By: Creamer media

In financial year 2025 (FY25) to June 30, Harmony contributed R6-billion in taxes and royalties in South Africa and paid R20.2-billion to employees in salaries and benefits.

Harmony has 34 350 employees and works with 12 761 contractors, with wages and salaries paid to the total workforce of 47 111 rising to the R20.2-billion mark in FY25.

“We remain deeply committed to upholding the highest standards of corporate governance, transparency, integrity and accountability across all aspects of our business,” Motsepe emphasised.

FY25 marks Harmony’s seventy-fifth anniversary as well as its tenth consecutive year of meeting production guidance, with governance safeguarding value for all stakeholders.

“Gold remains the cornerstone of Harmony’s portfolio,” Motsepe stated while pointing out that South Africa’s high-grade, long-life Mponeng and Moab Khotsong gold mines continue to generate exceptional margins and cash flow.

Moreover, Harmony’s underground South African assets optimised for free cash generation include Tshepong North, Tshepong South, Doornkop, Joel, Target 1, Kusasalethu and Masimong.

In addition, the company’s high-margin South African surface operations are Mine Waste Solutions, Phoenix, Central Plant Reclamation, Savuka, Kalgold and the rock dumps.

Mineral reserves total 36.82-million ounces of gold and gold equivalent and FY25 market capitalisation is at R155.4-billion compared with R106.3-billion in the corresponding period of FY24.

Gold production reached 1.48-million ounces at an underground recovered grade of 6.27 g/t, with all-in sustaining costs of $1 806/oz amid a current gold price of $4 039/oz.

In response to high gold prices during the year, more of the higher gold prices were locked in to support the company’s ability to fund projects.

Harmony generated record free cash flows of R11.1-billion at a 15.1% margin. Headline earnings grew by 26.6% with the highest dividend payout of R2.4-billion.

Harmony ended the year with liquidity of R20.9-billion, providing the flexibility to fund growth, sustain competitive dividends and maintain a good balance sheet.

Headline earnings grew by 26.6% with the highest dividend payout of R2.4-billion for FY25.

In the release to Mining Weekly, Motsepe described sustainability as an underpin of long-term competitiveness.

In FY25, Harmony advanced its decarbonisation roadmap, with close to 600 MW of renewable-energy projects planned to be commissioned by 2028, including the 100 MW solar plant that is under construction at Moab Khotsong.

Looking ahead, the company is intent on embedding sustainability while supporting and benefiting from the global energy transition.

Efforts to engage local suppliers and integrate small, medium-sized and microenterprises into the supply chain are ongoing, with FY25 investment in socioeconomic development totalling R271-million.

Eighty-two percent of the R39.1-billion procurement spend in the period was with empowered entities.

Skills development and training investment in the financial year was R859-million, when employee share option scheme participants received dividend payments of R42-million.

AI applications in processing plant optimisation are a focus, while cybersecurity is being advanced to identify threats, protect information, and respond to cyber incidents.

AI is seen as having the potential to improve efficiency, reduce human error and render high-risk mining environments less hazardous.

To drive value, capital is being allocated to transformational assets and projects over the short and medium term.

Such investment has resulted in the life-of-mine (LoM) of Moab Khotsong being extended to 20 years, with project completion expected in May 2033. The mine adds 2.70-million ounces to mineral reserves and it will have steady state annual production of 200 000 oz once the extension project is complete.

With the Mponeng extension, LoM has been extended to 20 years. Mponeng adds 2.34-million ounces to mineral reserves and the recovered grade is sustained at 9 g/t and steady state annual production of 250 000 oz can be maintained.

The Mine Waste Solutions expansion has extended the LoM to more than 14 years at an annual production of 110 000 oz over the period.

In adherence with approved mine closure procedures, mining-impacted land is being prepared for alternative economic use post-mining.

On the legislative front, Harmony is monitoring the proposed changes to South Africa's mining laws in terms of the new Mineral Resources Development Amendment Bill and will develop an action plan to align its processes with the new regulations.

The latest Metals Focus reports that gold is projected to exceed $5 000/oz in 2026, as ongoing trade tensions, declining interest rates and mounting fiscal pressures fuel investment inflows into gold.

Gold has surged 66% intra-year through to mid-October, breaking a series of all-time highs, with the most recent peak exceeding $4 380/oz.

This performance has been driven by several factors, including prolonged tariff-related uncertainty, growing concerns over the sustainability of debt, continued weakness in the US dollar, sustained central bank buying, and expectations of reserve bank rate cuts. Against this backdrop, investor interest in portfolio diversification has risen, especially for those with a longer-term outlook.