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Executive Summary

Harmony Gold reported strong FY26 results with revenue up 34% to $5.876B, headline EPS up 87%, and record adjusted free cash flow of $1.015B, driven by a 35% higher gold price and first-time copper contributions from the CSA mine. The company declared a record final dividend of 750 SA cents per share, bringing total FY26 payout to $503M, and guided FY27 gold production of 1.3-1.4Moz at higher AISC of R1,300,000-R1,395,000/kg. The combination of strong earnings, record cash flow, and a transformative copper diversification strategy makes this a clearly bullish filing for the gold miner.

Key Facts

• Group revenue increased 34% to R99,238 million ($5,876 million) from R73,896 million ($4,071 million) in FY25.
• Headline earnings per share (HEPS) rose 87% to 4,363 SA cents (258 US cents) from 2,337 SA cents (129 US cents).
• Record adjusted free cash flow of R17,148 million ($1,015 million), up 54% year-over-year.
• Average gold price received increased 35% to R2,069,710/kg ($3,811/oz) from R1,529,358/kg ($2,620/oz).
• Final dividend of 750 SA cents per share declared, up from 155 SA cents in FY25, bringing total FY26 payout to a record R8.1 billion ($503 million).
• Gold production of 44,464kg (1,429,551oz) was in line with guidance, though down 3% from FY25.
• CSA copper mine contributed 18,207 tonnes of copper at a C1 cash cost of US$2.47/lb, within guidance.
• FY27 gold production guidance of 1,300,000-1,400,000 ounces at AISC of R1,300,000-R1,395,000/kg; copper guidance of 28,000-30,000 tonnes at C1 cost of US$2.55-$2.65/lb.
• Balance sheet shows net debt of R852 million ($52 million) vs. net cash of R11,148 million ($628 million) in FY25, reflecting MAC Copper acquisition financing.
• Prior-period errors restated relating to mine planning software and payroll provisions; unmodified review opinion from Ernst & Young.

Financial Impact

Revenue +34% to $5.876B; HEPS +87% to 258 US cents; record free cash flow $1.015B; total FY26 dividends $503M (record).

Risk Factors

• Gold price decline would directly pressure revenue and margins given 35% price-driven growth in FY26.
• AISC guidance for FY27 of R1,300,000-R1,395,000/kg implies further cost inflation of 9-17% year-over-year.
• Net debt of $52 million vs. prior net cash position of $628 million following MAC Copper acquisition increases financial leverage.
• Gold production down 3% year-over-year; FY27 guidance midpoint implies flat to slightly lower output.
• Prior-period restatement, though immaterial, highlights internal control risks.

Market Snapshot

Investment Themes

Documents Analyzed

This report is based on 8 SEC documents filed with EDGAR.

US Market Status