Harmony Gold reversed its net debt position by almost R7bn year in Q3 of its 2026 financial year, as the surging gold price boosted free cash flows of South Africa’s largest gold miner. It also enabled the group to accelerate its capital allocation strategy.
Releasing its Q3 operating results today, Harmony reported a net cash position of R1.33bn at 31 March 2026, a sharp reversal from the R5.55bn net debt position reported at 31 December 2025 — a swing of nearly R7bn in three months. The group had slid into a debt position last year, after closing its $1bn acquisition of MAC Copper which owns the CSA copper mine in Australia.
The catalyst for the turnaround in Q3 was the 39% year-on-year rise in the average gold price received to R2,020,821/kg (US$3,691/oz), which drove a 34% increase in gold and copper revenue to R68.4bn for the nine-month period and an 87% surge in free cash flow at an operational level.
“Balance sheet strength remains central to our strategy,” writes CEO Beyers Nel in the results release, “providing the flexibility to fund growth, protect margins and deliver sustainable shareholder returns.”
The achievement is even more remarkable given that Harmony has hedged a considerable part of its portfolio. The average spot price for gold in Q1 ranged from R2,475.000/kg in January to R2,600,000/kg in March.
The Group had disclosed a R4.5bn hedge loss at the interim stage in March, but it remained committed to hedging “as it protects margins and cashflows as well as providing funding certainty…”, says Nel.
At the end of March Harmony had hedged 592,000 oz but now at cost collars that were up by 6% on the previous quarter. The new collars in Q3 were entered at an average floor price of R2,719,000/kg and a cap of R3,020,000/kg, well above current spot price levels.
On capital allocation, Harmony says is sticking to a disciplined framework “that prioritises safety and orebody development while funding growth in both gold and copper”.
CSA has produced 9,596 tonnes of copper since acquisitionsince its acquisition in October 2025, while the Eva Copper greenfields project in Queensland is tracking on schedule and within its approved capital estimate. Harmony stated that it expects to recapitalise and redevelop the CSA mine over two years at a capex budget of R1.1bn.
Total gold production for the nine months reached 1,073,610 oz, with the third quarter delivering a meaningful rebound of5% to 349,511 oz from 334,176 oz in Q2, with recovered grades improving to 6.15g/t from 5.52g/t. Costs were also kept in check, with per-unit all-in sustaining costs rising 14% year-on-year to R1,167,679/kg (US$2,133/oz), in line with plan and within the guided range.
Harmony maintained full-year guidance unchanged, targeting gold production of 1.4 to 1.5Moz, an all-in sustaining cost (AISC) of between R1,150,000/kg and R1,220,000/kg.
Safety remains a plight on Harmony’s performance. A further two employees were killed in mining-related incidents during Q3, bringing to three the number of fatalities at its operations in the current financial year.
