Harmony Gold Meets Est, Grows Y/Y - Analyst Blog
09 Febbraio 2012 - 1:30PM
Zacks
Harmony Gold Mining Co.
Ltd. (HMY) recorded net earnings of 30 cents per share in
the second quarter of 2012, significantly higher than 16 cents per
share in the previous quarter and 11 cents per share in the
year-ago quarter. However, results were in line with the Zacks
Consensus Estimate.
Revenue
Revenues were up 8.2% sequentially
and 37.1% annually to $595 million, driven by a rise in the gold
price received and an increase in gold sold.
Costs
Gold production increased by 5%
sequentially to 344,592 ounces. Cost of sales plunged 7.8%
sequentially to $412 million, but jumped 13.2% over the previous
year quarter. Total production cost was $339 million in the
reported quarter versus $367 million in the previous quarter and
$308 million in the comparable year-ago quarter. Gross profit in
the quarter was $183 million versus $103 million in the previous
quarter and $70 million in the year-ago quarter.
Financial
Overview
Cash and cash equivalents amounted
to $149 million as of December 31, 2011 versus $127 million as of
December 31, 2010.
Cash flow generated from operating
activities was $173 million as of December 31, 2011 versus $62
million as of December 31, 2010.
Outlook
The company is showing a
significant progress both in the growth of resources as well as
diversity. Harmony remains focused on its long term strategic
goal of achieving sustainable profitability and delivering
shareholder value.
The company remains bullish on the
gold price and expects gold price in dollar terms to continue to
strengthen, as the fundamentals that drove the gold price up are
still in place and the global financial markets have not yet
stabilized.
Harmony has significantly improved
the quality of its production, which it will continue to do with
better cash costs and free cash flow in future. The company also
has several world-class mines in South Africa, which are currently
in the build-up phase and these together with Hidden Valley, will
be significant contributors to Harmony’s set production targets.
However, the company faces stiff competition from Arcelor
Mittal (MT) and POSCO (PKX).
Currently, we have a long-term (6
months and higher) Neutral recommendation on the stock.
HARMONY GOLD (HMY): Free Stock Analysis Report
ARCELOR MITTAL (MT): Free Stock Analysis Report
POSCO-ADR (PKX): Free Stock Analysis Report
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