Post-Earnings Analysis - Harmony Gold Mining

LONDON, August 25, 2014 /PRNewswire/ --

Investor-Edge.com has issued free post-earnings analysis on Harmony Gold Mining Company Limited (NYSE: HMY). The company released its fourth quarter and full-year results on Thursday, August 14, 2014. For FY 2014, Harmony Gold Mining Co. reported a production profit of R3.8 billion (US$367 million), compared to R4.6 billion (US$519 million) in FY 2013. For its fourth quarter ended June 30, 2014, the company's gold production increased 7% on Q-o-Q basis. Our free coverage report can be accessed at:

http://www.investor-edge.com/register

Earnings Overview 

For FY 2014, Harmony Gold Mining Co. Ltd announced revenues of R15,682 million (US$1,515) million, down from R15,902 million (US$1,803) million in FY 2013. Analysts from Bloomberg were expecting Harmony Gold Mining Co. to report full-year revenues of R16,012 million (US$1,522) million. The company reduced its net loss to R1.27 billion (US$123 million) in FY 2014, compared with a net loss of R2.35 billion (US$224 million) in FY13. The net loss in FY14 is mainly attributed to the impairment of Phakisa (an operating mine) of R1.38 billion (US$130 million). Harmony Gold reported a 4% YoY decrease in all-in sustaining costs to R413,433/kg (US$1,242/oz) in FY14. Moreover, for FY 2014, gold production improved 3% Y-o-Y to 36,453 kg (1.17 moz).  For the quarter ended June 30, 2014, the company's gold production rose to 8,935 kg (287,266 oz) from 8,368 kg (269,035 oz) in the previous quarter. Meanwhile, the company's production profit in the reported quarter decreased to R847 million (US$81 million) compared to R924 million (US$85 million) in the March 2014 quarter, primarily due to a 3% decrease in the rand gold price to R435,775/kg (US$1,289/oz). For the fourth quarter ended June 30, 2014, the company's all-in sustaining costs increased to R428,383/kg (US$1,267/oz) from R426,221/kg (US$1,224/oz) in the quarter ended March 31, 2014. Further, Harmony Gold reported headline earnings of 26 SA cents per share (2.5 US cents) for FY 2014. For the fourth quarter ended June 30, 2014, the company reported headline earnings of 30 SA cents per share (2.9 US cents). The free research on HMY can be downloaded as in PDF format at:

http://www.Investor-Edge.com/HMYFreeReport

Mr. Graham Briggs, Chief Executive Officer of Harmony Gold, stated in the earnings press release that the company is continuing its efforts to remain efficient in mining, narrowing costs and funding its own capital to promote growth and profitability. He also said that the company's asset portfolio has many quality assets - including Golpu, a massive high-grade copper and gold resource in PNG (Papua New Guinea). Commenting on the company's five year strategy, he stated that Harmony Gold Mining Co. Ltd is looking forward to improve its margins by delivering on its plans and increasing free cash flow through higher grades and cost-cutting. Mr. Briggs added that the company anticipates growing value per share of its PNG assets by completing the Golpu studies with the intent of building the Golpu mine in the coming years. He also mentioned that the company plans to identify acquisition opportunities of open pit mines and bulk projects and remains committed to position itself as a value focused gold mining company. Sign up and read the free analyst's notes on HMY at:

http://www.Investor-Edge.com/HMY-25082014

Stock Performance 

On August 14, 2014, after the earnings release, shares in Harmony Gold Mining Co. Ltd declined 0.95% to end the day at $3.12. On the last close, Friday, August 22, 2014, shares of the company vacillated between $2.96 and $3.03, before finishing the session at $2.97, down 1.00%. A total of 1.70 million shares were traded, which was below its three months average volume of 1.95 million shares. Over the previous three trading sessions and in the last one month, shares in Harmony Gold Mining Co. Ltd have fallen by 0.34% and 4.19%, respectively. However, the stock has gained 17.39% from the beginning of 2014. Shares in Harmony Gold Mining Co. Ltd are trading below their 50-day and 200-day moving averages. Moreover, the stock's 50-day moving average of $3.06 is greater than its 200-day moving average of $3.00. The company's stock has a Relative Strength Index (RSI) of 41.44. Visit Investor-Edge and access the latest research on HMY at:

http://www.Investor-Edge.com/HMYEarningsCoverage

Insider Trading 

In the last one month, Harmony Gold Mining Company Ltd has not reported any share transactions by insiders to the U.S. Securities and Exchange Commission (SEC). Complimentary in-depth research on HMY is available at:

http://www.Investor-Edge.com/HMYInsiderTrading

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