Harmony Gold Mining Company Limited (‘Harmony’ or the ‘Company’) is pleased to release its financial results for the period ended 30 September 2011.
“Record operating profits and revenue were generated during this period with the highest operating profit recorded in the history of the company at R1.3 billion, a 45% increase quarter-on-quarter. Harmony’s headline earnings per share increased by 217% to 95 South African cents, when compared to the previous quarter. The strength of the gold price together with improved operational efficiency supported our results”, said Graham Briggs, chief executive officer.
Drilling at Wafi-Golpu confirms the resource outline previously published. The latest borehole intersection (some assays are still pending) at Golpu, WR406, reflected results at 861m of 1.51g/t Au, 1.48% Cu including 199m @ 2.87g/t Au and 2.57% Cu from 1 286m. The pre-feasibility study is on schedule to be delivered during the first half of the 2012 calendar year.
Exploration results from Harmony’s own wholly owned tenements at Mount Hagen in Papua New Guinea were also very encouraging with assays indicating the following bore hole result: PNDD001: 285m @ 0.1% Cu 83 ppm Mo from 72m. Exploration results in PNG have been pleasing and we look forward to more exciting news from the region.
Production for the September 2011 quarter was only slightly higher than the previous quarter. Our targeted increase in production was negatively impacted by the wage strike in August 2011, which resulted in approximately 500kg being lost. As expected, higher electricity (due to winter tariffs) and labour costs resulted in the R/kg costs being 9.2% higher at R265 288/kg compared to R242 851/kg in the June 2011 quarter.
The gold price received increased by 20.3% to R396 405/kg in the September 2011 quarter from R329 536/kg received in the previous quarter. The increase in the gold price resulted in revenues increasing by 14.8% or R506.9 million.
Graham Briggs concluded that “as our growth projects come on stream, and our existing mines operate to tailored business plans, we remain confident of reaching our long-term targets”.
For more details contact:
Investor Relations Officer
+27 82 759 1775(mobile)
Marian van der Walt
Executive: Corporate and Investor Relations
+27 82 888 1242(mobile)