HAR - Harmony Gold Mining Company Limited - Harmony`s guidance for September Release Date: 07/10/2010 16:15:02 Code(s): HAR
HAR - Harmony Gold Mining Company Limited - Harmony`s guidance for September
Harmony Gold Mining Company Limited
Registration number 1950/038232/06
Incorporated in the Republic of South Africa
JSE share code: HAR
("Harmony" or "the company")
Harmony`s guidance for September 2010
Johannesburg, 7 October 2010: Harmony Gold Mining Company Limited (Harmony)
announces that its production and costs for the quarter ended September 2010 are
largely in line with the guidance provided to the market in August 2010 at the
time of the release of its fourth quarter results.
Harmony advises that gold production for the September 2010 quarter is likely to
be in the order of 3% lower than the June 2010 quarter. This is as a result of:
* The planned closure of Harmony 2 shaft;
* The planned closure of Merriespruit 3 shaft;
* The temporary cessation of operations at Joel North shaft to allow for the
completion of shaft bottom spillage infrastructure which resulted in 43
production days lost;
* The tragic accident at Phakisa at the end of June 2010, which resulted in
the closure of that shaft for 13 days.
As advised in the previous quarter, electricity costs were around R140 million
more quarter on quarter and labour increased by approximately R50 million.
Costs at Hidden Valley have been incurred for a full quarter as opposed to two
months in the previous quarter.
Retrenchment costs of around R60 million (R10 million at the Evander operations
and R50 million at Virginia) have been incurred during the quarter.
Chief Executive Officer Graham Briggs commented that "Our aim at Harmony is to
focus on safe, profitable ounces. To do this we have taken bold decisions in
shutting unprofitable operations, and focusing our attention on our longer-life,
lower-cost operations that will be profitable and sustainable for many years to
come. We remain focused on increasing production to 2 million ounces of gold by
FY13, with costs per tonne milled in the lowest quartile amongst South African
Harmony`s results for the quarter ended September 2010 will be released on 1
7 October 2010
+27 82 444 8435 (mobile)
Marian van der Walt
Executive: Corporate and Investor Relations
+27 82 888 1242 (mobile)
Randfontein Office Park
P O Box 2
South Africa 1760
T +27 (11) 411 2000
J.P. Morgan Equities Limited
Date: 07/10/2010 16:15:02 Supplied by www.sharenet.co.za
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