Harmony Gold Mining H2 Earnings Call Highlights

Harmony Gold Mining (NYSE:HMY) reported record financial results for the year ended June 30, 2026, as higher gold prices, operating performance and contributions from its copper business lifted revenue, earnings and cash flow. The company produced 1.43 million ounces of gold and 18,200 tonnes of copper, reaching the upper end of its guidance range for both metals. Gold production marked Harmony’s 11th consecutive year of meeting guidance, according to the company’s presentation. Headline earnings per share increased 87% to 4,363 South African cents, while net profit rose 102% to ZAR30 billion. Revenue increased 34% to ZAR99.2 billion, Financial Director Boipelo Lekubo said. Group operating cash flow rose 48% to ZAR33.6 billion, and adjusted free cash flow increased 54% to a record ZAR17 billion.

Harmony said the average gold price it received increased 35% to ZAR2.1 million per kilogram during the year. Gold all-in sustaining costs increased 13% to approximately ZAR1.2 million per kilogram, resulting in an all-in sustaining cost margin of 42%, compared with 31% in the prior year. Lekubo said operating costs remained controlled. Excluding CSA and royalties, group operating costs increased 7%, below the company’s planned mining inflation rate of 10%. Labor costs rose 8%, consumables increased 6%, and electricity costs increased 16%, which Harmony said it continues to address through its renewable-energy program. The company’s reported results included several non-operating and once-off items. These included a ZAR9.6 billion gold hedge loss recorded in revenue, ZAR1.4 billion in acquisition-related costs, a ZAR1 billion loss primarily related to Hidden Valley silver derivatives, and ZAR8.9 billion in tax. Harmony also recorded a ZAR2.8 billion impairment reversal at several South African mines due to higher commodity prices. Harmony said its hedge-related derivative liabilities had declined to about ZAR2 billion at year-end from about ZAR12 billion at the half-year point. Lekubo said the company’s hedging program was applied consistently and was not speculative.

Harmony declared a final dividend of ZAR7.50 per share, lifting its full-year dividend to ZAR12.80 per share, or ZAR8.6 billion. Lekubo said the dividend policy is linked directly to free cash flow after capital expenditures and is intended to preserve financial flexibility through commodity cycles. The company ended the year with ZAR8.6 billion in cash and cash equivalents, liquidity of ZAR17.1 billion and net debt of ZAR852 million. Net debt to EBITDA stood at 0.02 times. During the year, Harmony refinanced existing debt, repaid the MAC Copper bridge loan, extended its maturity profile and added Australian-dollar funding. Lekubo said the new financing facilities were approximately three times oversubscribed and included sustainability-linked and green-loan structures.

Harmony continued to position copper as a complement to its gold operations. CSA, acquired during the year and included for eight months, produced 18,200 tonnes of copper at a C1 cost of $2.47 per pound. On a full-year basis, CSA produced just over 29,000 tonnes. The company expects CSA production to increase to about 30,000 tonnes in fiscal 2027, 34,000 tonnes in fiscal 2028 and 40,000 tonnes in fiscal 2029. Harmony said it is addressing ventilation constraints and improving development flexibility at the Australian underground mine. A first ventilation rise has been completed, while a record 560 development meters were achieved in June. At the Eva Copper project in Australia, Harmony maintained its original capital estimate of $1.55 billion to $1.75 billion and continued to target first production by the end o...