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].

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]

J Studios Investment Thesis Harmony is one of the highest-cost gold miners globally, with significant earnings leverage to the gold price. Its production growth surprised the market in 2024, driven by improved recovered grades in its two young underground mines, which we view as sustainable. FY24 performance exceeded its production target and cost guidance and full year adjusted EPS was up over 100% from a year ago. Introduction Harmony Gold Mining Company Limited (NYSE:HMY) is a mid-sized gold miner based ...

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 ...