Harmony strikes gold

Harmony Gold Mining Company has benefited immensely from the boom in gold prices, with the company expecting a significant jump in earnings for its 2025 financial year.

Harmony is a gold mining specialist with a growing international copper footprint. The company is listed on the JSE with a market cap of R176.21 billion.

On Monday, 25 August, Harmony released a trading statement for its financial year ended 30 June 2025.

In this statement, Harmony CEO Beyers Nel pointed out that this marks the company’s 75th anniversary, as well as Harmony’s tenth consecutive year of meeting guidance.

In the 2025 financial year, Harmony delivered group production of 46,023 kg, landing towards the upper end of its guided range.

The company said this was driven by robust contributions from its high-grade South African underground operations and the Hidden Valley mine in Papua New Guinea.

Harmony’s recovered underground grades also improved by 3% to 6.27g/t, exceeding the upwardly revised guidance of 6g/t, supported by an exceptional performance at Mponeng. 

The company explained that, through disciplined cost management, it also maintained all-in sustaining costs at R1.05 million/kg, comfortably within the guided range of R1.02 million/kg to R1.10 million/kg.

“Our strategy remains firmly centred on value enhancement over volume growth through safe, profitable ounces,” Beyers said. 

“By allocating capital to higher-margin, lower-risk assets and prioritising quality ounces over output, we continue to strengthen margins, improve portfolio resilience, and enhance long-term returns.”

The company expects its earnings per share to increase significantly compared to the 2024 financial year, with the following changes projected:

• Earnings per share – increase of between 57% and 77%
• Headline earnings per share – increase of between 18% and 35%

Harmony said this impressive earnings growth was largely driven by an increase in group revenue as a result of continued operational excellence and a higher average gold price received. 

Over the company’s 2025 financial year, the average gold price received increased by 27% from R1.20 million/kg to R1.53 million/kg.

In addition, the miner said its earnings were boosted by no impairment recognised on assets due to headroom shown on all assets compared to a R2.79 billion impairment in 2024.

However, Harmony noted that the increase in earnings was partially offset by several factors that weighed on its operations in 2025.

This includes an increase in production costs, a higher royalty expense due to a higher rate being applied, and an increase in the company’s taxation expense.

The company said its higher taxation expense of approximately R3.50 billion, of which approximately R1.75 billion relates to current taxation, was mainly due to higher profitability.

Harmony will publish its financial results for the financial year ended 30 June 2025 on Thursday, 28 August 2025.