Harmony Gold Mining (NYSE:HMY) used its interim results call for the six months ended Dec. 31, 2025 to emphasize its strategy of selectively growing as a “higher quality, lower risk global producer of gold and copper,” while prioritizing safety, sustaining capital, and balance sheet strength to support dividends through the cycle.
Dividend policy revised; interim payout doubles
Management said the “exceptional gold price environment” supported another strong financial performance and cash flow generation, prompting a revision to Harmony’s dividend framework. The updated policy introduces a base dividend alongside an upside participation model linked to pre-dividend net debt-to-EBITDA levels.
In response to an analyst question about the payout basis, CFO Boipelo said the policy is based on free cash flow after all capital expenditures, including project capital such as the Eva Copper spend.
FY26 guidance reiterated for gold; copper guidance provided for CSA
Harmony reiterated its full-year FY26 outlook for its gold operations, including:
- Production: 1.4 million to 1.5 million ounces
- Underground recovered grades: above 5.8 grams per ton
- All-in sustaining costs: ZAR 1.15 million to ZAR 1.22 million per kilogram
For copper, the company said its FY26 guidance currently includes only the CSA mine, with targets of:
- Production: 17,500 to 18,500 tons
- C1 cash costs: $2.65 to $2.80 per pound
- Recovered grades: above 3.5%
Management said longer-term guidance for CSA would be provided at the full-year results release.
Capex updated; Eva Copper spending ramps
Harmony updated group capital expenditure guidance for FY26 to ZAR 18.5 billion, reflecting the inclusion of CSA and Eva Copper. Gold operations capital expenditure guidance was reduced by ZAR 1 billion to ZAR 11.8 billion, which management said reflected funds the company “haven’t been able to spend” as the fiscal year progresses.
For CSA, capex was guided at ZAR 1.1 billion ($65 million). Eva Copper capex was projected at ZAR 5.6 billion (around $320 million) for the financial year. Management also disclosed total project capital for Eva Copper is expected to be $1.55 billion to $1.75 billion over three years, with an estimated 20%/40%/40% spend split across the three-year period.
Operational topics: cyanide shortage, recoveries, and mine sequencing
During the Q&A, management addressed operational variability tied to an industry-wide sodium cyanide supply disruption. The company said a supplier declared force majeure during the period due to a plant shutdown and availability issues, reducing supply. Management said recoveries came under pressure in the last quarter, particularly at surface re-mining operations such as Mine Waste Solutions, which it described as Harmony’s largest consumer of cyanide.
To manage the shortage, the company said it shifted available cyanide between operations to keep plants running. Management said recoveries have since normalized and that it is working through impacted material in the current quarter, although it cautioned that not all gold may ultimately be recovered due to the interruption of consistent plant feed. The company said it is taking steps to reduce reliance on a sole supplier of liquid cyanide, including commissioning a cyanide dissolution plant at Mine Waste Solutions and considering additional dissolution capacity to enable the use and stockpiling of cyanide briquettes.
On questions about underground grades at Moab Khotsong and Mponeng, management said Mponeng grades “continued to be strong,” while Moab Khotsong experienced lower grade mining amid seismicity management and mining-related issues. Later, management elaborated that Moab is approaching a “gold gap” as it depletes parts of the middle mine while progressing the Zaaiplaats development, making the sequencing period “tricky.” Management said it remained confident in stated reserve grades at the assets and in its ability to mine to those grades safely over time.
Updates on CSA, Wafi-Golpu, and Hidden Valley
At CSA, management said it remains “very happy” with the ore body, pointing to additional high-grade intercepts disclosed in the presentation materials and suggesting potential upside. It also described actions taken since the acquisition, including a seven-day safety stoppage related to a second egress system (now addressed) and a planned 30-month stoppage to upgrade corroded shaft steelwork at two levels to ensure safe hoisting and access. Management also said it paused moving the upper Karen mine “out slightly further” while it conducts additional drilling to improve ore body confidence.
On Wafi-Golpu, management said there was no “concrete” update on the Special Mining Lease, but highlighted a recent development: the Prime Minister of Papua New Guinea appointed an independent review panel (PRT) to investigate why negotiations between the state negotiating team and joint venture partners have stalled. Management said it views the appointment as a positive step and has engaged with the panel multiple times since about November, with the panel expected to provide feedback to the PNG government.
Finally, management discussed Hidden Valley, saying the current year’s guidance includes an incremental 18-month life-of-mine extension enabled by tailings-related solutions, including lifting the tailings dam. It said a further study is underway to evaluate a more significant extension that could require building a new tailings facility, and noted the key constraint is tailings deposition capacity rather than the ore body or infrastructure. Management said it was too early to say whether a future expansion would require a production gap.
About Harmony Gold Mining (NYSE:HMY)
Harmony Gold Mining Company Limited is a South Africa–based precious metals producer primarily engaged in the exploration, mining and processing of gold. The company operates a portfolio of underground and surface mining operations, targeting both reef-hosted and alluvial deposits. In addition to gold, Harmony’s activities encompass the extraction of copper as a byproduct at its Papua New Guinea operations.
In South Africa, Harmony’s mining footprint includes deep-level underground operations in the Witwatersrand Basin, where it employs a combination of conventional and mechanized mining methods.
