Harmony Gold Doubles Interim Dividend, Announces New Shareholder Return Policy Amid Strong H1FY26 Profit Growth
Summary
Harmony Gold reported strong H1FY26 financial results, with operating profit up 61% and EPS increasing, leading to a doubled interim dividend and a new policy to pay up to 50% of net free cash to shareholders.
Key Events
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Interim Dividend Doubled & New Policy
The company declared an interim dividend of 530 SA cents (32 US cents) per ordinary share, more than doubling the previous interim dividend of 227 SA cents. A new dividend policy commits to paying up to 50% of net free cash to shareholders, with a record payout of US$204 million.
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Strong H1FY26 Financial Performance
Operating profit increased by 61% to R16,107 million (US$930 million). Basic earnings per share rose 24% to 1,563 SA cents (90 US cents), and headline earnings per share increased 13% to 1,431 SA cents (82 US cents). Group revenue was up 20% to R44,400 million (US$2,557 million).
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Copper Project Advancements
The company announced maiden copper production from the newly acquired CSA mine and confirmed the final investment decision for the Eva Copper project, with construction now underway, signaling diversification and future growth.
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Unchanged Full-Year Guidance
Harmony Gold reiterated its full-year FY26 gold production guidance of 1,400,000 to 1,500,000 ounces and all-in sustaining cost (AISC) guidance of R1,150,000/kg to R1,220,000/kg, despite a 9% decrease in H1FY26 gold production.
Analysis
Harmony Gold's interim results for H1FY26 demonstrate robust financial performance, with operating profit surging by 61% and both basic and headline earnings per share showing significant increases. The most impactful news is the company's decision to double its interim dividend and revise its dividend policy to distribute up to 50% of net free cash, signaling strong confidence in future cash generation and a commitment to enhanced shareholder returns. While gold production saw a slight decrease and all-in sustaining costs rose, these were offset by higher gold prices and the positive developments in its copper portfolio, including maiden production from the CSA mine and the final investment decision for Eva Copper. This filing confirms the positive earnings expectations previously communicated and adds substantial new information regarding shareholder distributions and strategic growth initiatives.
At the time of this filing, HMY was trading at $16.59 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $12.1B. The 52-week trading range was $11.67 to $26.06. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.