HMY - Harmony Gold: Rally Continues As Operations Expand And Gold Prices Rise

2024-05-09 07:53:28 ET

Summary

• Harmony Gold Mining Company Limited has a positive outlook due to robust gold prices and consistent operations.
• The company's shares have performed well and are not considered expensive, but a lower price in the near term is possible.
• HMY is well-positioned as a leader in gold production in South Africa and still has expansion projects in place.

A Hold Rating for shares of Harmony Gold Mining Company Limited

Harmony Gold Mining Company Limited ( HMY ) has a very positive outlook. Due to robust gold prices coupled with operating consistency, cash flow generation allows projects to focus primarily on resource extension and underground gold deposit deepening. The outlook for the gold price is also very bright as a portfolio hedge against uncertain macroeconomic outlook and geopolitical tensions. This analysis suggests holding shares as in the previous analysis .

In the previous analysis, the "Hold" rating was supported by rising gold prices combined with the improvement in the grade of gold mined, which was driving higher ounces at a lower cost. It was predicted that the expected downturn in the US economy as a result of the Federal Reserve's anti-inflation recessionary signals would trigger strong bullish sentiment towards safe-haven gold and, given the positive correlation with the precious metal, towards HMY shares as well....

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