Harmony Gold Mining Company Limited HMY posted adjusted earnings of 60 cents per share for fiscal 2021 (ended Jun 30, 2021) against a loss of 10 cents recorded in the year-ago period.

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

Revenues and Costs

In fiscal 2021, revenues increased 45.2% to $2,710 million from $1,867 million registered a year ago. Average gold prices received during the period rose roughly 18% year over year to $1,719 per ounce (oz).

Gold production was around 1.54 million oz for the fiscal, up around 26% year over year.

Cash operating costs per oz declined 10% to $1,213. All-in-sustaining costs (AISC) declined 13% year over year to $1,460 per oz.

Financial Overview

As of Jun 30, 2021, cash and cash equivalents declined from $367 in the year-ago period to $198 million. Cash flow from operating activities surged 99% year over year to $597 million in fiscal 2021.

Net debt was $38 million at the end of fiscal 2021, down around 52% year over year.

Outlook

Harmony Gold plans to produce 1.55-1.63 million oz of gold in fiscal 2022. The company also expects an all-in sustaining cost between R765,000/kg-R800,000/kg. Underground recovered grade is forecast in the range of 5.40-5.57g/t.

Price Performance

Shares of Harmony have declined 37.3% in the past year compared with 28.2% fall of the industry.

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Zacks Rank & Key Picks

Harmony currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the basic materials space are Nucor Corporation NUE, Dow Inc. DOW and Cabot Corporation CBT.

Nucor has a projected earnings growth rate of around 494% for the current year. The company’s shares have soared 147.7% in a year. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Dow has an expected earnings growth rate of around 403.01% for the current year. The company’s shares have gained 27.8% in the past year. It currently holds a Zacks Rank #2 (Buy).

Cabot has an expected earnings growth rate of around 138.5% for the current fiscal. The company’s shares have rallied 39% in the past year. It currently carries a Zacks Rank #2.

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