Executive Summary
Harmony Gold Mining Company Limited engages in the exploration, extraction, and processing of gold.
Rewards
Risk Analysis
Snowflake Analysis
Reasonable growth potential and fair value.
Similar Companies
Share Price & News
How has Harmony Gold Mining's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: HAM1 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
3.9%
HAM1
1.2%
DE Metals and Mining
1.7%
DE Market
1 Year Return
64.8%
HAM1
-13.5%
DE Metals and Mining
15.0%
DE Market
Return vs Industry: HAM1 exceeded the German Metals and Mining industry which returned -13.5% over the past year.
Return vs Market: HAM1 exceeded the German Market which returned 15% over the past year.
Shareholder returns
| HAM1 | Industry | Market | |
|---|---|---|---|
| 7 Day | 3.9% | 1.2% | 1.7% |
| 30 Day | -10.0% | -4.9% | 1.4% |
| 90 Day | -3.1% | -9.5% | 3.3% |
| 1 Year | 64.8%64.8% | -12.6%-13.5% | 18.5%15.0% |
| 3 Year | 10.8%7.4% | -42.3%-44.0% | 17.1%6.9% |
| 5 Year | 39.4%33.8% | -39.2%-42.3% | 24.3%7.3% |
Price Volatility Vs. Market
How volatile is Harmony Gold Mining's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Valuation
Is Harmony Gold Mining undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: HAM1 (€2.87) is trading below our estimate of fair value (€5.89)
Significantly Below Fair Value: HAM1 is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: HAM1 is unprofitable, so we can't compare its PE Ratio to the Metals and Mining industry average.
PE vs Market: HAM1 is unprofitable, so we can't compare its PE Ratio to the German market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate HAM1's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: HAM1 is good value based on its PB Ratio (1x) compared to the DE Metals and Mining industry average (4x).
Next Steps
Future Growth
How is Harmony Gold Mining forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
45.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: HAM1 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (-0.4%).
Earnings vs Market: HAM1 is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: HAM1's is expected to become profitable in the next 3 years.
Revenue vs Market: HAM1's revenue (5% per year) is forecast to grow faster than the German market (5% per year).
High Growth Revenue: HAM1's revenue (5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: HAM1's Return on Equity is forecast to be low in 3 years time (13%).
Next Steps
Past Performance
How has Harmony Gold Mining performed over the past 5 years?
-4.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: HAM1 is currently unprofitable.
Growing Profit Margin: HAM1 is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: HAM1 is unprofitable, and losses have increased over the past 5 years at a rate of -4.9% per year.
Accelerating Growth: Unable to compare HAM1's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: HAM1 is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-13%).
Return on Equity
High ROE: HAM1 has a negative Return on Equity (-5.28%), as it is currently unprofitable.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Harmony Gold Mining's financial position?
Financial Position Analysis
Short Term Liabilities: HAM1's short term assets (ZAR5.1B) exceed its short term liabilities (ZAR3.7B).
Long Term Liabilities: HAM1's short term assets (ZAR5.1B) do not cover its long term liabilities (ZAR10.5B).
Debt to Equity History and Analysis
Debt Level: HAM1's debt to equity ratio (23.3%) is considered satisfactory.
Reducing Debt: HAM1's debt to equity ratio has increased from 10.3% to 23.3% over the past 5 years.
Balance Sheet
Inventory Level: HAM1 has a high level of physical assets or inventory.
Debt Coverage by Assets: HAM1's debt is not covered by short term assets (assets are 0.9x debt).
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.
Stable Cash Runway: HAM1 has sufficient cash runway for more than 3 years based on its current free cash flow.
Forecast Cash Runway: Insufficient data to determine if HAM1 has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.
Next Steps
Dividend
What is Harmony Gold Mining's current dividend yield, its reliability and sustainability?
1.09%
Forecast Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: Unable to evaluate HAM1's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate HAM1's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if HAM1's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if HAM1's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: HAM1 is not paying a notable dividend for the German market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of HAM1's dividend in 3 years as they are not forecast to pay a notable one for the German market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
6.2yrs
Average management tenure
CEO
Peter Steenkamp (59yo)
4.1yrs
Tenure
R15,927,000
Compensation
Mr. Peter William Steenkamp, BSc (Engineering) has been the Chief Executive Officer and Executive Director of Harmony Gold Mining Company Limited since January 1, 2016. Mr. Steenkamp served as Executive Di ...
CEO Compensation Analysis
Compensation vs Market: Peter's total compensation ($USD1.07M) is about average for companies of similar size in the German market ($USD1.49M).
Compensation vs Earnings: Peter's compensation has increased whilst the company is unprofitable.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | 4.1yrs | R15.93m | 0.095% ZAR1.5m | |
| Financial Director & Executive Director | 8yrs | R10.67m | 0.18% ZAR2.8m | |
| Chief Executive Officer of South-East Asia | 12.1yrs | R11.44m | 0.030% ZAR462.8k | |
| Executive Director of Stakeholder Relations & Corporate Affairs and Executive Director | 10yrs | R7.74m | no data | |
| Chief Operating Officer of South Africa Operations | 3.9yrs | R8.96m | 0.0078% ZAR122.9k | |
| Chief Operating Officer of New Business Development | 0yrs | R8.97m | 0.031% ZAR489.7k | |
| Executive of Safety & Technology | 0yrs | no data | no data | |
| Executive of Corporate & Investor Relations | 0yrs | no data | no data | |
| Executive of Human Resources | 8.3yrs | no data | no data | |
| Chief Financial Officer | 0yrs | no data | no data |
6.2yrs
Average Tenure
49.5yo
Average Age
Experienced Management: HAM1's management team is seasoned and experienced (6.2 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | 4.1yrs | R15.93m | 0.095% ZAR1.5m | |
| Financial Director & Executive Director | 8yrs | R10.67m | 0.18% ZAR2.8m | |
| Executive Director of Stakeholder Relations & Corporate Affairs and Executive Director | 10yrs | R7.74m | no data | |
| Independent Non-Executive Director | 17.3yrs | R1.15m | no data | |
| Independent Non-Executive Director | 2.1yrs | R508.00k | no data | |
| Non-Executive Chairman of the Board | 16.4yrs | R1.37m | no data | |
| Independent Non-Executive Deputy Chairman | 7.5yrs | R1.41m | no data | |
| Independent Non-Executive Director | 13.9yrs | R1.49m | no data | |
| Lead Independent Director | 1.8yrs | R960.00k | no data | |
| Independent Non-Executive Director | 6.8yrs | R1.10m | no data |
7.8yrs
Average Tenure
58.5yo
Average Age
Experienced Board: HAM1's board of directors are considered experienced (7.8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 10.5%.
Top Shareholders
Company Information
Harmony Gold Mining Company Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Harmony Gold Mining Company Limited
- Ticker: HAM1
- Exchange: DB
- Founded: 1950
- Industry: Gold
- Sector: Materials
- Market Cap: R25.276b
- Listing Market Cap: R1.566b
- Shares outstanding: 541.47m
- Website: https://www.harmony.co.za
Number of Employees
Location
- Harmony Gold Mining Company Limited
- Randfontein Office park
- Corner of Main Reef Road and Ward Avenue
- Randfontein
- Gauteng
- 1759
- South Africa
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| HGMC.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Jan 1975 |
| HAR | JSE (The Johannesburg Securities Exchange) | Yes | Ordinary Shares | ZA | ZAR | Jan 1975 |
| HAM1 | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jan 1975 |
| HMY | NYSE (New York Stock Exchange) | SPONSORED ADR | US | USD | Jun 1990 | |
| HAM | DB (Deutsche Boerse AG) | SPONSORED ADR | DE | EUR | Jun 1990 |
Biography
Harmony Gold Mining Company Limited engages in the exploration, extraction, and processing of gold. The company also explores for uranium, silver, and copper 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; and the Wafi-Golpu, a gold-copper project in Morobe Province. Harmony Gold Mining Company Limited was incorporated in 1950 and is headquartered in Randfontein, South Africa.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/15 21:40 |
| End of Day Share Price | 2020/02/14 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/06/30 |
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.