Harmony Gold Mining stock plummets due to lower-than-expected copper production guidance

Investing.com – Harmony Gold Mining Company Limited (NYSE:HMY) announced its first-half fiscal 2026 results, which fell short of expectations. Operating profit was 16.1 billion rand, 10% below analyst consensus. Copper production guidance disappointed investors. However, the company significantly increased its dividend.

For the six months ending December 31, 2025, the company produced 22,522 kilograms of gold (724,099 ounces), down 9% year-over-year, from 24,816 kilograms, due to temporary challenges in the second quarter. Adjusted earnings per share rose 13% year-over-year to 1,431 South African cents (82 cents). Revenue increased 20% to 44.4 billion rand, driven by a 36% rise in the average gold price to 1,909,849 rand per kilogram. All-in sustaining costs increased 21% to 1,180,367 rand per kilogram ($2,115 per ounce), in line with guidance.

Following the earnings release, the stock fell 12.7%, mainly due to weaker-than-expected copper production guidance for the newly acquired CSA mine. The company provided a copper production forecast of 17,500 to 18,500 tons for the eight-month period ending June 30, 2026, with C1 cash costs of $2.65 to $2.80 per pound. The median of 18,000 tons was below analyst expectations. Production at CSA will be paused for about a month to replace two levels of necessary shaft steel.

CEO Beyers Nel stated, “During this period, Harmony solidified its position as a higher-quality, lower-risk global producer of gold and copper. From an operational perspective, our fundamentals remain strong, and we still expect to meet our annual guidance for production, costs, and grade.”

The company maintained its gold production guidance for fiscal 2026 at 1,400,000 to 1,500,000 ounces, with all-in sustaining costs of 1,150,000 to 1,220,000 rand per kilogram. Underground grade guidance remains above 5.80 grams per ton.

Harmony Gold announced a record interim dividend of 530 South African cents per share (32 cents), 58% higher than market expectations, based on its revised dividend policy of paying up to 50% of net free cash flow to shareholders.

This article was translated with the assistance of artificial intelligence. For more information, please see our Terms of Use.