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Here's How to Play Harmony Gold Stock Before FY25 Earnings Release
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Key Takeaways
Harmony Gold is set to report fiscal 2025 earnings before the market opens on Aug. 28.
Higher gold prices and stronger Q4 production are expected to boost results.
Elevated labor and electricity costs continue to pressure Harmony Gold's margins.
Harmony Gold Mining Co. Ltd. (HMY - Free Report) is slated to report fiscal 2025 results before the opening bell on Aug. 28.
The Zacks Consensus Estimate for fiscal 2025 earnings has been stable in the past 60 days. The consensus estimate for earnings is pegged at $2.85 per share, suggesting a 190.8% year-over-year rise.
Image Source: Zacks Investment Research
The benefits of higher gold prices and strong production in the final quarter of fiscal 2025 are expected to reflect on HMY’s performance amid headwinds from higher costs.
FY25 Earnings Whispers for HMY Stock
Our proven model does not conclusively predict an earnings beat for HMY. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Higher gold prices are likely to have supported the company’s performance. Gold prices have racked up strong gains this year as worries over the global trade war have boosted safe-haven demand. Prices hit new highs driven by a surge in safe-haven demand amid the intense trade tussle, geopolitical tensions, a weak dollar and increased purchases by central banks. Prices of the yellow metal rocketed to a record high of $3,500 per ounce on April 22. While gold prices retreated from their April 2025 highs, they closed the second quarter above the $3,300 per ounce level.
The company is also likely to have achieved its full-year fiscal 2025 production guidance of 1.4-1.5 million ounces, even though gold output declined year over year in the first nine months. The company produced roughly 1.11 million ounces during this period, down 6% from 1.18 million ounces a year ago, largely due to interruptions from unprecedented rainfall in South Africa, which impacted electricity supply to its West Wits operations. This impacted production from Mponeng, Doornkop and Kusasalethu operations.
Nevertheless, Harmony is expected to have met the annual production target, banking on a stronger final quarter and improved performance at its high-grade Mponeng and Moab Khotsong assets. It raised its underground recovered grade guidance to 6.00g/t from 5.80g/t, driven by strong performances from Mponeng and Moab Khotsong.
Harmony, like most miners, is exposed to higher costs, which is likely to have been a drag on its performance. Labor and electricity remain the largest components of its cost structure. It saw a roughly 24% surge in all-in-sustaining costs (in dollars) in the third quarter of fiscal 2025. Total cash costs also climbed 22% year over year in the quarter. While the company is implementing various energy-saving initiatives and launching a renewable energy program, the burden of higher electricity costs is unlikely to have abated due to higher tariffs.
HMY Stock’s Price Performance and Valuation
HMY’s shares have popped 53.4% in a year, topping the Zacks Mining – Gold industry’s 49.4% rise and the S&P 500’s increase of 15.8%. With respect to its major peers, Gold Fields Limited (GFI - Free Report) and DRDGOLD Limited (DRD - Free Report) have surged 125.4% and 109.8%, respectively, over the same period.
HMY’s One-year Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, Harmony Gold is currently trading at a forward 12-month earnings multiple of 5.52, a roughly 60.5% discount to the peer group average of 13.97X. HMY is also trading at a discount to Gold Fields and DRDGOLD. Harmony Gold has a Value Score of B, while both Gold Fields and DRDGOLD have a Value Score of C.
HMY’s P/E F12M Vs. Industry, GFI and DRD
Image Source: Zacks Investment Research
Investment Thesis for HMY Stock
Harmony, South Africa's biggest gold producer by volume, has a diverse portfolio of gold development projects spread across South Africa and Papua New Guinea (PNG). The company’s development projects currently in progress include the development of the Wafi-Golpu copper-gold project in PNG and the Eva Copper project in Australia. The Wafi-Golpu project is believed to be a game-changer for the company, with an estimated gold reserve of 13 million ounces. The low-risk Eva Copper project in Australia offers additional upside, giving HMY a significant global copper-gold footprint.
HMY also boasts a strong balance sheet and generates substantial cash flows, which allows it to finance its development projects and drive shareholder value. Higher gold prices are expected to boost HMY’s profitability and drive cash flow generation. However, elevated energy and labor costs are likely to weigh on its margins.
Final Thoughts: Hold Onto HMY Shares
Harmony is advancing several key development projects, which are expected to enhance production and expand its international footprint. The acquisition of Eva Copper aligns with the company’s goal of transitioning into a low-cost gold and copper producer. The favorable gold price environment is also expected to aid HMY’s performance. However, its high electricity and labor costs warrant caution. Therefore, holding onto HMY stock will be prudent ahead of its earnings announcement.
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Here's How to Play Harmony Gold Stock Before FY25 Earnings Release
Key Takeaways
Harmony Gold Mining Co. Ltd. (HMY - Free Report) is slated to report fiscal 2025 results before the opening bell on Aug. 28.
The Zacks Consensus Estimate for fiscal 2025 earnings has been stable in the past 60 days. The consensus estimate for earnings is pegged at $2.85 per share, suggesting a 190.8% year-over-year rise.
The benefits of higher gold prices and strong production in the final quarter of fiscal 2025 are expected to reflect on HMY’s performance amid headwinds from higher costs.
FY25 Earnings Whispers for HMY Stock
Our proven model does not conclusively predict an earnings beat for HMY. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
HMY has an Earnings ESP of 0.00% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors Shaping HMY’s FY25 Results
Higher gold prices are likely to have supported the company’s performance. Gold prices have racked up strong gains this year as worries over the global trade war have boosted safe-haven demand. Prices hit new highs driven by a surge in safe-haven demand amid the intense trade tussle, geopolitical tensions, a weak dollar and increased purchases by central banks. Prices of the yellow metal rocketed to a record high of $3,500 per ounce on April 22. While gold prices retreated from their April 2025 highs, they closed the second quarter above the $3,300 per ounce level.
The company is also likely to have achieved its full-year fiscal 2025 production guidance of 1.4-1.5 million ounces, even though gold output declined year over year in the first nine months. The company produced roughly 1.11 million ounces during this period, down 6% from 1.18 million ounces a year ago, largely due to interruptions from unprecedented rainfall in South Africa, which impacted electricity supply to its West Wits operations. This impacted production from Mponeng, Doornkop and Kusasalethu operations.
Nevertheless, Harmony is expected to have met the annual production target, banking on a stronger final quarter and improved performance at its high-grade Mponeng and Moab Khotsong assets. It raised its underground recovered grade guidance to 6.00g/t from 5.80g/t, driven by strong performances from Mponeng and Moab Khotsong.
Harmony, like most miners, is exposed to higher costs, which is likely to have been a drag on its performance. Labor and electricity remain the largest components of its cost structure. It saw a roughly 24% surge in all-in-sustaining costs (in dollars) in the third quarter of fiscal 2025. Total cash costs also climbed 22% year over year in the quarter. While the company is implementing various energy-saving initiatives and launching a renewable energy program, the burden of higher electricity costs is unlikely to have abated due to higher tariffs.
HMY Stock’s Price Performance and Valuation
HMY’s shares have popped 53.4% in a year, topping the Zacks Mining – Gold industry’s 49.4% rise and the S&P 500’s increase of 15.8%. With respect to its major peers, Gold Fields Limited (GFI - Free Report) and DRDGOLD Limited (DRD - Free Report) have surged 125.4% and 109.8%, respectively, over the same period.
HMY’s One-year Price Performance
From a valuation standpoint, Harmony Gold is currently trading at a forward 12-month earnings multiple of 5.52, a roughly 60.5% discount to the peer group average of 13.97X. HMY is also trading at a discount to Gold Fields and DRDGOLD. Harmony Gold has a Value Score of B, while both Gold Fields and DRDGOLD have a Value Score of C.
HMY’s P/E F12M Vs. Industry, GFI and DRD
Investment Thesis for HMY Stock
Harmony, South Africa's biggest gold producer by volume, has a diverse portfolio of gold development projects spread across South Africa and Papua New Guinea (PNG). The company’s development projects currently in progress include the development of the Wafi-Golpu copper-gold project in PNG and the Eva Copper project in Australia. The Wafi-Golpu project is believed to be a game-changer for the company, with an estimated gold reserve of 13 million ounces. The low-risk Eva Copper project in Australia offers additional upside, giving HMY a significant global copper-gold footprint.
HMY also boasts a strong balance sheet and generates substantial cash flows, which allows it to finance its development projects and drive shareholder value. Higher gold prices are expected to boost HMY’s profitability and drive cash flow generation. However, elevated energy and labor costs are likely to weigh on its margins.
Final Thoughts: Hold Onto HMY Shares
Harmony is advancing several key development projects, which are expected to enhance production and expand its international footprint. The acquisition of Eva Copper aligns with the company’s goal of transitioning into a low-cost gold and copper producer. The favorable gold price environment is also expected to aid HMY’s performance. However, its high electricity and labor costs warrant caution. Therefore, holding onto HMY stock will be prudent ahead of its earnings announcement.