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Johannesburg - Harmony Gold's gold production increased by 4% and gold sold increased by 12% quarter-on-quarter.
The company announced its fourth quarter and year end results for the financial year 2015 on Tuesday.
Total gold production for the year is 1.08 million ounces. The previous quarter’s headline loss of 60 cents per share was turned into a profit of 44c per share - including year-end accounting adjustments.
Following Harmony’s annual life-of-mine reassessment, a net loss of R4.5bn was recorded in the financial year 2015 due to a total impairment of R3.5bn.
The impairment of R3 471m in the June 2015 quarter consists of an impairment of R2 114m in respect of Hidden Valley, R1 036m on Doornkop, R278m on Phakisa and R43m on Freddies 9.
The company said the impairments are due to the restructuring of operations for profitability and in response to low commodity prices and high operating costs, which resulted in a reduced life of mine.
On the other hand, the company said the Kili Teke prospect on Papua New Guinea is a new "exciting" copper-gold discovery and drilling to convert the prospect into a new copper-gold resource continues.
“We have restructured each of our operations to ensure that our company is profitable even in a tough gold price environment. Harmony remains a relevant gold player, adding value through job creation, taxes and community upliftment in both South Africa and Papua New Guinea," said CEO Graham Briggs.
"Our focus is therefore on increasing our margins – not only through capital curtailment and cost reductions, but most importantly through increasing our production.”
(Source: Harmony Gold)
