Harmony Gold’s net profit for the third quarter of its financial year declined by 26% in comparison to the previous quarter as production fell, the company said on Friday.
Net profit decreased to R972-million in the three months to the end of March from R1,3-billion the previous quarter, the gold miner said.
There was a three percent decline in production, to 349 801 ounces, the company added.
However, this was mitigated by higher gold prices.
The past quarter saw the gold price at record highs, at levels above R300 000/kg and $900/oz.
”Gold has become a currency rather than a commodity — a good reason for us to remain bullish about the gold price. We believe that the uncertainty in world-wide markets will support a stronger gold price,” said Graham Briggs, Harmony’s chief executive officer.
He said gold remained a safe investment, ”as can be seen with ETFs [exchange traded funds] continuing to increase their gold stockpile and from China’s recent announcement that it has increased its gold reserves by 75%”.
Harmony said it was in excellent financial health with a strong balance sheet and its strategic plans supported its target of achieving 2,2-million ounces a year in 2012. – Sapa