Harmony Gold poised to meet production and cost guidance for 10th year

Harmony Gold is set to meet its production, grade, and cost guidance for its financial year to June 30, 2025, the 10th consecutive year of meeting its targets, the company said in an update to its shareholders via the JSE on Monday.

It had been “another landmark year underpinned by exceptional operating free cash flows, improved recovered grades whilst advancing our copper-gold growth strategy,” CEO Beyers Nel said in the update.

As the financial year drew to a close, total production was expected to be in line with guidance of between 1.4 million to 1.5 million ounces, while all-in-sustaining costs would be between the guided range of R1 020 000/kg to R1 100 000/kg.

Underground recovered grades would be higher than the guided 6g/t, while capital expenditure would be slightly below the guided R10.8 billion.

The group said the positive performance was made possible through an embedded approach to sustainability, disciplined capital allocation, and consistent, predictable production underpinned by "operational excellence".

This had enabled Harmony to improve the quality of its portfolio, extend the life of its mines, and deliver stellar cash flow generation, said Nel.

Over the past three years, Harmony has transformed into a geographically diversified specialist mining company with a compelling gold and copper story.

Nel said they had a firm grip on costs, which were predominantly rand-based and comprised mainly labor, consumables, and electricity. He said they continue to benefit from the high rand per kilogram gold price.

Highlights during the year included meeting or beating all guidance metrics. The JSE share price reached a record high in April 2025. A record interim dividend payout of R1.4 billion was paid.

In addition, the potential R18.4bn acquisition of MAC Copper in New South Wales, Australia, was announced, which, pending conclusion in the second half, was expected to bring over 40 000 tons of annual copper production and contribute immediately towards free cash flow generation.

Phase 1 of the Mine Waste Solutions extension project was delivered on time and on budget.

Looking ahead, Nel said they would continue to allocate most of their project capital to higher-grade, higher-quality, and lower-risk assets. This included the extensions at Hidden Valley, Moab Khotsong, and Mponeng. The Eva Copper project's feasibility study was being finalised.

Harmony's share price had nudged up 1.33% to R257.25 by Monday midday.

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