Harmony bets big on copper with $1.6B Eva build

South Africa’s Harmony Gold (JSE: HAR, NYSE: HMY) has approved construction of its $1.6 billion Eva copper project in Australia, setting a three-year build that begins in the third quarter of 2026, with first production expected in the second half of 2028.

Harmony aims to lift its copper output to about 100,000 tonnes a year once Eva is online, a target that includes volumes from its recent $1 billion-acquisition of MAC Copper, owner of the 41,000-tonne-a-year CSA mine in New South Wales.

BMO Capital Markets analyst Raj Ray called the impact of the investment decision “mixed,” adding that the guidance for 2026 shows production slightly lower and costs and capex higher than expected. 

‘Broader metals exposure’

Eva and the MAC Copper acquisition have given Harmony a broader base of metals exposure that strengthens cash flow across commodity cycles, CEO Beyers Nel said. 

Harmony bought Eva in 2022 from Copper Mountain Mining for about $230 million and spent the past two years refining the development plan. The company now expects the mine to produce 65,000 tonnes of copper annually during its first five years, before averaging 60,000 tonnes a year over its 15-year life. It would also yield 19,000 oz. of gold a year at an all-in sustaining cost of $2.50 per lb. of copper.

Harmony shares gained 5% to $17.46 apiece on Monday morning in New York, valuing the company at $11.2 billion (C$15.8 billion). The stock has traded in a 12-month range of $7.97 to $22.25.

Nel said Harmony sees long-term strength in both copper and gold, adding that Eva should generate solid free cash flow and reduce overall risk.

The company plans to fund construction through internal cash flow and debt, while maintaining its dividend policy. Harmony said the combination of Eva and MAC Copper positions it to reach 100,000 tonnes of copper output annually within five years.