Harmony Gold Mining H2 Earnings Call Highlights

Harmony Gold Mining (NYSE:HMY) said fiscal 2026 marked a “defining year” in its transition toward a diversified gold and copper producer, reporting record revenue, earnings and adjusted free cash flow while meeting its operating guidance. Chief Executive Officer Beyers Nel said the company achieved its gold production guidance for the 11th consecutive financial year. Group gold production totaled 1.43 million ounces, while all-in sustaining costs were ZAR1.19 million per kilogram, or $2,195 per ounce. Underground recovered gold grades reached 5.83 grams per ton, also within guidance. Harmony’s recently acquired CSA copper operation contributed 18,207 tonnes of copper at a recovered grade of 3.75% and a C1 cash cost of $2.47 per pound, Nel said.

Revenue rose 34% to ZAR100 billion, or $5.9 billion, during the year. Headline earnings per share increased 87% to ZAR43.63, while adjusted free cash flow climbed 54% to a record ZAR17 billion, or about $1 billion. The company declared a final dividend of ZAR4.8 billion, equal to ZAR7.50 per share. That brought the full-year dividend to ZAR8.2 billion, or ZAR12.80 per share, representing an approximate 3.5% yield, according to Nel. Nel said the financial performance was achieved while Harmony continued to invest in reserve conversion, mine-life extensions and growth projects. The company’s focus through 2025 had been portfolio progression and improvement, he said, while the period from 2026 through 2030 will emphasize execution and unlocking value from existing assets. Beyond 2030, Harmony expects “a meaningful cash flow inflection” as margins improve, costs decline and free cash flow expands, Nel said.

In response to an analyst question about the company’s updated production outlook, Nel said the profile includes approximately 350,000 ounces of conceptual “blue sky” potential from resources that Harmony already owns. Potential additions include about 150,000 ounces from mine-life extensions at West Wits, 100,000 ounces from Free State reclamation projects, and another 100,000 ounces from optimized extensions across the South African portfolio. Nel cautioned that these opportunities remain early-stage and conceptual. The revised outlook also reflects a full-year contribution from CSA, the inclusion of Eva Copper and approved extensions including Tshepong North, he said.

Harmony’s gold mineral resources remained stable at about 107 million ounces. Gold mineral reserves increased to 27.4 million ounces, supported by additions from Tshepong North, Mponeng, Kusasalethu and the gold component of Eva Copper. Copper mineral resources increased 18.5% to 7.4 million tonnes, while copper mineral reserves rose 71% to 4 million tonnes, reflecting the addition of CSA and Eva Copper.

Nel said the operational integration of CSA has been completed and the mine is now operating under Harmony’s safety, people and operating practices. CSA recorded its best safety performance since the acquisition, he said. However, Nel said the company is still working through the mine’s development requirements and did not characterize its operational challenges as fully resolved. Harmony is targeting a pathway to 40,000 tonnes of annual copper production, with ventilation capacity and mining flexibility identified as key priorities. The company completed its first ventilation raise, a milestone intended to improve airflow to deeper parts of the mine where higher-quality copper grades are located. CSA also achieved a record 560 development meters during June, Nel said. Harmony reported exploration intercepts of as much as 12% copper outside the current mineral resource, with 12,000 meters drilled dur...