Harmony Gold Mining Co. Ltd.
) recorded net earnings (excluding items) of 0.5 cents per share
in first-quarter fiscal 2014 (ended Sep 30, 2013), compared with
earnings of 15 cents per share recorded in the year-ago
On a reported basis, Harmony Gold logged a net profit from
continuing operations of $1 million in the first quarter as
against net profit from continuing operations of $51 million in
the prior-year quarter.
Revenues and Costs
Revenues decreased roughly 22% year over year to $403
million in the first quarter from $519 million registered in
the year-ago quarter. However, revenues increased roughly 9%
sequentially from $369 million as a result of a 15% increase in
Gold production decreased 3.7% year over year to 309,773
ounces (oz). However, gold production increased 12% from
276,109 oz recorded in the prior quarter. The sequential
increase was primarily due to improved recovered grades at the
underground operations including Kusasalethu, Tshepong, Target
1, Phakisa, Hidden Valley and Unisel. Despite the temporary
closure of the shaft earlier this year, Kusasalethu returned to
Gold ounces sold decreased 3.6% year over year to 300,703
oz. However, gold ounces sold increased 15% from 261,901 oz
recorded in the prior quarter.
Cost of sales decreased 12% year over year to $375 million
in the first quarter. Operating profit decreased 39% year over
year to $104 million from $171 million recorded in the
last-year quarter, but increased 46% from $71 million recorded
in the prior quarter.
Gold price received declined 19.3% year over year to $1,342
per oz and decreased 5% sequentially from $1,407 per oz.
Cash operating costs decreased 8.7% year over year to $1,013
per oz and declined 11.5% sequentially from $1144 per oz.
All-in-sustaining costs also declined 19% sequentially to
$1,264 per oz from $1,551 per ounce recorded in the prior
Cash and cash equivalents decreased 17% to $228 million as
of Sep 30, 2013, from $275 million as of Sep 30, 2012. Cash
flow generated from operating activities was $24 million as of
Sep 30, 2013, compared with $174 million as of Sep 30,
Harmony Gold expects continued growth in commodity demand
despite the current gold price volatility. In the last two
quarters, gold prices in Rand per kilogram have been static and
similar trends are expected to continue in the short term. In
order to remain profitable at the prevailing gold price
environment, Harmony Gold has undertaken cost reduction
initiatives along with the moves to improve productivity and
increase gold production. The company's strategy has been
consistent to optimize operational delivery, improve cash flow
and boost shareholders' value.
Harmony Gold currently carries a Zacks Rank #4 (Sell).
Other companies in the gold mining industry worth
Pretium Resources Inc.
Golden Star Resources, Ltd.
). While Pretium Resources and Franco-Nevada carry a Zacks Rank
#1 (Strong Buy), Golden Star Resources holds a Zacks Rank #2
FRANCO NV CP (FNV): Free Stock Analysis
GOLDEN STAR RES (GSS): Free Stock Analysis
HARMONY GOLD (HMY): Free Stock Analysis
PRETIUM RES INC (PVG): Free Stock Analysis
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