HMY: Harmony Gold Mining Company

Limited Stock Analysis

Harmony Gold Mining Company is involved in exploration in Papua New Guinea and South
Africa. Company has mining operations for silver, copper, uranium and molybdenum.
The company has 9 underground operations located in Witwatersrand Basin. Company also has
50 percent interest in other projects like Hidden Valley and Wafi-Golpu. HMY has 391,000
employees and was founded in 1950s.
South Africa based Harmony conducts underground and surface gold mining and engaged in
associated activities such as refining, smelting, exploration as well as processing.
Analysis of Results
HMY stocks have been moving upwards-stock has risen by 5.8 percent in the previous month
and is currently much above 20 day SMA. Investors would ask if this trend can
continue?Earnings estimates have grown in the company in the past few weeks.
Sentiment on HMY is moving in a key direction. The company also showcased good debt
management metrics, though the stock has experienced volatility. HMY is the fifth largest gold
producer across the globe.
Harmony Gold reported upwards movement after release of Q2, FY2016 results indicating
improved revenues beating analyst estimates according to the company press release.
The company's gold production rose and weaker currency offset declines in dollar price of
bullion. The gold production rose for the third straight quarter and moved 2 percent more than
287K ounces. Production profit surged supported by increase in gold production.
The company is a strong candidate for BUY because it is also seeking acquisitions in operating
mines in existing locations of Papua New Guinea and sub Saharan Africa according to HMY
press release.
The South Africa based company has also emphasised the improvement of safety parameters and
working towards zero harm. Moreover, there has been 7% increase in underground recovered
grade and a 2 percent rise in production according to the company press release.
There has also been 84 percent increase in production profit equalling R1.29 billion which is 68
percent to US $91 million.
The company has recorded another solid set of results for 2016's second quarter signifying three
quarters of enhanced delivery.

Higher production is indicative of strengthening of cash flow which then helps the company to
meet debts and fund the projects it is undertaking. Better production results have yielded record
headline earnings.
Range

3.31 - 3.53

52 week 0.53 - 4.19

Open

3.49

Vol / Avg. 23.63M/5.43M

Mkt cap 1.48B
P/E

Div/yield

EPS

-0.59

Shares

437.30M

Beta

-0.98

Inst. own 38%

Source: Google Finance

Conclusion
HMY is a gold mining and exploration company with a difference. The company's operations in
Papua New Guinea are part of a 50 percent JV with Newcrest Mining Limited.
Additionally, the company also has 100 percent owned exploration portfolio associated with
prospective areas in Papua New Guinea. Consider that the Golpu project alone has a life span of
40 years and you will understand the growth potential of HMY.
Photo Sources: Wikipedia

Published at: http://daddyinsider.com/index.php/2016/06/26/239/