Harmony Gold Reports Loss in 3Q
Harmony Gold Mining Co. Ltd. (
) 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
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
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.
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
Harmony Gold, which is among the most prominent gold miners along
Barrick Gold Corporation
Newmont Mining Corporation
), has world-class mines in South Africa and PNG.
currently carries a Zacks Rank #3 (Hold).
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