Publications
Partners
Johannesburg - Harmony Gold [JSE:HAR] fell to a steep fourth-quarter loss because of a R1.4bn write-down on an expansion project at its Phakisa operation.
"The net loss for the June 2014 quarter was R1.22bn, compared to a net profit of R31m in the March 2014 quarter, mainly due to the impairment of R1.41bn recorded," the company said on Thursday.
Gold production increased by 3% to 36 453kg (1.17moz) in the 2014 financial year, compared to the 2013 financial year, with a 4% decrease in all-in sustaining costs to R413 433/kg.
Production profit for the 2014 financial year was R3.8bn compared to R4.6bl in the 2014 financial year, mainly due to a 5% decrease in the rand gold price received and a 4% (R495m) increase in cash operating costs for the 2014 financial year.
“We continue to regenerate Harmony in order to remain efficient miners, keeping costs down and funding our own capital to ensure future growth and profitability," said CEO Graham Briggs.
"This allows us to have low debt, financial flexibility and be highly geared against the gold price."
He said Harmony is an experienced explorer, mine developer and operator in emerging economies.
“We have revised our strategy based on these key strengths. Our five year strategy is to improve our margins through safely delivering on our plans and increase free cash flow through higher grades, cost control and grow our value per share of our PNG assets by completing the Golpu studies with the intent of building the Golpu mine," he said.
"We also intend identifying acquisition opportunities of open pit mines and bulk projects. We remain committed to positioning Harmony as a competitive, value focused gold mining company.”
Watch the video:
- Fin24 and Reuters
