Validea Motley Fool Strategy Daily Upgrade Report - 7/12/2025
Stock Ratings Update: Validea's Small-Cap Growth Investor model, based on Motley Fool's strategy, has upgraded Harmony Gold Mining Company Ltd and World Acceptance Corp from a rating of 59% to 72%, indicating improved fundamentals and valuation for both stocks.
Company Profiles: Harmony Gold is a South African gold mining company with operations in multiple regions, while World Acceptance Corporation provides personal loan solutions and operates over 1,000 branches across 16 states, focusing on individuals with limited access to traditional credit sources.
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- Profit Growth: Harmony Gold reported a nearly 25% increase in basic earnings per share to $0.90, yet the stock fell 12.5%, indicating market concerns over future production capabilities despite profit growth.
- Revenue Increase: The company saw a 20% year-over-year revenue rise to $2.56 billion, primarily driven by a 36% surge in average gold prices, but production declines led to rising costs that impacted overall profitability.
- Dividend Doubling: Harmony announced a record interim dividend of $0.32 per share for H1, significantly up from $0.12 a year earlier, reflecting the company's commitment to shareholder returns amid profit growth.
- Copper Production Launch: Harmony produced copper for the first time in H1, with the CSA mine yielding 3,913 tons, and expects to reach 18,500 tons in the next 12 months, marking a strategic advancement in diversifying its production portfolio.
- Non-GAAP EPS: Harmony Gold reported a non-GAAP EPS of R1.542 for 1H 2026, indicating a significant improvement in profitability, reflecting the company's robust performance in the mining sector.
- Revenue Growth: The company achieved revenue of R44.4 billion in the first half, marking a 19.5% year-over-year increase, primarily driven by rising commodity prices and enhanced production efficiency, further solidifying its market position.
- Acquisition Impact: The newly acquired Australian copper mine is expected to require a two-year fix, which, while increasing short-term costs, will enhance the company's resource diversification and profitability in the long run.
- Market Outlook: With the global demand for gold and copper on the rise, Harmony Gold's strong financial performance and strategic acquisitions will lay a solid foundation for future growth, boosting investor confidence.
Interim Dividend Announcement: Harmony Gold has declared an interim dividend of 530 South African cents per share, equivalent to 32 US cents per share.
Financial Performance: The dividend reflects the company's financial performance and commitment to returning value to shareholders.

Production Guidance: Harmony Gold has set its copper production guidance between 17,500 to 18,500 tonnes for the eight-month period ending June 30, 2026.
Focus on Copper: The guidance reflects Harmony Gold's strategic emphasis on copper production as part of its operational plans.
- Production Halt: The production of "Harmony Gold" at CSA Mine has been temporarily halted.
- Reason for Halt: The specific reasons for the temporary suspension of production have not been detailed in the announcement.
- Major Earnings Release: OppFi (OPFI) is set to report earnings after the bell on Wednesday, with market participants keenly awaiting its performance and guidance, which could significantly impact its stock price.
- Campbell's Company Earnings: Campbell's Company (CPB) will also release its earnings on the same day, and investors are looking forward to insights into its performance in the food industry, which may lead to stock price fluctuations.
- Serve Robotics Performance: Serve Robotics (SERV) is expected to announce its earnings, with the market closely monitoring its innovations and profitability in the robotics sector, potentially influencing investor confidence.
- Other Company Reports: Harmony Gold Mining Company Limited (HMY) and Rheinmetall AG (RNMBF) will also report earnings on the same day, and investors will assess their performance and outlook in their respective industries.






