Harmony Gold Mining H2 Earnings Call Highlights

Key Points

• Record fiscal 2026 results: Harmony Gold reported revenue of ZAR100 billion, up 34%, while operating free cash flow rose 54% to a record ZAR17 billion and headline EPS increased 87% to ZAR43.63.
• Production met targets: Gold output reached 1.43 million ounces for the 11th consecutive year within guidance, with underground grades marginally above target at 5.83 grams per ton. The acquired CSA copper mine added 18,207 tons of copper at a $2.47-per-pound C1 cash cost.
• Higher shareholder returns and future focus: Harmony declared a record final dividend of ZAR7.50 per share, bringing the full-year payout to ZAR12.80 per share. Management plans to focus through 2030 on executing existing growth projects, improving margins and expanding cash flow.

Harmony Gold Mining NYSE: HMY reported record financial results for fiscal 2026, supported by gold production that met guidance for an 11th consecutive year, the contribution from its acquired CSA copper mine and higher operating free cash flow.

Chief Executive Officer Beyers Nel said the year marked a “defining year” in the company’s evolution toward becoming a diversified global gold and copper producer. He attributed the performance to safe and consistent operations, disciplined execution and strategic investment.

Group gold production totaled 1.43 million ounces, in line with the company’s guidance. All-in sustaining costs were ZAR1.19 million per kilogram, or $2,195 per ounce, also within guidance.

Grades Marginally Above Guidance

Harmony reported underground recovered gold grades of 5.83 grams per ton. During the media call, Mining Weekly Publishing Editor Martin Creamer asked why the company described the grade as being in line with guidance while its news release said it was above guidance.

Nel said the result was “indeed marginally above guidance,” noting that Harmony’s target had been above 5.8 grams per ton. He said the outcome was supported primarily by continued strong performance at the company’s high-grade Mponeng mine.

“Very pleased with the grades, mainly on the back of continued strong performance at our high grade Mponeng Mine, who’s had a stellar year again,” Nel said.

CSA Copper Mine Adds Production

The CSA copper mine, acquired by Harmony, contributed 18,207 tons of copper during the fiscal year. The operation delivered a recovered grade of 3.75% and a C1 cash cost of $2.47 per pound, with all measures within company guidance, according to Nel.

Nel said Harmony’s gold and copper portfolio provides the company with optionality as it seeks to balance current cash generation with investment in future growth.

Revenue, Earnings and Cash Flow Reach Records

Revenue rose 34% to ZAR100 billion, or $5.9 billion. Headline earnings per share increased 87% to ZAR43.63 per share, while group operating free cash flow climbed 54% to a record ZAR17 billion, or $1 billion.

The company declared a record final dividend of ZAR4.8 billion, or ZAR7.50 per share. That brought its full-year dividend to ZAR8.2 billion, or ZAR12.80 per share, representing an approximate 3.5% yield, Nel said.

Harmony said it delivered the financial results while continuing to invest in reserve conversion, mine-life extension and future growth initiatives.

• Gold production: 1.43 million ounces
• All-in sustaining cost: ZAR1.19 million per kilogram, or $2,195 per ounce
• Underground recovered grade: 5.83 grams per ton
• CSA copper production: 18,207 tons
• Revenue: ZAR100 billion, up 34%
• Operating free cash flow: ZAR17 billion, up 54%
• Full-year dividend: ZAR12.80 per share

Focus Shifts to Execution Through 2030

Nel said Harmony’s focus through 2025 had been on portfolio progression and improvement. From 2026 through 2030, the company plans to emphasize execution and unlocking value already embedded in its assets.

Beyond 2030, Harmony expects what Nel described as a meaningful cash-flow inflection as margins strengthen, costs decline and free cash flow expands. He said the company’s balance sheet remains strong and that its workforce provides the capability to execute its plans.

“Together, these strengths position Harmony to generate cash today, deliver growth tomorrow, and create enduring value through the cycle,” Nel said.

About Harmony Gold Mining (NYSE:HMY)

Harmony Gold Mining Company Limited 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.

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