Harmony Gold’s CEO, Beyers Nel, has painted a rosy picture of the group's outlook, with the miner on track to meet production, grade and cost guidance this year.
On Monday, Harmony said total capital expenditure was also expected to come in slightly below the guided R10.8bn, leaving room for the group to invest in its copper and gold projects.
“These excellent operational achievements are a result of collaborative dedication, expertise and collaboration of every member of the Harmony team,” said Nel.
“We have a firm grip on our costs, which are predominantly rand-based and comprise mainly labour, consumables and electricity. We continue to benefit from the high rand per kilogram gold price and maintain a high level of certainty and predictability as it related to our planning parameters.”
This month marks the end of a stellar financial year for the group, in which its share price hit a record high, supported by the soaring price of gold.
Gold has gained more than 42% in the past 12 months as investors flock to the safe-haven asset amid mounting geopolitical tension and trade wars.
In the first nine months, Harmony saw its net cash position surge 49% thanks to the record gold price, which boosted gold revenue to R50.9bn for the nine months to end-March.
The free cash resulted in a windfall for investors, with Harmony declaring a record interim dividend of 227c in March, 57% higher than the prior period.
It has also allowed the group to reinvest in its ageing Moab Khotsong and Mponeng assets, unlocking more potential from these mines while funding the development of a new copper project in Australia.
In recent years, Harmony has acquired a number of offshore operations in an attempt to expand its reach, including the addition of Papua New Guinea’s Hidden Valley in 2016 and Australia’s Eva Copper Project in 2022.
The acquisition of MAC Copper in New South Wales, set to conclude in the second half of 2025, promises to add 40,000 tonnes of copper production to the group’s portfolio at a time when demand for copper is steadily rising.
Nel said the company would continue to allocate most of its project capital to “higher-grade, higher-quality and lower-risk assets” in the 2026 financial year, including its ongoing extension projects at Hidden Valley, Moab Khotsong and Mponeng.
The group’s share price has gained more than 70% since the start of the year, reaching a record high in April — adding more than R50bn to its market value.
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