Harmony Gold Mining H1 2026 (Media) Earnings Report

Harmony Gold Mining EPS Results

• Actual EPS: N/A
• Consensus EPS: $1.35
• Beat/Miss: N/A
• One Year Ago EPS: N/A

Harmony Gold Mining Revenue Results

• Actual Revenue: N/A
• Expected Revenue: $3.37 billion
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

Harmony Gold Mining Announcement Details

• Quarter: H1 2026 (Media)
• Date: 3/11/2026
• Time: N/A
• Conference Call Date: Wednesday, March 11, 2026
• Conference Call Time: 1:30AM ET

Harmony Gold Mining (NYSE:HMY) is a South Africa–based precious metals producer primarily engaged in the exploration, mining and processing of gold. The company operates a portfolio of underground and surface mining operations, targeting both reef-hosted and alluvial deposits. In addition to gold, Harmony’s activities encompass the extraction of copper as a byproduct at its Papua New Guinea operations.

In South Africa, Harmony’s mining footprint includes deep-level underground operations in the Witwatersrand Basin, where it employs a combination of conventional and mechanized mining methods. The company runs several shafts and processing plants designed to optimize recovery rates while maintaining rigorous safety standards. Outside South Africa, Harmony holds a majority interest in the Hidden Valley gold and silver mine and the Wafi-Golpu project in Papua New Guinea, diversifying its geographic exposure and resource base.

Founded in 1950 through an amalgamation of mining interests on the Witwatersrand, Harmony has evolved over seven decades into one of the world’s leading mid-tier gold producers. The company is headquartered in Randfontein, South Africa, and is committed to community development in the regions where it operates. Harmony places a strong emphasis on sustainable mining practices, investing in water management, renewable energy projects and local employment initiatives.

Harmony is led by Chief Executive Officer Peter Steenkamp, who has overseen the company’s strategic shift toward mechanization and international diversification since his appointment in 2020. The executive team is supported by a board of directors with extensive experience in mining, finance and sustainability. Under this leadership, Harmony continues to explore value-enhancing projects, aiming to extend mine life and deliver steady production growth while adhering to high standards of safety and environmental stewardship.

Harmony Gold Mining H1 2026 (Media) Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Revised dividend policy and a doubled interim dividend of ZAR 5.30 ($0.32) per share (ZAR 3.4bn / $204m), representing a 43% payout of net free cash flow and a rolling 12‑month yield of 2.2%.
• Positive Sentiment: Management reiterated FY26 gold guidance of 1.4–1.5 million ounces, underground recovered grades above 5.8 g/t, and AISC between ZAR 1.15m–1.22m/kg, stating operations are on track to meet production, cost and grade targets.
• Neutral Sentiment: CSA copper is included in the copper guidance (17,500–18,500 t; C1 $265–280/lb; recovered grades >3.5%) but near‑term output is reduced by one‑off safety stoppages and planned shaft rehabilitation, while the company remains positive on the orebody's long‑term potential.
• Positive Sentiment: Eva Copper is at final investment decision and full construction, with FY26 Eva CapEx ~ZAR 5.6bn (~$302m) and total project CapEx guided at $1.55–1.75bn over three years; first production targeted late 2028.
• Neutral Sentiment: Balance sheet update — Harmony is temporarily in net debt after the CSA purchase but expects to return to net cash by year‑end; near‑term refinancing of a bridge loan and maturing debt is being evaluated.

Presentation

[Operator]

Good morning, ladies and gentlemen, and welcome to the Harmony Gold H1 FY 2026 results media call. All telephone line participants will be in listen-only mode. If you'd like to ask a question, please key in star and then one on your telephone keypad. You may key in star and then two to leave the question queue. If you should need assistance during the call, please signal an operator by keying in star and then zero. Please note that this event is being recorded. I will now hand you over to the CEO, Beyers Nel. Please go ahead, sir.

[Beyers Nel, CEO at Harmony Gold]

Good morning, and thank you for joining us for Harmony's results for the six months ended December 31, 2025. During the period under review, we reinforced Harmony's position as a higher quality, lower risk global producer of copper and gold. We continue to grow selectively, sequentially, and affordably, turning today's gold price tailwinds into durable compounding value. Our first rand or dollar spent goes to safety and sustaining our operations. We then allocate to organic projects and advance copper and gold scale only where risk-adjusted returns clear our hurdles. Every initiative competes on risk, margin, and cash conversion. We continue preserving balance sheet strengths for disciplines and consistent through the cycle dividends. Operationally, we remain on track to meet our full-year production cost and grade guidance. The exceptional gold price environment has further supported another strong financial performance.

[Beyers Nel, CEO at Harmony Gold]

As a result of our strengthened cash flow generation, we are pleased to announce that we have revised our dividend policy to provide shareholders with enhanced upside participation. The revised policy now includes a base dividend and an upside participation model based on pre-dividend net debt to EBITDA levels. In line with our new dividend policy, we have declared an interim dividend of ZAR 5.30 or $0.32 per share at a rolling 12-month dividend yield of 2.2%. The interim dividend payout has doubled to a record ZAR 3.4 billion, or $204 million. This represents a payout of 43% of net free cash flow. Looking ahead to our FY 2026 guidance.

[Beyers Nel, CEO at Harmony Gold]

For our gold operations, we reiterate our previous guidance of production of between 1.4 million oz and 1.5 million oz, underground recovered grades above 5.8 g per tonne, and all-in sustaining costs between ZAR 1.15 million and ZAR 1.22 million per kg. Our copper production guidance only includes the CSA mine. Guidance for the financial year 2026 is as follows. Production of between 17,500 and 18,500 tonnes. C1 cash costs of between $265 per pound and $280 per pound, and recovered grades above 3.5%. Group CapEx for financial year 2026 has been updated to ZAR 18.5 billion and now include capital expenditure for CSA and Eva.

[Beyers Nel, CEO at Harmony Gold]

Updated CapEx for gold operations have reduced by ZAR 1 billion-ZAR 11.8 billion. CSA CapEx guided at ZAR 1.1 billion or $65 million. Eva Copper CapEx is projected to come in at ZAR 5.6 billion or around $302 million this financial year. Project capital for Eva Copper is expected to be between $1.55 billion and $1.75 billion over the three-year construction period, with an estimated 20/40/40 split over the three-year period. We have provided longer term. We will rather provide longer-term guidance for the CSA mine at the time of our full-year results release. Thank you, and we will now take any questions.

[Operator]

Thank you, sir. Ladies and gentlemen, if you'd like to ask a question, please key in star and then one on your telephone keypad. A confirmation tone will indicate that your line is in the question queue. You may key in star and then two to leave the question queue. Just a further reminder, if you'd like to ask a question, you're welcome to key in star and then one. Our first question comes from David McKay of Miningmx. Please go ahead.

[David McKay, Owner and Publisher at Miningmx]

Morning, Marius and team. I hope you're all well. Thanks for the call. I just wanted to get some feedback just in terms of input cost inflation, whether you're seeing any of that, especially on you know, items like sulfuric acid, if applicable, diesel. Also whether the cyanide shortage has been resolved or if you're still struggling on that front.

[Beyers Nel, CEO at Harmony Gold]

Good morning, David. I will start with the latter. The cyanide supply has normalized. I mean, it was an industry-wide force majeure issued by the cyanide supplier. As I said, that has normalized now. We are also reducing our reliance on external party supply of liquid cyanide by increasing our cyanide distribution capacity in Harmony where, you know, one can dissolve briquettes, you know, to reduce your dependency on a sole supplier. We're not 100% there yet, but we're working on contingency measures to make sure that we do not have an impact like this again. On the inflationary side, I mean, obviously Brent crude spiked with what's going on in the world right now.

[Beyers Nel, CEO at Harmony Gold]

Just a reminder that the South African costs is quite predictable in the sense that 55% of our cost basket in South Africa, which is still 90% or so of our production, is labor. That 55% is governed by our five-year wage agreements. That cost inflation number is capped. Then on top of that, if you add water and electricity, you get to more than 70% of the cost basket, you know, being quite predictable. We don't use diesel as our main fuel source on all of our operations. I mean, our labor-intensive underground operations are not the typical open pit operations that run on diesel machines.

[Beyers Nel, CEO at Harmony Gold]

You know, on a relative basis, you know, albeit that we've got Hidden Valley, Tau Gold, Target, and now the CSA Mine in Australia and the Eva Copper development that do run more on diesel, you know, the exposure on the whole portfolio is somewhat muted because of the energy source being different on the labor-intensive underground mines.

[David McKay, Owner and Publisher at Miningmx]

Okay. Thank you. Then just a squeeze a quick question on CSA. I mean, annualized that production looks to be about 27,000 tonnes, which is below. Well, you know, in the past I've been reporting, you know, nameplate capacity on this mine of about 41,000 tonnes. Just, if you could explain the discrepancy there, if there is one. Then just also, whether you can give any guidance on, you know, on any increases in CapEx on CSA as you recapitalize and, you know, and pull that asset towards itself.

[Beyers Nel, CEO at Harmony Gold]

Sure, David. I wanna start by saying that we are very happy with the ore body that we bought in CSA. It's a phenomenal copper ore body, and we continue to be very much excited about that. You'll see in the presentation later today that some phenomenal drill intercepts that sit outside of the current mine shell has also come through. As to the quality of the mine and what we've bought, we are very happy with that. What is important to understand about the guidance that we've given is it incorporates a number of one-off stoppages that we did. One for safety.

[Beyers Nel, CEO at Harmony Gold]

I mean, we had a seven-day safety stoppage in this period where we addressed some secondary egress systems, upgrading that, making sure that's safe in the event of an emergency for people to egress the mine. Secondly, in the guidance we've given out today on the third quarter, there's a 30-day, a whole month, where we're stopping the operation to complete steel work in the shaft that needs to be rehabilitated and replaced in terms of making sure that the shaft system is 100% safe. Normalized for that, you know, the production is lower than I guess, you know, what was previously guided by, you know, the other operator.

[Beyers Nel, CEO at Harmony Gold]

You know, we're confident with what we've got there in terms of setting CSA up for the long term, in terms of decongesting the ventilation, making sure that you know, any out-of-sequence you know, mining is to standard and you know, making sure that the CSA Mine is a long-term value add for Harmony.

[David McKay, Owner and Publisher at Miningmx]

Thanks, Beyers. Thanks. I can come back with any other questions later on if possible.

[Beyers Nel, CEO at Harmony Gold]

Thanks David.

[Operator]

Thank you, David. You're welcome to return the question queue. Our next question comes from Martin Creamer of Mining Weekly. Please go ahead.

[Martin Creamer, Publishing Editor at Mining Weekly]

Good morning, Beyers and team. Well done. Good work. Just looking at this gold production being down, what is that about? Is this a new level that you'll sort of sink to permanently or is it just an anomaly? Is there much room to grow quickly with gold in South Africa, brownfield extension, near production, you know, that sort of thing? Can you give me some sort of insight into what is possible along the brownfield lines and the quick growth gold lines?

[Beyers Nel, CEO at Harmony Gold]

Good morning, Martin. Thank you. Martin, our production was down for this period basically on the back of two or three things. One, I'll start with Hidden Valley. Hidden Valley suffered a tectonic-related mill motor failure in the gold plant. There was an earthquake in country and you know, there was some vibrations coming through which damaged some of the civils in a portion of the plant. I mean, that's resolved now. As a result of that, we've also had some gold shipping delays at Hidden Valley, which we flowed over to the next reporting period. I mean, that would be one off of nature and I mean, you know, we're back to good momentum at Hidden Valley.

[Beyers Nel, CEO at Harmony Gold]

The South African operations were affected by this force majeure on the cyanide supply we just spoke about with David. That resulted in some impacts on our recoveries in our plants and more so on our surface operations, where we consume a whole lot of sodium cyanide in the extraction process of gold. Other areas, we had some lower grades during this period in total, and that was also affected by some metallurgical plant recoveries, which were a little bit lower than what we anticipated and expected. We're glad to report that those recoveries in the plants are almost always also normalized now in quarter three.

[Beyers Nel, CEO at Harmony Gold]

Not structural in nature, more all one-off and, you know, looking forward to the good management of the operations at the moment. Ultimately, conversion of further gold in South Africa, we've got an exciting organic pipeline. I mean, we sit on a huge Mineral Reserve and a huge Mineral Resource, and that resource to reserve conversion has always been part of the Harmony story. Our gold organic projects are advancing. We're working on, you know, further opportunities to perhaps add more surface re-mining to our portfolio in South Africa. Those are under study, and we will disclose the outcome of that to the market once we're ready.

[Martin Creamer, Publishing Editor at Mining Weekly]

Thanks, Beyers.

[Operator]

Ladies and gentlemen, just a further reminder, if you would like to ask a question, you're welcome to key in star and then one to place yourself in the question queue. We have a follow-up question from David McKay of Miningmx. Please go ahead.

[David McKay, Owner and Publisher at Miningmx]

Thank you. Yes. Just wanted to follow up on the silver price. Do you still have a lot of exposure via your book to the silver price? Is there any way you can do to mitigate that? Anything you can do to mitigate that situation?

[Beyers Nel, CEO at Harmony Gold]

Yeah, David, thank you. As you know, we produce quite a bit of silver at our Hidden Valley Mine. You know, the phenomenal growth we saw in the silver price during the period has obviously resulted in the outcome as published. Silver revenue decreased by 27% at ZAR 740 million from ZAR 1 billion in the previous period due to a 15% reduction in Hidden Valley silver production, firstly because of the mill motor impact. That was obviously offset by the prices as well. I'll ask Boipelo to maybe just add on the silver and what we can do. It basically, I guess, David, is what it is.

[Beyers Nel, CEO at Harmony Gold]

You know, we need to focus on what we can control and the prices that are fixed on those contracts are fixed.

[Boipelo Lekubo, Financial Director at Harmony Gold]

Yeah, David, just to add, we do hedge silver, but you'll notice in the hedging table that we publish in our results that we haven't added on those hedges at the moment, just given where price levels are. There is included in the financials a loss on those silver derivatives. Yeah, it's fairly limited and limited to Hidden Valley.

[David McKay, Owner and Publisher at Miningmx]

Boipelo, just while I've got you on the phone there, can I ask you, I see that the company is now in a net debt situation. I assume that's not post-dividend. When do you expect to be in a, to get back into a net cash? And how do you know, how do you expect to manage that, your cash going forward?

[Boipelo Lekubo, Financial Director at Harmony Gold]

At current levels, we expect to be back at net cash by the end of this financial year. I mean, that was notwithstanding the fact that we paid the $1 billion for CSA. I mean, in terms of how we manage that, we've always adopted a disciplined approach towards capital allocation. It's a balance between firstly, you know, investing in sustaining our business, safety always as a first priority, and then the balance between sharing with shareholders, as you can see with the revised dividend policy. It remains a balance, David, as we navigate, obviously, you know, integration of CSA as well as the build on Eva.

[David McKay, Owner and Publisher at Miningmx]

I see there's a comment where you say you're actively still or discussing might not be the right word, but evaluating the, you know, the optimal capital structure. I always thought that was just a reference to the payout policy. If you're still assessing your capital structure, what else could that refer to?

[Boipelo Lekubo, Financial Director at Harmony Gold]

If you'll note in our balance sheet, we have quite a bit of debt sitting under current liabilities, and that's due to the bridge loan that we took out to pay for the CSA asset. We would have to look at ways in which we take that bridge loan out. I think we did indicate that to the market when we came out with CSA and how we intend to fund that.

[David McKay, Owner and Publisher at Miningmx]

What typically are the options there?

[Boipelo Lekubo, Financial Director at Harmony Gold]

It could be a number of things, David. I mean, I can't say at the moment. I mean, it's fair to say if you look in our financials, we also have just debt which is maturing shortly, so we will be refinancing those. It could be a number of things, but that will come to the market, when those plans have been finalized.

[David McKay, Owner and Publisher at Miningmx]

Okay. Thanks so much. Just one final question. I just, Beyers, I mean, do you expect now a very generous rewrite from the market now you've adjusted your payout policy?

[Beyers Nel, CEO at Harmony Gold]

Yeah. David, we're just happy that we can share some of the upside of the current tailwinds we have in gold. We're equally excited about building our copper portfolio and you know, making sure that we create a portfolio that will not only reward shareholders and stakeholders now, but you know, even through the cycle with copper coming in.

[David McKay, Owner and Publisher at Miningmx]

Oh, can I just ask also, just on the copper side, do you know, what do you expect and, well, what are you budgeting, if you can share, just in terms of, the contribution from copper, for the remainder of the financial year?

[Boipelo Lekubo, Financial Director at Harmony Gold]

Contribution from copper in terms of. Sorry, can you just clarify?

[David McKay, Owner and Publisher at Miningmx]

Okay, sorry. Yeah, in terms of cash generation. Yeah.

[Boipelo Lekubo, Financial Director at Harmony Gold]

I cannot guide that. We've guided the production and the C1 costs. Yeah. I think you can pretty much work it out.

[David McKay, Owner and Publisher at Miningmx]

Okay. Thank you. Thanks so much, guys.

[Beyers Nel, CEO at Harmony Gold]

Thanks, David.

[Operator]

Our next question comes from Dineo Faku of Sunday Times. Please go ahead.

[Dineo Faku, Senior Reporter at Sunday Times]

Hello?

[Beyers Nel, CEO at Harmony Gold]

Dineo?

[Operator]

Dineo?

[Dineo Faku, Senior Reporter at Sunday Times]

Yes. Hello, can you hear me?

[Beyers Nel, CEO at Harmony Gold]

Yes. Can hear you.

[Dineo Faku, Senior Reporter at Sunday Times]

You can hear me?

[Beyers Nel, CEO at Harmony Gold]

We can hear you.

[Operator]

As you know, your line is open. You can ask your question.

[Dineo Faku, Senior Reporter at Sunday Times]

Yes. Thank you. Thank you so much for that. Good morning, everyone. The question that I have is about Eva mine. I just wanted for us to just get an update or if I missed it, what's, you know, what plans you have there for the Eva mine. Secondly, it seems like a lot of gold mining companies are buying assets in Australia. Just from your side, tell us why you've gone to Australia or opportunities that you further see in that country. Then the other question that I have is, seeing that the gold price is so high, are there more incidents of illegal mining? Because we've seen even there's a move by the government to address it through a deployment of soldiers. Thank you.

[Beyers Nel, CEO at Harmony Gold]

Good morning, Dineo. Starting with Eva, we are extremely excited about this project. We have announced final investment decision to the market, November last year in 2025. Since then, it's been a beehive of activity, and we have completed most early works and then have ramped up to full construction at the moment. We look forward to our first production towards the end of calendar year 2028, and we've guided the CapEx to be between $1.55 billion and $1.75 billion over a three-year period, over that three-year period. Everything according to plan at this point in time.

[Beyers Nel, CEO at Harmony Gold]

As I said, you know, a good jurisdiction to build a copper mine in, and we are, you know, quite excited to take that through the EPC and the construction of the, you know, the concentrator and building the mine. As to Australia was for a long-time part of our footprint. Just a reminder to the market, we have been operating our regional hub in Australia for more than 20 years now. We support our Papua New Guinean operations through a hub in Brisbane. It was always a natural extension of our capability in country to consider Southeast Asia region, if you will. Australia is a key part of that.

[Beyers Nel, CEO at Harmony Gold]

We've got a healthy mix of Australians and South Africans and people in the office there. We believe. I mean, this is not a new entry into Australia for Harmony. We've been there for a long time, and we feel we've got a good understanding and good capability in country to leverage in terms of you know, adding production. We're quite excited to invest in Australia. As to gold and illegal mining, yes, true. I mean, if the price of any commodity goes up, you know, there is often an increase in illicit activity. We do see some of that coming through. Albeit you know, we don't suffer any impact or major impacts on our operations.

[Beyers Nel, CEO at Harmony Gold]

We believe it is an issue, but it is well controlled. We believe we've developed over the years some sort of blueprint, you know, particularly in the Free State, where we get some good cooperation from the South African Police Service in combating these illegal activities.

[Dineo Faku, Senior Reporter at Sunday Times]

Thank you.

[Operator]

Thank you.

[Dineo Faku, Senior Reporter at Sunday Times]

Thank you.

[Operator]

Sorry, Dineo, did you have another question?

[Dineo Faku, Senior Reporter at Sunday Times]

No. Thank you.

[Operator]

Thank you very much.

[Beyers Nel, CEO at Harmony Gold]

Dineo-

[Operator]

We have a follow-up question from.

[Beyers Nel, CEO at Harmony Gold]

Sorry.

[Operator]

Please go ahead.

[Beyers Nel, CEO at Harmony Gold]

To add to Dineo's question on the Eva Copper, we've actually got a video which we'll be publishing on our website and putting through on social media. If you do want to go and have a look at that, it'll give you some additional information on Eva. Quite exciting.

[Operator]

Thank you, sir. We have a follow-up question from Martin Creamer of Mining Weekly. Please go ahead.

[Martin Creamer, Publishing Editor at Mining Weekly]

Thank you. You refer to your gold production as being high quality gold production. Could you just give me some insight into the expected grade levels and whether these will be going up and down at any stage, or will you be able to continue to refer to yourselves as high quality gold producers?

[Beyers Nel, CEO at Harmony Gold]

Martin, if I start with our four quadrants in our business. We start with the high-grade underground operations. Those are two mines. These are the mines we acquired, the last two remaining AngloGold Ashanti assets in South Africa, which are Moab Khotsong and Mponeng mines. These mines produce about 7.8 tonnes of gold at 8.86 g/tonne. Now, these are the mines that, when we acquired them, had a relatively short life to them. These are the mines that are now on an organic level being extended. They will have a 20-year life. We are referring to these high-grade mines that are performing so well with the recapitalization projects that Harmony has initiated and commenced since acquisition will have tenure.

[Beyers Nel, CEO at Harmony Gold]

They will have a long life ahead of them. Those are high quality. When we say high quality, good quality, we mean high grade with good margins ahead of them. Similarly, in South Africa, we also have what we call the second quadrant is the South African surface operations, which we call, albeit maybe not high grade, but high margin surface. This is the re-mining operations, which produce 3.5 tonnes of gold at 0.17 g/tonne. Now, those from an all-in sustaining costs perspective and a cash generation potential perspective are high margin operations which add to the quality. It is our optimized assets during this cycle, which is lower quality assets at 4.3 g/tonne.

[Beyers Nel, CEO at Harmony Gold]

Albeit these mines have doubled their margins in the reporting period and are generating cash, I mean, these are the mines that are shorter in life of mine going forward. As these higher cost mines, lower grade mines, mine out, and we maintain the high grade and build the high grade production out for the 20 years, as I said, and add the high margin surface production, that's the high margin, high quality gold base we're talking about that's gonna be around for the future in Harmony Mines.

[Martin Creamer, Publishing Editor at Mining Weekly]

Thanks for that comprehensive insight there. Thank you.

[Operator]

Thank you. Ladies and gentlemen, just a final reminder, if you'd like to ask a question, you're welcome to key in star and then one. It appears we have no further questions in the question queue. I will now hand back for closing remarks.

[Beyers Nel, CEO at Harmony Gold]

In closing, we are intentionally transitioning into a significant global gold and copper producer. This journey is grounded in mining with purpose, ensuring that everything we do creates value for all stakeholders wherever we operate. Thank you very much.

[Operator]

Thank you, sir. Ladies and gentlemen, that concludes today's event. Thank you for joining us, and you may now disconnect your line.

Participants

Analysts

• Beyers Nel, CEO at Harmony Gold
• Boipelo Lekubo, Financial Director at Harmony Gold
• David McKay, Owner and Publisher at Miningmx
• Dineo Faku, Senior Reporter at Sunday Times
• Martin Creamer, Publishing Editor at Mining Weekly