JSE:HAR

Stock Analysis Report

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Executive Summary

Harmony Gold Mining Company Limited engages in the exploration, extraction, and processing of gold in South Africa and Papua New Guinea. More Details


Snowflake Analysis

High growth potential with adequate balance sheet.


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: HAR is not significantly more volatile than the rest of ZA stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: HAR's weekly volatility (9%) has been stable over the past year.


Market Performance


7 Day Return

-0.8%

HAR

-1.3%

ZA Metals and Mining

2.0%

ZA Market


1 Year Return

29.8%

HAR

38.9%

ZA Metals and Mining

1.2%

ZA Market

Return vs Industry: HAR underperformed the ZA Metals and Mining industry which returned 38.9% over the past year.

Return vs Market: HAR exceeded the ZA Market which returned 1.2% over the past year.


Shareholder returns

HARIndustryMarket
7 Day-0.8%-1.3%2.0%
30 Day-5.5%8.0%7.2%
90 Day-23.3%6.3%12.9%
1 Year29.8%29.8%44.2%38.9%6.5%1.2%
3 Year216.9%216.9%242.6%206.5%2.9%-17.9%
5 Year119.3%110.6%376.2%301.0%51.0%8.9%

Long-Term 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?

28.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HAR (ZAR66.2) is trading below our estimate of fair value (ZAR91.97)

Significantly Below Fair Value: HAR is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: HAR is unprofitable, so we can't compare its PE Ratio to the ZA Metals and Mining industry average.

PE vs Market: HAR is unprofitable, so we can't compare its PE Ratio to the ZA market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate HAR's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: HAR is overvalued based on its PB Ratio (1.7x) compared to the ZA Metals and Mining industry average (1.2x).


Next Steps

Future Growth

How is Harmony Gold Mining forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

44.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HAR is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (9.3%).

Earnings vs Market: HAR is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: HAR's is expected to become profitable in the next 3 years.

Revenue vs Market: HAR's revenue (11.8% per year) is forecast to grow faster than the ZA market (10.7% per year).

High Growth Revenue: HAR's revenue (11.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HAR's Return on Equity is forecast to be high in 3 years time (22.5%)


Next Steps

Past Performance

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

-4.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HAR is currently unprofitable.

Growing Profit Margin: HAR is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: HAR is unprofitable, and losses have increased over the past 5 years at a rate of 4% per year.

Accelerating Growth: Unable to compare HAR's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: HAR is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (136.9%).


Return on Equity

High ROE: HAR has a negative Return on Equity (-3.64%), as it is currently unprofitable.


Next Steps

Financial Health

How is Harmony Gold Mining's financial position?


Financial Position Analysis

Short Term Liabilities: HAR's short term assets (ZAR10.2B) exceed its short term liabilities (ZAR7.6B).

Long Term Liabilities: HAR's short term assets (ZAR10.2B) do not cover its long term liabilities (ZAR13.8B).


Debt to Equity History and Analysis

Debt Level: HAR's debt to equity ratio (33.3%) is considered satisfactory.

Reducing Debt: HAR's debt to equity ratio has increased from 12.8% to 33.3% over the past 5 years.


Balance Sheet


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: Whilst unprofitable HAR has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: HAR is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 2.2% per year.


Next Steps

Dividend

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

4.06%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate HAR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate HAR's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if HAR's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if HAR's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: HAR is not paying a notable dividend for the ZA market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of HAR's dividend in 3 years as they are not forecast to pay a notable one for the ZA market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.0yrs

Average management tenure


CEO

Peter Steenkamp (60 yo)

5yrs

Tenure

R11,921,000

Compensation

Mr. Peter William Steenkamp, BEng (Mining), Mine Manager’s Certificate Metal Mines, Mine Manager’s Certificate Fiery Mines, CPIR, MDP, BLDP has been the Chief Executive Officer and Executive Director of Ha...


CEO Compensation Analysis

Compensation vs Market: Peter's total compensation ($USD800.71K) is below average for companies of similar size in the ZA market ($USD1.32M).

Compensation vs Earnings: Peter's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Peter Steenkamp
CEO & Executive Director5yrsR11.92m0.15%
ZAR 62.3m
Boipelo Lekubo
Financial Director & Executive Director0.83yrR1.84mno data
Johannes van Heerden
Chief Executive Officer of South-East Asia13yrsR10.56m0.026%
ZAR 10.5m
Harry Mashego
Executive Director of Stakeholder Relations & Corporate Affairs and Executive Director10.92yrsR5.80m0%
ZAR 0
Beyers Nel
Chief Operating Officer of South Africa Operations4.83yrsR6.37m0.035%
ZAR 14.0m
Phillip Tobias
Chief Operating Officer of New Business Developmentno dataR6.57m0.056%
ZAR 22.6m
Tom van den Berg
Executive of Safety & Technologyno datano datano data
Marian van der Walt
Senior Group Executive of Enterprise Risk & Investor Relationsno datano datano data
Anton Buthelezi
Executive of Human Resources9.25yrsno datano data
Danie Muller
Chief Financial Officer of South Africa Operationsno datano datano data
Aubrey Testa
Chief Financial Officer of South East Asiano datano datano data
Besky Maluleka-Ngunjiri
Chief Audit Executiveno datano datano data

5.0yrs

Average Tenure

48yo

Average Age

Experienced Management: HAR's management team is seasoned and experienced (5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Peter Steenkamp
CEO & Executive Director5yrsR11.92m0.15%
ZAR 62.3m
Boipelo Lekubo
Financial Director & Executive Director0.83yrR1.84mno data
Harry Mashego
Executive Director of Stakeholder Relations & Corporate Affairs and Executive Director10.92yrsR5.80m0%
ZAR 0
D. S. Lushaba
Independent Non-Executive Director18.25yrsR1.21mno data
Patrice Motsepe
Non- Independent Non-Executive Chairman17.33yrsR1.38mno data
Andries Wilkens
Non-Executive Director13.42yrsR933.00k0.016%
ZAR 6.7m
Modise John Motloba
Non-Executive Deputy Chairman8.42yrsR1.59mno data
Joaquim Chissano
Independent Non-Executive Director15.75yrsR611.00kno data
Fikile Felicity De Buck
Independent Non-Executive Director14.83yrsR1.48mno data
Mavuso Msimang
Lead Independent Non-Executive Director2.67yrsR822.00kno data
Vishnu Pillay
Independent Non-Executive Director7.67yrsR1.02mno data
John Wetton
Independent Non-Executive Director9.5yrsR1.03mno data

10.2yrs

Average Tenure

59.5yo

Average Age

Experienced Board: HAR's board of directors are seasoned and experienced ( 10.2 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 13.8%.


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: HAR
  • Exchange: JSE
  • Founded: 1950
  • Industry: Gold
  • Sector: Materials
  • Market Cap: R40.503b
  • Shares outstanding: 616.02m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HGMC.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1975
HARJSE (The Johannesburg Securities Exchange)YesOrdinary SharesZAZARJan 1975
HAM1DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1975
HMYNYSE (New York Stock Exchange)SPONSORED ADRUSUSDJun 1990
HAMDB (Deutsche Boerse AG)SPONSORED ADRDEEURJun 1990

Biography

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 uranium, silver, and copper deposits. ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/21 17:02
End of Day Share Price2021/01/21 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.