Harmony Gold Sticks with Hedging Strategy Despite R10bn Loss

Harmony Gold has reaffirmed its commitment to hedging despite taking a significant hit from gold price fluctuations. The company reported a realised loss of R9.65 billion ($571 million) on its gold hedge book in FY26, which partially offset the increase in gold revenue and lowered the average gold price received.

Financial director Boipelo Lekubo explained that Harmony's hedging programme is designed to lock in margins and protect against adverse gold-price movements as it undertakes capital projects. The company has continued to hedge at higher gold prices, with outstanding hedge liabilities falling sharply to R2.14 billion at year-end from R12.24 billion at the half-year.

Lekubo noted that the impact of the hedge book should moderate as older hedges expire, saying 'We've locked in good hedges, as and when those mature, you'll start to see realised loss coming down.'