Harmony Gold suffered a cash operating loss of R54,7-million in the March quarter, the company announced on Monday.
In a statement, chief executive Bernard Swanepoel said the poorer results were caused by operational disruptions.
Production declined by 14,1% to 679 251oz compared with the December quarter, and cash operating costs increased by 10,9% to R85 863 per kilogram, a statement read.
It added that the normal festive season and public-holiday disruptions associated with the March quarter were compounded by several period-specific events, including a fire at Bambanani, a strike at the Free State operations, a 1% decrease in the rand gold price received, and the loss of Sunday work permission in the Free State.
Swanepoel said the June quarter results should show evidence of investments of R1,7-billion over the past year.
”In the past 12 months, Harmony has spent R856-million on capital expenditure, R235-million on exploration and corporate expenditure and R618-million on restructuring,” he said.
”This is designed to return all of Harmony’s operations to profitability, whilst continually upgrading the average quality of our portfolio through high-quality organic growth and acquisitive opportunities.
”The benefits of this process should become more evident from the June quarter.”
Next week, the Competition Tribunal will decide on the proposed merger of Harmony and Gold Fields.
”Following this and assuming a successful ruling, Harmony’s offer will for the first time be unconditional, marking the end of a period of extensive delay, interference and frustration orchestrated by Gold Fields,” said Swanepoel.
”This tribunal ruling will hopefully allow Gold Fields shareholders to finally have a say in … who runs Gold Fields through having the Harmony bid go unconditional.” — Sapa