Record Close for Harmony Gold as JSE: HAR Share Price Soars 125% YtD – XAU Surge and Copper Push Fuel Rally
With increased bullion prices and strategic diversification rekindling investor interest, South Africa's leading gold miner Harmony Gold is
Quick overview
- Harmony Gold has seen a remarkable resurgence, with shares rising 15% this week and 125% year-to-date, driven by soaring gold prices above $4,200 per ounce.
- The company has made a strategic $1 billion acquisition of MAC Copper Limited, expanding its footprint into the copper market and enhancing its industrial metals exposure.
- Harmony's annual profit increased by 26% year-over-year, supported by stronger ore grades and higher gold prices, leading to a raised dividend from 0.94 rand to 1.55 rand per share.
- Despite ongoing operational challenges, Harmony Gold's strong fundamentals and strategic diversification have bolstered investor confidence and positioned it for future growth.
With increased bullion prices and strategic diversification rekindling investor interest, South Africa’s leading gold miner Harmony Gold is once again shining.
Rising Gold Prices Spark Strong Market Comeback
Harmony Gold (JSE: HAR) has re-emerged as one of South Africa’s strongest performing mining stocks, soaring 15% this week, 38% for the month, and an impressive 125% year-to-date.
The rally mirrors the surge in global gold prices, now above $4,200 per ounce, and reflects renewed investor confidence despite persistent operational cost pressures and safety concerns.
Technical Rebound After Months of Weakness
After a sharp drop from April’s R362 peak to near R290, Harmony’s shares found solid footing at their 20-month simple moving average (gray) — a level that previously marked a turning point in early 2024 and in August the same moving average acted as support again, with a strong rebound to follow.
HARJ Chart Monthly – Strong Rebound Off the 20 SMA Once Again
A doji candlestick in August hinted at reversal potential, which September confirmed as the stock climbed 21% to R310 by month-end. The bullish momentum carried into October, with Harmony breaking its record high to close at R361.42 on Wednesday, signaling sustained strength in the sector.
Strategic Shift: $1 Billion Copper Acquisition
In a bold diversification move, Harmony Gold finalized a $1 billion acquisition of MAC Copper Limited, marking a pivotal step toward expanding into the copper market.
The deal, which includes the CSA Copper Mine in Australia, is expected to yield around 40,000 tonnes of copper annually, enhancing the company’s exposure to industrial metals.
Adding to the optimism, HSBC upgraded Harmony Gold from “hold” to “strong buy”, citing a robust balance sheet and strategic growth potential through copper expansion.
Global Gold Momentum Provides a Tailwind
Global market volatility and geopolitical uncertainty have driven a flight to safe-haven assets, pushing gold to its highest levels on record. The metal’s surge to $4,200 per ounce this week has directly benefited producers like Harmony Gold.
Gold Chart Daily – MAs Can’t Catch Up
However, investor sentiment remains cautiously optimistic — reflecting a tension between strong bullion prices and the company’s ongoing battle with rising production costs and regulatory hurdles.
Earnings Growth Reinforces Investor Confidence
Harmony’s financial performance underscores its resilience.
- Annual profit jumped 26% year-over-year, supported by stronger ore grades and higher gold prices.
- Headline earnings per share (HEPS) rose from 18.52 rand to 23.37 rand ($1.33), beating analyst estimates.
- Production dipped 5% to 1.48 million ounces, but the decline was offset by improved grades and a 27% rise in average gold prices.
These results demonstrate that the miner continues to generate solid earnings momentum, even in a challenging operational environment.
Dividend Boost Underscores Financial Strength
The board’s decision to raise the dividend from 0.94 rand to 1.55 rand per share signals growing confidence in the company’s cash flow and commitment to shareholder returns. This payout hike reinforces the perception of Harmony as a stable, income-generating play in a volatile commodities market.
Valuation Remains Elevated But Supported
Harmony currently trades at a P/E ratio of 19.7 and P/S ratio of 2.8, slightly above peer averages. While the premium valuation reflects high investor expectations, many analysts see it as justified by strong fundamentals, continued price momentum in gold, and a diversified future through copper production.
Conclusion: Gold Giant With Growing Ambitions
Harmony Gold’s impressive rebound has positioned it as a top performer in the mining sector. With gold prices at historic highs, a rising dividend, and a bold move into copper, the company has reignited market confidence and laid the groundwork for sustained growth heading into 2026.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Save