Harmony Gold Mining Company Limited (NYSE:HMY) posted earnings of 15 cents per share for fiscal 2016 (ended Jun 30, 2016) as against a loss of 16 cents per share in fiscal 2015.
Revenues and Costs
Revenues decreased 6.2% year over year to $1,264 million in fiscal 2016 from $1,348 million registered in fiscal 2015.
Gold production edged up 0.4% year over year to 1,082,035 ounces (oz) in fiscal 2016. Gold ounces sold fell 2% year over year to 1,081,615 oz in the fiscal year.
Cost of sales decreased 33.7% year over year to $1,090 million in fiscal 2016. Cash operating costs fell 16.2% year over year to $841 per oz. All-in-sustaining costs of $1,003 per oz declined 19% from fiscal 2015.
Financial Overview
Cash and cash equivalents decreased 3.4% to $85 million as of Jun 30, 2016 from $88 million as of Jun 30, 2015. Cash flow generated from operating activities was $311 million as of Jun 30, 2016, compared with $176 million as of Jun 30, 2015.
Outlook
Harmony’s board has given a call to support a three-year strategy in which it plans to grow its production to about 1.5 million oz, producing gold at an all-in sustaining cost of $950 per oz, to be achieved through growing and developing its core assets, harvesting operations that are high cost and have a short life and developing Golpu Stage 1, among others.
In the next year, the company plans to produce about 1,050 000 ounces at roughly $1,100 per oz.
Harmony’s shares rose 0.7% to close at $4.13 on Aug 18.
HARMONY GOLD Price, Consensus and EPS Surprise
HARMONY GOLD Price, Consensus and EPS Surprise | HARMONY GOLD Quote
Zacks Rank
Harmony currently carries a Zacks Rank #2 (Buy).
Other well-placed mining companies include AngloGold Ashanti Ltd. (NYSE:AU) , B2Gold Corp. (NYSE:BTG) and New Gold, Inc. (TO:NGD) , each sporting a Zacks Rank #1 (Strong Buy).
ANGLOGOLD LTD (AU): Free Stock Analysis Report
HARMONY GOLD (HMY): Free Stock Analysis Report
NEW GOLD INC (NGD): Free Stock Analysis Report
B2GOLD CORP (BTG): Free Stock Analysis Report
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