U.S. Markets closed

Harmony Gold's (HMY) Earnings and Sales Rise Y/Y in FY19

Zacks Equity Research

Harmony Gold Mining Company Limited HMY posted adjusted earnings of 14 cents per share in fiscal 2019 (ended Jun 30, 2019), up 7.7% from 13 cents recorded a year ago.

Revenues and Costs  

Revenues increased 19.3% to roughly $1.9 billion for fiscal 2019 from around $1.6 billion registered a year ago. The upside was mainly driven by 18% increase in gold sales.

Gold production was 1,438,231 ounces (oz) in the fiscal year, up nearly 17% year over year. Average gold prices received during the fiscal fell roughly 7% year over year to $1,287 per oz.

Cost of sales increased 12.7% year over year to $2,037 million, while cash operating costs fell 5% to $965 million. All-in-sustaining costs (AISC) fell around 2% year over year to $1,207 per oz.

Harmony Gold Mining Company Limited Price, Consensus and EPS Surprise


Harmony Gold Mining Company Limited Price, Consensus and EPS Surprise

Harmony Gold Mining Company Limited price-consensus-eps-surprise-chart | Harmony Gold Mining Company Limited Quote


Financial Overview

At the end of fiscal 2019, cash and cash equivalents rose 37.3% year over year to $70 million. Cash flow from operating activities rose 8.9% to $330 million in the fiscal.

Net debt decreased around 3% year over year to $348 million at the end of fiscal 2019.


Harmony Gold plans to produce roughly 1.46 million oz of gold in fiscal 2020. Some of the company’s key focus area in the next fiscal will include profitable production, value accretive acquisitions and strengthening cash flows.

Price Performance

Shares of Harmony Gold have skyrocketed 106.3% in the past year compared with the industry’s 61.8% surge.

Zacks Rank & Other Key Picks

Harmony Gold currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the basic materials space are Kinross Gold Corporation KGC, Alamos Gold Inc AGI and Arconic Inc ARNC, all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Kinross has an expected earnings growth rate of 150% for 2019. The company’s shares have surged 66.2% in the past year.

Alamos Gold has projected earnings growth rate of 300% for the current year. The company’s shares have rallied 60.1% in a year’s time.

Arconic has an estimated earnings growth rate of 47.1% for the current year. Its shares have moved up 17.1% in the past year.

Biggest Tech Breakthrough in a Generation

Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.

A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 7 stocks to watch. The report is only available for a limited time.

See 7 breakthrough stocks now>>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Kinross Gold Corporation (KGC) : Free Stock Analysis Report
Alamos Gold Inc. (AGI) : Free Stock Analysis Report
Harmony Gold Mining Company Limited (HMY) : Free Stock Analysis Report
Arconic Inc. (ARNC) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research