Harmony(HMY) ZACKS·2024-11-27 14:41Valuation 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 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]