This article first appeared on GuruFocus.

• Adjusted Free Cash Flow: ZAR11 billion at a 16% margin, a 54% growth from the previous year.

• Headline Earnings Per Share: Increased by 25% to ZAR23.37 per share.

• Final Dividend: ZAR2.4 billion.

• Gold Production: 46 tonnes or approximately 1.48 million ounces.

• All-in Sustaining Costs: ZAR1.05 million per kilogram or about $1,800 per ounce.

• Underground Recovered Grade: 6.27 grams per tonne.

• Revenue: Grew by 20% to ZAR74 billion.

• Net Profit: Increased by 67% to ZAR14.6 billion.

• EBITDA: Increased by 37% to ZAR26 billion.

• Net Cash on Balance Sheet: Surged by 285% to ZAR11.1 billion.

• Market Capitalization: Approximately ZAR180 billion or USD 10 billion.

• Total Dividend Per Share: ZAR382 or $0.21 per share.

• Warning! GuruFocus has detected 3 Warning Signs with SWONF.

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Release Date: August 28, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Harmony Gold Mining Co Ltd (NYSE:HMY) achieved its 10th consecutive year of meeting production guidance, enhancing investor confidence.

• The company reported record high cash flows with adjusted free cash flow reaching over ZAR11 billion at a 16% margin.

• Headline earnings per share rose by 25% to ZAR23.37 per share, and a record final dividend of ZAR2.4 billion will be paid.

• Underground recovered grades increased to 6.27 grams per tonne, exceeding upward revised grade guidance.

• Harmony Gold Mining Co Ltd (NYSE:HMY) maintained a strong balance sheet with net cash surging by 285% to ZAR11.1 billion.

Negative Points

• The second half of the financial year saw unacceptable safety performance, despite improvements in LTIFR.

• All-in sustaining costs increased by 17% to ZAR1.05 million a kilogram, reflecting lower planned production and mine inflation.

• The company faced challenges in securing contractors for projects at Moab Khotsong and Mponeng, causing delays.

• Production decreased by 5% to 46 tonnes or 1.48 million ounces due to safety stoppages and inclement weather.

• The optimized assets quadrant operates at a higher cost, impacting margins despite efforts to maintain flexibility.

Q & A Highlights

Q: Bruce Williamson from Integral Asset Management asked about the sustainability of high grades at Mponeng and whether Harmony is high grading due to high gold prices. A: Beyers Nel, CEO, clarified that Harmony is not high grading but following a sequential grid mining method to ensure safety and stability. The current high grades are a result of overperformance on planned reserve grades, and the focus remains on maintaining reserve grades as a hedge against cost inflation.

Q: An unidentified participant inquired about the opportunity cost of delays in the Wafi-Golpu project. A: Beyers Nel acknowledged the significant opportunity cost due to delays but emphasized the project's value as a Tier 1 copper-gold mine. He expressed confidence that the wait is worthwhile, given the global demand for large-scale copper mines.

Q: Arnold Van Graan from Nedbank asked about operational and CapEx changes for MAC Copper and the flexibility to maintain margins in optimized assets. A: Beyers Nel stated that Harmony will conduct a detailed technical analysis of MAC Copper post-acquisition to align it with their operational standards. He also mentioned that optimized assets are managed with flexibility and sustaining CapEx to maintain production and margins.

Q: Rene Hofreiter from Noah Capital questioned the production gap between 2030 and 2035 and the sustainable grade at Mponeng. A: Beyers Nel explained that the gap is due to the tapering of optimized assets and not related to MAC Copper. He noted that the current high grades at Mponeng are due to mining in high-grade areas, but future grades should align with reserve grades.

Q: A participant asked about the impact of high gold prices on cutoff grades and grade management. A: Beyers Nel emphasized that Harmony maintains constant cutoff grades regardless of gold price fluctuations to avoid mining lower-grade areas that could be less profitable in the future.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.