Company Announcement: Resilient financial delivery; interim dividend declared
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Harmony Gold Mining Company Limited reported a 16% increase in operating profit¹ to R1.6 billion (US$188 million) and a 28% rise in headline earnings per share to 158 SA cents (18 US cents) for the quarter ended 31 December 2012. An interim dividend of 50 SA cents per share has been declared. The increase in operating profit¹ was due to higher grade, an increase in the gold price received and a decrease in cash operating costs. Cash operating costs in the December 2012 quarter decreased by R127 million (US$32 million), mainly as a result of lower electricity costs.
Underground recovered grade increased for the third consecutive quarter, from 4,52g/t to 4.77g/t – a 6% increase quarter on quarter. Gold production decreased by 9% (939kg/30 190oz) in the December 2012 quarter to9 074kg (291 734oz) from 10 013kg (321 924oz) in the September 2012 quarter. This was as a result of the unprotected strike and labour disruptions at Kusasalethu. The rand per kilogram unit cost for the December 2012 quarter increased by 6% from R294 404/kg (US$1 110/oz) in the September 2012 quarter to R310 858/kg (US$1 115/oz) in the December quarter, due to the decrease in gold production.
However, the rand per kilogram cost of all operations, excluding Kusasalethu, decreased by 4% to R285 498/kg (US$1 024/oz) from R296 650/kg (US$1 119/oz) in the previous quarter. Commenting on results for the quarter and six months released today, chief executive officer, Graham Briggs, says: “A 6% increase in underground grade quarter on quarter to 4.77g/t and a 9% increase in the Rand gold price received to R479 801/kg, contributed to a 16% increase in the operating profit to R1.6 billion, notwithstanding the negative impact on operating performance due to labour disruptions at Kusasalethu. Overall a strong financial quarter for Harmony.”
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