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Harmony's net loss narrows on output hike

Johannesburg - Bullion producer Harmony Gold [JSE:HAR] said on Wednesday its loss narrowed in the first quarter by 78% to R226m as production rose.

The company also benefited from an increase in the rand gold price because of weakness in the domestic currency.

The average gold price in the three months to the end of September eased 0.5% to $1 282 an ounce but the rand/gold price rose 2%.

Harmony said production had increased 6% in the three months to the end of Sept 30 to 303 000 oz, helping to lift revenue.

But the current quarter will be a tough one as the company last week said it was closing its key Kusasalethu mine for two weeks to try to remove illegal miners who have been trespassing into the operation and are believed to be starting fires.

"The decision comes after a third underground fire in October 2014 month was started by illegal miners. Although no one was harmed in any of these fires, it did result in 10 production days lost in October," Harmony said in its results statement.

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Rand - Dollar
19.22
-0.1%
Rand - Pound
23.75
-0.2%
Rand - Euro
20.51
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Rand - Aus dollar
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All Share
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