JOHANNESBURG (miningweekly.com) – It’s records all round for South Africa’s largest gold mining company Harmony, which on Thursday reported record-high free cash flow of R11-billion-plus at a 16% margin and a record final dividend of R2.4-billion.

“We’ve delivered an unmatched performance with a 54% growth in adjusted free cash flow,” an upbeat Harmony CEO Beyers Nel said during the presentation of 2025 financial year results event covered by Mining Weekly. (Also watch attached Creamer Media video.)

“We’ve expanded group adjusted free cashflow margins eightfold over the past four years, whilst sustaining and growing high quality ounces,” Beyers added.

The Johannesburg Stock Exchange-listed core gold and now also emerging copper producer reported a “phenomenal performance” at its deep Mponeng gold mine plus a solid performance from Moab Khotsong.

Mponeng delivered a remarkably high underground recovered grade of 11.27 g/t and progressing at Moab Khotsong is a “very exciting” 100 MW solar energy project.

While keeping all-in sustaining costs as guided at $1 806/oz, Harmony excelled at the upper end of production guidance with an output of 1.48-million gold ounces.

Harmony’s surface operations remain “a quiet powerhouse of low risk and high-margin cash” and R1.4-billion has been invested on the surface mining projects at Mine Waste Solutions and at Hidden Valley, while free cash flow margins remained an exceptional 48%, with R3.8-billion generated in adjusted free cash flow.

The Mine Waste Solutions extension project is largely complete and is delivering 100 000 oz of gold annually.

Moreover, Harmony has a further 5.7-million ounces and resources in old tailings dams in the Free State alone.

The priority in financial year 2026 is the turnaround of the Target 1 gold operation, which is described as ‘now showing green shoots” in terms of higher volumes.

In copper, the MAC copper transaction is expected to be closed in October, pending Friday’s August 29 shareholder vote.

Later this calendar year, a final investment decision is expected on Eva copper.

“While copper is a near-term catalyst and a structural hedge that enhances portfolio durability, gold remains our core. Our growth plans remain balanced and affordable and designed not to strain the balance sheet or execution capacity. It is focused on value and transforming Harmony into a higher quality global gold and copper producer.

UNDERGROUND GRADE UPWARD STREAK

Underground recovered grade’s upward streak exceeded the upwardly revised grade guidance top end with 6.27 g/t on structurally improved portfolio quality and operational resilience.

The main driver of performance has been a combination of high-grade-asset addition and mine extension investment elevated by the sky-high gold price.

All this alongside funding approved for major capital projects as well, with cash not only providing certainty but also strategic optionality.

“It derisks our capital programme, supports a consistent dividend and positions us to fund our various projects,” Nel added.

IN EXCELLENT POSITION TO FUND GROWTH PIPELINE

Harmony CFO Boipelo Lekubo described the 2025 financial year as “another standout year”, in which net cash on the balance sheet surged by 285% to R11.1-billion.

As a result, headline earnings a share rose by 26% to R23.37. The main items which impacted earnings included a R3.5-billion increase in taxation and a swing of R500-million on foreign exchange and silver derivatives.

Revenue grew by 20% to R74-billion, included in which is a R4.5-billion hedge loss.

“We continue to hedge up to 30% of our gold production over a rolling 36-month period to protect and lock in margins. This prudent strategy provides financial stability and flexibility during a phase of elevated capital investment,” Lekubo explained.

Net profit jumped 67% to R14.6-billion and earnings before interest, taxes, depreciation and amortization (Ebitda) increased by 37% to R26-billion.

Headroom has grown to R20.9-billion this past financial year, which equals $1.1-billion in available liquidity, strength which arises from strong cash generation and efficient capital deployment.

“We’re in an excellent position to fund our growth pipeline and it also positions us to act decisively on other potential strategic acquisitions while maintaining a conservative risk profile,” said Lekubo, who added that the company is well placed to fund the MAC copper acquisition and the Eva copper build through a combination of existing cash and available facilities.

“Even after the MAC copper acquisition, our leverage ratio peaks at just 0.4 times net debt-to-Ebitda, well below our one times internal threshold. At this stage, an equity raise is unlikely. Instead, we’re pursuing a mix of debt instruments to maintain balance sheet strength, optimise our capital structure and further lower our cost of capital.”

With the record total dividend payout of R2.4-billion, the total dividend per share in financial year 2025 is taken to 382c a share.

“Returning cash today and building tomorrow is at the heart of our capital allocation strategy,” Lekubo explained.