see volatility. But optimism and hope alone are not enough. We need realism, pragmatism and, above all, the instinct to survive and thrive in these unpredictable terrains,” he said.

He said Harmony’s diversification into copper reflected a broader strategic shift towards strengthening resilience and unlocking new growth avenues across commodity cycles.

Nel told delegates that Harmony’s investments across South Africa, Papua New Guinea and now Australia, positioned the company to adapt to evolving market risks and opportunities.

He said mining in volatile jurisdictions required a pragmatic and disciplined approach, one that acknowledges the risks but also sees potential for value creation. These risks included political instability, regulatory uncertainty, inadequate infrastructure and social unrest.

While not new, Nel cautioned that they were evolving and required mining companies to adapt continuously.

“In many emerging markets, mining companies are not just users of infrastructure. They are, in fact, the architects of infrastructure,” he said.

Harmony, he noted, has been a key participant in South Africa’s renewable-energy drive. The country’s mining sector had collectively committed about R60-billion in capital towards renewable energy, with Harmony investing more than R1.5-billion to meet 30% of its peak daytime electricity demand by year-end.

Nel said the initiative went beyond environmental considerations and formed part of Harmony’s long-term strategy for energy security and operational resilience.

The company’s strategy is also shaped by risks identified in EY’s latest 'Global Mining Risk Report', which cites access to capital, environmental stewardship, geopolitics, resource depletion and the social licence to operate as the top challenges facing the sector.

“These appear on any mining company’s risk register at any given time, although the order of importance may change depending on specific or global circumstances,” Nel said.

Harmony’s approach, he explained, had been to position itself as an agile and disciplined operator capable of managing these risks while pursuing strategic growth.

He said the company’s asset selection focused on long-term viability and operational integration, with particular emphasis on maintaining a strong balance sheet and generating sustainable cash flow.

On capital allocation, Nel said investors expected both discipline and growth. Harmony’s decision to expand into copper, through its acquisition of CSA and feasibility work on the Eva project, was aimed at balancing its gold exposure with a commodity that offers counter-cyclical benefits.

This diversification, Nel said, was intended to improve Harmony’s ability to manage margin pressure, while also reducing long-term sustaining costs.

“Balancing gold with copper is Harmony’s new instinct, protecting us against counter-cyclical risk while driving down all-in sustaining costs in the long term,” he said.

The company’s model includes acquiring undervalued or unwanted assets, extending their mine life, and revitalising their economic contribution to local communities. Nel said Harmony only invests in projects that can be mined both safely and profitably.

“We buy assets that others no longer want or no longer wish to invest in. We extend their lives and sustain communities and cash flow for decades to come,” he said.

He added that Harmony’s operational strategy included strengthening leadership, project execution discipline, and rigorous cost management. These, he said, were essential to managing through commodity cycles.

“We enjoy phenomenal gold prices, but it’s maintaining discipline to keep the underlying engine of the business sound, despite the good times,” he said.

Nel also emphasised the importance of building resilience, not only financially but also in social and environmental governance. Harmony, he said, did not view the social licence to operate as a contractual obligation, but as a long-term relationship that required transparency and trust.

He pointed to the company’s embedded environmental, social and governance model, which included measurable improvements in operational metrics, safety performance and community engagement. Maintaining a flexible balance sheet and aligning capital allocation with shareholder returns were also key themes.

“We are acutely aware that shareholders trust us as guardians of their wealth—and that they have a choice when and where to invest,” he said.

“Maintaining a disciplined and responsible approach to capital allocation is critical for creating long-term value.”

Looking ahead, Nel said Harmony’s production profile was diversified across geographies and metals, with a strong reserve base and conversion potential. The CSA acquisition will add immediate copper production of about 40 000 t/y, while the Eva feasibility study is expected to be completed by August 2025. If developed, Eva could push Harmony’s copper output close to 100 000 t/y, anchored by high-grade production at CSA.

In Papua New Guinea, the permitting process for the Wafi-Golpu gold/copper porphyry project remained a top strategic priority. Nel said the scale and quality of the deposit gave it the potential to be transformational for Harmony’s long-term growth and value.

“Wafi-Golpu has the potential to be a transformational asset for Harmony, significantly enhancing our long-term growth and shareholder value,” he said.

He closed by noting that emerging markets, while inherently volatile, offered significant upside for companies that applied sound strategy and disciplined execution.

“Emerging markets are certainly not for the faint hearted. But for those with the right strategy, the right partners, and the right mindset, they are the most compelling frontier of our time.

“At Harmony, we mine with purpose. We want to create long-term sustainable value for all stakeholders, including communities, employees, investors and the environment,” he said.