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Harmony's underground gold mines producing at 38% free cash margin

This audio is brought to you by Endress and Hauser, a global leader in process and laboratory measurement technology, offering a broad portfolio of instruments, solutions and services for industrial process measurement and automation.

In financial year 2026 (FY26), Mponeng and Moab Khotsong, the high-grade South African underground operations of Harmony Gold, produced 15 t at 9 g/t with a 38% free cash flow margin.

Mponeng, the world's deepest mine, was the primary driver of this performance as Moab Khotsong moves into an ore gap.

Moreover, performance from the South African underground optimised operations has also strengthened year-on-year. These assets produced 17 t of gold and margins expanded to 25%, lifting adjusted free cash flow by phenomenal 284% to around R9-billion.

In addition, Harmony's surface and retreatment assets contributed 7 t at a solid 46% margin.

Harmony's big gold retreatment operations provide "low-risk, high-margin ounces that generate meaningful cash flow by recycling old tailings storage facilities", Harmony CEO Beyers Nel reported at the results presentation of the Johannesburg Stock Exchange-listed company for the 12 months to June 30.

The company's focus going forward is on delivering and unlocking value embedded in what it owns. Expected beyond 2030 are, stronger margins, lower real unit costs, and growing free cash flow.

"Every decision we make is aimed at either improving safety, expanding margins, protecting cash flows, and creating long-term value through disciplined capital allocation.

"As our portfolio continues to evolve, we're pleased that the solid FY26 results reflect this quality and the opportunity inherent in our reserve base.

"It's this consistency that turned a higher gold price into cash certainty. We delivered rather exceptional earnings growth alongside record shareholder returns.

"Our headline earnings per share increased by 87% to R43.63 per share, and the company has declared a record final dividend of R7. 50 per share for a total of R8.2-billion for the financial year.

"Our lost time injury frequency rate of 5.05 per million hours worked is the lowest in Harmony's 76-year history," Nel added during the presentation covered by Mining Weekly.

INTERNATIONAL ASSETS

Hidden Valley produced almost 6 t of gold at an all-in sustaining cost of around R660 000/kg, or $1 200/oz with its adjusted silver-supported free cash flow margin increasing to 68%.

In the eight months since acquisition, the now fully integrated CSA produced 18 200 t of copper at $2.47/lb providing a 22% free cash flow margin.

Harmony FD Boipelo Lekubo highlighted FY26 as a record year on financial metrics such as revenue, which increased by 34% to a record nigh R100-billion. Net profit increased by 102% to R30-billion and headline earnings per share increased by 87%.

"That step up is evidence of the operating leverage in our portfolio," Lekubo pointed out.

Group operating cash flow rose by 48% to R33.6-billion and adjusted free cash flow by 54% to a record R17-billion. Cash and cash equivalents total R8.6-billion, alongside the CSA acquisition.

Strong free cash flow supported a record final dividend of R4.8-billion, lifting

the full year dividend to R8.6-billion, a yield of around 3.5% based on the closing share price on August 25.

"Alongside shareholder returns, it is vital we remain capable of funding our future. During the year, we implemented a funding platform to support the next phase of growth," Lekubo reported.

GOLDEN FOUNDATION

In Harmony, Gold remains the foundation while copper strengthens the portfolio, adding diversification, resilience, and future growth.

"But this strategy is not about volume. It's a strategy about value, value created through higher quality assets, better returns, and disciplined capital allocation," Nel explained.

"Growth always matters, but only if it strengthens the portfolio and creates long-term value.. Every ...

This audio is brought to you by Endress and Hauser, a global leader in process and laboratory measurement technology, offering a broad portfolio of instruments, solutions and services for industrial process measurement and automation.

Australian iron-ore and lithium miner Mineral Resources (MinRes) has reported its strongest financial result in its 20-year ASX-listed history, with record underlying earnings before interest, taxes, depreciation and amortisation (Ebitda) having increased by 183% year-on-year to $2.6-billion.

The group's underlying net profit after tax increased by 831% year-on-year to $822-million, while it generated significant free cashflow of $849-million, in the year ended June 30.

MinRes declared a full-year dividend of $0.83 apiece, representing a 20% underlying net profit after tax payout ratio.

The group reduced its net debt by $1.1-billion to $4.3-billion in the year under review, which reduces its net debt-to-underlying Ebitda margin from 5.9 times in the prior year to 1.7 times in the reporting year.

Group attributable iron-ore production was 341-million tonnes in the reporting year, accounting for $689-million of underlying Ebitda, while lithium production was 34.4-million tonnes, accounting for $289-million of underlying Ebitda.

Overall, mining services underlying Ebitda reached $976-million owing to record volumes, with iron-ore remaining the largest contributor.

Record volumes across all divisions and improved commodity prices supported record revenue of $6.5-billion for the group, which marked a 44% year-on-year increase.

For chairperson Mal Bundey, the year was one of meaningful progress on balance sheet priorities and governance, which, coupled with years of strategic investment, resulted in record financial and operational results.

MD Chris Ellison points out that the Onslow Iron operation achieved nameplate capacity of 35-million tonnes a year in August 2025, just three years after a final investment decision on the project was reached. The company plans to operate Onslow beyond nameplate capacity, to restart the Bald Hill lithium operation and ramp it up to nameplate capacity, as well as increase volumes at the Mt Marion lithium mine through a new flotation plant and underground mining in the new financial year.

"The arrival of transhippers six and seven has increased Onslow's installed capacity towards 40-million tonnes a year and ensures sufficient redundancy as we rotate the fleet through maintenance.

"Further, following years of investment to improve plant recoveries and reduce costs, our three lithium assets are well placed to capitalise on improved prices as demand is driven by energy storage and the transition to electric vehicles," Ellison explains.

At the Wodgina lithium operation, after several years of increased stripping, MinRes expects clean ore to feed all three trains from the second quarter of the 2027 financial year and to increase sales volumes by between 14% and 23%.

"Our priorities for the 2027 financial year are to achieve guidance across all divisions, execute low-risk, high-return brownfield investments, continue to strengthen the balance sheet and ensure MinRes is positioned for a next phase of growth within its significantly improved governance frameworks and capital allocation model," Ellison states.

MinRes has set its 2027 financial year guidance at between 370-million and 390-million tonnes for the mining services division, which includes attributable iron-ore and lithium production.

This audio is brought to you by Endress and Hauser, a global leader in process and laboratory measurement technology, offering a broad portfolio of instruments, solutions and services for industrial process measurement and automation.

South Africa's Exxaro Resources is reviewing what the mine of the future could look like amid a modernisation drive, Exxaro CEO Ben Magara pointed out in response to Mining Weekly during a media question-and-answer session, with opportunities being created for innovation and technology, including AI.

"We're really driving the modernisation of mining and reviewing things around what the mine of the future could look like," Magara reported.

The way Exxaro is providing green electrons goes beyond modernisation into crucial climate change abatement.

The latest example is the commissioning by this Johannesburg Stock Exchange-listed company of its Lephalale solar project, the LSP, a 68 MW PV facility built to supply clean, behind-the-meter energy directly to Exxaro's Grootegeluk coal mine in Limpopo province.

Alternating current is generated by 129 024 solar panels across 185 ha with the R1.7-billion investment funded by Cennergi, Exxaro's agile renewable-energy subsidiary. Commercial operation started in April with the official LSP inauguration taking place in July.

Close to a third of Grootegeluk's electricity is now green energy, which brings with it a reduction in carbon emissions and a saving in electricity costs.

"The 68 MW we're putting into Grootegeluk from the Lephalale solar project is about 30% of our consumption on that mine, and on that 30%, we're now making carbon emission savings of about 22%, but the electricity savings are about R100-million on the 30% power contribution coming from the Lephalale solar project."

Cutting diesel consumption further with truck pantographs and overhead trolley lines is also under scrutiny. "We're looking at the trolley lines that we can use for the trucks in order to be more efficient and bring technology to drive not just productivity but also capital emissions reductions."

When a truck connects to the overhead trolley line, it shifts power from the onboard diesel generator directly to the electric wheel motors, dropping the engine to an idle and increasing speed on grades.

"Our plans are definitely to bring in battery energy storage systems, but also in the phase two additional panels. So, if we can drive that with the technology that we are applying on our trucks, the pantos or the trolley line that you can use, we believe we can actually even create more savings in diesel, which is more the Scope 1 emissions than just the Scope 2.

"All our mines are currently looking at life extension opportunities, so if we can make sure each mine has a minimum of 20 years' life, it fits the kind of power purchase agreements you can get with solar.

"So our intention, as part of decarbonisation, is that our mines could actually all go onto solar and wind energy, but obviously you still need baseload of coal when you don't have wind or solar.

"But bottom line is, we're still on target for our 40% reduction in emissions by 2030, 75% reduction by 2040, and carbon neutrality by 2050.

"Manganese now coming on board is also presenting itself for us to drive our decarbonisation. Again, it's intended to make sure that our diversified portfolio will end up providing earnings from future-facing minerals and renewable energy above 50% of our total earnings without reducing coal, and that's the strategy."

On the technology front, Exxaro is replacing some of its old trucks. "We are buying about seventeen 220 t trucks, and they've got much better fuel technologies, even better for the operator when he's on that machine. So really we're harnessing the opportunity for technology that can take us to the next level.

"And on the AI side, I think there are many opportunities, even in ore sorting. If you look at providing the machine learning you get from AI, you can do machine sorting ...

This audio is brought to you by Endress and Hauser, a global leader in process and laboratory measurement technology, offering a broad portfolio of instruments, solutions and services for industrial process measurement and automation.

Australia's Yindjibarndi Indigenous group said on Wednesday it had lodged an appeal with the federal court over the amount of compensation awarded against Fortescue for mining on their lands without an agreement since 2012.

The Yindjibarndi people brought a claim against the miner and the Western Australian state government for A$1-billion ($718-million) in cultural loss and in excess of A$800-million in economic loss, arguing it should be paid a share of the profits from the mine.

An Australian court in May ordered Fortescue, the world's fourth-biggest iron-ore miner, to pay A$150-million in compensation to the group for cultural losses caused by mining. It also awarded A$136 757 for economic losses, and A$217 152 in compound interest on the economic loss amount.

The decision marked one of the largest ever payouts in Australia's history brought under native title laws recognising Indigenous rights and interests in certain parcels of land.

On Wednesday, the Western Australia Attorney General Tony Buti said the state government had also filed an appeal of the decision.

"Native title compensation is a complex and emerging area, and it is important that we have clarity on the law to support future negotiations and native title settlements across the State," he said in a statement.

Australia is the world's largest iron-ore producer, most of which comes from Western Australia's Pilbara region which is the traditional home of dozens of Indigenous groups. Miners have been updating their agreements with these groups since Rio Tinto destroyed two culturally significant rock shelters at Juukan Gorge in 2020, triggering a reckoning about cultural heritage damage and compensation.

Yindjibarndi Ngurra Aboriginal Corporation (YNAC) CEO Michael Woodley said YNAC's appeal related to the amounts awarded by the court for both economic and cultural loss.

The group argues the court should have tied its compensation to typical royalty payments under Pilbara native title agreements. Instead, it assessed economic loss based on the value of the land, but disregarded any value for the iron-ore deposits.

It also argues that it is entitled to compensation for social division in its community caused by the mine.

In its full judgment, the Federal Court found that significant damage had been done to Yindjibarndi song lines and other areas of cultural heritage, including 240 sites designated by Fortescue as heritage places, of which 124 had been completely destroyed. Song lines are routes of cultural significance across the country.

The court noted that this damage was legal and approved through government processes, but without the approval of YNAC, which holds exclusive native title rights over the land.

Fortescue has continued to mine on Yindjibarndi native title land since 2012 without an Indigenous Land Use Agreement or any other agreement with YNAC, the group said.

Fortescue declined to comment but has previously said it sought to reach settlement with YNAC for 15 years and has paid the awarded sum.

This audio is brought to you by Endress and Hauser, a global leader in process and laboratory measurement technology, offering a broad portfolio of instruments, solutions and services for industrial process measurement and automation.

ASX- and TSX-listed FireFly Metals has cemented a strong financial position with a new A$180-million Australian institutional placement and Canadian bought deal financing which it intends to use for advancing the Green Bay copper/gold project, in Canada.

The company will issue about 101-million fully paid ordinary shares at a price of A$1.78, or C$1.76, apiece.

The equity raising, which entails a A$150-million ASX institutional placement and a Canadian 'bought deal' private placement of A$30-million, or C$29.6-million, will support early project works, procurement of long-lead items and a feasibility study on a 1.8-million-tonne-a-year processing scenario for Green Bay.

FireFly is also undertaking a prefeasibility study on a larger 4.6-million-tonne-a-year processing scenario and further resource growth.

A final investment decision on Green Bay is expected by mid-2027.

"The raising ensures that we can continue unlocking the value of Green Bay in an expedited manner. This strategy involves pursuing several avenues of growth and development in parallel, ranging from ongoing exploration through to feasibility studies and ordering long-lead items.

"We can implement this rapid value creation strategy knowing we have a very strong balance sheet which enables us to capitalise fully on the exceptional asset we have at Green Bay and the huge macro-opportunity emerging in the copper market," says FireFly MD Steve Parsons.

Moreover, FireFly intends to invite eligible shareholders to participate in a non-underwritten share purchase plan to raise an additional A$10-million at the same offer price as the institutional placement.

FireFly's preliminary economic assessment (PEA) on Green Bay establishes the project's potential as one of the best undeveloped copper projects in the world based on its high-grade resource, production profile, growth outlook and superior financial returns, Parsons explains.

In the PEA's base case production scenario of 1.8-million tonnes a year, or 4 800 t/d, the restart of production at Green Bay Ming mine for a capital cost of A$513-million has an after-tax net present value (NPV) of A$2.2-billion and an internal rate of return (IRR) of 42% over an initial 32-year mine life. The payback period is estimated to be 1.9 years.

In this scenario the project can produce 50 000 t of copper-equivalent over a 14-year period at steady state, generating after-tax yearly free cashflow of about A$290-million.

In the 4.6-million-tonne-a-year, or 12 500 t/d, scenario, the after-tax NPV grows to A$3-billion and the IRR reaches 40% over an initial 22-year mine life. This scenario anticipates production of 90 000 t/y of copper-equivalent metal over an 11-year period at steady state, which can generate A$550-million of after-tax free cashflow every year.

For expansion capital of A$476-million - which can mostly be funded from the 1.8-million-tonne-a-year base case cashflow - the expanded production scenario has a payback period of 3.7 years.

The Green Bay project is underpinned by a revised independent mineral resource estimate of 60.2-million tonnes grading 2.4% copper-equivalent in the measured and indicated resource categories, and a further 23.5-million tonnes grading 2.5% copper-equivalent in the inferred category.

Parsons confirms that continued expansion of the upper Ming mine level high-grade volcanogenic massive sulphide and core zone has the potential to significantly extend high-grade production beyond peak years and further enhance project economics earlier in the mine life.

FireFly currently has six drill rigs focused on underground high-grade expansions for further resource growth. On a district scale, the company is also drilling on several high-priority historical copper and gold tar...