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Harmony achieves record operating profit, revenue

31st October 2011

By: Martin Creamer

Creamer Media Editor

  

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JOHANNESBURG (miningweekly.com) – Gold miner Harmony recorded its highest-ever operating profit of R1.3-billion in the three months to September 30, on lower corresponding 2010 quarter production.

The strength of the gold price was the overwhelming underpin for the 45% higher quarter-on-quarter profit and the company’s 217% headline-earnings-a-share rise to 95c.

The gold price received increased by 20.3% to R396 405/kg in the September 2011 quarter from R329 536/kg received in the previous quarter.

The increase in the gold price resulted in revenues increasing by 14.8% or R506.9-million.

Harmony CEO Graham Briggs has, over a prolonged period, been removing impediments to profit, including downsizing human resources and closing operations, as the company focus switches towards Papua New Guinea, where the company is in partnership with Australia’s Newcrest.

The latest borehole intersection at Golpu, WR406, recorded results at 861 m of 1.51g/t gold, 1.48% copper and included 199 m at 2.87g/t gold and 2.57% copper from 1 286 m.

The prefeasibility study must be delivered during the first half of the 2012 calendar year.

Exploration results from Harmony’s own wholly owned tenements at Mount Hagen in Papua New Guinea indicated a lesser borehole result of 285 m at 0.1% copper 83 parts a million Molybdenum from 72 m at PNDD001.

Production for the September 2011 quarter was only slightly higher than the previous quarter.

It was 500 kg below target at a total 10 207 kg and well down on the 10 471 kg in the corresponding quarter of 2010.

Harmony’s strategy is to produce at a rate of 1.8-million to two-million ounces of gold a year by 2015.

Edited by Creamer Media Reporter

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