THURSDAY, 10.30AM
INDEPENDENT Harmony gold mines, formerly in the Randgold stable, posted an R800 000 profit in the final quarter of 1997 from a third-quarter loss of R37,2-million. The company achieved the profit despite large-scale restructuring, retrenchments, strikes and a devastating fire.
MD Bernard Swanepoel said the worst is behind the company and that its restructuring was premised on a gold price of between $270 and $280/oz, adding that the company is now confident about the future.
The company has also started refining its own gold and intends to investigate manufacturing jewellery in pertnership with Consolidated Bullion.
Swanepoel said retrenchments are continuing, with the intention to achieve a total workforce of 11 700 workers, from the previous 18 600. R7-million has been set aside in the March quarter accounts to cover some of these lay-offs.
Harmony’s move back to profit was largely driven by its Free State mines, which turned a R12,5-million profit, against a R21,8-million loss in the September quarter. Losses on the group’s East Rand mines came down to R12,3-million from R21,3-million.
Harmony’s restructuring saw Grootvlei and Cons Modder mines merged with the East Rand operations and the closure of three shafts, one in the Free State and two on the East Rand.