Harmony Gold Mining Co Ltd reported record profit and cash flow for the year ended June 30, 2026, driven by higher gold prices and cost discipline, but its shares slipped 2.85% after the dividend fell short of some investor expectations.
Net profit rose 102% to ZAR 30 billion from ZAR 14.9 billion a year earlier, while revenue increased 34% to ZAR 99.2 billion. Headline earnings per share climbed 87% to ZAR 43.63, and adjusted free cash flow surged 54% to ZAR 17 billion. The company declared a final dividend of ZAR 7.50 per share, bringing full-year payouts to between ZAR 8.2 billion and ZAR 8.6 billion, or ZAR 12.80 per share.
Gold production reached 1.43 million ounces, matching guidance for the 11th consecutive year. The average realized gold price jumped 35% to ZAR 2.1 million per kilogram, while all-in sustaining costs rose 13% to ZAR 1.19 million per kilogram. Gross profit margin improved to 43.5%, and return on equity reached 33%.
Operating costs rose 7% year-over-year, with labor up 8%, consumables 6%, and electricity 16%. Royalties surged 77% due to higher gold prices. The company’s lost-time injury frequency rate fell to a record 5.05 per million hours worked, though six fatalities were recorded during the year.
Copper output at the CSA mine totaled 18,200 tons at a C1 cost of $2.47 per pound, with a 22% adjusted free cash flow margin. Capital expenditure for the year amounted to ZAR 16.9 billion, up from ZAR 14.7 billion in FY25.
For FY2027, Harmony guided gold production to 1.3 million–1.4 million ounces, down from FY26 due to an ore-gap phase at Moab Khutsong. All-in sustaining costs are expected to rise to ZAR 1.3 million–ZAR 1.395 million per kilogram. Copper production guidance at CSA was set at 28,000–30,000 tons, with C1 costs of $2.55–$2.65 per pound. Total capex for FY2027 is planned at ZAR 28 billion, including ZAR 14.4 billion for gold assets and ZAR 2.1 billion for CSA.
The company’s Eva Copper project in Australia remains on track for first production by the end of 2028, with average output forecast at 60,000 tons of copper and 19,000 ounces of gold annually over a minimum 15-year mine life, subject to approvals. Harmony’s net debt stood at ZAR 852 million, with total liquidity of ZAR 17.1 billion, including ZAR 8.6 billion in cash and equivalents.
