Harmony Gold Delivers 11th Consecutive Year of Guided Gold Production as Copper Strategy Gains Momentum

Harmony Gold Mining Company has maintained its track record of meeting annual gold production guidance, marking the 11th consecutive year in which the South African gold producer has delivered within its targeted production range.

In a pre-year-end operational update for the financial year ended 30 June 2026, Harmony said gold production was expected to come in between 1.4 million and 1.5 million ounces, with underground recovered grades of approximately 5.80 grams per tonne. The company also expects all-in sustaining costs to remain within guidance, while capital expenditure is anticipated to finish slightly below plan.

Harmony said the performance reflected continued operational discipline and a focus on safe and predictable production. The company enters the new financial year with a portfolio that combines established gold operations with an increasingly important copper business.

Strong cash generation has remained a key feature of Harmony's performance. The company said its capital allocation strategy continues to focus on maintaining balance-sheet strength, investing selectively in higher-margin assets and returning capital to shareholders. Strong cash generation enabled Harmony to return a record R4.4 billion to shareholders through dividends during the preceding 12 months, while continuing to fund its operational and growth requirements.

Although gold remains at the centre of Harmony's business, copper is becoming an increasingly important component of its long-term growth strategy. The company's CSA copper mine is expected to produce between 17,500 and 18,500 tonnes of copper in FY26, placing production towards the upper end of its guidance range. Harmony also expects cash costs at CSA to be below guidance, while recovered grades are expected to exceed expectations.

The performance of CSA supports Harmony's broader strategy of expanding its exposure to copper, particularly through operations located in established mining jurisdictions. The company is progressing a capital ventilation project at CSA, which is intended to provide the infrastructure required for the mine's next phase of development. Harmony's longer-term objective is to position CSA to grow towards approximately 40,000 tonnes of annual copper production.

The company's copper ambitions also extend to Australia, where the Eva Copper project in Queensland represents one of its major growth opportunities. Harmony reported progress on the project, including the securing of long-lead equipment, the awarding of major contracts and continued construction activities involving the processing plant and associated infrastructure.

However, the Eva project encountered an environmental issue during land-clearing activities after a protected species was identified in the project area. Clearing was subsequently paused while Harmony engaged with regulators, environmental specialists, government stakeholders and other interested parties. The company said it was working to balance its environmental responsibilities with continued project development and had reprioritised certain activities while the necessary assessments and consultations were undertaken.

Safety remains another important area of focus for Harmony. The company said key safety indicators had continued to improve, although it acknowledged that its goal of eliminating serious harm had not yet been achieved. Harmony continues to use both leading and lagging safety indicators to strengthen preventative measures and reduce serious incidents.

The company has nevertheless experienced fatal incidents during 2026, making safety a significant issue alongside its operational and financial performance. Harmony has reiterated its objective of ensuring that every employee and contractor returns home safely each day.

Looking ahead, Harmony enters FY27 with what management describes as a strengthened portfolio, supported by established gold assets and growing copper exposure. The company expects to continue generating strong cash flows while investing in projects designed to expand production and improve the quality of its asset base.

The combination of consistent gold production, the performance of CSA and the development of Eva Copper reflects Harmony's broader strategy of diversifying its commodity exposure while retaining gold as a core part of the business. The company believes this approach can strengthen its long-term resilience and create additional opportunities for growth.

Harmony has also reported progress on sustainability, including an upgrade of its MSCI ESG rating to 'A', which reflects improvements in its environmental, social and governance performance.

The June operational update was issued before the finalisation and external audit of Harmony's FY26 financial results. Investors will therefore be watching closely for the company's full-year results, which are scheduled for release on 27 August 2026. The results are expected to provide greater detail on earnings, cash flow, costs, capital expenditure and the outlook for FY27.

For Harmony, the latest update demonstrates continued operational consistency in its gold business while highlighting the company's transition towards a more diversified mining portfolio. Meeting gold production guidance for an 11th consecutive year, generating significant cash and returning R4.4 billion to shareholders provide a solid foundation, while CSA and Eva Copper offer potential for further growth.

The key issues for investors in FY27 will be the final financial results, the performance of Harmony's gold operations, progress at its copper projects, capital allocation and the company's continued efforts to improve safety across its operations.