Why Harmony Gold (HMY) Is One of the Best Middle East and Africa Stocks to Buy Right Now?
Saturday, Jan 4, 2025 5:18 am ET
Harmony Gold Mining Company Limited (NYSE:HMY) has emerged as a standout performer in the Middle East and Africa (MEA) region, making it an attractive investment opportunity for those seeking exposure to the mining sector. With a strong focus on optimizing existing operations and exploring new opportunities, HMY has positioned itself as a resilient and growth-oriented company. This article will delve into the reasons why Harmony Gold is one of the best MEA stocks to buy right now.

1. Diverse Portfolio of Mining Operations:
- HMY operates a diverse portfolio of mining operations across South Africa, Papua New Guinea, and Australia, reducing its exposure to regional economic and political risks.
- The company's operations span gold, uranium, silver, and copper deposits, providing a hedge against commodity price volatility.
- HMY's underground and open-pit mines, as well as surface source operations, allow for a balanced approach to resource extraction and optimization.
2. Optimizing Existing Operations and Exploring New Opportunities:
- HMY is allocating $117.18 million towards decline projects at its underground mines in South Africa in FY25, enabling it to maintain flexibility and reduce costs.
- The company is conducting studies to determine whether the life of the mine at its Hidden Valley can be extended further, indicating its commitment to maximizing the value of its existing assets.
- HMY is also exploring new opportunities to grow its business, including the development of its surface operations in South Africa and the re-mining of old tailings dams.
- The company's focus on cost reduction, mine life extension, and new project development positions it to create long-term value for its shareholders.
3. Cheap Valuation and Strong Performance:
- HMY's forward P/E ratio of 5.39 and Value Score of A indicate that the company is trading at a significant discount compared to its peers and the broader market.
- The company's shares have outperformed both the industry and the S&P 500 year-to-date, surging 50.6% compared to the industry's rise of 21.3% and the S&P 500's increase of 25.7%.
- HMY's technical indicators suggest a bullish trend, with the stock trading above its 200-day simple moving average (SMA) for most of the year and currently below the 50-day SMA, which remains higher than the 200-day SMA.
4. Expansion into Copper Mining:
- HMY's expansion into copper mining, particularly the Wafi-Golpu project in Papua New Guinea, aligns with the global demand for copper in renewable energy and electric vehicles (EVs).
- The Wafi-Golpu project is a large-scale copper-gold project with an estimated resource of 11.5 million tonnes of copper and 13.4 million ounces of gold, positioning HMY to capitalize on the growing demand for copper in these sectors.
- By diversifying into copper mining, HMY reduces its reliance on the gold market and exposes itself to the growing demand for copper in various industries.
In conclusion, Harmony Gold Mining Company Limited (NYSE:HMY) is one of the best Middle East and Africa stocks to buy right now due to its diverse portfolio of mining operations, focus on optimizing existing operations and exploring new opportunities, cheap valuation, strong performance, and expansion into copper mining. By investing in HMY, investors can gain exposure to a resilient and growth-oriented company with a strong presence in the MEA region.