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Harmony Gold's (HMY) Profits Drop, Sales Rise Y/Y in FY18
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Harmony Gold Mining Company Ltd. (HMY - Free Report) posted adjusted earnings of 13 cents per share for fiscal year 2018 (ended Jun 30, 2018), down 38.1% from 21 cents in the year-ago quarter.
Revenues and Costs
Revenues increased 12% year over year to $1.58 billion for fiscal 2018 from $1.42 billion in the prior-year quarter. This was mainly driven by a 6% increase in gold sales, including the Moab Khotsong operations but excluding capitalized gold sales from Hidden Valley.
Gold production was 1,227,934 ounces (oz) for the fiscal year, up 13% compared with 1,087,852 oz in the prior-year quarter. Average gold prices received during the fiscal rose roughly 6% year over year to $1,380 per oz and total gold sales improved 10% to 1,211,826 million oz.
Cost of sales increased 24.3% to $1,800 million, while cash operating costs fell 2% year over year to $1,018 million. All-in-sustaining costs (AISC) of $1,231 per oz fell around 4% year over year.
Harmony Gold Mining Company Limited Price and Consensus
Cash and cash equivalents fell 46.3% year over year to $51 million as of Jun 30, 2018 from $95 million as of Jun 30, 2017. Cash flow from operating activities was $302 million in the fiscal year.
Net debt increased to $356 million at the end of Jun 30, 2018 from $68 million at the end of Jun 30, 2017.
Outlook
Harmony Gold plans to produce roughly 1.45 million oz of gold in fiscal 2019. The company’s key focus area in fiscal 2019 will be debt repayment along with substantial progressing and permitting of the Wafi-Golpu project. The company is committed to deliver on its strategy to produce safe, profitable ounces and increasing margins.
Price Performance
Shares of Harmony Gold have lost 15.2% in the past year compared with the industry’s 23.1% decline.
Zacks Rank & Stocks to Consider
Harmony Gold currently carries a Zacks Rank #4 (Sell).
Huntsman has an expected long-term earnings growth rate of 8.5%. Its shares have returned 22.5% in a year.
Ingevity has an expected long-term earnings growth rate of 12%. Its shares have surged 66.6% in the past year.
Celanese has an expected long-term earnings growth rate of 10%. Its shares have gained 19.2% in the past year.
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Harmony Gold's (HMY) Profits Drop, Sales Rise Y/Y in FY18
Harmony Gold Mining Company Ltd. (HMY - Free Report) posted adjusted earnings of 13 cents per share for fiscal year 2018 (ended Jun 30, 2018), down 38.1% from 21 cents in the year-ago quarter.
Revenues and Costs
Revenues increased 12% year over year to $1.58 billion for fiscal 2018 from $1.42 billion in the prior-year quarter. This was mainly driven by a 6% increase in gold sales, including the Moab Khotsong operations but excluding capitalized gold sales from Hidden Valley.
Gold production was 1,227,934 ounces (oz) for the fiscal year, up 13% compared with 1,087,852 oz in the prior-year quarter. Average gold prices received during the fiscal rose roughly 6% year over year to $1,380 per oz and total gold sales improved 10% to 1,211,826 million oz.
Cost of sales increased 24.3% to $1,800 million, while cash operating costs fell 2% year over year to $1,018 million. All-in-sustaining costs (AISC) of $1,231 per oz fell around 4% year over year.
Harmony Gold Mining Company Limited Price and Consensus
Harmony Gold Mining Company Limited Price and Consensus | Harmony Gold Mining Company Limited Quote
Financial Overview
Cash and cash equivalents fell 46.3% year over year to $51 million as of Jun 30, 2018 from $95 million as of Jun 30, 2017. Cash flow from operating activities was $302 million in the fiscal year.
Net debt increased to $356 million at the end of Jun 30, 2018 from $68 million at the end of Jun 30, 2017.
Outlook
Harmony Gold plans to produce roughly 1.45 million oz of gold in fiscal 2019. The company’s key focus area in fiscal 2019 will be debt repayment along with substantial progressing and permitting of the Wafi-Golpu project. The company is committed to deliver on its strategy to produce safe, profitable ounces and increasing margins.
Price Performance
Shares of Harmony Gold have lost 15.2% in the past year compared with the industry’s 23.1% decline.
Zacks Rank & Stocks to Consider
Harmony Gold currently carries a Zacks Rank #4 (Sell).
A few better-ranked stocks in the basic materials space are Huntsman Corp. (HUN - Free Report) , Ingevity Corp. (NGVT - Free Report) and Celanese Corp. (CE - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Huntsman has an expected long-term earnings growth rate of 8.5%. Its shares have returned 22.5% in a year.
Ingevity has an expected long-term earnings growth rate of 12%. Its shares have surged 66.6% in the past year.
Celanese has an expected long-term earnings growth rate of 10%. Its shares have gained 19.2% in the past year.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>