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Harmony Gold's (HMY) Earnings and Sales Rise Y/Y in FY19

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Harmony Gold Mining Company Limited (HMY - Free Report) posted adjusted earnings of 14 cents per share in fiscal 2019 (ended Jun 30, 2019), up 7.7% from 13 cents recorded a year ago.

Revenues and Costs  

Revenues increased 19.3% to roughly $1.9 billion for fiscal 2019 from around $1.6 billion registered a year ago. The upside was mainly driven by 18% increase in gold sales.

Gold production was 1,438,231 ounces (oz) in the fiscal year, up nearly 17% year over year. Average gold prices received during the fiscal fell roughly 7% year over year to $1,287 per oz.

Cost of sales increased 12.7% year over year to $2,037 million, while cash operating costs fell 5% to $965 million. All-in-sustaining costs (AISC) fell around 2% year over year to $1,207 per oz.

 

Financial Overview

At the end of fiscal 2019, cash and cash equivalents rose 37.3% year over year to $70 million. Cash flow from operating activities rose 8.9% to $330 million in the fiscal.

Net debt decreased around 3% year over year to $348 million at the end of fiscal 2019.

Outlook

Harmony Gold plans to produce roughly 1.46 million oz of gold in fiscal 2020. Some of the company’s key focus area in the next fiscal will include profitable production, value accretive acquisitions and strengthening cash flows.

Price Performance

Shares of Harmony Gold have skyrocketed 106.3% in the past year compared with the industry’s 61.8% surge.



Zacks Rank & Other Key Picks

Harmony Gold currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the basic materials space are Kinross Gold Corporation (KGC - Free Report) , Alamos Gold Inc (AGI - Free Report) and Arconic Inc , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Kinross has an expected earnings growth rate of 150% for 2019. The company’s shares have surged 66.2% in the past year.

Alamos Gold has projected earnings growth rate of 300% for the current year. The company’s shares have rallied 60.1% in a year’s time.

Arconic has an estimated earnings growth rate of 47.1% for the current year. Its shares have moved up 17.1% in the past year.

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