Group 1 - Harmony Gold (HMY) has shown a year-to-date return of approximately 63.3%, significantly outperforming the Basic Materials sector, which has gained an average of 5.5% [4] - The Zacks Consensus Estimate for HMY's full-year earnings has increased by 16.7% over the past quarter, indicating improved analyst sentiment and earnings outlook [4] - Harmony Gold is ranked 1 (Strong Buy) in the Zacks Rank system, which focuses on earnings estimates and revisions [3] Group 2 - Harmony Gold is part of the Mining - Gold industry, which consists of 38 stocks and is currently ranked 31 in the Zacks Industry Rank [6] - The Mining - Gold industry has seen an average gain of about 29.3% year-to-date, with HMY outperforming this group [6] - In comparison, Cabot (CBT), another stock in the Basic Materials sector, has a year-to-date return of 35.8% and is part of the Chemical - Diversified industry, which is ranked 181 [5][6]

Core Viewpoint - The article emphasizes the importance of value investing as a strategy to identify strong stocks, particularly through the use of fundamental analysis and traditional valuation metrics [2][4]. Group 1: Value Investing - Value investing is highlighted as a preferred method for finding strong stocks across various market conditions [2]. - Investors can utilize the Style Scores system to identify stocks with specific traits, particularly focusing on the "Value" category for value investors [3]. Group 2: Harmony Gold (HMY) - Harmony Gold (HMY) is identified as a stock to watch, currently holding a Zacks Rank of 1 (Strong Buy) and an A for Value [4]. - HMY's P/E ratio is reported at 7.21, significantly lower than the industry average of 14.76, indicating potential undervaluation [4]. - The stock has a PEG ratio of 0.34, compared to the industry's average PEG of 0.48, further suggesting that HMY may be undervalued [5]. - Over the past year, HMY's PEG has fluctuated between 0.27 and 0.37, with a median of 0.32, reinforcing its strong value grade [5][6]. - The combination of HMY's low valuation metrics and a strong earnings outlook positions it as an impressive value stock at present [6].

Core Insights - Harmony Gold Mining Company Limited (HMY) reported adjusted earnings of 99 cents per share for fiscal 2024, a 120% increase from 45 cents per share a year ago [1] - Revenues for fiscal 2024 rose 18% year over year to $3,282 million, with average gold prices received increasing by 11% to $1,999 per ounce [1] Production and Costs - Gold production for fiscal 2024 was 1,561,815 ounces, reflecting a 6% year-over-year increase [2] - Cash operating costs per ounce decreased by 2% year over year to $1,262, while all-in-sustaining costs fell 4% to $1,500 per ounce [2] Financial Overview - As of June 30, 2024, cash and cash equivalents increased by approximately 70% year over year to $258 million [3] - Operating free cash flow surged 101% year over year to $681 million [3] - Long-term debt decreased by around 67% year over year to $98 million at the end of fiscal 2024 [3] Outlook and Capital Expenditure - Harmony Gold anticipates producing between 1.4 million and 1.5 million ounces of gold in fiscal 2025 [4] - Projected capital expenditures for fiscal 2025 are expected to rise to $592 million due to investments in major high-grade and surface retreatment projects [4] Stock Performance - Shares of Harmony Gold have increased by 108.8% over the past year, outperforming the industry average rise of 33.4% [5]

Financial Data and Key Metrics Changes - Group revenue increased by 25% to ZAR 61 billion, driven by higher production and gold prices [27] - Net profit rose by 78% to ZAR 8.7 billion, with EBITDA increasing by 54% to just under ZAR 19 billion [27][28] - Headline earnings per share increased by 132% to 1,852 South African cents or $0.99 per share [28] - Operating free cash flow surged over 100% to a record ZAR 13 billion or US$681 million, achieving a margin of 22% [8][22] Business Line Data and Key Metrics Changes - Gold production increased by 6% to 1.56 million ounces, exceeding revised guidance [7] - Underground recovery grades improved by 6% to 6.11 grams per tonne [8] - Silver production rose by 39% to a record 3.7 million ounces, generating revenue of ZAR 1.7 billion [21] - Uranium production increased by 13% to 590,000 pounds, generating revenue of just under ZAR 900 million [21] Market Data and Key Metrics Changes - 96% of revenue is from gold, with byproducts (silver and uranium) contributing 3% and 1% respectively [20] - The company expects approximately 20% of future production to come from copper within the next 10 years, primarily from the Wafi-Golpu and Eva Copper projects [3][10] Company Strategy and Development Direction - Harmony's strategy focuses on responsible stewardship, operational excellence, cash certainty, and effective capital allocation [3] - Major capital is allocated towards high-quality assets like Moab Khotsong and Mponeng, as well as projects that lower risk profiles [4][10] - The company aims to grow reserves and improve margins through investments in existing assets and new projects [5][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving production targets of 1.4 to 1.5 million ounces in FY '25, with underground recovery grades expected above 5.8 grams per tonne [33] - The company is optimistic about maintaining a strong balance sheet and cash flow, with a net cash position of ZAR 2.9 billion [28][31] - Management emphasized the importance of safety and operational excellence, aiming for zero loss of life [19][20] Other Important Information - Harmony has been included in the FTSE4Good Index for the 7th consecutive year, reflecting its commitment to sustainability [9] - The company is progressing with the feasibility study for the Eva Copper project, which is expected to produce between 50,000 and 60,000 tonnes of copper per annum [13] - Total capital expenditure for FY '25 is expected to increase to ZAR 10.8 billion, with a focus on high-grade underground projects [14][30] Q&A Session Summary Question: Thoughts on underground operations and grade improvements - Management attributed grade improvements to acquiring high-grade assets in Mponeng and Moab Khotsong, emphasizing operational excellence and quality control [36][38] Question: FY '25 guidance and potential for better performance - Management expressed optimism about beating guidance, citing strong momentum in operations and a conservative planning approach [40][41] Question: Drivers for increased CapEx in FY '25 and FY '26 - Management highlighted the need for sustaining capital due to better performance, development requirements, and ongoing IT upgrades as key drivers for increased CapEx [42][43][47] Question: Succession plan and intentions for cash reserves - Management confirmed that a succession plan is in place, with a focus on maintaining a balanced capital allocation framework while pursuing growth opportunities [50][53]

Investment Thesis - Harmony Gold is one of the highest-cost gold miners globally, with significant earnings leverage to gold prices [2] - The company's production growth in 2024 surprised the market, driven by improved recovered grades in its two young underground mines, which are viewed as sustainable [2] - FY24 performance exceeded production targets and cost guidance, with full-year adjusted EPS up over 100% from the previous year [2] Company Overview - Harmony Gold Mining Company Limited is a mid-sized gold miner based in South Africa, with nearly all its gold mine assets located in South Africa, accounting for 90% of total output [3][5] - Key assets include Moab Khotsong and Mponeng, both high-grade ultra-deep underground mines with over 20 years of remaining life [3] - The company also operates a large surface operation in South Africa and one major mine in Papua New Guinea, Hidden Valley [3] Production and Guidance - FY23 production was 1,467,715 ounces, with FY24 guidance set between 1.38 to 1.48 million ounces [4] - In 1HFY24, gold production increased by 12% year-over-year to 832,000 ounces, exceeding initial guidance [10] - Management raised the full-year production target to 1.55 million ounces, with actual production reaching 1.56 million ounces, a 6% year-over-year increase [10] Cost Profile - Harmony Gold has the third-highest All-in Sustainable Cost (AISC) among global gold miners, negatively impacting margins, especially when gold prices are low [7] - The company’s AISC was reported at $1,588 per ounce in Q1 2023, with a 4.1% increase from Q4 2022 [8] Financial Performance - The total attributable reserve was 39.3 million ounces at the end of FY23, primarily located in South Africa [5] - Financials began to recover in 1HFY24, with earnings more than doubling in FY24 due to a rally in gold prices [9][15] Market Outlook - The outlook for gold prices remains positive, with expectations of continued upward trends even after anticipated rate cuts by the Fed [12][15] - Harmony Gold's share price has outperformed many peers, rallying over 155% in the past year, attributed to high operating leverage to gold prices and strong production growth [13] Valuation - Harmony Gold's valuation is considered not stretched at 8.6x FY25 PE, despite the strong share price rally [13]

Company Performance - Harmony Gold closed at $11.16, reflecting a decrease of -0.53% from the previous trading session, underperforming the S&P 500's gain of 0.42% [1] - Over the past month, shares of Harmony Gold have increased by 23.43%, while the Basic Materials sector has declined by 0.84% and the S&P 500 has gained 1.77% [1] Earnings Forecast - The upcoming earnings report for Harmony Gold is scheduled for August 28, 2024, with Zacks Consensus Estimates predicting earnings of $1.20 per share and revenue of $3.7 billion, representing increases of +166.67% and +33.15% from the previous year, respectively [2] Analyst Sentiment - Recent revisions to analyst forecasts for Harmony Gold are being monitored, as positive changes in estimates indicate optimism regarding the company's business and profitability [3] Valuation Metrics - Harmony Gold has a Forward P/E ratio of 9.35, which is a discount compared to the industry average Forward P/E of 16.83 [6] - The Mining - Gold industry, part of the Basic Materials sector, currently holds a Zacks Industry Rank of 99, placing it in the top 40% of over 250 industries [6] Zacks Rank - Harmony Gold currently has a Zacks Rank of 5 (Strong Sell), with no changes in the Zacks Consensus EPS estimate over the past month [5] - The Zacks Rank system has a strong track record, with stocks rated 1 delivering an average annual return of +25% since 1988 [5]

Harmony Gold (HMY) closed the latest trading day at $10.13, indicating a +1.3% change from the previous session's end. The stock lagged the S&P 500's daily gain of 1.61%. Meanwhile, the Dow experienced a rise of 1.39%, and the technology-dominated Nasdaq saw an increase of 2.34%. Coming into today, shares of the gold miner had lost 5.12% in the past month. In that same time, the Basic Materials sector lost 5.56%, while the S&P 500 lost 2.88%. Analysts and investors alike will be keeping a close eye on the p ...

In the latest market close, Harmony Gold (HMY) reached $9.48, with a +0.48% movement compared to the previous day. The stock's change was more than the S&P 500's daily gain of 0.47%. Elsewhere, the Dow gained 0.13%, while the tech-heavy Nasdaq added 0.51%. Prior to today's trading, shares of the gold miner had lost 5.79% over the past month. This has lagged the Basic Materials sector's loss of 3.94% and the S&P 500's loss of 4.45% in that time. Investors will be eagerly watching for the performance of Harmo ...

Harmony Gold (HMY) closed the latest trading day at $9.57, indicating a -1.54% change from the previous session's end. This change lagged the S&P 500's 1.37% loss on the day. Meanwhile, the Dow lost 1.21%, and the Nasdaq, a tech-heavy index, lost 2.3%. Shares of the gold miner have appreciated by 3.85% over the course of the past month, outperforming the Basic Materials sector's loss of 0.16% and the S&P 500's gain of 1.11%. The investment community will be paying close attention to the earnings performance ...

Harmony Gold (HMY) closed at $9.09 in the latest trading session, marking a +0.55% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.16%. At the same time, the Dow lost 0.14%, and the techheavy Nasdaq lost 0.06%. The investment community will be closely monitoring the performance of Harmony Gold in its forthcoming earnings report. For the full year, the Zacks Consensus Estimates project earnings of $1.20 per share and a revenue of $3.7 billion, demonstrating changes of +166.67% and + ...