Harmony’s Australian copper push boosts investor returns

Harmony Gold, the 76-year-old gold producer which handed investors record annual dividends for the year ended June 2026, is realising benefits from its geographical expansion into Australia’s copper assets.

The diversified gold and copper producer, which rewarded investors with a record annual dividend of R8.1bn , was lifted by the glittering gold environment and received first production from the CSA mine in Australia, which was acquired for R18bn almost a year ago.

“Harmony is better positioned than at any time in its history. With a stronger asset base, visible copper growth, a long pipeline of organic opportunities, and a disciplined approach to capital deployment, we are a gold and copper producer capable of generating sustainable cash flows, delivering attractive returns and creating long-term value for shareholders,” said CEO Beyers Nel.

The group said copper presents a new dimension to the foundation, provided by gold adding to long-term growth potential.

Harmony financial director Boipelo Lekubo said Harmony is the only South African gold mining company with meaningful copper in its portfolio.

“So I think that’s definitely a differentiator, and the copper is also geographic diversification. Definitely, it does differentiate us in that aspect,” she said.

The target is to have at least 100,000 tonnes of copper a year in the next three years in the portfolio, with 40,000 tonnes of copper from the CSA mine by 2029 and 60,000 tonnes a year from Eva Copper.

Copper output from CSA reached 18,200 tonnes at the upper end of the group’s guidance, and in 2027, the plan is to produce between 28,000 tonnes and 30,000 tonnes.

Another plus for the CSA for 2026 was the increase in mineral reserves to 577,000 tonnes of copper, representing a 32,000-tonne jump compared with the previous owner’s estimate.

“The increase reflects successful resource growth, improved geological confidence, and optimisation of the mine design, highlighting both the quality of the orebody and the opportunity to create additional value through disciplined execution,” said the group.

CSA’s total mineral resources of 1.1-million tonnes of contained copper highlight potential for future reserve growth and mine-life extension, the group said.

“Looking forward, the split will probably be around 30% copper, 70% gold coming from South Africa,” Lekubo said.

In terms of gold production, Harmony’s produced 1.43-million ounces in line with its target.

Highlights included the R30.3bn in revenue from Mponeng and Moab Khotsong mines and adjusted free cash flows of R11.6bn, while Mponeng delivered a 34% increase in adjusted free cash flow of R9.44bn.