One of the country’s largest gold producers, Harmony Gold, has revised its dividend policy to increase shareholder payouts and declared a record interim dividend for the first half of the 2026 financial year.
This as profits climbed sharply, recording 61% increase in operating profit to R16-billion from R10-million over the same period previously. The improved operational performance was also supported by a stronger gold price.
The mine will now pay up to 50% of net free cash to shareholders under its revised dividends policy. The company declared an interim dividend of R5.30 per ordinary share, more than double the R2.27 paid in the comparable period previously. The payout amounts to a record R3.38-billion.
Gold price boon
Chief executive Beyers Nel said the company had used the strong gold price environment to reinforce its financial position while continuing to invest carefully in operations.
“We are pleased to announce that we have revised our dividend policy to provide shareholders with a higher base dividend plan upside participation.
“We will be paying a record interim dividend for this reporting period. Operationally our fundamentals remain firmly intact, and we remain on track to meet our full-year production, cost and grade guidance,” said Nel.
Group revenue increased by 20% to R44-billion, compared with R37-billion previously. Harmony received an average gold price of R1.91-million per kilogram, including hedging, during the period, showing an increase of 36% from R1.4-million per kilogram in the prior period.
Basic earnings per share increased by 24% to R15.63, up from R12.65 in the previous corresponding period.
Growth path
“During this period, Harmony has strengthened its position as a higher quality, lower risk global gold and copper producer. We continue to grow selectively, sequentially and affordably, converting today’s strong gold price into lasting value.
“Our first rand or dollar goes to safety and sustaining our operations, with further capital deployed only where true value is created. This discipline supports balance sheet strength and our commitment to consistent, through the cycle dividends,” said Nel.
CSA Copper Mine in Australia is expected to produce between 17 500 to 18 500 tonnes for the eight months period to end in June 30.
“Production at the CSA mine will be temporarily halted for approximately one month to allow for essential steel replacement on two levels of the shaft. This is a necessary intervention to ensure long‑term safety, reliability, and production stability and has been factored into the revised guidance.
“C1 cash costs for the remainder of this financial year are expected to be between US$2.65/lb and US$2.80/lb at a recovered grade of above 3.50%,” reads the statement.
