HAR - Harmony Gold Mining Company Ltd - Production update for third quarter Release Date: 31/03/2010 12:00:04 Code(s): HAR
HAR - Harmony Gold Mining Company Ltd - Production update for third quarter
Harmony Gold Mining Company Ltd
Incorporated in the Republic of South Africa
Registration number: 1950/038232/06
JSE Share code: HAR
NYSE Share code: HMY
NASDAQ Share code: HMY
PRODUCTION UPDATE FOR THIRD QUARTER FY2010
Continued focus on improvement, despite challenges
Johannesburg. Wednesday 31 March 2010. Harmony Gold Mining Company Limited
(Harmony) announces that the past quarter saw continued focus on safety and
disciplined mining, but was not without its challenges.
Based on preliminary estimates, gold production for the quarter decreased
between 1,000kg and 1,300kg compared with the previous quarter.
Loss-making shafts that were closed during the quarter resulted in a reduction
of approximately 620kg of gold, as compared with the previous quarter.
Restructuring costs in respect of these closures amount to approximately R120
million. Going forward, only care and maintenance costs for the closed shafts
will be incurred. "Longer term the effect of this decision will be shown to
have been the correct one, lowering the cash costs and eliminating losses,
however, the first 3 to 6 months of these decisions are always painful", said
Harmony`s Chief Executive Officer, Graham Briggs.
The remaining loss in kilograms was from South African operations, of which the
main contributing operations to this decrease include Tshepong, Masimong, Joel
and Kusasalethu (previously known as Elandsrand). Tshepong and Masimong had a
slow start-up after the Christmas break. Joel saw lower grades, mainly as a
result of the commissioning of the plant and Kusasalethu faced ore-pass problems
during the quarter, which are being investigated.
Hidden Valley continued its commissioning process, with the silver flotation
circuit being commissioned in the March quarter. As mentioned in the previous
quarter, we expect the Hidden Valley mine and processing plant to reach its
original design capacity and throughput in the June 2010 quarter. The mine`s
March quarter results will be capitalised.
"This has been a difficult quarter. Shortly after having recorded 99 days
fatality-free, a fatal accident occurred at Evander. Slow start ups following
the Christmas break and the closure of shafts resulted in a decrease in
forecasted production and Kusasalethu, in particular, had a disappointing
quarter. Our management team is working hard to try and understand the ore pass
situation better and aims to find a solution as soon as possible. Having just
visited Hidden Valley, good progress is being made in dealing with the
commissioning phase. In general, we expect to see improved results during the
June 2010 quarter, with all of our management teams dedicated to meeting
production targets," Briggs said.
Harmony`s results for the third quarter of FY2010 ending 31 March 2010 will be
announced on Monday, 10 May 2010 at 09h00 and 15h00 SA time. For more
information, visit www.harmony.co.za
For more details contact:
On +27 (0)82 444 7435
Investor Relations Officer
On +27 (0)82 759 1775
Randfontein Office Park
PO Box 2
South Africa 1760
T: +27 (0)11 411 2000
J.P. Morgan Equities Limited
Date: 31/03/2010 12:00:03 Supplied by www.sharenet.co.za
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