Shareholders in Harmony Gold will enjoy a record interim dividend as elevated gold prices and maiden copper production from its CSA asset saw the miner reporting steady earnings growth.
The Australian CSA copper mine, acquired for $1bn last year, was reflected in Harmony’s production guidance figures for the six months to end-June 2026.
The group expects to produce 17,500-18,500 tonnes of copper for the eight months to end-June, with integration of the mine currently under way.
In its interim results on Wednesday, the group said production at CSA will be halted for about a month to allow for “essential steel replacement on two levels of the shaft,” a move that has been factored into the revised guidance.
Harmony reported a 20% increase in revenue to R44.4bn for the six months ended December, even as operational disruptions resulted in output slipping 9% year on year to 724,099oz.
Lower metallurgical recoveries meant underground recovered grade fell by 11%, while the lower production figures fuelled a 21% jump in all-in sustaining costs.
The group said it was still on track to meet previously set full-year guidance for production, cost and grade.
As gold prices continue their steady ascent, Harmony rewarded investors with an interim dividend payout of R3.38bn or R5.30 a share, more than double the rate of a year ago.
This reflects a new dividend policy of paying up to half of net free cash flow out to shareholders, it said.
“We are pleased to announce that we have revised our dividend policy to provide shareholders with a higher base dividend plan upside participation,” said CEO Beyers Nel.
Headline earnings per share were up 13% year on year at 1,431c, while operating profit jumped 61% to R16.11bn.
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