Harmony earnings dive on mine closure

Johannesburg - Gold producer Harmony Gold Mining Company [JSE:HAR] slumped to a loss in third-quarter earnings after the temporary closure of one of its mines ate into its quarterly production.

In the three months to end March, gold production fell 15% to 247,529 ounces while headline earnings, which strip out some one-time items, fell to a loss of 47 cents per share compared with a positive 158 cents the previous quarter.

Lower earnings have forced the miner to slash capital expenditure in South Africa and Papua New Guinea by R1.4bn for the 2014 financial year.

Cost cutting involving shaft closures are not envisaged.