Harmony Gold Mining Company Limited Q2 FY2026 earnings call

Reinforced position as higher quality, lower risk global producer of gold and copper. Revised dividend policy with base dividend and upside participation model. Declared interim dividend. Reiterated FY26 guidance for gold (production, grades, costs) and copper (production, costs, grades). Updated group capex, with gold capex reduced by 1 billion, CSA capex at 1.1 billion rand, EVA Copper's capex projected at 5.6 billion rand this year.

Gold operations: production between 1.4 and 1.5 million ounces, underground recovery grades above 5.8 grams per ton, sustaining costs between 1.15 and 1.22 million South African rand per kilogram. Copper operations (CSA mine): production between 17,500 and 18,500 tons, C1 cash costs between $2.65 and $2.80 per pound, recovered grades above 3.5%.

Reiterated gold production guidance (1.4 - 1.5 million ounces, grades >5.8g/ton, sustaining costs 1.15 - 1.22 million ZAR/kg). Copper production guidance (17,500 - 18,500 tons, C1 cash costs $2.65 - $2.80/lb, grades >3.5%). Updated group capex to 18.5 billion rand, gold capex reduced by 1 billion to 11.8 billion, CSA capex 1.1 billion rand, EVA Copper's capex 5.6 billion rand this year, total project capital for EVA Copper 1.55 - 1.75 billion USD over three years. Longer term guidance for CSA mine to be provided at full year results.

Industry-wide cyanide supplier force majeure led to reduced supply, impacting gold recoveries, especially at surface remining operations. CSA mine faced challenges including seismicity response, mining-related issues, and taking time to set up for long-term success. Silver hedge led to a $1.1 billion loss due to significant rise in silver spot price.

Q: Rene Hochreiter asked about underground grade drops at Moab and Mpuneng, CapEx profile for next three years for gold, cyanide shortage, and latest on Wafi Gold Proof special mining lease.

A: Response on special mining lease, cyanide shortage impact on recoveries, efforts to reduce cyanide dependency, gold Capex guidance, and Moab grade issues.

Q: Arnold asked if CSA is more challenging than expected and about lost gold recoveries.

A: Response on CSA ore body quality, challenges faced, and normalization of gold recoveries.

Q: Adrian Hammond asked to reconcile free cash flow to dividend, silver hedge loss impact, and CSA cash streaming payments.

A: Response on CSA streams, silver hedge loss, and cash flow reconciliation.

Q: Chris Nicholson asked about Moab grades and revised dividend policy.

A: Response on Moab ore gap, mine sequence, and dividend policy being after all capex.

Q: Jonathan Dutoy asked about Hidden Valley extending mine life.

A: Response on possibility of extending Hidden Valley's mine life, tailings deposition constraints, and ongoing study for mine life extension.