Key Takeaways:
Harmony Gold posted an 87% rise in fiscal 2026 headline EPS to 258 cents, as a 35% gold price jump offset a 3% output drop.
"The financial year ended June 30 was a 'defining' year in Harmony's evolution from a gold producer to a diversified gold and copper company," Chief Executive Beyers Nel said.
Pretax profit jumped to $2.27 billion from $1.17 billion a year earlier. Revenue rose 34% to 99.23 billion rand, while net profit climbed 102% to 30 billion rand. Gold output fell 3% to 44,464 kilograms, or 1.43 million ounces, marking the 11th consecutive year of meeting guidance. All-in sustaining costs rose 13% to about 1.2 million rand per kilogram, widening the AISC margin to 42% from 31%.
The company declared a final dividend of 47 cents a share, lifting the full-year payout to 12.80 rand a share. Harmony maintained fiscal 2027 production guidance of 1.4 million to 1.5 million ounces of gold and gold equivalents, with gold all-in sustaining costs of 1.3 million to 1.395 million rand per kilogram.
Gold prices have stayed elevated on central-bank buying and safe-haven demand, with traders weighing a war in Iran that could push the Federal Reserve to raise rates against concerns over the sustainability of U.S. debt. Higher rates weigh on non-yielding assets like gold.
Harmony is leaning on copper to complement its gold business. The CSA mine in Australia, acquired in October, produced 18,207 tonnes of copper at a C1 cost of $2.47 a pound during eight months of ownership. The company expects CSA output to rise to about 30,000 tonnes in fiscal 2027 and 40,000 tonnes by fiscal 2029. At the Eva Copper project, Harmony kept its capital estimate at $1.55 billion to $1.75 billion and targets first production by the end of calendar 2028, spending $650 million to $680 million in fiscal 2027. Financial Director Boipelo Lekubo said the dividend policy is linked directly to free cash flow after capital expenditures and is intended to preserve flexibility through commodity cycles.
The balance sheet stayed lean, with net debt of 852 million rand and a net debt-to-EBITDA ratio of 0.02 times. Harmony ended the year with 8.6 billion rand in cash and 17.1 billion rand in liquidity.
The dividend, equal to 49 percent of net cash after capital commitments, reflects management's confidence in free-cash-flow generation through the cycle. Investors will watch fiscal 2027 execution at CSA and Eva, where about 40 percent of planned capital spending is directed, for signs the copper expansion delivers on schedule.
This article is for informational purposes only and does not constitute investment advice.
