JOHANNESBURG (miningweekly.com) – In financial year 2026 (FY26), Mponeng and Moab Khotsong, the high-grade South African underground operations of Harmony Gold, produced 15 t at 9 g/t with a 38% free cash flow margin.

Mponeng, the world’s deepest mine, was the primary driver of this performance as Moab Khotsong moves into an ore gap.

Moreover, performance from the South African underground optimised operations has also strengthened year-on-year. These assets produced 17 t of gold and margins expanded to 25%, lifting adjusted free cash flow by a phenomenal 284% to around R9-billion. (Also watch attached Creamer Media video.)

In addition, Harmony’s surface and retreatment assets contributed 7 t at an excellent 46% margin.

Harmony’s big gold retreatment operations provide “low-risk, high-margin ounces that generate meaningful cash flow by recycling old tailings storage facilities”, Harmony CEO Beyers Nel reported at the results presentation of the Johannesburg Stock Exchange-listed company for the 12 months to June 30.

The company’s focus going forward is on delivering and unlocking value embedded in what it owns. Expected beyond 2030 are stronger margins, lower real unit costs, and growing free cash flow.

“Every decision we make is aimed at either improving safety, expanding margins, protecting cash flows, or creating long-term value through disciplined capital allocation.

“As our portfolio continues to evolve, we’re pleased that the solid FY26 results reflect this quality and the opportunity inherent in our reserve base.

“It's this consistency that turned a higher gold price into cash certainty. We delivered rather exceptional earnings growth alongside record shareholder returns.

“Our headline earnings per share increased by 87% to R43.63 per share, and the company has declared a record final dividend of R7.50 per share for a total of R8.2-billion for the financial year.

“Our lost-time injury frequency rate of 5.05 per million hours worked is the lowest in Harmony's 76-year history,” Nel added during the presentation covered by Mining Weekly.

INTERNATIONAL ASSETS

Hidden Valley produced almost 6 t of gold at an all-in sustaining cost of around R660 000/kg, or $1 200/oz, with its adjusted silver-supported free cash flow margin increasing to 68%.

In the eight months since acquisition, the now fully integrated CSA produced 18 200 t of copper at $2.47/lb providing a 22% free cash flow margin.

Harmony FD Boipelo Lekubo highlighted FY26 as a record year on financial metrics such as revenue, which increased by 34% to a record nigh R100-billion. Net profit increased by 102% to R30-billion and headline earnings per share increased by 87%.

“That step up is evidence of the operating leverage in our portfolio,” Lekubo pointed out.

Group operating cash flow rose by 48% to R33.6-billion and adjusted free cash flow by 54% to a record R17-billion. Cash and cash equivalents total R8.6-billion, alongside the CSA acquisition.

Strong free cash flow supported a record final dividend of R4.8-billion, lifting the full year dividend to R8.6-billion, a yield of around 3.5% based on the closing share price on August 25.

“Alongside shareholder returns, it is vital we remain capable of funding our future. During the year, we implemented a funding platform to support the next phase of growth,” Lekubo reported.

GOLDEN FOUNDATION

At Harmony, gold remains the foundation while copper strengthens the portfolio, adding diversification, resilience, and future growth.

“But this strategy is not about volume. It's a strategy about value, value created through higher quality assets, better returns, and disciplined capital allocation,” Nel explained.

“Growth always matters, but only if it strengthens the portfolio and creates long-term value. Every rand and every dollar in this business competes for risk-adjusted per share returns. We start by protecting the base. Safety, asset integrity, mining flexibility, and sustaining capital are imperative. This safeguards our people, ensures reliable production, and protects our cash flows."

The Harmony operating model is being applied to CSA, mapping a pathway to 40 000 t of copper per year. As a result, the safety performance has strengthened at CSA with the lost-time injury frequency rate at its lowest level since acquisition.

The main operational constraint, which is the underground ventilation supply, has been addressed.

CSA is delivering on the investment thesis that underpinned the acquisition and intercepts of up to 12% copper have already been recorded outside the existing mineral resource.

The drill programme includes a potential extension of more than 500 m below the current mine and to that end, surface and underground programmes continue.

At the Eva Copper project, original capital guidance remains unchanged, and first production is still targeted for the end of 2028.

In FY26, the Australasian operations contributed 16% to production. Over the next decade, Australasia is expected to grow to around 30% of group production.

It is worth noting that this outlook excludes the Tier 1 Wafi Golpu project, which is in the permitting process.

Harmony remains an annual 1.4-million to 1.5-million gold-ounce and gold-equivalent producer.

Capital guidance for FY27 is R14.4-billion for gold assets, R2.1-billion rand for CSA copper, while for Eva Copper capital of between $650-million and $680-million is planned.

“Harmony is a long-life gold producer with copper-driven growth and optionality,” Nel emphasised.