8 Cheap Gold Stocks To Buy According to Hedge Funds

04. Harmony Gold Mining Company Limited (NYSE:HMY)

Number of Hedge Fund Holders: 17 

Forward P/E Ratio as of September 29: 8.75

Harmony Gold Mining Company Limited (NYSE:HMY) is a prominent player in the gold mining sector, boasting a significant presence in both South Africa and Papua New Guinea. With over 74 years of mining expertise, the company has established itself as a gold specialist while also diversifying into copper production. As of the second quarter of 2024, Harmony Gold Mining Company Limited (NYSE:HMY) has gained traction among institutional investors, increasing its hedge fund holders to 17 from 15 in the previous quarter, indicating growing confidence in the stock.

The company’s recent financial performance highlights its resilience and operational effectiveness. In the fiscal year ending June 30, 2024, Harmony Gold Mining Company Limited (NYSE:HMY) achieved an impressive gold production increase of 6%, totaling 1.56 million ounces, surpassing revised guidance. The underground recovered grades improved by 6%, reaching 6.11 grams per tonne. This operational excellence contributed to a substantial decrease in all-in sustaining costs, which fell by 4% to $1,500 per ounce, underscoring the company’s commitment to cost management amid rising gold prices.

Moreover, Harmony Gold Mining Company Limited (NYSE:HMY) operating free cash flow soared over 100%, reaching a record ZAR 13 billion (approximately $681 million), supported by a robust margin of 22%. This surge in free cash flow has bolstered Harmony’s balance sheet, leaving it in a net cash position of ZAR 2.9 billion (about $159 million). Headline earnings per share witnessed a remarkable 132% increase, reaching 1,852 South African cents (or $0.99), further solidifying the company’s financial health.

Looking ahead, Harmony Gold Mining Company Limited (NYSE:HMY) is strategically investing in high-quality assets, such as the Moab Khotsong and Mponeng mines, while pursuing transformative copper projects like the Wafi-Golpu and Eva Copper initiatives. These projects are projected to enhance the company’s future production profile, with copper expected to constitute 20% of total output in the next decade. The ongoing feasibility studies and resource drilling at these projects promise to unlock significant value for shareholders.

In summary, Harmony Gold Mining Company Limited (NYSE:HMY) stands as a compelling investment opportunity within the gold sector. With its strong operational performance, solid financial metrics, and strategic growth initiatives, Harmony Gold Mining Company Limited (NYSE:HMY) is well-positioned to capitalize on the favorable gold market dynamics, making it an attractive choice for hedge funds and individual investors alike.