A higher gold price helped Harmony
says it has turned things around and posted “a quarterly profit despite a fall in production,” reports Fin24
. Helping the gold producer climb out of loss territory was “a smaller foreign-exchange loss on a US denominated loan”.
Also helping Harmony out was a “higher gold price,” says BDLive
. Over the three months to the end of March, production fell 6% to 269,035 ounces.
Headline earnings per share came in at 12c for the quarter, adds BDLive
. That’s up from a 21c loss posted for the three months to the end of December.
That equates to a net profit of R31 million, notes Mining Weekly
. That’s compared with a “net loss of R91 million in the December quarter”.
Harmony is putting a priority on safety
Following the deaths of nine miners in February at Harmony’s Doornkop mine
, CEO Graham Briggs says it’s “taking ‘fairly drastic measures’ on safety,” reports Fin24
. Mr Briggs says they “have independent outsiders doing a completely safety review of all our operations”.
The better gold price Harmony received saw get $1,294 an ounce, reports Bloomberg
. And the quality of the gold mined also improved by 5%.
Over the quarter, Harmony wrote down R29 million for “the early closure of its Steyn 2 shaft… prompting the company to close the mine six months earlier than planned,” notes BDLive
. And the gold producer “spent R90 million on retrenchment and restructuring”.
At time of writing, shares of Harmony were trading 3.15% higher at R36.72.
So despite a fall in production, Harmony benefitted from the rand dollar exchange rate pushing the company into profits.