Harmony Gold Reports Strong H1FY26 Earnings, Doubles Interim Dividend, and Advances Major Copper Growth Projects

summarizeSummary

Harmony Gold reported strong H1FY26 financial results, including a 61% increase in operating profit and a 24% rise in basic EPS, leading to a doubled interim dividend. The company also advanced its copper growth strategy with the Eva Copper Project's FID and initial production from the CSA mine.

check_boxKey Events

• Strong H1FY26 Financial Performance

  Operating profit increased by 61% to US$930 million, group revenue rose 20% to US$2.56 billion, and basic earnings per share were up 24% to 90 US cents for the six months ended December 31, 2025. This follows the guidance provided on March 9, 2026, confirming the expected EPS growth.

• Interim Dividend Doubled

  The Board declared an interim dividend of 530 SA cents (32 US cents) per share, representing a record payout of US$204 million. This reflects a revised dividend policy to return up to 50% of net free cash to shareholders, with the base dividend increasing from 20% to 30%.

• Major Copper Growth Projects Advance

  The Final Investment Decision (FID) for the Eva Copper Project (US$1.55-1.75 billion capital estimate) was approved on November 24, 2025, with construction underway. Additionally, maiden copper production commenced at the newly acquired CSA mine, contributing US$24 million in revenue in its first two months.

• Healthy Balance Sheet and Liquidity

  The company maintained a robust balance sheet with a net debt/EBITDA ratio of 0.18 times, well below its internal threshold. It also reported US$895 million in cash and undrawn facilities, providing ample liquidity for ongoing operations and growth initiatives.

auto_awesomeAnalysis

Harmony Gold delivered robust financial results for the first half of fiscal year 2026, with significant increases in operating profit, revenue, and basic earnings per share. This strong performance enabled the company to double its interim dividend, reflecting a revised policy to return more net free cash to shareholders. Strategically, the company is making substantial progress in its copper expansion, with the Eva Copper Project's Final Investment Decision approved and maiden production from the newly acquired CSA mine. While gold production saw a temporary dip and costs increased, the overall picture is highly positive, demonstrating strong execution of its diversification strategy and commitment to shareholder returns. The company also reported a reversal of impairment for one of its gold operations, further boosting its asset valuation.