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Harmony Gold Mining

DB:HAM1
Snowflake Description

Adequate balance sheet with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
HAM1
DB
ZAR16B
Market Cap
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Last updated 2019/02/23 21:19
Company description

Harmony Gold Mining Company Limited engages in the exploration, extraction, and processing of gold in South Africa and Papua New Guinea. The last earnings update was 11 days ago. More info.

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  • Harmony Gold Mining has significant price volatility in the past 3 months.
HAM1 Share Price and Events
7 Day Returns
10.3%
DB:HAM1
1.6%
DE Metals and Mining
1.2%
DE Market
1 Year Returns
14.3%
DB:HAM1
-38.1%
DE Metals and Mining
-11.2%
DE Market
HAM1 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Harmony Gold Mining (HAM1) 10.3% 23.1% 30.6% 14.3% -28.9% -18.7%
DE Metals and Mining 1.6% -7% -14% -38.1% -1.2% -22.3%
DE Market 1.2% 2.7% 1.7% -11.2% 12% 6.1%
1 Year Return vs Industry and Market
  • HAM1 outperformed the Metals and Mining industry which returned -38.1% over the past year.
  • HAM1 outperformed the Market in Germany which returned -11.2% over the past year.
Price Volatility
HAM1
Industry
5yr Volatility vs Market

HAM1 Value

 Is Harmony Gold Mining undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Harmony Gold Mining to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data    Our calculation method for this is changing soon.

Below are the data sources, inputs and calculation used to determine the intrinsic value for Harmony Gold Mining.

DB:HAM1 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 6 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 14.2%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:HAM1
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 9.8%
Metals and Mining Unlevered Beta Simply Wall St/ S&P Global 1.12
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.123 (1 + (1- 28%) (38.28%)) 		1.433
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)		 1.43
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (1.433 * 9.77%) 		14.23%

Discounted Cash Flow Calculation for DB:HAM1 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Harmony Gold Mining is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

DB:HAM1 DCF 1st Stage: Next 5 year cash flow forecast
2019 2020 2021 2022 2023
Levered FCF (ZAR, Millions) 623.00 2,483.00 2,128.50 2,309.69 2,506.30
Source Analyst x2 Analyst x3 Analyst x2 Est @ 8.51% Est @ 8.51%
Present Value
Discounted (@ 14.23%) 		545.38 1,902.85 1,427.96 1,356.47 1,288.56
Present value of next 5 years cash flows ZAR6,521.23
DB:HAM1 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= ZAR2,506.30 × (1 + 0.23%) ÷ (14.23% – 0.23%) 		ZAR17,938.52
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= ZAR17,938.52 ÷ (1 + 14.23%)5 		ZAR9,222.69
DB:HAM1 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= ZAR6,521.23 + ZAR9,222.69 		ZAR15,743.91
Equity Value per Share
(ZAR)		 = Total value / Shares Outstanding
= ZAR15,743.91 / 539.05 		ZAR1.94
DB:HAM1 Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:HAM1 represents 0.06644x of JSE:HAR
(This could be a different class, a depositary receipt, a different currency, or all of these things.) 		0.06644x
Value per Share
(Listing Adjusted, EUR)		 = Value per Share (ZAR) x Listing Adjustment Factor
= ZAR 29.21 x 0.06644 		€1.94
Value per share (EUR) From above. €1.94
Current discount Discount to share price of €1.92
= -1 x (€1.92 - €1.94) / €1.94 		1.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Harmony Gold Mining is available for.
Intrinsic value
1%
Share price is €1.92 vs Future cash flow value of €1.94
Current Discount Checks
For Harmony Gold Mining to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Harmony Gold Mining's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Harmony Gold Mining's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Harmony Gold Mining's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Harmony Gold Mining's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:HAM1 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in ZAR ZAR-10.97
JSE:HAR Share Price ** JSE (2019-02-22) in ZAR ZAR28.9
Germany Metals and Mining Industry PE Ratio Median Figure of 5 Publicly-Listed Metals and Mining Companies 14.93x
Germany Market PE Ratio Median Figure of 420 Publicly-Listed Companies 18.04x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Harmony Gold Mining.

DB:HAM1 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= JSE:HAR Share Price ÷ EPS (both in ZAR)

= 28.9 ÷ -10.97

 -2.64x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Harmony Gold Mining is loss making, we can't compare its value to the DE Metals and Mining industry average.
  • Harmony Gold Mining is loss making, we can't compare the value of its earnings to the Germany market.
Price based on expected Growth
Does Harmony Gold Mining's expected growth come at a high price?
Raw Data
DB:HAM1 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -2.64x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts		 68.1%per year
Europe Metals and Mining Industry PEG Ratio Median Figure of 57 Publicly-Listed Metals and Mining Companies 0.68x
Germany Market PEG Ratio Median Figure of 277 Publicly-Listed Companies 1.4x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Harmony Gold Mining, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Harmony Gold Mining's assets?
Raw Data
DB:HAM1 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in ZAR ZAR48.26
JSE:HAR Share Price * JSE (2019-02-22) in ZAR ZAR28.9
Germany Metals and Mining Industry PB Ratio Median Figure of 9 Publicly-Listed Metals and Mining Companies 2.39x
Germany Market PB Ratio Median Figure of 565 Publicly-Listed Companies 1.78x
DB:HAM1 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= JSE:HAR Share Price ÷ Book Value per Share (both in ZAR)

= 28.9 ÷ 48.26

 0.6x

* Primary Listing of Harmony Gold Mining.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Harmony Gold Mining is good value based on assets compared to the DE Metals and Mining industry average.
X
Value checks
We assess Harmony Gold Mining's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Metals and Mining industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Metals and Mining industry average (and greater than 0)? (1 check)
    5. Harmony Gold Mining has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

HAM1 Future Performance

 How is Harmony Gold Mining expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
68.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Harmony Gold Mining expected to grow at an attractive rate?
  • Harmony Gold Mining's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • Harmony Gold Mining's earnings growth is expected to exceed the Germany market average.
  • Harmony Gold Mining's revenue growth is positive but not above the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:HAM1 Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:HAM1 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts 68.1%
DB:HAM1 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 6 Analysts 2.8%
Germany Metals and Mining Industry Earnings Growth Rate Market Cap Weighted Average 33%
Europe Metals and Mining Industry Revenue Growth Rate Market Cap Weighted Average 0.7%
Germany Market Earnings Growth Rate Market Cap Weighted Average 10%
Germany Market Revenue Growth Rate Market Cap Weighted Average 5.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:HAM1 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
All numbers in ZAR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:HAM1 Future Estimates Data
Date (Data in ZAR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-06-30
2021-06-30 27,863 6,191 1,233 5
2020-06-30 28,077 6,993 2,058 6
2019-06-30 27,076 4,882 780 4
DB:HAM1 Past Financials Data
Date (Data in ZAR Millions) Revenue Cash Flow Net Income *
2018-12-31 24,273 4,702 -5,295
2018-09-30 22,316 4,293 -4,884
2018-06-30 20,359 3,884 -4,473
2018-03-31 19,832 3,803 -2,377
2017-12-31 19,271 3,722 -280
2017-09-30 19,268 3,763 41
2017-06-30 19,264 3,804 362
2017-03-31 19,380 4,235 1,648
2016-12-31 19,495 4,665 2,933
2016-09-30 19,128 4,751 2,240
2016-06-30 18,334 4,513 949
2016-03-31 17,382 3,678 -2,899

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Harmony Gold Mining's earnings are expected to grow significantly at over 20% yearly.
  • Harmony Gold Mining's revenue is expected to grow by 2.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:HAM1 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below

All data from Harmony Gold Mining Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:HAM1 Future Estimates Data
Date (Data in ZAR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-06-30
2021-06-30 2.31 2.95 1.67 2.00
2020-06-30 3.85 5.14 2.57 2.00
2019-06-30 0.79 0.79 0.79 1.00
DB:HAM1 Past Financials Data
Date (Data in ZAR Millions) EPS *
2018-12-31 -10.97
2018-09-30 -10.52
2018-06-30 -10.03
2018-03-31 -5.36
2017-12-31 -0.64
2017-09-30 0.09
2017-06-30 0.83
2017-03-31 3.77
2016-12-31 6.72
2016-09-30 5.13
2016-06-30 2.18
2016-03-31 -6.66

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Harmony Gold Mining is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
Show me more growth companies in the Metals and Mining industry
X
Future performance checks
We assess Harmony Gold Mining's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Harmony Gold Mining has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

HAM1 Past Performance

  How has Harmony Gold Mining performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Harmony Gold Mining's growth in the last year to its industry (Metals and Mining).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Harmony Gold Mining does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.
  • Unable to compare Harmony Gold Mining's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Harmony Gold Mining's 1-year growth to the DE Metals and Mining industry average as it is not currently profitable.
Earnings and Revenue History
Harmony Gold Mining's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Harmony Gold Mining Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:HAM1 Past Revenue, Cash Flow and Net Income Data
Date (Data in ZAR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 24,273.00 -5,295.00 979.00
2018-09-30 22,316.00 -4,884.00 941.00
2018-06-30 20,359.00 -4,473.00 903.00
2018-03-31 19,831.50 -2,376.50 845.50
2017-12-31 19,271.00 -280.00 788.00
2017-09-30 19,267.50 41.00 781.00
2017-06-30 19,264.00 362.00 774.00
2017-03-31 19,379.50 1,647.50 724.00
2016-12-31 19,495.00 2,933.00 674.00
2016-09-30 19,128.00 2,239.50 656.00
2016-06-30 18,334.00 949.00 614.00
2016-03-31 17,381.50 -2,899.00 629.00
2015-12-31 15,996.00 -3,859.00 626.00
2015-09-30 15,144.00 -4,791.00 652.00
2015-06-30 15,435.00 -4,536.00 729.00
2015-03-31 15,337.00 -2,608.00 826.00
2014-12-31 15,739.00 -2,314.00 884.00
2014-09-30 16,095.00 -1,549.00 926.00
2014-06-30 15,682.00 -1,270.00 994.00
2014-03-31 15,402.00 -3,544.00 1,175.00
2013-12-31 15,100.00 -3,819.00 1,272.00
2013-09-30 15,642.00 -3,062.00 1,333.00
2013-06-30 15,902.00 -2,663.00 1,307.00
2013-03-31 16,353.00 759.00 1,245.00
2012-12-31 16,047.00 1,877.00 1,203.00
2012-09-30 15,873.00 2,098.00 1,105.00
2012-06-30 15,169.00 2,053.00 1,033.00
2012-03-31 14,388.00 2,028.00 846.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Harmony Gold Mining has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Harmony Gold Mining has efficiently used its assets last year compared to the DE Metals and Mining industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Harmony Gold Mining improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Harmony Gold Mining's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Metals and Mining industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Harmony Gold Mining has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

HAM1 Health

 How is Harmony Gold Mining's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Harmony Gold Mining's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Harmony Gold Mining is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Harmony Gold Mining's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Harmony Gold Mining's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Harmony Gold Mining Company Filings, last reported 1 month ago.

DB:HAM1 Past Debt and Equity Data
Date (Data in ZAR Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 25,686.00 5,963.00 1,388.00
2018-09-30 25,686.00 5,963.00 1,388.00
2018-06-30 25,382.00 5,614.00 706.00
2018-03-31 25,382.00 5,614.00 706.00
2017-12-31 29,750.00 2,566.00 1,055.00
2017-09-30 29,750.00 2,566.00 1,055.00
2017-06-30 29,291.00 2,133.00 1,246.00
2017-03-31 29,291.00 2,133.00 1,246.00
2016-12-31 30,758.00 1,504.00 1,215.00
2016-09-30 30,758.00 1,504.00 1,215.00
2016-06-30 28,179.00 2,339.00 1,256.00
2016-03-31 28,179.00 2,339.00 1,256.00
2015-12-31 26,879.00 3,391.00 876.00
2015-09-30 26,490.00 4,129.00 1,487.00
2015-06-30 26,753.00 3,399.00 1,067.00
2015-03-31 29,952.00 2,860.00 701.00
2014-12-31 30,114.00 3,121.00 1,374.00
2014-09-30 31,024.00 3,052.00 2,281.00
2014-06-30 31,042.00 2,860.00 1,829.00
2014-03-31 31,633.00 2,843.00 2,008.00
2013-12-31 31,965.00 3,280.00 2,323.00
2013-09-30 31,576.00 3,159.00 2,288.00
2013-06-30 32,215.00 2,538.00 2,089.00
2013-03-31 35,725.00 2,525.00 3,099.00
2012-12-31 35,470.00 2,373.00 2,511.00
2012-09-30 34,457.00 2,146.00 2,266.00
2012-06-30 34,082.00 1,816.00 1,773.00
2012-03-31 33,344.00 1,595.00 1,427.00
  • Harmony Gold Mining's level of debt (23.2%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (10.2% vs 23.2% today).
CASH RUNWAY ANALYSIS

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

  • Whilst loss making Harmony Gold Mining has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.
  • Whilst loss making Harmony Gold Mining has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 66.2% per year.
Show me more healthy companies in the Metals and Mining industry
X
Financial health checks
We assess Harmony Gold Mining's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
    7. Harmony Gold Mining has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

HAM1 Dividends

 What is Harmony Gold Mining's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Harmony Gold Mining dividends. Estimated to be 0.85% next year.
If you bought €2,000 of Harmony Gold Mining shares you are expected to receive €0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Harmony Gold Mining's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Harmony Gold Mining's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:HAM1 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
Germany Metals and Mining Industry Average Dividend Yield Market Cap Weighted Average of 5 Stocks 2%
Germany Market Average Dividend Yield Market Cap Weighted Average of 332 Stocks 3%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.9%
Germany Bottom 25% Dividend Yield 25th Percentile 1.5%
Germany Top 25% Dividend Yield 75th Percentile 3.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:HAM1 Future Dividends Estimate Data
Date (Data in ZAR) Dividend per Share (annual) Avg. No. Analysts
2022-06-30
2021-06-30 0.33 3.00
2020-06-30 0.23 5.00
2019-06-30 0.15 2.00
DB:HAM1 Past Annualized Dividends Data
Date (Data in ZAR) Dividend per share (annual) Avg. Yield (%)
2019-02-12 0.000 0.000
2018-10-25 0.000 0.000
2018-08-21 0.000 0.000
2017-10-26 0.700 3.045
2017-08-17 0.700 2.828
2017-02-02 1.000 3.679
2016-10-26 0.500 1.510
2016-08-17 0.500 1.039
2015-08-18 0.000 0.000
2015-02-09 0.000 0.000
2014-11-05 0.000 0.000
2014-10-23 0.000 0.000
2014-08-14 0.000 0.000
2014-05-06 0.000 0.000
2014-02-03 0.000 0.000
2013-11-08 0.000 0.000
2013-10-15 0.000 0.000
2013-08-14 0.000 0.000
2013-05-03 1.000 2.699
2013-02-04 1.000 1.840
2012-08-16 1.000 1.431
2012-05-09 0.800 1.001
2012-02-06 0.800 0.934
2011-08-15 0.600 0.605
2010-08-16 0.500 0.589
2009-08-17 0.500 0.654

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Harmony Gold Mining has not reported any payouts.
  • Unable to verify if Harmony Gold Mining's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Harmony Gold Mining's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Harmony Gold Mining has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Harmony Gold Mining's dividends in 3 years as they are not expected to pay a notable one for Germany.
X
Income/ dividend checks
We assess Harmony Gold Mining's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Harmony Gold Mining afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
    7. Harmony Gold Mining has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

HAM1 Management

 What is the CEO of Harmony Gold Mining's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Peter Steenkamp
COMPENSATION ZAR14,916,000
AGE 58
TENURE AS CEO 3.1 years
CEO Bio

Mr. Peter William Steenkamp, BSc (Engineering) has been the Chief Executive Officer and Director of Harmony Gold Mining Company Limited since January 1, 2016. Mr. Steenkamp served as Executive Director of Gold Operations at African Rainbow Minerals Gold Limited. Mr. Steenkamp served as Executive OF ARM Platinum Operations at African Rainbow Minerals Limited. He served as Executive of Coal Operations of African Rainbow Minerals Limited. Mr. Steenkamp served as the Chief Executive Officer at Pamodzi Gold Ltd. since June 1, 2007 and Bema Gold South Africa (Pty) Ltd. since June 2007. He served as Executive Director at Bema Gold South Africa (Pty) Ltd and Pamodzi Gold Ltd. Mr. Steenkamp has 22 years' experience gold mining experience withAnglo, ARMGold and Harmony. He served as Mine Manager and Executive Business Development of Harmony Gold Mining Company Limited. Mr. Steenkamp served as Head of Business Coach of Harmony Gold Mining Company Limited. He served as Chief Operating Officer of Harmony Gold Mining Company Limited until May 2007. Mr. Steenkamp served as Operational Director of Leveraged Portfolios at Harmony Gold Mining Company Limited since February 2005. Mr. Steenkamp joined Harmony in October 2003 and served as Executive Director of ARMgold In charge of Gold Operations. His career commenced as Trainee Miner with the Chamber of Mines Training College and also worked for Gold Fields Limited as a Shift Boss. From 1989 to 1997, he was employed by Vaal Reefs in various positions, including Shift Boss, Mine Overseer, Technical Assistant, Section Manager and Business Unit Manager. In 1998, he joined ARMgold as a Business Unit Leader. Mr. Steenkamp has been Director of Harmony Gold (Australia) Pty Limited since January 1, 2016. He serves as a Director of African Rainbow Minerals Gold Limited. Mr. Steenkamp holds BSc (Eng)and Mine Managers Certificate.

CEO Compensation
  • Peter's compensation has increased whilst company is loss making.
  • Peter's remuneration is about average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Harmony Gold Mining management team in years:

7
Average Tenure
47
Average Age
  • The average tenure for the Harmony Gold Mining management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Peter Steenkamp

TITLE
CEO & Director
COMPENSATION
ZAR15M
AGE
58
TENURE
3.1 yrs

Beyers Nel

TITLE
Chief Operating Officer of South Africa Operations
COMPENSATION
ZAR8M
AGE
40
TENURE
2.9 yrs

Phillip Tobias

TITLE
Chief Operating Officer of New Business Development
COMPENSATION
ZAR8M
AGE
47

Johannes van Heerden

TITLE
Chief Executive Officer of South-East Asia
COMPENSATION
ZAR10M
AGE
45
TENURE
11.1 yrs

Frank Abbott

TITLE
Financial Director & Director
COMPENSATION
ZAR10M
AGE
62
TENURE
7 yrs

Harry Mashego

TITLE
Executive Director of Stakeholder Relations & Corporate Affairs and Director
COMPENSATION
ZAR7M
AGE
53
TENURE
9 yrs

Boipelo Lekubo

TITLE
Chief Financial Officer
AGE
35

Tom van den Berg

TITLE
Executive of Safety & Technology
AGE
50

Marian van der Walt

TITLE
Executive of Corporate & Investor Relations
AGE
44

Lauren Fourie

TITLE
Investor Relations Manager
Board of Directors Tenure

Average tenure and age of the Harmony Gold Mining board of directors in years:

8
Average Tenure
57.5
Average Age
  • The tenure for the Harmony Gold Mining board of directors is about average.
Board of Directors

Patrice Motsepe

TITLE
Chairman of the Board
COMPENSATION
ZAR1M
AGE
56
TENURE
15.4 yrs

Peter Steenkamp

TITLE
CEO & Director
COMPENSATION
ZAR15M
AGE
58
TENURE
3.1 yrs

Modise M. Motloba

TITLE
Independent Non-Executive Deputy Chairman
COMPENSATION
ZAR1M
AGE
52
TENURE
6.5 yrs

Frank Abbott

TITLE
Financial Director & Director
COMPENSATION
ZAR10M
AGE
62
TENURE
7 yrs

Harry Mashego

TITLE
Executive Director of Stakeholder Relations & Corporate Affairs and Director
COMPENSATION
ZAR7M
AGE
53
TENURE
9 yrs

D. S. Lushaba

TITLE
Independent Non-Executive Director
COMPENSATION
ZAR817K
AGE
52
TENURE
16.3 yrs

André Wilkens

TITLE
Non-Independent Non-Executive Director
COMPENSATION
ZAR870K
AGE
68
TENURE
11.5 yrs

Fikile Felicity De Buck

TITLE
Independent Non-Executive Director
COMPENSATION
ZAR1M
AGE
57
TENURE
12.9 yrs

Mavuso Msimang

TITLE
Lead Independent Non-Executive Director
COMPENSATION
ZAR660K
AGE
76
TENURE
0.8 yrs

Vishnu Pillay

TITLE
Independent Non-Executive Director
COMPENSATION
ZAR803K
AGE
60
TENURE
5.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
X
Management checks
We assess Harmony Gold Mining's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
    5. Harmony Gold Mining has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

HAM1 News

Simply Wall St News

HAM1 Company Info

Map
Description

Harmony Gold Mining Company Limited engages in the exploration, extraction, and processing of gold in South Africa and Papua New Guinea. The company also explores for copper and silver deposits. It has nine underground operations; an open-pit mine; and various surface treatment operations in South Africa. The company owns interests in the Hidden Valley, an open-pit gold and silver mine; the Wafi-Golpu, a gold-copper project in Morobe province; and the Kili Teke, a gold-copper project in Papua New Guinea. Harmony Gold Mining Company Limited was incorporated in 1950 and is based in Randfontein, South Africa.

Details
Name: Harmony Gold Mining Company Limited
HAM1
Exchange: DB
Founded: 1950
ZAR982,923,169
539,049,665
Website: http://www.harmony.co.za
Address: Harmony Gold Mining Company Limited
Randfontein Office park,
Corner of Main Reef Road and Ward Avenue,
Randfontein,
Gauteng, 1759,
South Africa
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
JSE HAR Ordinary Shares The Johannesburg Securities Exchange ZA ZAR 06. Jan 1975
OTCPK HGMC.F Ordinary Shares Pink Sheets LLC US USD 06. Jan 1975
DB HAM1 Ordinary Shares Deutsche Boerse AG DE EUR 06. Jan 1975
NYSE HMY SPONSORED ADR New York Stock Exchange US USD 29. Jun 1990
DB HAM SPONSORED ADR Deutsche Boerse AG DE EUR 29. Jun 1990
Number of employees
Current staff
Staff numbers
34,031
Harmony Gold Mining employees.
Industry
Gold
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/02/23 21:19
End of day share price update: 2019/02/22 00:00
Last estimates confirmation: 2019/02/21
Last earnings filing: 2019/02/12
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

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