Harmony Ups Q2 Gold Production, but Sees $11 Million Headline Loss

Harmony Gold Mining Company Ltd. (LSE:HRM) announced that its results for the second quarter of 2012 include a 14 percent increase in gold production compared to the previous quarter. However, the company saw a headline loss of US$11 million.

As quoted in the press release:

With respect to production, the quarter compared well to the first and second quarter of financial year 2012 and proved that the operations can do better through focused planning and execution of the plan. Gold production for the June 2012 quarter was 14% higher than the previous quarter, driven by higher tonnage and improved grade. Operating profit increased by 24% to R1.4 billion (US$171 million) when compared to the March 2012 quarter. Cash operating cost per unit improved by 5% quarter on quarter, at R279 719/kg (US$1 071/oz). Total operating costs were higher, mainly due to an increase in electricity tariffs and consumables.

Headline earnings and headline earnings per share (HEPS) more than doubled year on year, from R957 million (US$135 million) to R2.4 billion(US$305 million) and 223 SA cents (31 US cents) to 551 SA cents (71 US cents) respectively. Due to an increase in the deferred tax rates as a result of improved life of mine plans, increased exploration expenditure, an increase in depreciation and amortisation as well as a change in estimate of gold in lock-up (primarily at St Helena plant, Steyn plant and Kalgold), a headline loss of R87 million (US$11 million) and headline loss per share of 20 SA cents (2 US cents) were recorded for the June 2012 quarter.

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