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Trading Statement and operating update for the financial year ended 30 June 2026
Harmony Gold Mining Company Limited
Registration number 1950/038232/06
Incorporated in the Republic of South Africa
ISIN: ZAE000015228
JSE share code: HAR
(“Harmony” and/or the “Company”)
Trading statement and operating update for the financial year ended
30 June 2026 ("FY26")
Johannesburg. Friday, 21 August 2026. "FY26 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 FY26, meeting our gold and copper
production, grade and cost targets. Group gold production of 44 464kg
(1 429 551oz) was in line with guidance, supported by robust
contributions from our South African underground operations and Hidden
Valley in Papua New Guinea. Underground recovered grade of 5.83g/t was
in line with guidance, while disciplined cost management maintained all-
in sustaining costs (AISC) at R1 191 698/kg (US$2 195/oz), within
guidance. Following its acquisition, the CSA mine in Australia
contributed 18 207 tonnes 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 earnings per share and robust adjusted free cash flow. We advanced
the Eva Copper Project and continued investing in reserve conversion and
life extension across our portfolio.
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. We remain focused on safe, profitable production, disciplined
growth and enduring value creation for all our stakeholders," said Beyers
Nel, Chief Executive Officer of Harmony.
Expected basic and headline earnings for FY26
Shareholders of Harmony are advised that a reasonable degree of certainty
exists that basic earnings for FY26 will be higher than for the financial
year ended 30 June 2025 (the "previous comparable period" or "FY25")
primarily due to:
• an increase in group revenue as a result of continued operational
excellence and a higher average gold price received. The average gold
price received increased by 35.3% to R2 069 710/kg (US$3 811/oz) from
R1 529 358/kg (US$2 620/oz). Additionally, copper sales of 16 719t
were included in revenue from the CSA mine since the acquisition of
MAC Copper Limited (“MAC Copper”), with an average copper price
received of US$5.62/lb.
• reversals of impairment of R2.8 billion (US$165 million) in respect
of property, plant and equipment relating to the Tshepong North,
Tshepong South, Kusasalethu and Doornkop cash generating units
(“CGUs”) were recognised during FY26 as a result of significantly
higher gold price assumptions applied in the valuation.
The earnings were also affected by the following:
• The acquisition and integration of MAC Copper and the CSA mine into
the group had a pervasive effect on the results, with its costs being
included for the first time in FY26. Some of the notable changes were
on production costs, amortisation and depreciation, fair value
movements on streaming arrangements (this relates to copper and silver
streams) and finance costs (relates to the bridge loan and the
streaming arrangements). In addition, acquisition costs of R1.4
billion (US$82 million) were incurred.
• an increase in production costs mainly due to inflationary-related
increases in consumables and electricity costs, higher contractor
costs, and higher labour costs in line with the five-year
wage agreement.
• an increase in derivative losses recognised on the realised silver
contracts, due to the silver spot price increasing further above the
locked-in rates for contracts that matured during the period.
• the royalty expense increased by approximately R1.5 billion
(US$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.
• an increase in the taxation expense of approximately R2.3 billion
(US$162 million), primarily as a result of the increase in current
taxation due to higher profitability driven by the increased gold
price received.
Consequently, earnings per share (“EPS”) are expected to be between
4 400 and 4 800 South African ("SA") cents per share, which is an
increase of between 90% and 108% on the EPS of 2 313 SA cents per share
for the previous comparable period. In United States ("US") dollar terms,
the earnings per share is expected to be between 265 and 285 US cents
per share, which is an increase of between 109% and 124% on the earnings
per share of 127 US cents per share reported for the previous comparable
period.
Headline earnings per share (“HEPS”) are expected to be between
4 050 and 4 450 SA cents per share, which represents an increase of
between 73% and 90% from the HEPS of 2 337 SA cents per share reported
in the previous comparable period. In US dollar terms, the headline
earnings per share is expected to be between 245 and 265 US cents per
share, which is an increase of between 90% and 105% on the HEPS of
129 US cents per share reported for the previous comparable period.
Harmony will publish its financial results for the financial year ended
30 June 2026 on Thursday, 27 August 2026. Please see Harmony’s website
for more details: www.harmony.co.za.
The financial information on which this trading statement has been based
has not been reviewed or reported on by Harmony’s external auditors.
For more details, contact:
Jared Coetzer
Head of Investor Relations
+27 (0) 82 746 4120
Johannesburg, South Africa
21 August 2026
Sponsor:
J.P. Morgan Equities South Africa Proprietary Limited
FORWARD-LOOKING STATEMENTS
This market release contains forward-looking statements within the
meaning of the safe harbour provided by Section 21E of the Exchange Act
and Section 27A of the Securities Act of 1933, as amended
(the “Securities Act”), with respect to our financial condition, results
of operations, business strategies, operating efficiencies, competitive
positions, growth opportunities for existing services, plans and
objectives of management, markets for stock and other matters.
These forward-looking statements, including, among others, those
relating to our future business prospects, revenues, and the potential
benefit of acquisitions (including statements regarding growth and cost
savings) wherever they may occur in this market release, are necessarily
estimates reflecting the best judgement of our senior management and
involve a number of risks and uncertainties that could cause actual
results to differ materially from those suggested by the forward-looking
statements. As a consequence, these forward-looking statements should
be considered in light of various important factors, including those set
forth in this market release.
By their nature, forward-looking statements involve risk and uncertainty
because they relate to future events and circumstances and should be
considered in light of various important factors, including those set
forth in this disclaimer. Readers are cautioned not to place undue
reliance on such statements. Important factors that could cause actual
results to differ materially from estimates or projections contained in
the forward-looking statements include, without limitation: overall
economic and business conditions in South Africa, Papua New Guinea,
Australia and elsewhere; the impact from, and measures taken to address,
Covid-19 and other contagious diseases, such as HIV and tuberculosis;
high and rising inflation, supply chain issues, volatile commodity costs
and other inflationary pressures exacerbated by geopolitical factors and
subsequent impacts; estimates of future earnings, and the sensitivity
of earnings to gold and other metals prices; estimates of future gold
and other metals production and sales; estimates of future cash costs;
estimates of future cash flows, and the sensitivity of cash flows to
gold and other metals prices; estimates of provision for silicosis
settlement; increasing regulation of environmental and sustainability
matters such as greenhouse gas emission and climate change, and the
impact of climate change on our operations; estimates of future tax
liabilities under the Carbon Tax Act (South Africa); statements regarding
future debt repayments; estimates of future capital expenditures; the
success of our business strategy, exploration and development activities
and other initiatives; future financial position, plans, strategies,
objectives, capital expenditures, projected costs and anticipated cost
savings and financing plans; estimates of reserves statements regarding
future exploration results and the replacement of reserves; the ability
to achieve anticipated efficiencies and other cost-savings in connection
with past and future acquisitions, as well as at existing operations;
fluctuations in the market price of gold and other metals; the occurrence
of hazards associated with underground and surface gold mining; the
occurrence of labour disruptions related to industrial action or health
and safety incidents; power cost increases as well as power stoppages,
fluctuations and usage constraints; ageing infrastructure, unplanned
breakdowns and stoppages that may delay production, increase costs and
industrial accidents; supply chain shortages and increases in the prices
of production imports and the availability, terms and deployment of
capital; our ability to hire and retain senior management, sufficiently
technically-skilled employees, as well as our ability to achieve
sufficient representation of historically disadvantaged persons in
management positions or sufficient gender diversity in management
positions or at Board level; our ability to comply with requirements
that we operate in a sustainable manner and provide benefits to affected
communities; potential liabilities related to occupational health
diseases; changes in government regulation and the political
environment, particularly tax and royalties, mining rights, health,
safety, environmental regulation and business ownership including any
interpretation thereof; court decisions affecting the mining industry,
including, without limitation, regarding the interpretation of mining
rights; our ability to protect our information technology and
communication systems and the personal data we retain; risks related to
the failure of internal controls; our ability to meet our environmental,
social and corporate governance targets; the outcome of pending or future
litigation or regulatory proceedings; fluctuations in exchange rates and
currency devaluations and other macroeconomic monetary policies, as well
as the impact of South African exchange control regulations; the adequacy
of the Group’s insurance coverage; any further downgrade of South
Africa’s credit rating and socio-economic or political instability in
South Africa, Papua New Guinea, Australia and other countries in which
we operate; changes in technical and economic assumptions underlying our
mineral reserves estimates; geotechnical challenges due to the ageing
of certain mines and a trend toward mining deeper pits and more complex,
often deeper underground, deposits; and actual or alleged breach or
breaches in governance processes, fraud, bribery or corruption at our
operations that leads to censure, penalties or negative reputational
impacts.
The foregoing factors and others described under “Risk Factors” in our
Integrated Annual Report (www.har.co.za) and our Form 20-F should not
be construed as exhaustive. We undertake no obligation to update publicly
or release any revisions to these forward-looking statements to reflect
events or circumstances after the date of this market release or to
reflect the occurrence of unanticipated events, except as required by
law. All subsequent written or oral forward-looking statements
attributable to Harmony or any person acting on its behalf, are qualified
by the cautionary statements herein.
Any forward-looking statement contained in this market release has not
been reviewed or reported on by Harmony’s external auditors. Any forward-
looking information included in this market release is the sole
responsibility of the Board.
Date: 21/08/2026 06:00:00
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