Harmony posts profit despite output drop

Harmony Gold Mining, South Africa’s third-largest producer of the metal, swung to a profit in the third quarter as an increase in higher-quality ore and the bullion price countered lower production.

Earnings excluding one-time items were $5-million in the three months ended March 31, compared with a $9-million loss in the previous quarter, the Randfontein, South Africa-based company said on Tuesday in a statement. The average gold price received rose 1% to $1 294 an ounce. The grade of underground recovered ore increased for a third straight quarter, climbing 5% to 5.1 grams a tonne.

A stoppage following a fire that killed nine workers at Harmony’s Doornkop mine, flooding at its Joel operation and slower turnaround at Kusasalethu caused output to fall 12% to 269 035 ounces in the period, the producer said. The events derailed the company’s strategy of cutting costs and mining higher-grade ore as it seeks to maintain profitability following last year’s 28 percent drop in the gold price.

“We remain committed to increasing our profits and cash flow to enable us to pay dividends in future,” chief executive Graham Briggs said in the statement.

Harmony’s all-in sustaining costs rose 7% to R426 221 a kilogram and were flat in dollar terms. – Bloomberg

Keep the powerful accountable

Subscribe for R30/mth for the first three months. Cancel anytime.

Subscribers get access to all our best journalism, subscriber-only newsletters, events and a weekly cryptic crossword.

Related stories

WELCOME TO YOUR M&G

Already a subscriber? Sign in here

Advertising

Latest stories

Kenya to make Covid vaccination mandatory

The unvaccinated will be denied use of public services on 21 December, but only 5% of the population has been vaccinated

Lethal remedy: Concern over African trade in traditional Chinese medicine...

The Environmental Investigation Agency, an international NGO, says growing demand is a prescription for disaster for some endangered animals such as leopards, pangolins and rhinos

Motsepe’s mine in reparation row

For 13 years, the former residents have battled with Nkomati mine over the relocation of graves and the destruction of cattle kraals and homesteads

BMW X3 review: An SA favourite returns with a makeover

The German carmaker gives you a good reason to choose the X3 over its many competitors
Advertising

press releases

Loading latest Press Releases…
×