Harmony Gold's record FY26 payout rests on a 35% rise in the gold price it received

Harmony Gold's record payout rests on the price it was paid for its gold, not on the mines. The average price received rose 35% to R2.1m a kilogram, or about $3,811 an ounce. Gold production fell 3% to 1,429,551 ounces.

Revenue rose 34% to R99.2bn in the year to 30 June 2026, the company reported. Net profit rose 102% to R30bn and headline earnings per share rose 87% to R43.63. Earnings per share more than doubled to R47.01.

Cash flow and the dividend

Group operating cash flow rose 48% to R33.6bn. Adjusted free cash flow rose 54% to a record R17bn. Harmony met its gold production guidance for the 11th consecutive financial year, it said.

The final dividend of 750 cents a share compared with 155 cents a year earlier. The total FY26 payout came to R8.1bn, or R12.80 a share. The interim dividend was R3.38bn, or R5.30 a share, more than double the rate a year earlier.

Harmony revised its dividend policy with the interim results in March. It said it would pay up to half of net free cash flow to shareholders.

The balance sheet swung from net cash to R852m of net debt after the $1bn acquisition of the CSA copper mine. Net debt was 0.02 times EBITDA. Liquidity was R17.1bn and cash and cash equivalents were R8.6bn. Harmony has said it funds growth projects from internal cash generation.

Costs rise and FY27 output steps back

All-in sustaining costs rose 13% to R1,191,698 a kilogram, within guidance. The all-in sustaining cost margin improved to 42% from 31%, because the metal sold for more. Group operating costs excluding CSA and royalties rose 7%, below planned mining inflation of 10%. Electricity costs rose 16%, labour 8% and consumables 6%. Royalties rose 77% on stronger profitability.

Guidance for the year to June 2027 is for 1.3 million to 1.4 million ounces of gold, below the 1.43 million ounces just delivered. All-in sustaining costs are guided at R1.3 million to R1.39 million a kilogram. Underground recovered grade is expected to remain above 5.60g/t, against 5.83g/t in FY26.

CEO Beyers Nel put a timeline on the recovery. Harmony would spend 2026 to 2030 executing on assets it already owns, he said, with the payoff coming later. "Beyond 2030, we expect a meaningful cash flow inflection as margins strengthen, costs decline and free cash flow expands," he said.

Copper and Tshepong North carry the growth case

CSA produced 18,207 tonnes of copper, at the upper end of the 17,500 to 18,500 tonne guidance. The mine contributed $111m in production profit at a C1 cash cost of $2.47 a pound.

Copper mineral reserves rose 71% to 4 million tonnes and resources rose 18.5% to 7.4 million tonnes. Gold mineral reserves rose to 27.4 million ounces. Harmony extended the life of Tshepong North to 15 years from an estimated six.

Eva Copper in Queensland is targeted for first production by the end of calendar 2028. Land clearing there was paused after a protected species was found. Harmony said it was engaging with regulators while reprioritising work.

What happens next

The test for FY27 is delivery against that guidance. The next set of numbers will show whether operations can carry the payout if the price tailwind fades.