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Yahoo
28-05-2025
- Business
- Yahoo
HMY vs. AU: Which Gold Mining Stock is the Better Pick Now?
Harmony Gold Mining Co. Ltd. HMY and AngloGold Ashanti plc AU are prominent gold mining companies with operations spanning Africa and other regions. They are benefiting from the surge in gold prices this year, driven by investor demand for safe-haven assets amid global economic uncertainties. While gold prices have fallen from their April 2025 highs amid U.S.-China trade negotiations and easing U.S. inflation, they remain favorable, aided by economic uncertainties, and are currently hovering above the $3,300 per ounce level. Against this backdrop, comparing these two gold producers is particularly relevant for investors seeking exposure to the precious metals the recent pullback due to easing trade tensions, gold prices have gained roughly 26% this year. The aggressive trade policies, including sweeping new import tariffs announced by President Donald Trump, intensified global trade tensions and heightened investor anxiety, prompting the price rally. Also, central banks worldwide have been accumulating gold reserves, led by risks arising from Trump's policies. Prices of the yellow metal catapulted to a record high of $3,500 per ounce on April 22 amid President Trump's criticism of Federal Reserve Chair Jerome Powell and call for an immediate reduction in interest rates. Increased purchases by central banks, hopes of interest rate cuts, and geopolitical tensions are expected to support gold prices. Let's dive deep and closely compare the fundamentals of these two gold miners to determine which one is a better investment now. Harmony is South Africa's biggest gold producer by volume, with production of roughly 1.56 million ounces in fiscal 2024. It 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. HMY is currently in negotiations with its joint venture partner Newmont Corporation NEM and the PNG Government regarding the terms of a Mining Development Contract, which is required for a Special Mining low-risk Eva Copper project in Australia offers additional upside, giving HMY a significant global copper-gold footprint. HMY acquired Eva Copper in 2022, adding a tier-one mining jurisdiction to its portfolio. The acquisition is in line with HMY's objective of transitioning into a low-cost gold and copper mining company. The feasibility study update for the project is currently underway. HMY has received a conditional grant funding from the Queensland government, which will help accelerate the development of this project. It is subject to several conditions, including HMY reaching a positive final investment decision by January 2026. Eva Copper is expected to produce 55,000-60,000 tons of copper per annum. Harmony boasts a strong balance sheet and generates substantial cash flows, which allows it to finance its development projects and drive shareholder value. Its net cash climbed roughly 53% to $592 million at the end of the third quarter of fiscal 2025 (ended March 31, 2025), from $386 million at the end of first-half fiscal 2025 (ended Dec. 31, 2024). HMY also has a dividend policy to pay 20% of net free cash generated to its shareholders at its board's discretion. HMY offers a dividend yield of 1.2% at the current stock price. It has a five-year annualized dividend growth rate of about 7.3%. Harmony, however, is exposed to higher costs, which are likely to weigh on its margins over the near term. 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. HMY saw a 21% increase in electricity costs in fiscal 2024 due to higher annual tariffs charged by Eskom. While the company is implementing various energy-saving initiatives and launching a renewable energy program, the burden of higher electricity costs is unlikely to abate over the near term due to higher tariffs. AngloGold Ashanti is executing a clear strategy of organic and inorganic growth. In November 2024, it acquired Egyptian gold producer Centamin, adding the large-scale, long-life, world-class Tier 1 asset (Sukari) to its portfolio. It has the potential to produce 500,000 ounces annually. With this addition, the proportion of gold production from its Tier 1 assets has moved up from 62% to 67%. AU's mineral reserves went up to 31.2 million ounces at the end of AngloGold Ashanti sold its interests in two gold projects in Côte d'Ivoire to Resolute Mining Limited to sharpen its focus on its operating assets and development projects in the United States. Obuasi remains a significant pillar of its long-term strategy. The company's focus this year is to continue the implementation of the underhand drift and fil UHDF mining method and make stoping improvements. This important orebody is expected to deliver around 400,000 ounces of annual production at competitive costs by 2028. At Siguiri, efforts are underway to improve mining volumes through ongoing improvements to fleet availability and utilization, and to introduce gravity recovery in the processing plant to further improve metallurgical recovery. AU's free cash flow increased almost seven fold to $403 million in the first quarter from $57 million in the year-ago quarter. It has managed to take down its adjusted net debt to $525 million from the $1.322 billion at the year-ago quarter's end. AngloGold Ashanti ended the first quarter of 2025 with $3 billion in liquidity, including cash and cash equivalents of $1.5 billion. Under its new dividend policy, AngloGold Ashanti aims to return 50% of its annual free cash flow, subject to maintaining an adjusted net debt to adjusted EBITDA ratio of 1.0 times. AU offers a healthy dividend yield of 3.1% at the current stock price. Its payout ratio is 47% (a ratio below 60% is a good indicator that the dividend will be sustainable), with a solid five-year annualized dividend growth rate of roughly 32.1%. Year to date, HMY stock has shot up 76%, while AU stock has rallied 86.7% compared with the Zacks Mining – Gold industry's increase of 47.5%. Image Source: Zacks Investment Research Harmony is currently trading at a forward 12-month earnings multiple of 7.61. This represents a roughly 45% discount when stacked up with the industry average of 13.82X. Image Source: Zacks Investment Research AngloGold Ashanti is trading at a premium to Harmony. The AU stock is currently trading at a forward 12-month earnings multiple of 9.73, below the industry. Image Source: Zacks Investment Research The Zacks Consensus Estimate for HMY's 2025 EPS implies a year-over-year rise of 10.2% The EPS estimates for 2025 have been stable over the past 60 days. Image Source: Zacks Investment Research The consensus estimate for AU's 2025 EPS implies year-over-year growth of 95%. The EPS estimates for 2025 have been trending northward over the past 60 days. Image Source: Zacks Investment Research (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) Both Harmony and AngloGold Ashanti are well-positioned to capitalize on the current gold price environment. AU appears to have an edge over HMY due to its higher dividend yield and healthier dividend growth rate. In addition, AngloGold Ashanti's higher earnings growth projections and rising estimates suggest that it may offer better investment prospects in the current market environment. Investors seeking exposure to the gold space might consider AU as the more favorable option at this currently carries a Zacks Rank #3 (Hold), whereas AU sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Newmont Corporation (NEM) : Free Stock Analysis Report AngloGold Ashanti PLC (AU) : Free Stock Analysis Report Harmony Gold Mining Company Limited (HMY) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
28-05-2025
- Business
- Yahoo
Why Harmony Gold Mining Company Limited (HMY) Went Down On Tuesday
We recently published a list of In this article, we are going to take a look at where Harmony Gold Mining Company Limited (NYSE:HMY) stands against other worst-performing stocks. Harmony Gold saw its share prices tumble by 8.78 percent on Tuesday to finish at $14.45 apiece following news that it is set to acquire MAC Copper Ltd. (NYSE:MTAL) for $1.03 billion. According to the company, the acquisition would be fully paid in cash. Through the Australian firm, it would accelerate its strategic shift into the copper industry. Under the transaction, Harmony Gold Mining Company Limited (NYSE:HMY) would buy MAC Copper's shares at a price of $12.25 apiece. The amount represented a 21-percent premium from its closing price on Friday, or prior to the announcement. An open pit mine with heavy excavation machinery toiling away against the backdrop of a hidden valley. Upon closing of the transaction, Harmony Gold Mining Company Limited (NYSE:HMY) would gain full ownership of MAC Copper's only asset, the CSA copper mine in central western New South Wales, one of Australia's highest grade and oldest operating copper mines. Overall, HMY ranks 3rd on our list of worst-performing stocks. While we acknowledge the potential of HMY, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than HMY and that has 10,000x upside potential, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
28-05-2025
- Business
- Yahoo
Why Harmony Gold Mining Company Limited (HMY) Went Down On Tuesday
We recently published a list of In this article, we are going to take a look at where Harmony Gold Mining Company Limited (NYSE:HMY) stands against other worst-performing stocks. Harmony Gold saw its share prices tumble by 8.78 percent on Tuesday to finish at $14.45 apiece following news that it is set to acquire MAC Copper Ltd. (NYSE:MTAL) for $1.03 billion. According to the company, the acquisition would be fully paid in cash. Through the Australian firm, it would accelerate its strategic shift into the copper industry. Under the transaction, Harmony Gold Mining Company Limited (NYSE:HMY) would buy MAC Copper's shares at a price of $12.25 apiece. The amount represented a 21-percent premium from its closing price on Friday, or prior to the announcement. An open pit mine with heavy excavation machinery toiling away against the backdrop of a hidden valley. Upon closing of the transaction, Harmony Gold Mining Company Limited (NYSE:HMY) would gain full ownership of MAC Copper's only asset, the CSA copper mine in central western New South Wales, one of Australia's highest grade and oldest operating copper mines. Overall, HMY ranks 3rd on our list of worst-performing stocks. While we acknowledge the potential of HMY, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than HMY and that has 10,000x upside potential, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
25-04-2025
- Business
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Why Harmony Gold Mining Company Limited (HMY) Lagged Performance on Wednesday
We recently published an article titled . In this article, we are going to take a look at where Harmony Gold Mining Company Limited (NYSE:HMY) stands against the other stocks. Wall Street's major indices finished in the green territory anew on Wednesday as worries about tariff policies and the Federal Reserve's independence tapered off following President Donald Trump's assurance that he had no intentions of ousting Jerome Powell. The Nasdaq surged by 2.5 percent, the S&P 500 rose by 1.67 percent, while the Dow Jones increased by 1.07 percent. Ten companies, on the other hand, led the highest declines, booking modest losses during the trading session. In this article, we have identified Wednesday's 10 worst-performing stocks and detailed the reasons behind their lagging performance. To come up with the list, we considered only the stocks with more than $2 billion in market capitalization and $5 million in trading volume. An open pit mine with heavy excavation machinery toiling away against the backdrop of a hidden valley. Harmony Gold Mining Company Limited (NYSE:HMY) dropped its share prices for a second day, shedding 5.76 percent to finish at $16.03 apiece as investors continued to sell off positions amid the drop in spot prices of gold. As of 4:46 PM EDT on Wednesday, gold spot prices were down by 2.73 percent at $3,288.44 per ounce. In recent news, Harmony Gold Mining Company Limited (NYSE:HMY) earned a higher price target of ZAR 295 from ZAR 205 previously, while keeping a hold rating on the shares. Earlier this year, the company said that its net income in the first semester grew by 33 percent to R7.9 billion from R5.96 billion in the same period a year earlier, as revenues rose by 18 percent to R37.1 billion from R31.4 billion, with gold revenues contributing to total revenue growth, increasing 19 percent to R35.4 million from R29.7 million. Overall HMY ranks 9th on our list of the worst performing stocks on Wednesday. While we acknowledge the potential of HMY as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than HMY but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: and . Disclosure: None. This article is originally published at .
Yahoo
24-04-2025
- Business
- Yahoo
Why Harmony Gold Mining Company Limited (HMY) Crashed on Tuesday
We recently published an article titled . In this article, we are going to take a look at where Harmony Gold Mining Company Limited (NYSE:HMY) stands against the other stocks. Wall Street's main indices bounced back from a bloodbath on Tuesday as investors gobbled up shares on hopes that the US-China trade tensions can subside. The Dow Jones rallied by 2.66 percent, the S&P 500 rose by 2.51 percent, and the Nasdaq surged by 2.71 percent. Despite a broader market optimism, 10 companies, predominantly gold miners, were heavily sold down amid lower gold prices. To come up with the list, we considered only the stocks with more than $1 billion in market capitalization and $5 million in trading volume. An open pit mine with heavy excavation machinery toiling away against the backdrop of a hidden valley. Harmony Gold Mining Company Limited (NYSE:HMY) dropped its share prices by 3.9 percent on Tuesday to end at $17.01 apiece as investor funds flocked to higher-yielding assets such as Bitcoin amid the drop in spot prices of gold. As of this writing, spot prices of gold were at $3,340.94 per ounce, marking a drop from the $3,500 territory in the previous trading session. In recent news, Harmony Gold Mining Company Limited (NYSE:HMY) earned a higher price target of ZAR 295 from ZAR 205 previously, while keeping a hold rating on the shares. Earlier this year, the company said that its net income in the first semester grew by 33 percent to R7.9 billion from R5.96 billion in the same period a year earlier, as revenues rose by 18 percent to R37.1 billion from R31.4 billion, with gold revenues contributing to total revenue growth, increasing 19 percent to R35.4 million from R29.7 million. Overall HMY ranks 9th on our list of Tuesday's worst-performing stocks. While we acknowledge the potential of HMY as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than HMY but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: and . Disclosure: None. This article is originally published at . Sign in to access your portfolio
