Harmony to report substantially higher full-year earnings

In dollar terms, EPS are expected to be between $2.65 and $2.85 – an increase of between 109% and 124% on the EPS of $1.27 reported for the prior financial year.

Headline earnings per share (HEPS) are expected to be between R40.50 and R44.50 – an increase of between 73% and 90% on the HEPS of R23.37 reported for the 2025 financial year.

In dollar terms, HEPS are expected to be between $2.45 and $2.65 – an increase of between 90% and 105% year-on-year.

CEO Beyers Nel says this was a “defining year” in Harmony’s evolution into a diversified gold and copper producer.

“Through safe, consistent operational delivery, disciplined execution and strategic investment, we achieved gold production guidance for the eleventh consecutive financial year.

“We also delivered on all key operating guidance metrics in full-year 2026, meeting our gold and copper production, grade and cost targets,” he acclaims.

Group gold production of 44 464 kg, or 1.43-million ounces, was in line with guidance, supported by robust contributions from Harmony’s South African underground operations and the Hidden Valley mine, in Papua New Guinea.

Underground recovered grade of 5.83 g/t was in line with guidance, while disciplined cost management maintained all-in sustaining costs at R1.19-million per kilogramme, or $2 195/oz, within guidance.

Following its acquisition, the CSA mine, in Australia, contributed 18 207 t of copper production, towards the upper end of guidance, at a recovered grade of 3.75%.

“This strong operational performance translated into significant growth in EPS and robust adjusted free cash flow. We advanced the Eva copper project and continued investing in reserve conversion and life extension across our portfolio,” Nel avers.

“Harmony enters its next phase from a position of strength. Our high-quality gold portfolio, growing copper exposure, robust balance sheet, disciplined capital allocation framework and pipeline of organic opportunities position us to generate sustainable cash flows, deliver attractive shareholder returns and create value through the commodity cycle,” he says.

The increase in basic earnings is owing to an increase in group revenue with a higher average gold price received; while sales of 16 719 t were included in revenue from the CSA mine since the acquisition of MAC Copper, with an average copper price received of $5.62/lb.

Moreover, reversals of impairment of R2.8-billion, or $165-million, in respect of property, plant and equipment relating to the Tshepong North, Tshepong South, Kusasalethu and Doornkop cash-generating units, were recognised during the year as a result of significantly higher gold price assumptions applied in the valuation.

Earnings were also affected by the acquisition and the integration of MAC Copper and the CSA mine into the group, which had a pervasive effect on the results, with its costs being included for the first time this year; as well as acquisition costs of R1.4-billion, or $82-million, incurred.

There was also an increase in production costs mainly owing to inflationary-related increases in consumables and electricity costs, higher contractor costs and higher labour costs in line with the five-year wage agreement; and an increase in derivative losses recognised on the realised silver contracts, owing to the silver spot price increasing further above the locked-in rates for contracts that matured during the period.

Further, the royalty expense increased by about R1.5-billion, or $95-million, as a result of the increased revenue for the South African entities, which is the base for the South African mining tax royalties calculation; and there was an increase in the taxation expense of about R2.3-billion, or $162-million, primarily as a result of the increase in current taxation owing to higher profitability driven by the increased gold price received.

Harmony will publish its results for the period on August 27.