KEY POINTS
- Harmony’s headline earnings jumped 87% to R27.2bn in FY26.
- Record R8.1bn dividend follows stronger gold prices and cash flow.
- Copper production is expected to rise sharply as the company expands beyond gold.
Harmony Gold Mining Company has reported a sharp improvement in its financial performance for the year ended June 30, 2026, driven by stronger gold prices, increased cash generation and growing contributions from its copper business.
The South African gold producer reported headline earnings of R27.2 billion for the financial year, an 87% increase from the R14.5 billion recorded in the previous year.
The strong performance allowed Harmony to declare a record dividend as the company continues to strengthen its finances while investing in existing operations and new growth projects. Harmony’s headline earnings per share increased 87% to 4,363 South African cents, while basic earnings per share more than doubled, rising 103% to 4,701 cents.
The company declared a final dividend of 750 cents per share, compared with 155 cents paid for the previous financial year.
That brought Harmony’s total dividend for FY26 to a record R8.1 billion, highlighting the company’s stronger ability to return cash to shareholders.
Group revenue also rose significantly, increasing 34% to R99.2 billion from R73.9 billion in FY25.
Chief executive officer Beyers Nel said the company’s financial and operational strengths had positioned it to generate cash in the short term while continuing to invest in future growth. Harmony’s adjusted free cash flow reached a record R17.1 billion during the year, representing a 54% increase from the previous financial year.
The improvement was largely supported by higher gold prices and additional revenue from copper following Harmony’s acquisition of MAC Copper, which brought the CSA mine in Australia into its portfolio.
The average gold price received by Harmony increased 35% in rand terms to R2.07 million per kilogram, equivalent to US$3,811 an ounce.
The stronger gold price helped the company absorb higher production costs arising from inflation and the changing nature of its mining portfolio.
Despite the stronger financial results, Harmony’s gold production declined 3% during the year to 44,464kg, or about 1.43 million ounces.
However, the company achieved its production guidance for the 11th consecutive financial year, maintaining its record of meeting its operational targets.
Underground recovered grade stood at 5.83 grams per tonne, while all-in sustaining costs increased 13% to R1.19 million per kilogram, equivalent to US$2,195 per ounce.
Harmony said the higher costs reflected inflationary pressures and changes within its mining portfolio, although the impact was more than offset by stronger gold prices.
The company also reported an improved lost-time injury frequency rate of 5.05 per million hours worked, down from 5.39. However, the financial year was also marked by fatalities, underscoring continued safety challenges across its operations.
Copper business strengthens portfolio
Harmony’s acquisition of MAC Copper is becoming an increasingly important part of the group’s growth strategy.
The CSA copper mine in Australia produced 18,207 tonnes of copper during FY26, close to the upper end of its production guidance.
The mine recorded a recovered grade of 3.75% and a C1 cash cost of US$2.47 per pound, below the company’s guidance.
CSA contributed R1.88 billion in production profit during the year, giving Harmony an additional earnings stream alongside its traditional gold operations.
Harmony said the integration of CSA has been completed, while further investment is being made to support the mine’s long-term production potential.
The company is also advancing its Eva Copper project as it seeks to increase its exposure to copper. Construction activities have progressed following the Final Investment Decision taken in November 2025.
The development forms part of Harmony’s broader strategy to diversify its commodity exposure while retaining gold as the foundation of the business.
Harmony said its strategic priorities are now moving from portfolio improvement to the execution of growth opportunities already established within the business.
Nel said the company spent the period up to 2025 focused on improving and progressing its portfolio, while the 2026-2030 period would centre on executing projects and unlocking value from existing assets.
One example is Tshepong North, whose mine life has been extended to 15 years from an earlier estimate of six years.
Harmony is also continuing to invest in reserve conversion, mine-life extensions and other growth initiatives.
The company expects cash generation to improve further beyond 2030 as margins strengthen, costs decline and free cash flow expands.
Harmony expects its commodity mix to change further in FY27, with copper production forecast to increase even as gold production declines slightly.
Gold production is expected to fall within a range of 1.3 million to 1.4 million ounces, while all-in sustaining costs are forecast at between R1.30 million and R1.395 million per kilogram.
Underground recovered grade is expected to remain above 5.60 grams per tonne.
Copper production, meanwhile, is projected to rise significantly to between 28,000 and 30,000 tonnes, with C1 cash costs expected to range from US$2.55 to US$2.65 per pound.
The forecast points to a more diversified Harmony, with copper increasingly complementing its established gold operations. Harmony’s balance sheet changed following the acquisition of MAC Copper.
The company moved from a net cash position of R11.1 billion to net debt of R852 million after completing the acquisition.
Despite the change, Harmony said its financial position remains healthy and flexible, with liquidity of R17.1 billion at the end of the financial year.
The company has also secured a new syndicated funding package comprising US$500 million, A$500 million and R7 billion.
Harmony said the new financing arrangements would help reduce interest costs, extend debt maturities and strengthen its liquidity position.
Harmony’s FY26 results underline the impact of higher commodity prices and improved operational performance on the company’s financial position.
The combination of stronger gold prices, record free cash flow and the growing contribution from copper has enabled the company to deliver its largest-ever dividend while continuing to fund future growth.
With gold production expected to remain substantial and copper output set to increase, Harmony is positioning itself for a more diversified production profile in the years ahead.
