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Harmony's (HMY) Earnings Down, Revenues Increase Y/Y in 1H22

Harmony Gold Mining Company Limited HMY posted adjusted earnings of 17 cents per share for the first half of fiscal 2022 (ended Dec 31, 2021), down from adjusted earnings of 44 cents recorded for the same period a year ago.

 

Revenues and Costs

In the first half of fiscal 2022, revenues increased 9.9% to $1,461 million from $1,329 million registered in the year-ago period. Average gold prices received during the period rose roughly 4% year over year to $1,782 per ounce (oz). 

Gold production was 778,879 oz in the period, up around 4% year over year.

Cash operating costs per oz increased 21% to $1,382. All-in-sustaining costs (AISC) increased 21% year over year to $1,660 per oz.

Financial Overview

As of Dec 31, 2021, cash and cash equivalents declined 35.9% year over year to $184 million. Cash flow from operating activities declined 31.5% year over year to $244 million in the first half of fiscal 2022.

Debt was $199 million at the end of the first half of fiscal 2022.

Outlook

Harmony Gold plans to produce 1.48-1.56 million oz of gold in fiscal 2022.

The company stated that it expects finite resources to create infinite opportunities for those who benefit from its mining. With boundless opportunities to deploy capital globally, it carefully determines which projects will deliver optimal shareholder returns on the basis of where it operates, how it manages risk and what skills it can leverage.

Gold production for the second half of the financial year in the South African operations is projected to improve from the first-half production levels as many production challenges have already been resolved, Harmony noted.

Price Performance

Shares of Harmony have moved up 3.2% in the past year compared with an 11.1% rise of the industry.


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Zacks Rank & Key Picks

Harmony currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the basic materials space are Allegheny Technologies Incorporated ATI, Nutrien Ltd. NTR and AdvanSix Inc. ASIX.

Allegheny, currently sporting a Zacks Rank #1 (Strong Buy), has an expected earnings growth rate of 661.5% for the current year. The Zacks Consensus Estimate for ATI's earnings for the current year has been revised 45.6% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.

Allegheny beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 127.2%. ATI has rallied around 27.5% over a year.

Nutrien, sporting a Zacks Rank #1, has a projected earnings growth rate of 70.1% for the current year. The Zacks Consensus Estimate for NTR's current-year earnings has been revised 16.9% upward in the past 60 days.

Nutrien beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missing once. It has a trailing four-quarter earnings surprise of roughly 60.3%, on average. NTR has rallied around 54.4% in a year.

AdvanSix has a projected earnings growth rate of 14.6% for the current year. The Zacks Consensus Estimate for ASIX’s current-year earnings has been revised 9.8% upward in the past 60 days.

AdvanSix beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters, the average being 23.6%. ASIX has surged 41.3% in a year. The company sports a Zacks Rank #1.


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