HMY

Business Context and Reporting Period

Company: Harmony Gold Mining Company Limited
Filing Type: Form 6-K (Trading Statement)
Reporting Period: Six months ended 31 December 2025 (H1FY26)
Filing Date: 9 March 2026
Context: This filing serves as a trading statement indicating that financial results for H1FY26 are expected to differ by at least 20% from the comparable period in H1FY25. The company anticipates full financial results to be published on 11 March 2026.

Key Financial Metrics and Performance

Revenue Drivers:

• Gold Price: Average gold price received increased by 36% to R1,909,849/kg (from R1,405,020/kg in H1FY25). In USD terms, the price rose 40% to $3,421/oz (from $2,437/oz).
• Impairment Reversal: A reversal of impairment was recognized for the Tshepong North cash generating unit due to higher gold price assumptions.
• Foreign Exchange: Translation gains occurred, primarily from the US dollar-denominated bridge facility.

• Basic EPS (ZAR): Expected between 1,527 and 1,638 cents (H1FY25: 1,265 cents). Increase of 21% to 30%.
• Basic EPS (USD): Expected between 87 and 92 cents (H1FY25: 71 cents). Increase of 23% to 30%.
• Headline EPS (ZAR): Expected between 1,411 and 1,485 cents (H1FY25: 1,270 cents). Increase of 11% to 17%.
• Headline EPS (USD): Expected between 79 and 86 cents (H1FY25: 71 cents). Increase of 11% to 21%.

• Production Costs: Increased due to above-inflation electricity costs and higher labor costs (5-year wage agreement).
• Taxation: Higher royalty tax rates and current taxation due to increased profitability.
• Depreciation & Amortization: Increased following the acquisition of MAC Copper Limited.
• Derivative Losses: Driven by silver spot prices moving above locked-in floor and cap prices.
• Acquisition Costs: Direct costs related to the MAC Copper acquisition (stamp duty, fees).
• Finance Costs: Increased due to the MAC acquisition bridge facility and streaming arrangements.

The filing mentions a US dollar-denominated bridge facility used for the MAC Copper acquisition but does not provide specific total debt or liquidity figures.

Material Changes vs. Prior Period

The primary material change is a significant increase in earnings driven by a 36-40% surge in gold prices. This positive impact was partially offset by higher operational costs (energy, labor), increased tax liabilities, and specific costs related to the MAC Copper acquisition and silver derivative losses. The reversal of impairment at Tshepong North also contributed positively to the bottom line.

Outlook, Risks, and Management Commentary

Management Commentary:

CEO Beyers Nel stated that underlying fundamentals remain strong. The company is utilizing disciplined capital allocation to convert higher gold prices into growth. The integration of copper scale from CSA and Eva Copper is expected to widen margins and de-risk cash flows. The strategy focuses on selective, sequenced, and affordable growth alongside responsible shareholder returns.

• Operational: Power stoppages, aging infrastructure, and geotechnical challenges in deeper mines.
• Market: Fluctuations in gold, silver, and copper prices; volatile commodity costs.
• Regulatory & Political: Changes in tax/royalty regimes, mining rights interpretation, and socio-political instability in South Africa, Papua New Guinea, and Australia.
• Health & Safety: Risks related to occupational health diseases (silicosis), labor disruptions, and industrial accidents.
• Financial: Exchange rate fluctuations and currency devaluations.

The filing highlights specific one-off or non-recurring items including the impairment reversal at Tshepong North, acquisition costs for MAC Copper, and fair value movements on streaming arrangements.

Investor Verification Checklist

• Auditor Review: Confirm that the financial information in this trading statement has not been reviewed by external auditors; wait for the full results on 11 March 2026.
• MAC Copper Integration: Verify the actual impact of MAC Copper acquisition costs and the integration timeline on future cash flows.
• Cost Inflation: Assess the sustainability of electricity and labor cost increases relative to future gold price scenarios.
• Derivative Exposure: Review the specific terms of silver collar contracts and their impact on future earnings if silver prices remain volatile.
• Impairment Reversal: Understand the valuation assumptions used for the Tshepong North impairment reversal to ensure they are robust.