Harmony Gold: A High-Cost Miner Significantly Leveraged To Gold Prices

Summary

  • Harmony Gold is a high-cost gold miner. Its earnings recovery is expected to be stronger than that of its peers due to the gold price rally.
  • The outlook for the gold price remains positive, even after the September Fed rate cut has been priced in.
  • Production volume continues to surprise the market driven by a sustainable improvement in recovered grade.
  • The valuation is not stretched and results for FY24 are better than expected.

Stacks of gold bars forming an oval shape

J Studios

Investment Thesis

Harmony is one of the highest-cost gold miners globally, with significant earnings leverage to the gold price.

Its production growth surprised the market in 2024, driven by improved recovered grades in its two young underground mines, which we

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With 20 years of experience in stock analysis, I have established myself as a seasoned professional in the field. Throughout my career, I have worked in leading investment banks and mutual funds, honing my expertise in identifying lucrative investment opportunities and spotting emerging trends. My extensive background in stock analysis has equipped me with a deep understanding of market dynamics, fundamental analysis, and valuation techniques. Through my diligent research and analysis, I strive to provide valuable insights and recommendations to investors, and help them unearth some simple and obvious investment opportunties.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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