JOHANNESBURG (miningweekly.com) – South Africa-based Harmony Gold has revised its 2012 production target downwards to two-million ounces, compared with the previously targeted 2,2-million ounce production target.

This was in line with the group’s strategic objectives and took into consideration the earlier-than-planned closure of some of its Virginia and Evander shafts, Harmony said on Monday, when it reported on its June quarterly results.

The group’s gold production increased by 4% quarter-on-quarter to 346 714 oz in the three months ended June 30, 2010, compared with the 333 276 oz of gold produced in the quarter ended March 31, 2010.

Harmony, led by CEO Graham Briggs, saw a 71% quarter-on-quarter improvement in headline earnings, narrowing its headline loss to R27-million in the June quarter, compared with a headline loss of R103-million in the March quarter.

However, on a year-on-year basis, headline earnings fell by 99,7% to R4-million, down from the R1,2-billion recorded in the 2009 full year.

On a year-on-year basis, output fell by 2,2% to 1,43-million oz of gold in the year ended June 2010, compared with the 1,46-million ounces produced in the year ended June 2009.

Harmony noted that the gold price had remained robust in dollar terms during the June quarter.

Year-on-year, the dollar gold price increased by 25,9% to an average of $1 092/oz of gold, compared with the average of $867/oz of gold in the 2009 financial year.

The rand had strengthened against the dollar throughout the year and continued to place pressure on Harmony’s margins, the group stated.

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