HMY - Harmony Gold: Long-Term Growth Prospects But Valuation Is Not Attractive

2024-02-21 16:34:36 ET

Summary

• Q1 2024 results report reveals relatively low-cost gold production at the higher end of annual guidance range, placing HMY at par with peers in terms of cost performance.
• Harmony's pipeline growth projects look promising for the medium-to-long-term horizons.
• However, the South African risk factor will limit the stock's near-term upside potential.
• At current levels, the stock's valuation is not attractive.

Investment Thesis

Harmony Gold ( HMY ) is a senior gold producer whose mining assets portfolio includes a diversified mix of underground and surface mining operations (primarily gold mining operations in South Africa). The company's already halfway through its FY 2024, with H1 ended on December 31, 2023.

In this article, we discuss the following areas to help us consider an investment thesis about the company:

1. HMY's operational standing, including its production and cost performance during the most recent reported quarter....

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