Full Year 2026 Harmony Gold Mining Company Limited Earnings Call Transcript
Key Points
- Harmony Gold Mining Co Ltd (HMY) delivered record financial results for FY26, with revenue up 34% to R99.2 billion and headline earnings per share up 87% to R43.63, demonstrating strong operating leverage.
- The company achieved its 11th consecutive year of meeting gold production guidance, producing 1.43 million ounces of gold and 18,200 tons of copper at the upper end of guidance, showcasing operational consistency.
- Harmony Gold Mining Co Ltd (HMY) declared a record final dividend of R7.50 per share, bringing the full-year dividend to R12.80 per share, reflecting a strong commitment to shareholder returns.
- The company's portfolio diversification strategy is progressing well, with the CSA copper mine fully integrated and producing at a low C1 cost of $2.47 per pound, and the Eva Copper project on track for first production by end of calendar 2028.
- Harmony Gold Mining Co Ltd (HMY) maintains a robust balance sheet with net debt to EBITDA of only 0.02 times and liquidity of R17.1 billion, providing significant financial flexibility to fund growth projects.
- The company achieved its lowest-ever lost time injury frequency rate of 5.05, highlighting a strong commitment to safety and operational excellence.
- Harmony Gold Mining Co Ltd (HMY) successfully converted approximately 10 million additional ounces to mineral reserves at a competitive cost of $180 per ounce, with high internal rates of return ranging from 30% to 65%.
- Harmony Gold Mining Co Ltd (HMY) reported a significant realized gold hedge loss of R9.6 billion within revenue, which negatively impacted reported earnings despite locking in margins.
- The company faces a period of elevated capital expenditure, with FY27 total CapEx planned at R28 billion, a 64% increase year-on-year, which could pressure near-term free cash flow and dividend growth.
- Moab Kotsong is entering a previously flagged ore gap, which is expected to put pressure on costs and production over the next five years, impacting the company's high-grade underground operations.
- The Eva Copper project's timeline is subject to regulatory approvals related to an endangered species find, creating potential execution risk for the project's schedule and capital guidance.
- Harmony Gold Mining Co Ltd (HMY) experienced a 16% increase in electricity costs, which the company is only partially mitigating through its renewable energy programme, adding to cost pressures.
- The company's dividend yield of approximately 3.5% is lower than some peers, and with the significant capital investment phase ahead, maintaining the current dividend payout level may be challenging.
- Harmony Gold Mining Co Ltd (HMY) tragically lost six colleagues during the year, underscoring the persistent safety risks in deep-level mining operations despite overall safety improvements.
Right, we could get going. Good day, everybody, and thank you for joining us for Harmony's results presentation for the financial year ended 30 June 2026.
The past year demonstrated the value of a clear strategy executed with discipline, resulting in exceptional performance and a further strengthening Harmony's position as a growing global gold and copper producer. Our investment case continued to be underpinned by three factors, which is discipline delivery. Portfolio progression and enduring value. Collectively, they highlight the strength of our operational and financial performance, the advancement of our portfolio and our commitment to sustainable long-term shareholder value. Before we begin, I'll urge you to please take note of our Safe Harbour Statement.
This presentation contains forward-looking statements that are subject to risks and uncertainties as outlined in our public disclosures and the disclaimer on this slide.
For us at Harmony, disciplined delivery starts with what we set
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