HAR - Harmony Gold Mining Company Limited - Trading statement Release Date: 06/08/2007 14:59:01 Code(s): HAR
HAR - Harmony Gold Mining Company Limited - Trading statement
HARMONY GOLD MINING COMPANY LIMITED
Incorporated in 1950
Registration number 1950/038232/06
Share code: HAR
NASDAQ NYSE: HMY
Harmony Gold Mining Company Limited (Harmony) announces that its financial
results for the quarter ending 30 June 2007 are expected to differ significantly
from those of the three previous quarters as well as from the analysts`
Shareholders are advised that Harmony expects to announce a headline loss per
share of between 130 and 160 SA cents per share for the June 2007 quarter,
compared with the March 2007 quarter headline profit of 58 SA cents per share.
It is expected that a headline profit of between 20 and 30 SA cents per share
will be reported for the 2007 financial year compared with a headline loss of
269 SA cents per share for the 2006 financial year.
This quarter-on-quarter variance is attributable to a combination of lower
production and an increase in costs. Gold production is expected to be down by
between 8% and 12%, mainly due to, and as previously disclosed, production
incidents at Bambanani and Joel, lower grades mined at Tshepong as well as the
underperformance at Mt Magnet`s underground operations in Australia. Progress on
rectifying this situation will be reported at the June 2007 results presentation
to the investment community.
The combination of lower production and higher cost will result in the June 2007
quarter`s cash cost per kilogram being up by between 35% and 45%. Harmony`s
total cash operating costs are up by between 25% and 28% quarter-on-quarter. The
company ascribes this in part to the newly installed accounting software system
that resulted in some of the March quarter`s costs being captured in the June
2007 quarter and thus the average of the last six months` cost would be a more
accurate reflection of the company`s current cost base.
During the last six months, the company`s cost base increased by between 8% and
12% on the previous six months. The increase in costs is mainly due to
consumables (stores) and supervisory labour and detailed plans are being
implemented to address the production and cost issues.
Shareholders are advised of the resignation of the Chief Executive, Bernard
Swanepoel, with immediate effect and the appointment of Graham Briggs as acting
"Harmony`s management remains committed to creating shareholder value by
addressing the company`s cost issues, through disciplined mining and a back to
basics approach." says acting Chief Executive Graham Briggs.
The financial information on which this trading statement is based has not been
reviewed nor reported on by the company`s auditors. Due to the time taken to
install new software and the need to have externally audited numbers available,
the announcement of Harmony`s quarter and year-end financial results has been
postponed to Monday, 27 August 2007.
6 August 2007
Merrill Lynch South Africa (Pty) Limited
Date: 06/08/2007 14:59:01 Supplied by www.sharenet.co.za
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