Harmony Gold Forecasts Significant EPS Growth for H1FY26, Driven by Higher Gold Prices
Summary
Harmony Gold expects basic EPS to increase by 21-30% and headline EPS by 11-21% for H1FY26, largely due to a significant rise in gold prices.
Key Events
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Strong Earnings Growth Forecast
Basic EPS is projected to increase by 21-30% and Headline EPS by 11-21% for the six months ended December 31, 2025 (H1FY26).
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Higher Gold Prices Boost Revenue
The average gold price received increased by 36% in ZAR terms (40% in US dollar terms), significantly contributing to higher revenue.
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Impairment Reversal Noted
A reversal of impairment in respect of property, plant and equipment for the Tshepong North unit was recognized due to significantly higher gold price assumptions.
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Cost Increases Partially Offset Gains
Increased production costs (electricity, labor), higher royalty and current taxes, derivative losses, and acquisition-related expenses partially offset the earnings growth.
Analysis
Harmony Gold's trading statement indicates a strong financial performance for the first half of fiscal year 2026, with basic EPS expected to rise by 21-30% and headline EPS by 11-21%. This positive outlook is primarily attributed to a substantial increase in the average gold price received and a reversal of impairment charges. While production and acquisition costs partially offset these gains, the overall picture points to robust profitability. Investors should monitor the full financial results on March 11 for confirmation and further details on cost management and future guidance.
At the time of this filing, HMY was trading at $18.80 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $12B. The 52-week trading range was $10.68 to $26.06. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.