South African billionaire Patrice Motsepe’s Harmony Gold raises revenue to R22.3 billion despite 12% production decline

South African billionaire Patrice Motsepe’s Harmony Gold reported a 3% increase in gold revenue to R22.3 billion ($1.4 billion) in the first quarter of its 2027 financial year, as higher gold prices offset a 12% decline in production.

The Johannesburg based miner said in an operational update released on Nov 9 that gold revenue increased from R21.7 billion in the corresponding quarter a year earlier. The average gold price it received rose 17% to $4,057 per ounce, helping the company generate higher revenue despite producing less gold.

Gold production fell to 342,758 ounces, compared with the previous year’s level. Harmony attributed the decline mainly to an anticipated ore gap at its Moab Khotsong mine in South Africa and a regulatory stoppage at its Hidden Valley operation in Papua New Guinea. The Hidden Valley stoppage has since been resolved, and the mine has returned to normal production.

Harmony’s all in sustaining cost, a key measure of the cost of producing gold, increased 17% to $2,484 per ounce. The company said the figure remained towards the lower end of its full year guidance, despite higher labour and electricity costs, increased development spending and lower production volumes.

The company maintained its production guidance for the 2027 financial year, targeting between 1.3 million and 1.4 million ounces of gold. It also expects to produce between 28,000 and 30,000 tonnes of copper during the year.

Copper is becoming a larger part of Harmony’s business following its acquisition of the CSA mine in Australia in October 2025. The operation generated R1.28 billion in copper revenue during the quarter and produced 7,077 tonnes of the metal. Its average realised copper price was $6.44 per pound.

Harmony is also advancing its Eva Copper project in Queensland, Australia, where construction was 15% complete at the end of September. The company expects the project to begin production towards the end of 2028, while its capital guidance remains between $1.55 billion and $1.75 billion.

The miner reported a net cash position of R4.2 billion at the end of September, compared with net debt of R852 million at the end of June. Its total liquidity, including cash and undrawn facilities, stood at R30.2 billion.

Motsepe, Harmony’s chairman, has longstanding ties to the company through African Rainbow Minerals, the mining group he founded. ARM holds about 12% of Harmony, giving Motsepe indirect exposure to the gold producer through his interest in the listed group.

The latest operational update highlights the role of higher gold prices in supporting Harmony’s revenue as it manages lower output at some of its mines and expands its copper business.