Harmony Gold Mining Company Limited 2026 H2 Earnings Call

Please go ahead, sir. Good day, and thank you for joining us.

I am joined here today by Boipelo Lekubo, our FD, and members of our group executive and investor relations teams. Financial year 2026 was a defining year in Harmony's evolution into a diversified global gold and copper producer. Through safe, consistent operational delivery, disciplined execution, and strategic investment, we achieved gold production guidance for the 11th consecutive financial year and delivered on all key operating guidance metrics. Group gold production of 1.43 million ounces was in line with guidance, while all-in sustaining cost of ZAR 1.19 million per kilogram or $2,195 per ounce remained within guidance also. Underground recovered gold grades of 5.83 grams per ton was also in line with guidance. Following its acquisition, CSA contributed 18,207 tonnes of copper at a recovered grade of 3.75% and a C1 cash cost of $2.47 per pound, all within guidance.

This performance translated into record financial results, with revenue increasing 34% to ZAR 100 billion, or $5.9 billion. Headline earnings per share increased by 87% to ZAR 43 and 63 South African cents per share. Group adjusted free cash flow increased by 54% to a record ZAR 17 billion, or $1 billion. This enabled us to declare a record final dividend of ZAR 4.8 billion or ZAR 7.50 per share, lifting the full-year dividend to ZAR 8.2 billion or ZAR 12.80 per share at a yield of approximately 3.5%. Importantly, this was achieved while continuing to invest in reserve conversion, life extension, and future growth. Up to 2025, we focused on portfolio progression and improvement. Between 2026 and 2030, we will focus on execution and unlocking the value already embedded in our assets.

Beyond 2030, we expect a meaningful cash flow inflection as margins strengthen, costs decline, and free cash flow expands. We look ahead with confidence. Our gold and copper portfolio provides optionality. Our balance sheet remains strong. Our people provide the capability to deliver. Together, these strengths position Harmony to generate cash today, deliver growth tomorrow, and create enduring value through the cycle. Guided by our values and mining with purpose, we remain committed to safe, profitable production, and sustainable returns to all our shareholders and stakeholders. Before I take your questions, I would like to remind you that all supporting information relating to our results is available on our website. With that, let's open the line for questions.

Thanks. Sure, Adrian. Good morning.

That is slide 27, and you talk about that additional 350,000 ounces or so, which we included in the presentation as blue sky potential. Which at this point in time is still conceptual in our thinking, and we have clearly disclosed that. That must be read in line with our safe harbor statement. But what we are trying to highlight there, Adrian, is the inherent potential that sits within our portfolio to convert more resources to reserve given these good prices that we have. The 350 that is signaled there is a potential mine life extension of 150. West Wits and Free State reclamation additional projects, that is a tailings reclamation of 100, and then further potential optimized extensions in the South African portfolio making up the other 100. It is conceptual at this stage.

It is early stage and can be viewed as blue sky. But that is, again, that is the ounces we already own, it is the ounces that we are comfortable with the mining methods and the grades and the way to extract that value, and those are obvious opportunities for us going forward.

Yes, of course. What you now also have in the profile is CSA on a full year basis, and you have Eva Copper in as well, Adrian. Then, of course, those incremental mine life extensions that do come in the planning process every year. So if you stack all of that up, that would reconcile perfectly. On slide 27, we aim to show that, and there was a significant addition on to Tshepong North as well, with that decline extension that is now approved.