Harmony on track to meet full-year guidance; higher gold prices boosts cash flow
Gold and copper producer Harmony Gold Mining Company has announced that it expects to report a solid financial performance for the six-month period ended December 31, 2025, supported by elevated gold prices and continued strong free cash flow generation.
Harmony, in a media release, explains that operational performance in the second quarter of its 2026 financial year was impacted on by mill motor failure and a deferment of the final gold shipment at the Hidden Valley operation, in Papua New Guinea, to January.
Although underground average mining grades were in line with expectations, the company notes that recovered grades were adversely affected by lower metallurgical recoveries and the impact of an industry-wide cyanide shortage in South Africa.
The company says these temporary factors are being dealt with.
Harmony says it still expects to meet its full-year production guidance of between 1.4-million and 1.5-million ounces, at an all-in-sustaining cost (AISC) of between R1.15-million a kilogram and R1.22-million a kilogram and underground recovered grade at above 5.8 g/t.
As previously indicated, Harmony says guidance for the newly acquired CSA mine – Harmony’s copper operation in New South Wales, Australia – will be provided with the release of the company’s interim results.
Integration activities at the high-grade CSA copper mine are progressing well, with initial activities focusing on integrating the mine into Harmony’s systems, processes and culture.
At the Eva copper project, in Queensland, Australia, Harmony notes that the engineering, procurement and construction (EPC) contractor has been appointed and is expected to mobilise to site during the March quarter.
The company says its fundamentals remain robust, underpinned by improved safety performance, a healthy balance sheet, investment in higher-quality orebodies and sustained margin improvement across the portfolio.
Harmony adds that it continues to advance its review of the balance sheet to ensure an optimal capital structure that supports funding for its long-term growth projects and sustains robust cash flow generation.
The company explains that this work is aimed at enhancing financial flexibility while preserving its commitment to delivering consistent, competitive shareholder returns.
Harmony notes that its comprehensive operational and financial details will be provided when the company’s interim results are released.
The company will publish its financial results for the six months under review on March 11.
INVESTING IN AFRICAN MINING INDABA
Meanwhile, the Harmony executive leadership team will participate in the Investing in African Mining Indaba, to be held at the Cape Town International Convention Centre from February 9 to 12.
Company CEO Beyers Nel will participate in a fireside chat on February 9, while FD Boipelo Lekubo will take part in a panel discussion on February 11.
Harmony says its participation reflects the company’s ongoing engagement with global investors and industry stakeholders.
