HARMONY’S PROFITS SAG

MINING group Harmony kicked off the latest round of gold quarterlies Monday by posting a cash operating profit of R75-million for the June quarter – R29-million below that of the previous three months. The group said revenue had declined by R36-million which was attributed to the falling gold price and lower grades. But it said this was partially offset by savings in operating costs. Earnings per share were reduced to 82 cents from 125 cents for the previous quarter. A dividend of 60 cents per share was declared making a total of 110 cents/share for the year. Harmony chief executive Bernard Swanepoel said it had been a tough quarter for the group — ”a sobering experience for those in the business of producing gold.” He added that gold prices last seen 20 years ago affected and continued to affect the earnings and capital spending plans of all gold producers.