Solid results for Harmony despite strike losses

Harmony has reported a R1.4bn September quarter operating profit

Solid results for Harmony despite strike losses
Solid gold results for Harmony

Harmony Gold Mining Company (Harmony) has reported a R1.4 billion September quarter operating profit, a 9% increase quarter-on-quarter, despite strike action at its Kusasalethu mine near Carletonville, which would trim 25,000 ounces off its full-year production target of 1.3 million oz.

The strike, which involved 5 400 employees over 23 days (excluding an estimated 10 day start-up period), carried a cost of R200 million. The impact on profit was R125 million with a total opportunity cost of R325 million.

The strike, which was resolved after unions accepted a Chamber of Mines proposal to improve the wages of entry-level workers, would result in Harmony’s labour costs rising by R10 million per month.

Gold production in the quarter totalled 321 924 oz, an 8% improvement over the June quarter, a performance that was aided by an improvement in the gold price received, which, at $1 663/oz, was a 5% increase quarter-on-quarter.

Headline earnings of R529 million compared to a R27 million loss in the June quarter. Harmony’s figures included contributions from now-discontinued assets, including R89 million from Evander Mines, which Harmony is in the process of selling to Pan African Resources.

comments powered by Disqus

RW1
R1
R1
R1

This edition

Issue 36
Current


Archive


Mining_Magazine There's still time to secure your seat at the 2018 Tomorrow's Leaders Convention taking place at at Emperor's Palac… https://t.co/RYbHoT379O 10 days - reply - retweet - favorite

Mining_Magazine Only genuine participation can save SA mining https://t.co/c7FSzweXnG https://t.co/m4ho1jCexv 2 months - reply - retweet - favorite

  • Phindafike Nzimande
  • Ke Refiloe WagaNkau
  • Sinethemba Nopulula
  • Siyabonga Buthelezi