Johannesburg - Harmony Gold Mining Company [JSE:HAR], South
Africa's third-largest gold producer, reported third-quarter earnings that far
exceeded expectations because of a deferred tax credit that flowed to its
bottom line.
Headline earnings per share were 234 cents per share for the
three months to end-March, down just slightly from 242c in the previous quarter
and about triple the average estimate of 75.7c in a Reuters poll of 7 analysts.
The company's earnings would have been brought back to earth
if it weren't for the deferred tax credit of R652m.
"That would equal around 150c a share, and that's what
did it for them," said David Davis, mining investment analyst at SBG
Securities in Johannesburg.
Production was 18% lower at 281,415 ounces with a planned
infrastructure upgrade at its Doornkop mine in South Africa and
lower-than-expected grades at four of its other mines adding to the losses from
safety-related stoppages.
Lower production pulled gross profit down 62% to R501m but this was offset by the deferred tax credit. The company also had to contend with a lower rand/gold price during the quarter.