10 Worst Middle East and Africa Stocks To Buy According to Short Sellers

8. Harmony Gold Mining (NYSE:HMY)  

Short Interest as % of Shares Outstanding: 1.44%

Number of Hedge Fund Investors in Q2 2024: 17

Harmony Gold Mining (NYSE:HMY) is one of South Africa’s largest gold producers, with approximately 90% of its gold output coming from its South African mines. In addition, the company owns gold and copper assets in Papua New Guinea and Australia. Harmony Gold Mining (NYSE:HMY) focuses on acquiring high-grade mineral assets to maintain solid operating margins.

Over the past three years, Harmony Gold Mining’s (NYSE:HMY) production has remained stable, and at the start of FY2024, the management projected similar levels to the previous year. However, the company outperformed expectations, increasing gold production by 12% year-over-year in the first half of FY24 to 832,000 ounces. This growth was largely driven by an 11% improvement in recovered grades from its underground mines. The production momentum extended into the third quarter, prompting management to raise its full-year production target to 1.55 million ounces, above the original estimate of 1.38 million to 1.47 million ounces. In a recent update on August 26, Harmony Gold Mining (NYSE:HMY) reported it would reach 1.56 million ounces for the full year, reflecting a 6% year-over-year increase, with recovered grades also up 6% to 6.11 g/t.

Gold prices have recently hit a record high, driven by strong demand and favorable market conditions. J.P. Morgan Research expects gold to remain around $2,500 per ounce by the end of 2024 and rise to $2,600 per ounce in the first half of 2025. Harmony Gold is well-positioned to benefit from these high gold prices, due to its strong production growth from key underground assets, giving it an edge over competitors.

Harmony Gold Mining (NYSE:HMY) is currently trading at 8.47 times its earnings, a 47.7% discount compared to the sector median of 16.20. The company’s earnings are projected to grow by 17.8% this year. While 1.44% of the company’s shares are shorted, 17 hedge funds have maintained a bullish sentiment on the stock as of the second quarter with stakes worth $171.88 million. Kopernik Global Investors is the largest shareholder, with a stake valued at $26.90 million as of June 30.