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.
Margins Expand as Gold Price Outpaces Costs
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.
Record Dividend and Low Leverage
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.
Copper Growth Plans Center on CSA and Eva
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 of calendar 2028. The project remains subject to environmental approvals associated with a protected species found at the site.
Harmony said it has adopted a staged construction approach, continuing work in cleared areas while regulatory processes continue. Pre-mining has begun in the approved Little Eva area, and process plant construction is ramping up. The company spent $275 million on Eva in fiscal 2026 and expects to spend $650 million to $680 million in fiscal 2027.
Eva is expected to produce an average of about 60,000 tonnes of copper and 19,000 ounces of gold annually over a minimum 15-year mine life, Harmony said.
Fiscal 2027 Outlook
For fiscal 2027, Harmony guided for gold production of 1.3 million to 1.4 million ounces, with underground recovered grade of approximately 5.6 grams per tonne. The company expects gold all-in sustaining costs of ZAR1.3 million to ZAR1.395 million per kilogram.
- CSA copper production: 28,000 to 30,000 tonnes
- CSA recovered copper grade: Above 3.5%
- CSA C1 costs: $2.55 to $2.65 per pound
- Gold-asset capital expenditure: ZAR14.4 billion
- CSA capital expenditure: ZAR2.1 billion
- Eva Copper capital expenditure: $650 million to $680 million, subject to approvals
Harmony said fiscal 2027 will be a deliberate investment year, with about 20% of planned capital spending directed to sustaining assets, 40% to brownfield projects intended to improve portfolio quality and extend mine lives, and 40% toward Eva Copper.
Management said its immediate priority is executing its existing project pipeline rather than pursuing additional acquisitions. The company said its long-term strategy remains focused on risk-adjusted value creation in gold and copper rather than growth measured solely by production volume.
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.
