HARMONY: 3,206 +104 (+3.35%)
Harmony Gold says impairments will dent full-year earnings
JOHANNESBURG, Aug 17 (Reuters) - South Africa's Harmony Gold
said on Friday its full-year earnings would be lower
than last year due to impairments against a number of its mines
as well as foreign exchange losses.
The gold producer said it expected headline earnings per
share (HEPS) - the main profit measure in South Africa that
strips out certain one-off items - to fall to between 164 and
179 cents in the year ended June 30, 2018, from 298 cents a year
The company is due to report full-year results on Tuesday.
Harmony said it made impairments of 5.3 billion rand ($386
million) against the following mines - Tshepong, Target 1, Joel,
Kusasalethu, Unisel, Masimong, Doornkop and the undeveloped
Target North - due to spiralling costs and a subdued gold price.
Its full-year results would also be hit by an exchange rate
loss of about 669 million rand on its U.S. dollar-denominated
debt, compared to an exchange rate gain of 215 million rand in
the previous comparable period.
Harmony Gold and other South African gold producers are
engaged in annual wage negotiations with unions.
Unions rejected an initial offer from the companies and are
now discussing a revised offer.
Harmony Gold's shares were down 2.5 percent at 21.77 rand at
($1 = 14.8761 rand)
(Reporting by Nomvelo Chalumbira; Editing by Susan Fenton)
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