The strong rand totally negated increases in the dollar price of gold to cut 37% off the operating profit of Johannesburg and New York-listed Harmony Gold for the first quarter of 2003, the company said on Tuesday.
Cash operating profit in the quarter fell to R478,4-million as the dollar price of the rand strengthened from R9,61 to R8,37, the company said in a statement.
Harmony also lost six working days of production to public holidays and this reduced tonnages from underground by eight percent or R142 million in revenue.
The gold price received in rands per kilogram decreased to R94,687 per kg, having fallen 11% over the past three quarters.
Costs however, increased by 7% to R73,150 per kg.
Although actual working costs were two percent lower at R1,6-billion, overall costs increased because of the decrease in tonnage from underground. – Sapa