Harmony narrows Q1 2015 loss
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.
Comments
The
content
you are trying to access is only available to subscribers.
If you are already a subscriber, you can Login Here.
If you are not a subscriber, you can subscribe now, by selecting one of the below options.
For more information or assistance, please contact us at subscriptions@creamermedia.co.za.
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?
Receive 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)
➕
Recieve 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
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation