https://www.engineeringnews.co.za

Harmony narrows Q1 2015 loss

14th November 2014

By: Leandi Kolver

Creamer Media Deputy Editor

  

Font size: - +

Gold miner Harmony Gold narrowed its losses by 78% quarter-on-quarter to R226-million on the back of higher production, in the first quarter of the company’s 2015 financial year, ended September 30.

The company’s output increased 6% quarter-on-quarter to 303 341 oz, while revenue rose 18% to R4.43-billion as a result of a 16% increase in gold sold to 321 089 oz and owing to a 2% increase in the rand gold price.

The company said that, although production profit had increased by 8% to R913-million, a net loss had been recorded as a result of a foreign exchange loss of R190-million on foreign debt, as well as an increase in depreciation of R124-million.

Quarter-on-quarter net debt had been reduced to R771-million, compared with a net debt of R1.03-billion during the previous quarter.

Harmony further noted that production costs had increased during the quarter under review mainly as a result of gold stock movements of R301-million, as more gold was sold than was produced.

Increases in electricity costs, owing to higher winter tariffs, and the yearly labour cost increase added R272-million to the total cost increase.

Quarter-on-quarter, the underground grade had also improved by 4% to 4.84 g/t on the back of a 5% year-on-year increase in recovered grade as at June 30.

“Our efforts to improve efficiencies are aimed at not only mining and processing, but also every aspect of our business. We remain the most efficient South African gold miner, focused on improving our margins and funding our capital,” Harmony CEO Graham Briggs commented.

He further alluded to Harmony’s 50%-owned Golpu orebody, in Papua New Guinea, stating that this resource had the potential to be developed into a world-class copper/gold mine, which would allow Harmony to sustain its business into the future.

Edited by Martin Zhuwakinyu
Creamer Media Magazine Managing Editor

Article Enquiry

Email Article

Save Article

Feedback

To advertise email advertising@creamermedia.co.za or click here

Showroom

Environmental Impact Management Services
Environmental Impact Management Services

EIMS is an independent specialised environmental consulting firm offering the full spectrum of environmental management services across all sectors...

VISIT SHOWROOM 
Craig Miller Technical Services (CMTS)
Craig Miller Technical Services (CMTS)

CMTS is a leading, well-established EC&I contractor with 37+ years of mining and industrial experience. We execute full-scope EC&I projects with...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







301

sq:0.072 0.863s - 122pq - 2rq
Subscribe Now