Go Back Email this Link to a friend


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     
FY2010                                                                          
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                                                          
ISIN: ZAE000015228                                                              
PRESS RELEASE                                                                   
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:                                                       
Hannes Meyer                                                                    
Financial Director                                                              
On +27 (0)82 444 7435                                                           
Or                                                                              
Esha Brijmohan                                                                  
Investor Relations Officer                                                      
On +27 (0)82 759 1775                                                           
Corporate Office:                                                               
Randfontein Office Park                                                         
PO Box 2                                                                        
Randfontein                                                                     
South Africa 1760                                                               
T: +27 (0)11 411 2000                                                           
www.harmony.co.za                                                               
Sponsor:                                                                        
J.P. Morgan Equities Limited                                                    
Date: 31/03/2010 12:00:03 Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department                             .                  
The SENS service is an information dissemination service administered by the    
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or            
implicitly, represent, warrant or in any way guarantee the truth, accuracy or   
completeness of the information published on SENS. The JSE, their officers,     
employees and agents accept no liability for (or in respect of) any direct,     
indirect, incidental or consequential loss or damage of any kind or nature,     
howsoever arising, from the use of SENS or the use of, or reliance on,          
information disseminated through SENS.                                          



                                        
Email this JSE Sens Item to a Friend.

Send e-mail to
© 2019 SHARENET (PTY) Ltd, Cape Town, South Africa
Home     Terms & conditions    Privacy Policy
    Security Notice    Contact Details
Market Statistics are calculated by Sharenet and are therefore not the official JSE Market Statistics. The calculation/derivation may include underlying JSE data.