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HAR - Harmony Gold Mining Company Limited - Harmony continues to generate

Release Date: 09/05/2012 07:06:01      Code(s): HAR
HAR - Harmony Gold Mining Company Limited - Harmony continues to generate       
profits despite lower production                                                
Harmony Gold Mining Company Limited                                             
JSE:      HAR                                                                   
NYSE:     HMY                                                                   
ISIN No.: ZAE000015228                                                          
Registration number:                                                            
1950/038232/06                                                                  
Harmony continues to generate profits despite lower production                  
Johannesburg. Wednesday, 9 May 2012. Harmony Gold Mining Company Limited        
(`Harmony` or the `Company`) announced its results for the third quarter and    
nine months ended on 31 March 2012.                                             
The net profit for the nine months ended 31 March 2012 was R2.5 billion (US$332 
million), 285% higher when compared to R659 million (US$93 million) for the     
corresponding nine months of the previous year. This was as a result of the     
significant higher gold price received for the period of R418 749/kg (US$1      
703/oz) versus R300 386/kg (US$1 324/oz) the previous year. The net profit for  
the March 2012 quarter was R1.0 billion (US$132 million), 3% lower than the     
previous quarter. This was due to the gross profit being 62% lower at R501      
million (US$66 million) offset by a deferred tax credit of R652 million (US$84  
million).                                                                       
Gold production decreased by 18% (1 965kg or 63 177oz) in the March 2012 quarter
to 8 753kg (281 415oz) from 10 718kg (344 592oz) in the December 2011 quarter. A
number of factors contributed to a weaker than expected performance during the  
quarter, mainly safety stoppages and lower than expected recovered grades. Lower
production resulted in an 18% increase in the rand per kilogram unit cost for   
the March 2012 quarter from R249 356/kg (US$958/oz) in the December 2011 quarter
to R293 842/kg (US$1 182/oz) in the quarter under review. The strong cash       
generated by operating activities for the nine months ended March 2012 of R3.2  
billion (US$416 million) paid for capital expenditure of R2.2 billion (US$292   
million) and reduced the net debt significantly.                                
Total basic earnings per share for the March 2012 quarter decreased from 243 SA 
cents (30 US cents) to 235 SA cents (30 US cents) per share. Total headline     
earnings per share (HEPS) decreased from earnings of 242 SA cents (30 US cents) 
per share to 234 SA cents (30 US cents) per share. For the nine month period to 
March 2012, total HEPS amounts to 571 SA cents (75 US cents) per share compared 
to 192 SA cents (27 US cents) per share for the corresponding period in the     
previous year.                                                                  
Drilling at Wafi-Golpu in Papua New Guinea continues to confirm the continuity  
of the high grade mineralization of the resource. Eight drilling rigs were      
operating by the end of the quarter - two of which were engaged on geotechnical 
assessment for the proposed decline and mine infrastructure locations and six   
were engaged on further definition of the Golpu orebody. The pre- feasibility   
study is on track and the outcomes of the study will be shared with investors   
during the September 2012 quarter.                                              
"We have made excellent strides in the last couple of years in achieving our    
stated strategy of creating a sustainable company that generates free cash flow 
that funds dividends and growth. The March 2012 quarter has been a difficult    
quarter and we have to ensure we continue to improve on all fronts - safety,    
production and returns", said Graham Briggs, chief executive officer.           
ends.                                                                           
Issued by Harmony Gold                                                          
Mining Company Limited                                                          
9 May 2012                                                                      
For more details contact:                                                       
Henrika Basterfield                                                             
Investor Relations Officer                                                      
+27 (0) 82 759 1775 (mobile)                                                    
Marian van der Walt                                                             
Executive: Corporate and                                                        
Investor Relations                                                              
+27 (0) 82 888 1242 (mobile)                                                    
Corporate Office:                                                               
Randfontein Office Park                                                         
PO Box 2                                                                        
Randfontein                                                                     
South Africa 1760                                                               
T +27 (11) 411 2000                                                             
www.harmony.co.za                                                               
Sponsor: J.P. Morgan Equities Limited                                           
Date: 09/05/2012 07:06:01 Supplied by www.sharenet.co.za                     
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