Harmony Gold Reports Loss in 3Q - Analyst Blog

By
A A A

Harmony Gold Reports Loss in 3Q

Harmony Gold Mining Co. Ltd. ( HMY ) recorded a net loss of 5 cents per share in third-quarter fiscal 2013 (ended Mar 31, 2013), compared with earnings of 30 cents per share recorded in the year-ago quarter. The results missed the Zacks Consensus Estimate of earnings of 26 cents.

Revenues and Costs

Revenues were down 26% sequentially and 5.3% year over year to $395 million.

Gold production decreased 15% sequentially and 12% year over year to 247,529 ounces (oz). The sequential decrease in production was due to the temporary closure of the Kusasalethu mine because of safety and security reasons, the damage to the ventilation shaft at Phakisa and a slow start-up at the other operations.

Cost of sales fell 10% sequentially to $367 million but rose 4.6% year over year. Gross profit amounted to $28 million in the reported quarter, a decline of 77.6% sequentially and 57.6% year over year.

Financial Overview

Cash and cash equivalents amounted to $336 million as of Mar 31, 2013, versus $186 million as of Mar 31, 2012.

Cash flow generated from operating activities was $23 million as of Mar 31, 2013, compared with $88 million as of Mar 31, 2012.

Outlook

Post the third quarter, gold prices fell sharply to about $1400/oz and Harmony Gold will take measures to reduce costs. The company expects to reduce services and corporate costs in South Africa by R400 million ($44.4 million) and overall capital expenditure in both South Africa and Papua New Guinea (PNG) by R1.4 billion ($155.3 million) for the financial year ending Jun 30, 2014.

Harmony Gold, which is among the most prominent gold miners along with Barrick Gold Corporation ( ABX ), Newmont Mining Corporation ( NEM ) and Goldcorp Inc. ( GG ), has world-class mines in South Africa and PNG.

Harmony Gold currently carries a Zacks Rank #3 (Hold).



BARRICK GOLD CP (ABX): Free Stock Analysis Report

GOLDCORP INC (GG): Free Stock Analysis Report

HARMONY GOLD (HMY): Get Free Report

NEWMONT MINING (NEM): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: ABX , GG , HMY , NEM , PNG

Zacks.com

Zacks.com

More from Zacks.com:

Related Videos

Stocks

Referenced

Most Active by Volume

139,392,686
  • $5.41 ▼ 18.52%
108,086,733
  • $17.04 ▲ 1.61%
88,411,032
  • $42.085 ▼ 1.19%
35,897,863
  • $101.79 ▲ 0.21%
34,635,836
  • $46.68 ▲ 0.34%
31,162,075
  • $4.36 ▲ 12.37%
31,086,421
  • $26.21 ▲ 0.61%
30,930,862
  • $17.09 ▼ 2.95%
As of 9/18/2014, 04:15 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com