Harmony Gold Declines 3.8% to $15.12

Harmony Gold's stock price has fallen by 3.8%, or 60c, to $15.12.

Title: Harmony Gold's Stock Price Falls Amid Mixed Q2 Results

Harmony Gold Mining Co. Ltd. (HMY) experienced a 3.8% drop in its stock price, falling by 60 cents to $15.12, following the company's fiscal 2025 earnings release on Aug. 28 [1]. The stock's performance has been influenced by a mix of positive and negative factors, including strong gold prices and higher production, as well as elevated costs.

# Positive Factors

The company reported a stable consensus estimate for fiscal 2025 earnings at $2.85 per share, suggesting a 190.8% year-over-year rise [1]. Higher gold prices, which have surged due to global trade tensions and central bank buying programs, have supported HMY's performance. Gold prices hit a record high of $3,500 per ounce in April 2025, though they have since retreated, they remained above $3,300 per ounce in the second quarter [1].

Harmony Gold also achieved its full-year fiscal 2025 production guidance of 1.4-1.5 million ounces, despite a 6% decline in the first nine months due to interruptions from rainfall in South Africa [1]. The company's underground recovered grade guidance was raised to 6.00g/t from 5.80g/t, driven by strong performances from Mponeng and Moab Khotsong [1].

# Negative Factors

Despite these positive elements, higher costs, particularly in labor and electricity, have been a drag on HMY's performance. The company saw a roughly 24% surge in all-in-sustaining costs (in dollars) in the third quarter of fiscal 2025, with total cash costs climbing 22% year over year [1]. These increased costs have not been fully offset by the higher gold prices, impacting the company's margins.

# Valuation and Industry Performance

From a valuation standpoint, Harmony Gold is currently trading at a forward 12-month earnings multiple of 5.52, a roughly 60.5% discount to the peer group average of 13.97X. This valuation discount suggests that investors perceive HMY to be undervalued compared to its peers [1].

# Conclusion

Harmony Gold's stock price decline reflects the mixed nature of its earnings report. While higher gold prices and strong production have been positive factors, elevated costs have had a negative impact on the company's performance. Investors should closely monitor Harmony Gold's earnings announcements and cost management strategies moving forward.

# References

[1] https://www.nasdaq.com/articles/heres-how-play-harmony-gold-stock-fy25-earnings-release
[2] https://www.cnbc.com/quotes/HMY
[3] https://discoveryalert.com.au/news/harmony-gold-2025-earnings-growth-financial-turnaround/