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Operational Disruptions Hurt HMY's Production: More Challenges Ahead?
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Key Takeaways
Harmony Gold's fiscal 2025 gold production fell 5% to 1.48 million tons due to weather and operational issues.
Heavy rainfall hit the electricity supply at West Wits operations, affecting production.
Harmony Gold guides 2026 output at 1.4-1.5 million oz, signaling flat year-over-year production.
Harmony Gold Mining Co. Ltd.’s (HMY - Free Report) gold production for fiscal 2025 fell 5% to around 1.48 million tons from roughly 1.56 million a year ago, as bad weather and operational challenges weighed on output.
While the company met its guidance, production was impacted by interruptions due to unfavorable weather conditions stemming from unprecedented rainfall in South Africa. This impacted electricity supply to its West Wits operations. Also, safety-related stoppages led to a temporary halt in production. These conditions affected output in the third and fourth quarters.
Harmony Gold remains challenged by operational issues that may impact production in fiscal 2026. HMY expects to produce 1.4-1.5 million oz of gold in fiscal 2026, indicating continued production challenges. The guidance suggests flat year-over-year production.
Among its peers, AngloGold Ashanti plc (AU - Free Report) reported a 21% year-over-year increase in gold production to 804,000 ounces in the second quarter of 2025, thanks to solid performance by its managed operations. AngloGold Ashanti’s production from managed operations climbed 25% year over year to 729,000 ounces. AngloGold Ashanti continues to expect consolidated gold production between 2.900 million ounces and 3.225 million ounces for 2025.
Gold Fields Limited’s (GFI - Free Report) attributable equivalent gold production climbed roughly 24% year over year to 1,136,000 ounces in the first half of 2025. Gold Fields remains on track to meet its production guidance for 2025. Gold Fields sees attributable gold equivalent production between 2.25-2.45 million ounces for the full year.
HMY’s Price Performance, Valuation & Estimates
Shares of Harmony Gold have shot up 86.6% year to date against the Zacks Mining – Gold industry’s rise of 100.2%, thanks to a surge in gold prices.
Image Source: Zacks Investment Research
From a valuation standpoint, HMY is currently trading at a forward 12-month earnings multiple of 6.23, a roughly 59.8% discount to the industry average of 15.48X. It carries a Value Score of B.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for HMY’s fiscal 2026 earnings implies a year-over-year rise of 85.8%. The EPS estimates for fiscal 2026 have been trending lower over the past 60 days.
Image Source: Zacks Investment Research
HMY stock currently carries a Zacks Rank #4 (Sell).
Image: Bigstock
Operational Disruptions Hurt HMY's Production: More Challenges Ahead?
Key Takeaways
Harmony Gold Mining Co. Ltd.’s (HMY - Free Report) gold production for fiscal 2025 fell 5% to around 1.48 million tons from roughly 1.56 million a year ago, as bad weather and operational challenges weighed on output.
While the company met its guidance, production was impacted by interruptions due to unfavorable weather conditions stemming from unprecedented rainfall in South Africa. This impacted electricity supply to its West Wits operations. Also, safety-related stoppages led to a temporary halt in production. These conditions affected output in the third and fourth quarters.
Harmony Gold remains challenged by operational issues that may impact production in fiscal 2026. HMY expects to produce 1.4-1.5 million oz of gold in fiscal 2026, indicating continued production challenges. The guidance suggests flat year-over-year production.
Among its peers, AngloGold Ashanti plc (AU - Free Report) reported a 21% year-over-year increase in gold production to 804,000 ounces in the second quarter of 2025, thanks to solid performance by its managed operations. AngloGold Ashanti’s production from managed operations climbed 25% year over year to 729,000 ounces. AngloGold Ashanti continues to expect consolidated gold production between 2.900 million ounces and 3.225 million ounces for 2025.
Gold Fields Limited’s (GFI - Free Report) attributable equivalent gold production climbed roughly 24% year over year to 1,136,000 ounces in the first half of 2025. Gold Fields remains on track to meet its production guidance for 2025. Gold Fields sees attributable gold equivalent production between 2.25-2.45 million ounces for the full year.
HMY’s Price Performance, Valuation & Estimates
Shares of Harmony Gold have shot up 86.6% year to date against the Zacks Mining – Gold industry’s rise of 100.2%, thanks to a surge in gold prices.
From a valuation standpoint, HMY is currently trading at a forward 12-month earnings multiple of 6.23, a roughly 59.8% discount to the industry average of 15.48X. It carries a Value Score of B.
The Zacks Consensus Estimate for HMY’s fiscal 2026 earnings implies a year-over-year rise of 85.8%. The EPS estimates for fiscal 2026 have been trending lower over the past 60 days.
HMY stock currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.