JSE-listed Harmony Gold has delivered a solid operating performance for the nine months to March 31, reflecting an excellent third quarter with improvements across all key operational metrics.

In an operational update for the nine months, CEO Beyers Nel notes that the Mponeng and Tshepong North mines, in South Africa, and the Hidden Valley mine, in Papua New Guinea, delivered notable performances during the quarter.

The company remains firmly on track to achieve full‐year production, cost and grade guidance for both gold and copper, supporting durable returns.

“This will mark Harmony’s eleventh consecutive year of meeting production guidance, underpinned by operational excellence, higher‐quality assets, strong grade control and resilient margins,” says Nel.

Gold and copper revenue increased by 34% to R68.39-billion, or $4.02-billion, driven by a 39% increase in the average gold price received to R2.02-million a kilogram, or $3 691/oz.

Nel explains that leveraged exposure to the gold price helped drive a year‐on‐year increase of 87% in free cash flow at an operational level.

He notes that cost inflation remains well controlled and in line with plan, while production is supported through ongoing quality mineral reserve replacement.

Strong cash generation, bolstered by Harmony’s high‐margin gold operations, enabled the group to return to a net cash position of R1.33-billion, or $78-million, from a net debt position of R5.55-billion, or $335-million, as at December 31, 2025.

Nel says the company’s balance sheet strength remains central to the company’s strategy, providing the flexibility to fund growth, protect margins and deliver sustainable shareholder returns.

“We continue to assess our capital structure to maintain an efficient balance sheet that is appropriately matched to both our funding needs and the strength of our cash flow generation.

“We allocate capital in a disciplined and balanced manner, prioritising safety and orebody development while delivering quality growth in both gold and copper,” he says.

Harmony notes that gold production increased by 5% from the prior quarter, with recoveries and grades normalising as expected. For the nine‐month period, gold production decreased by 3% to 33 393 kg, or 1.07-million ounces, in line with plan.

The company notes that underground recovered grade was above guidance at 5.85 g/t for the nine‐month period.

All‐in sustaining cost for gold assets increased by 14% to R1.17-million a kilogramme, or $2 133/oz, from R1.03-million a kilogramme, or $1 765/oz.

The company says operational costs remain a core focus area and are well‐controlled with minimal impact from higher oil and diesel prices.

The average gold price received (including hedge) were up 39% to R2.02-million a kilogramme, or $3 691/oz, from R1.45-million a kilogramme, or $2 497/oz.

Additionally, Nel says execution excellence on Harmony’s key growth projects over the next 24 months is critical as the company establishes a clear pathway to higher‐margin gold production and about 100 000 t/y of copper.

He adds that this investment programme is well sequenced to manage capital intensity and maintain a robust and flexible balance sheet.

“Margin protection and enhancement remain core priorities, supported by ongoing investment in a mix of higher‐grade orebodies and other high‐margin projects that deliver strong returns on capital, helping to sustain resilient cash flows through the cycle”.

As anticipated, Nel says the high‐grade Moab Khotsong mine, in South Africa, is entering a five‐year period of planned lower production as the company advances the Zaaiplaats extension project.

Nel says Harmony’s CSA copper mine, in Australia, was a strategic acquisition to mitigate this, adding that its integration and optimisation is progressing in line with plan.

Nel says mining flexibility at CSA remains constrained but is improving following the re‐establishment of an appropriate mining sequence, while the ventilation project is on schedule to support long‐term performance.

He notes that ongoing drilling continues to deliver exceptional results, reinforcing the quality and potential of this high‐grade copper orebody.

Shareholder returns are expected to remain sustainable and competitive alongside the company’s growth strategy. Under Harmony’s new dividend policy, the base dividend was increased to 30% of net free cash.

In addition, Nel says an upside dividend of up to 20% may be paid, based on net debt to earnings before interest, taxes, depreciation and amortisation levels.

Therefore, a total of 50% of net free cash can be returned to shareholders, subject to the discretion of the board and leverage.

A record interim dividend of R3.38-billion, or $204-million (530c or $0.32 a share), was paid on April 28.