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Harmony Gold: Another Strong South African Gold Miner


  • Harmony Gold posted a 39% increase in revenue this semester, or a jump from $1,054 million a year ago to $1,328 million.
  • Total gold production for 2020 was 745,347 Au Oz compared to 688,379 Au Oz in 2019.
  • Harmony has declared an interim dividend of 110 SA cents or $0.075 per share.
  • HMY is a good long-term opportunity below $4.
  • Looking for a helping hand in the market? Members of The Gold And Oil Corner get exclusive ideas and guidance to navigate any climate. Learn More »

Source: Harmony

Investment Thesis

Harmony Gold Mining (NYSE:HMY) is mainly a South African gold miner compared to Sibanye Stillwater (NYSE: SBSW). I recommend reading my recent article on Sibanye Stillwater by clicking here.

The company released on Feb. 23, 2021, its year 2020 results ending on Dec. 31, 2020. Production for the interim six months was impressive, with Total gold production for H2 2020 of 745 347oz compared to 688 379oz last year.

The company owns and operates ten underground mining operations, one open-pit mine, and several South Africa surface operations.

Furthermore, Harmony is active in Papua New Guinea, where it owns the Hidden Valley mine, an open-pit gold and silver mine.

The investment thesis is about the same as my preceding article. I view the company as a long-term candidate for investors who want to get involved in the South African gold industry.

However, the gold sector is very unpredictable, and I recommend trading about 30% of your long-term position to profit from the volatility and lower your risk.

Harmony Gold differs slightly from Sibanye Stillwater because it produces platinum, palladium, and Rhodium with much smaller gold production.

Both HMY and SBSW have outperformed another South African miner called Impala Platinum (OTCQX:IMPUY) and now are up about 100% in one year.

ChartData by YCharts

CEO Peter Steenkamp said in the conference call:

The exceptional performances achieved in the first half of 2021, the financial year now, substantiates the growth strategy that we set out to pursue at the beginning of 2016. Through astute acquisitions, we have successfully added quality ounces and de-risked our asset portfolio. Harmony is no longer a marginal gold producer, but an emerging market mining specialist.

Harmony Gold Mining - 2020 Ending December 2020 - The Raw Numbers

Harmony Gold Mining 12/2018 6/2019 1272019 6/2020 12/20/20

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This article was written by

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