Our opinion on the current state of HARMONY(HAR)
Harmony (HAR) was probably South Africa's most marginal gold mine until it got Mponeng gold mine working effectively. The development of this mine and its processing plant are expected to cost around US$2,8bn – and Harmony does not at this stage have its share of that cash (about R20bn). During 2021, the company purchased Mponeng gold mine for R4,2bn. Mponeng is the world’s deepest mine and has all the problems of ultra-deep level mining.
The company is building a 30MW solar park in the Free State and has plans to build a further 80MW of green power. On 6th October 2022, the company announced that it had agreed to buy 100% of the Eva copper project in Australia for R4,1bn. Harmony remains a volatile gold producer and hence risky – although recent acquisitions could change its direction significantly, taking it out of precious metals. Eva is only expected to commence production in three years and is expected to add 260 000 ounces of gold and 1,7 billion pounds of copper to Harmony's reserves.
On 3rd April 2024, the company announced that it had signed a wage deal with all of its unions for the next five years.
In its results for the year to 30th June 2024, the company reported an underground grade of 6,11 grams per ton, a 6% increase in gold produced, and an 11% increase in the US dollar price received. Headline earnings per share (HEPS) were 1852c (SA) compared with 800c in the previous period. The company said, "By investing in our higher-grade gold mines, expanding our surface retreatment business, and growing our international gold and copper assets, we will continue to transform and de-risk Harmony as we go from strength to strength."
In an operational update for the three months to 30th September 2024, the company reported gold production down 1%, with Mponeng production up 28%. The recovered grade was 6,32 grams per ton, and costs rose by 14%. The gold price received rose 21% to $2356 per ounce. The company said, "Strong, flexible balance sheet with net cash position increasing to R6.3 billion (US$362 million) and liquidity of R15.7 billion (US$909 million) in cash and undrawn facilities."
In an update on the six months to 31st December 2024, the company reported gold production of between 790 000 ounces and 805 000 ounces with higher recovered grades. The company said, "All of our underground operations (except Target 1, which is still in a turnaround process after being recapitalised) generated meaningful positive operating free cash flows."
In a trading statement for the six months to 31st December 2024, the company estimated that HEPS would increase by between 24% and 42%. The company said, "The average gold price received increased by 23% to R1 405 020/kg in H1FY25 from R1 141 424/kg in H1FY24."
Technically, the share, while volatile, is in a strong upward trend. It is a play on the gold price and the rand/US dollar exchange rate. It was added to the Winning Shares List (WSL) on 16-11-23 at 9920c. It is now trading for 18887c.
On 5th February 2025, the company announced that two employees had lost their lives at the company's mines.
The company is building a 30MW solar park in the Free State and has plans to build a further 80MW of green power. On 6th October 2022, the company announced that it had agreed to buy 100% of the Eva copper project in Australia for R4,1bn. Harmony remains a volatile gold producer and hence risky – although recent acquisitions could change its direction significantly, taking it out of precious metals. Eva is only expected to commence production in three years and is expected to add 260 000 ounces of gold and 1,7 billion pounds of copper to Harmony's reserves.
On 3rd April 2024, the company announced that it had signed a wage deal with all of its unions for the next five years.
In its results for the year to 30th June 2024, the company reported an underground grade of 6,11 grams per ton, a 6% increase in gold produced, and an 11% increase in the US dollar price received. Headline earnings per share (HEPS) were 1852c (SA) compared with 800c in the previous period. The company said, "By investing in our higher-grade gold mines, expanding our surface retreatment business, and growing our international gold and copper assets, we will continue to transform and de-risk Harmony as we go from strength to strength."
In an operational update for the three months to 30th September 2024, the company reported gold production down 1%, with Mponeng production up 28%. The recovered grade was 6,32 grams per ton, and costs rose by 14%. The gold price received rose 21% to $2356 per ounce. The company said, "Strong, flexible balance sheet with net cash position increasing to R6.3 billion (US$362 million) and liquidity of R15.7 billion (US$909 million) in cash and undrawn facilities."
In an update on the six months to 31st December 2024, the company reported gold production of between 790 000 ounces and 805 000 ounces with higher recovered grades. The company said, "All of our underground operations (except Target 1, which is still in a turnaround process after being recapitalised) generated meaningful positive operating free cash flows."
In a trading statement for the six months to 31st December 2024, the company estimated that HEPS would increase by between 24% and 42%. The company said, "The average gold price received increased by 23% to R1 405 020/kg in H1FY25 from R1 141 424/kg in H1FY24."
Technically, the share, while volatile, is in a strong upward trend. It is a play on the gold price and the rand/US dollar exchange rate. It was added to the Winning Shares List (WSL) on 16-11-23 at 9920c. It is now trading for 18887c.
On 5th February 2025, the company announced that two employees had lost their lives at the company's mines.
Aviso legal
As informações e publicações não devem ser e não constituem conselhos ou recomendações financeiras, de investimento, de negociação ou de qualquer outro tipo, fornecidas ou endossadas pela TradingView. Leia mais em Termos de uso.
Aviso legal
As informações e publicações não devem ser e não constituem conselhos ou recomendações financeiras, de investimento, de negociação ou de qualquer outro tipo, fornecidas ou endossadas pela TradingView. Leia mais em Termos de uso.