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]

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 ...