South Africa’s Harmony Gold has reported an 87 per cent increase in annual profit after record bullion prices outweighed lower production and weaker ore grades. The strong financial performance allowed Africa’s largest gold producer to announce a record dividend while continuing its expansion into copper.
Earnings rise sharply
Harmony reported headline earnings of 43.63 rand per share for the financial year ending 30 June 2026. This compared with 23.37 rand per share during the previous year.
The increase was primarily driven by a 35 per cent rise in the average gold price received by the company. Gold has attracted strong demand from central banks and investors seeking protection against geopolitical tensions, policy uncertainty and concerns about global economic growth.
The higher price significantly improved the value of each ounce sold and protected Harmony’s margins from weaker operational volumes.
Production falls despite stronger prices
Annual gold production declined by 3 per cent to 1.43 million ounces. Lower output and reduced ore grades would normally place pressure on earnings, particularly as mining companies continue to face rising electricity, labour and equipment costs.
However, the scale of the gold-price increase more than compensated for the production decline. The result demonstrates how strongly African mining revenues remain connected to international commodity markets and global investor sentiment.
Harmony still faces the challenge of maintaining production and controlling costs if gold prices become less favourable.
Record dividend rewards shareholders
The company declared an annual dividend of 7.50 rand per share, nearly five times the previous year’s distribution.
The substantial increase reflects stronger cash generation and management’s confidence in the company’s financial position. It also provides South African investors with a direct benefit from the international gold rally at a time when several domestic industries remain under pressure from slow economic growth and infrastructure constraints.
The dividend reinforces the importance of mining companies to the Johannesburg Stock Exchange and South Africa’s broader investment market.
Copper strategy gains momentum
Harmony is gradually reducing its dependence on gold by expanding into copper, a metal expected to benefit from growing investment in electrical grids, renewable energy and electric vehicles.
Its newly acquired CSA mine in Australia produced 18,207 tonnes of copper during the reporting period, placing output towards the upper end of the company’s guidance. Harmony completed the acquisition in October 2025.
The company’s wider copper portfolio includes the Eva project in Australia and the Wafi-Golpu development in Papua New Guinea, which is jointly owned with Newmont.
A broader African mining transition
Harmony’s results illustrate how established African mining groups are using strong earnings from traditional commodities to finance expansion into metals connected to the global energy transition.
Gold currently provides the company with substantial cash flow and financial resilience, while copper offers a longer-term growth opportunity. Diversification may also reduce Harmony’s exposure to changes in the gold market, although large copper developments require considerable capital and disciplined execution.
The immediate outlook remains supported by elevated gold prices. Future performance will nevertheless depend on production stability, cost management and the successful integration of Harmony’s expanding international copper operations.
Newshub Editorial in Africa – 27 August 2026
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