Harmony Gold has posted a record financial performance, with operating free cash flow surging 54% to R17.1 billion as stronger gold prices and its growing copper business lifted earnings.
South African mining group Harmony Gold has ended the financial year on a strong note, generating record operating free cash flow of R17.148 billion.
The 54% increase was supported by higher average gold prices and copper sales from the CSA mine following Harmony’s acquisition of MAC Copper.
The stronger cash generation has allowed the Johannesburg Stock Exchange-listed miner to declare a record final dividend of R4.8 billion, taking its total dividend for the financial year to R8.2 billion.
Gold Meets Guidance
Harmony produced 44,464 kg of gold, equivalent to around 1.43 million ounces, during the financial year.
Although gold production declined by 3%, the company achieved its production guidance for the 11th consecutive financial year.
All-in sustaining costs came in at R1.192 million per kilogram, remaining within guidance, while the group’s underground recovered grade reached 5.83 g/t — above its target.
The higher gold price environment provided an important boost to the group’s financial performance.
Headline earnings per share jumped 87% to 4,363 cents, while earnings per share increased by 103%.
Harmony’s transformation into a gold-and-copper producer is also beginning to show in its numbers.
The CSA mine contributed 18,207 tonnes of copper, achieving a recovered grade of 3.75% and a C1 cash cost of $2.47/lb.
The operation’s contribution helped drive earnings, cash generation and the record dividend while giving Harmony additional exposure to copper demand.
The company says its portfolio provides flexibility as it looks beyond its traditional gold operations.
Balance Sheet Remains Strong
Harmony ended the period with R11.148 billion in net cash, supported by total liquidity of R17.101 billion in cash and undrawn facilities.
Importantly, the stronger financial position has not stopped the company from investing in its future.
The miner continued spending on reserve conversion, extending mine lives and developing growth projects.
At Tshepong North, the mine life has been extended from six years to 15 years, while construction at Eva Copper has progressed, with key infrastructure and processing plant milestones reached.
A New Phase For Harmony
CEO Beyers Nel said the company had successfully delivered against its operational targets while continuing to invest in future growth.
Harmony’s strategy is now shifting.
After years focused on improving and progressing its portfolio, the company plans to concentrate between 2026 and 2030 on executing its projects and unlocking the value already contained within its assets.
Beyond 2030, Harmony expects stronger margins, lower costs and expanding free cash flow to create another significant improvement in cash generation.
With gold providing strong current cash generation and copper adding another growth avenue, Harmony is positioning itself to deliver returns today while building a broader mining portfolio for the years ahead.
Main Image: Harmony Gold
