Board-Ansicht
Mix-Ansicht- Make Money with Harmony..................... - Emerald, 31.10.2006, 15:26
Make Money with Harmony.....................
-->Harmony finally turns a profit
Allan Seccombe
Posted: Tue, 31 Oct 2006
[miningmx.com] -- HARMONY GOLD has posted its first profit in three years on the back of a high rand gold price and an upswing in its production and grades, CEO Bernard Swanepoel said on Tuesday, calling the results “pleasing”.
Harmony posted a profit of R277m in the three months to end-September from the previous quarter’s loss of R41m.
The South African underground mines increased their grade by six percent per tonne and seven percent more tonnes were milled. The received rand gold price was R12,000/kg higher than the previous quarter.
Cash operating costs were four percent higher in the quarter at 97,538/kg on the back of increased wages on South African mines as well as paying a higher winter tariff for power.
“Harmony has produced a pleasing set of results for the quarter and I am confident that we will unlock further value through vigilant cost containment and by increasing Group production to 3.5Moz over the next four years,” Swanepoel said.
The market appeared happy with the results, pushing the company’s shares up 2.4% to R113.70.
Harmony closed 25,000 oz of its hedge book during the quarter for a cost of R41m and 10,000 oz of call options for R14m. As at 25 October, the marked-to-market value of the book was a positive R58m. The total net delta of the book at the end of September was 291,991 oz.
Free news alerts: click here to subscribeHarmony has a suit of projects to grow production and replace ounces over coming years and most of these are within budget, Swanepoel said. There are delays at two. Tshepong will still meet its full production target date despite encountering poor ground conditions.
Drilling at the Wafi/Golpu project has been delayed by five months, but no reasons were given.
Capital expenditure on the five big growth projects reached R230m from R122 in the previous quarter.
Thread gesperrtgesamter Thread:
