Gold

Harmony Boosts Gold Production and Revenue, but Records Net Loss

Company News

Harmony Gold Mining Company Ltd. (NYSE:HMY) announced its results for 2014’s September quarter, commenting that its gold production rose 6 percent, hitting 303,341 ounces.

Harmony Gold Mining Company Ltd. (NYSE:HMY) announced its results for 2014′s September quarter, commenting that its gold production rose 6 percent, hitting 303,341 ounces. Its production profit also rose, increasing 8 percent to reach US$85 million.

Other highlights include:

  • Grade continues to increase
    • 4% improvement in underground recovered grade at 4.84g/t
    • on back of 5% improvement in recovered grade for the year ended 30 June 2014
  • 18% increase in revenue to R4.4 billion (US$412 million)
  • Net debt reduced from R1.0 billion to R771 million (from US$98 million to US$68 million)
  • Net loss reduced by 78% to R266 million loss (US$25 million)

Graham Briggs, CEO of Harmony, commented:

Our efforts to improve efficiencies are aimed not only at mining and processing, but in every aspect of our business. We remain the most efficient South African gold miner, focused on improving our margins and funding our capital. Harmony owns 50% of the spectacular Golpu ore body in Papua New Guinea, which has the potential to develop into a world-class copper gold mine and will allow us to sustain our business well into the future. Harmony remains undervalued and its successes are not currently factored into the share price.

Despite those fairly positive results, Reuters notes that the current quarter will be tough for Harmony due to the recent suspension of operations at its Kusasalethu mine. Restructuring at that mine could lead to job cuts.

Click here to read the full Harmony Gold Mining Company Ltd. (NYSE:HMY) press release.

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