Share

Harmony hits gold on increased production

Johannesburg - Harmony Gold Mining Company [JSE:HAR] on Friday posted a quarterly profit after two previous quarterly losses as it improved production and grades.

Harmony reported headline earnings of 5 cents a share for the three months to end September compared with a third-quarter headline loss of 186 cents a share.

Production was up 12% at 309 773 ounces on higher tonnage and better grades, which helped drive down costs and offset increased wages.

"As gold prices have weakened, gold mines world-wide remain under pressure with their rising costs," said Harmony chief executive Graham Briggs in a statement.

"Our only means of remaining profitable is to reduce costs, improve our productivity and produce more gold."

The spot gold price has fallen 22% so far this year, forcing gold producers globally to book impairments and reshape their business to survive.

Separately, Harmony and Sibanye Gold [JSE:SGL] agreed to swap mining rights to properties in the Free State province, a move that will extend the life of both companies' mines.

Sibanye said it would swap two mining rights at its Beatrix mine for two at Harmony's Joel mine.

Consolidation has been touted as the way to halt the decline in the country's gold industry, an industry which laid the foundations for the local economy.

The gold industry accounted for 79% of world production in 1970 and was ranked sixth in global production in 2012, producing just 6% of the world total.
We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.90
+0.2%
Rand - Pound
23.86
+0.2%
Rand - Euro
20.36
+0.3%
Rand - Aus dollar
12.31
+0.3%
Rand - Yen
0.12
+0.2%
Platinum
908.05
0.0%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders