Harmony Gold expects higher upcoming half-year earnings

In a trading statement for the six months December 31, Harmony Gold Mining Company stated in a stock exchange news service announcement that its earnings per share in rands are expected to be between 21% and 30% higher than the previous comparable period and in dollars an increase of between 23% and 30%.

Headline earnings per share are expected to be between 11% and 17% in rands and between 11% and 21% in dollars.

“Harmony’s underlying fundamentals remain strong, evident in the performance across our portfolio. Disciplined capital allocation allows us to convert higher gold prices into growth, while integrating copper scale from CSA and Eva Copper to widen margins and derisk cash flows through the cycle.  

“We remain focused on selective, sequenced and affordable growth, alongside responsible shareholder returns. Mining with Purpose ensures we convert today’s opportunity into enduring long-term value for all,” Harmony Gold CEO Beyers Nel stated in a release to Mining Weekly.

The Johannesburg Stock Exchange-listed company said the reasons for the higher earnings included:

an increase in revenue as a result of a significant rise in the average gold price received which increased by 36% to R1 909 849/kg in the last six months of 2025 from R1 405 020/kg in the corresponding period. In dollars, the average gold price received increased by 40% to $3 421/oz from $2 437/oz.

a reversal of impairment in respect of property, plant and equipment relating to the Tshepong North cash generating unit recognised as a result of higher gold price assumptions applied in the valuation.

an increase in foreign exchange translation which is mainly attributable to the translation gain from the dollar-denominated bridge facility. This gain resulted from favourable exchange rate movements when converted into the company’s functional currency, the company stated.

The increase in earnings was partially offset by:

an increase in production costs owing to above-inflation increase electricity costs and higher labour costs in line with the five-year wage agreement;
an increase in royalty tax owing to higher rates being applied as a result of higher profits, as well as the increased revenue base to which it is applied;
an increase in current taxation, reflecting increased taxable income resulting from improved profitability owing to favourable gold prices.
an increase in amortisation and depreciation as a result of additions to property, plant and equipment following the acquisition of MAC Copper;
an increase in derivative losses, primarily driven by the significant rise in the silver spot price, which moved above the average locked‑in floor and cap prices of the outstanding silver collar contracts;
acquisition costs related to various costs directly attributable to the acquisition process of MAC Copper. These costs include stamp duty payable in Australia, attorney and advisory fees;
an increase in finance costs, mainly owing to the bridge facility for the MAC acquisition, which includes the amortisation of the commitment fees. Additionally, there was an increase in the finance cost element of the streaming arrangements which were assumed as part of the MAC Copper acquisition;
fair value movements on copper and silver streaming arrangements with OR Royalties, which resulted from embedded derivatives that have been separated from the host contracts and are measured at fair value through profit or loss.
Harmony will publish its half-year financial results on Wednesday, March 11.