Harmony Gold Mining Company Limited confirmed that the final delivery has been made into the streaming agreement between Franco-Nevada and Mine Waste Solutions (MWS) on 23 October 2024 (quarter 2 of financial year 2025). With this contract completed, MWS's average gold price received will increase and will now be in line with market prices. Consequently, MWS's free cash flow would increase by more than R1 billion on an annualized basis, assuming the current spot rand per kilogram gold price.

Furthermore, Phase 1 of the Kareerand tailings storage facility (TSF) expansion project has been commissioned and delivered on time and within budget. This increased storage capacity will enable the continued re-mining of old tailings in the region and extend MWS?s life of mine by 15 years to 2040. This facility has been constructed in line with the guidelines of the Global Industry Standards on Tailings Management and now covers an area of 900 hectares in total.

The broader expansion plans for MWS also included the addition of a fourth processing stream, increasing plant throughput capacity from 25 to 28 million tonnes annually. As a result, gold production at MWS is forecast to average approximately 110,000 ounces per annum over the life of this operation. Company guided for a further ZAR 1.2 billion in major capital expenditure to be deployed at MWS in fiscal year 2025 as the company complete phase 1 of the extension.

A total of ZAR 2.3 billion was allocated to the TSF extension project in fiscal year 2024 and fiscal year 25, with the bulk being used to complete phase 1. The phase 2 scope of work entails completing all outstanding aspects related to the construction of the entire area covered by the Kareerand TSF. This includes the installation of the necessary infrastructure and services to reticulate the tailings for cyclone deposition. While phase 1 (55% of the project) involved preparing the low-lying basin of the facility, phase 2 (45%) applies to the north-western side of the basin.

Phase 2 is scheduled to be completed and commissioned by the end of the 2025 calendar year, after which operating free cash flow margins will be further boosted.