Harmony Gold Mining reported a headline loss of 120 cents per share for the first quarter of the 2015/2016 financial year, compared with a 44-cents profit in the preceding quarter as a R426-million foreign exchange loss on US borrowings took its toll.
The miner, however, reported a 10-percent increase in total gold production to 8 752kg for the quarter to end-September from the quarter to end-June – with a 17-percent rise in underground South African gold output to 7 676kg – and said it was on track to meet its full-year guidance.
The forex hit aside, Harmony’s basic loss per share narrowed to 120 cents from 725 cents as its restructuring – to focus on boosting production and controlling costs – proved fruitful.
Production profit rose 12 percent to R701 million and the company generated free cash flow of R122 million.
“We have restructured each of our operations to ensure that our company is profitable even in a tough gold price environment… Our focus is therefore on increasing our margins – not only through capital curtailment and cost reductions, but most importantly through increasing our production,” said Chief Executive Officer Graham Briggs.
