Group 1 - U.S. tech stocks experienced a significant pre-market surge, with Apple and Nvidia both rising approximately 5% [1] - Gold stocks faced a notable decline, with Harmony Gold dropping around 10% [1]

Industry Overview - Key precious metals, particularly gold, have experienced significant price increases, with gold surging over 41% in the year leading to late April 2025, driven by investor uncertainty and geopolitical volatility [1] - Silver and platinum have also outperformed the broader market during the same period [1] Investment Opportunities - Investors can capitalize on the success of precious metals through targeted investments in mining companies, especially those focused on gold production, which has shown strong momentum [2] - Three gold mining stocks with robust momentum include Harmony Gold Mining Co. Ltd., Perpetua Resources Corp., and Eldorado Gold Corp. [3] Harmony Gold Mining - Harmony Gold Mining has achieved 81% year-to-date growth, benefiting from rising gold prices and strong operational performance [4] - The company reported a 19% year-over-year increase in gold revenues to nearly $2 billion in the first half of fiscal 2025, with operating free cash flow reaching close to $600 million, a 46% improvement from the previous year [5] - Harmony is diversifying its operations with new copper projects in Queensland, Australia, which will help mitigate production risks [6] Perpetua Resources - Perpetua Resources has a stock forecast indicating a potential upside of 67.26%, with shares currently priced at $14.05 [8] - The Stibnite mine, designated as a transparency project by the White House, is expected to reduce regulatory hurdles and enhance domestic mineral supply, particularly in antimony, which is critical for military and industrial applications [9] Eldorado Gold - Eldorado Gold has a stock forecast with a 12-month price target of $20.38, indicating a 9.19% upside potential [10] - The company is expected to see a 33% production surge by 2027, driven by the Skouries project and strong cash flow, with a 42% year-over-year revenue increase in the latest quarter [11][12]

Core Viewpoint - Gold stocks are gaining traction as a hedge against market volatility caused by ongoing tariff disputes, with significant price increases observed in several gold mining companies [1][3][4]. Gold Market Performance - Gold prices increased by over 3% as investors sought safe-haven assets amid stock market sell-offs triggered by tariffs [3][4]. - Gold stocks, particularly those of companies with strong operational performances, have rallied due to the direct impact of rising gold prices on their financials [5]. Company Highlights - Newmont Corporation, the world's second-largest gold company, saw its shares rise by 8.8% with a market capitalization of $52.2 billion [2]. - Harmony Gold reported a 19% increase in revenue and a 33% surge in net income, despite a 4% drop in production, with cash flow from operations increasing by 46% year-over-year [6]. - AngloGold Ashanti's revenue jumped 26% in 2024, leading to a net profit of $1 billion compared to a net loss of $222 million in 2023, with a dividend yield of 4.1% [7]. - Iamgold Corp experienced a 43% increase in gold production and a 65% rise in revenue to $1.6 billion in 2024, projecting further growth in 2025 [10]. - Newmont Mining reported a net income of $3.4 billion in 2024, recovering from a net loss of $2.5 billion in 2023, and generated $6.3 billion in cash flow from operations [11]. Future Outlook - The year 2025 is anticipated to be significant for gold mining companies, with expectations of continued growth driven by rising gold prices amid ongoing trade tensions [12].

Harmony Gold Mining Company Limited (NYSE:HMY) Q2 2025 Earnings Conference Call March 4, 2025 3:00 AM ET Company Participants Beyers Nel - Chief Executive Officer Boipelo Lekubo - Financial Director Jared Coetzer - Investor Relations Conference Call Participants Arnold Van Graan – Nedbank Adrian Hammond - SBG René Hochreiter - NOAH Capital Felicity Robson - Bank of America Beyers Nel Good morning, everybody. My name is Beyers Nel, and it is a privilege for me to present my first set of results to you in my ...

© Harmony Eva Copper - The information in this announcement that relates to Mineral Resources or Ore Reserves has been extracted from the Copper Mountain Mining Corporation Mineral Reserve and Resource Estimate (as at 1 August 2022). H1FY25 RESULTS Beyers Nel, CEO 4 March 2025 | JSE ticker code | HAR | | --- | --- | | NYSE ticker code | HMY | PRIVATE SECURITIES LITIGATION REFORM ACT SAFE HARBOUR STATEMENT AND DISCLAIMER FORWARD LOOKING STATEMENTS This presentation contains forward-looking statements within ...

Valuation and Performance - Harmony Gold Mining Company Limited (HMY) is currently trading at a forward price/earnings ratio of 6.8X, which represents a 46.7% discount compared to the Zacks Mining – Gold industry's average of 12.75X. The company has a Value Score of A [1] - HMY's shares have surged 50.6% year to date, outperforming the industry's rise of 21.3% and the S&P 500's increase of 25.7% [4] Technical Indicators - HMY stock surpassed its 200-day simple moving average (SMA) on November 18, 2024, although it is currently trading below the 50-day SMA. The 50-day SMA remains above the 200-day SMA, indicating a bullish trend [7] Production and Development Projects - HMY is South Africa's largest gold producer by volume, with production of approximately 1.56 million ounces in fiscal 2024. The company is advancing key projects, including the Wafi-Golpu copper-gold project in Papua New Guinea and the Eva Copper project in Australia [10][11] - The Wafi-Golpu project has an estimated reserve of 13 million ounces of gold and is considered a potential game-changer for the company [10] Financial Performance - HMY's adjusted earnings surged 120% year over year in fiscal 2024, driven by an 11% rise in average gold prices. In the first quarter of fiscal 2025, the average gold price received was approximately $2,356 per ounce, reflecting a 25% increase [12] - The company's net cash increased by roughly 129% to $362 million at the end of the first quarter of fiscal 2025, with solid liquidity of $910 million [13] Cost Pressures - HMY is facing higher costs, with all-in sustaining costs rising by approximately 19% in the first quarter of fiscal 2025 due to increased labor costs and electricity tariffs. Total cash costs also climbed 18% year over year [14] Earnings Estimates - Earnings estimates for HMY for fiscal 2025 have been declining over the past 60 days, while the Zacks Consensus Estimate for fiscal 2026 has been revised upward during the same period [15]

Core Insights - The article compares Harmony Gold (HMY) and Franco-Nevada (FNV) to determine which stock is a better undervalued investment option for investors interested in mining [1] Valuation Metrics - HMY has a forward P/E ratio of 8.16, significantly lower than FNV's forward P/E of 40.54 [5] - HMY's PEG ratio is 0.50, indicating a favorable valuation relative to its expected earnings growth, while FNV's PEG ratio is 22.03 [5] - HMY's P/B ratio stands at 3.05, compared to FNV's P/B of 4.34, suggesting HMY is more attractive in terms of market value versus book value [6] Analyst Outlook - HMY currently holds a Zacks Rank of 1 (Strong Buy), while FNV has a Zacks Rank of 2 (Buy), indicating a more favorable earnings estimate revision activity for HMY [3] - HMY's solid earnings outlook and favorable valuation metrics position it as the superior value option compared to FNV [7]

Group 1 - Harmony Gold (HMY) is a notable stock in the Basic Materials sector, which consists of 235 individual stocks and currently holds a Zacks Sector Rank of 11 [2] - The Zacks Rank system focuses on earnings estimates and revisions, with Harmony Gold currently rated as 1 (Strong Buy), indicating a positive earnings outlook [3] - Year-to-date, Harmony Gold has returned 76.3%, significantly outperforming the Basic Materials sector average return of -0.8% [4] Group 2 - New Gold (NGD) is another stock in the Basic Materials sector that has performed well, with a year-to-date return of 88.4% [4] - The Mining - Gold industry, which includes Harmony Gold, has an average gain of 25.5% this year, positioning HMY favorably within its industry [5] - Both Harmony Gold and New Gold are expected to continue their strong performance in the Basic Materials sector [6]

Capital Expenditures - Capital expenditures for fiscal 2024 amounted to R8,327 million, an increase from R7,598 million in fiscal 2023[105]. - The capital expenditure budget for fiscal 2025 is approximately R10,781 million, excluding capital allocated for renewables and international projects[106]. - The focus of capital expenditures in recent years has been on underground development and major projects such as Zaaiplaats and Kareerand[105]. - During fiscal 2024, capital expenditures at Hidden Valley accounted for 19% of the total, while Mine Waste Solutions accounted for 18%[105]. - The company has budgeted R1,469 million for Moab Khotsong and R2,148 million for Mponeng in the fiscal 2025 capital expenditure plan[106]. Dividends and Financial Transfers - A final dividend of 94 SA cents was declared on September 4, 2024, and paid on October 14, 2024[103]. - Harmony will transfer a one-off amount of R350 million to RMA Life Assurance for the transfer of medical liabilities[103]. Mining Regulations and Compliance - The Mining Charter III, effective from September 27, 2018, replaces the Original and Amended Charters, imposing new obligations for HDSA participation in ownership and procurement[111]. - Mining companies must achieve a minimum of 30% BEE shareholding for new mining rights, with specific allocations for employees, host communities, and BEE entrepreneurs[111]. - A minimum of 70% of total mining goods procurement spend must be on South African manufactured goods, while 80% of total spend on services must be sourced from South African companies[111]. - The 2021 Judgment set aside certain provisions of Mining Charter III but allowed the remainder to continue in force, indicating ongoing legal scrutiny of the Charter[113]. - Mining rights holders must comply with ownership requirements at all times, with non-compliance potentially leading to suspension or cancellation of mining rights[111]. - The Minister may review Mining Charter III by notice in the Government Gazette, indicating potential for future amendments[111]. - Historical BEE credentials will not be recognized for the renewal and transfer of existing mining rights, requiring compliance with new ownership requirements[111]. - A minimum representation of HDSAs in management positions is mandated, including 50% on the Board and 60% in senior management[111]. - The Amended Regulations require mining rights holders to contribute to socio-economic development in both local and labor-sending areas[114]. - The BBBEE Act, established in 2004, aims to increase black participation in the South African economy to remedy historical racial imbalances[116]. - The BBBEE Codes, revised in 2013 and effective from 2015, provide a framework for measuring BBBEE across all sectors, including mining[116]. - The Mining Charter governs BBBEE implementation in the mining industry, but its relationship with the BBBEE Codes remains unclear[118]. Environmental Regulations - The NEMLAA, effective June 30, 2023, introduced new financial provision requirements for environmental liabilities, impacting mining operations[145]. - Financial provision must be assessed annually and adjusted to the satisfaction of the Minister, with a maximum fine for non-compliance increased from R5 million to R10 million[145]. - The environmental authorization process in South Africa requires compliance with various environmental laws, with significant penalties for non-compliance[144]. - The NEMA mandates that mining companies maintain financial provision even after receiving a closure certificate, ensuring ongoing environmental liability management[145]. - Harmony remains liable for environmental impacts post-closure, even after obtaining a closure certificate, ensuring long-term compliance with environmental regulations[145]. - The company faces potential liabilities of up to R10 million and/or 10 years imprisonment for failing to comply with environmental regulations[147]. - The introduction of the Carbon Tax Act aims to reduce greenhouse gas emissions, effective from June 1, 2019[152]. - The company must report GHG emissions and activity data for operations involving fuel combustion activities exceeding 10MW by March 31 each year[151]. - The NWA requires most mining operations to obtain a water use license, which can be difficult and time-consuming to secure[150]. - The company is subject to the Waste Act, which regulates waste management activities and may impose penalties for non-compliance[149]. - The Climate Change Act, signed into law on July 18, 2024, will regulate greenhouse gas emitting sectors once effective[153]. - The company must comply with the management measures for residue stockpiles and deposits as per the Regulations for Residue Stockpiles and Residue Deposits[149]. Production and Resource Estimates - Gold production for the fiscal year ended June 30, 2024, was 48,578 kg, an increase from 45,651 kg in 2023, representing a growth of approximately 4.2%[183]. - As of June 30, 2024, Harmony's total gold Mineral Resources (exclusive of Mineral Reserves) were estimated at 64.4 million ounces, while Mineral Reserves were 22.5 million ounces[179]. - The estimated Mineral Resources for the underground mining operations in the West Rand were 26.7 million ounces, with Mineral Reserves of 6.8 million ounces as of June 30, 2024[179]. - The company has a 50% interest in the Wafi-Golpu Project in Papua New Guinea, with combined estimated Mineral Resources of 20.5 million ounces and Mineral Reserves of 17.7 million ounces as of June 30, 2024[179]. - The total cash operating costs are adjusted for historical data and current cost environment changes, including restructuring and cost-reduction initiatives[187]. - The reported Mineral Reserves are accessible from existing infrastructure or infrastructure under development, with extraction factors generally not exceeding 85%[187][188]. - The total measured and indicated resources in South Africa amounted to 1,111.874 thousand kg[193]. - The total Mineral Reserves for South Africa amounted to 1,202.835 million tonnes with a total gold content of 700.582 thousand kg[198]. - The total Mineral Reserves for Papua New Guinea were reported at 206.540 million tonnes with a total gold content of 185.660 thousand kg[198]. - The company reported a total of 1,409.375 million tonnes of Mineral Reserves across all operations, with a total gold content of 886.242 thousand kg[198]. Market Conditions and Economic Factors - The price of gold and silver reached record highs in 2024 due to escalating geopolitical tensions and safe haven demand[168]. - The ongoing war in Ukraine and tensions in the Middle East have caused significant disruptions in financial markets and key commodities[169]. - The South African government is committed to implementing a minimum global tax rate of 15% as part of the OECD's Pillar 2 proposals, with a Draft Global Minimum Tax Bill released for public comment[172]. Project Developments - The Queensland Government announced a conditional grant funding of A$20.7 million for Eva Copper, subject to a positive final investment decision by January 2026[103]. - The Eva Copper Project has undergone various amendments, with the current Environmental Authority issued on June 12, 2024[154]. - The company is preparing a Progressive Rehabilitation and Closure Plan for the Eva Copper Project to outline site rehabilitation post-mining[155]. - The existing closure policy requires tenement holders to provide adequate financial assurance for mine closure obligations[161]. - The proposed National Content Policy for Resource Sectors 2023-2027 focuses on domestic procurement, localization of employment, and sustainable development[166]. Legal and Compliance Issues - There is no material litigation against Harmony that threatens its mineral rights, tenure, or operations[206]. - No fines or penalties for non-compliance were incurred during the year ended June 30, 2024[210]. - The company has conducted a total of 248 drill holes into nine TSFs between January 2017 and February 2020 to determine grade estimates[255].

Core Viewpoint - Harmony Gold (HMY) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system emphasizes the correlation between changes in earnings estimates and stock price movements, suggesting that revisions in earnings estimates are a powerful indicator of future stock performance [4][6]. - Harmony Gold is projected to earn $1.40 per share for the fiscal year ending June 2025, reflecting a year-over-year increase of 42.9% [8]. Analyst Sentiment and Market Position - Analysts have raised their earnings estimates for Harmony Gold, with the Zacks Consensus Estimate increasing by 16.7% over the past three months [8]. - The upgrade to Zacks Rank 1 places Harmony Gold in the top 5% of Zacks-covered stocks, indicating strong potential for market-beating returns in the near term [10]. Zacks Rating System - The Zacks Rank system classifies stocks based on earnings estimate revisions, with a proven track record of Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [7]. - The system maintains a balanced distribution of ratings, ensuring that only the top 5% of stocks receive a 'Strong Buy' rating, which highlights the superior earnings estimate revision feature of these stocks [9][10].