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Harmony Gold Gives Q4 & FY15 View, Updates on Doornkop - Analyst Blog

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Harmony Gold Mining Company LimitedHMY announced that gold production for fiscal fourth quarter (ending Jun 2015) is expected to be 4% to 5% higher than the previous quarter. The company expects gold production for the year ended Jun 30, 2015 to be 1.08 million ounces.

Harmony Gold, on May 19, commenced a 60-day consultation process with organized labor at its Doornkop mine in order to find ways to return the mine to profitability or to place it on care and maintenance. The company along with the unions concluded that a new operational plan will be adopted for Doornkop that will return the mine to profitability. This will also save considerable number of jobs.

The mine's new plan will affect just 526 employees, most of which will either be transferred somewhere else within the company or re-skilled. Alternatively, the employees will have the option to accept a voluntary severance package.

Harmony Gold is expected to release its results for the fourth quarter and year ended Jun 30, 2015 on Aug 18. The company reported a loss of 5 cents per share in third-quarter fiscal 2015 (ended Mar 31, 2015), that compared unfavorably with earnings of a penny per share recorded in the year-ago quarter. The bottom line was affected by lower gold pricing and high mining costs.

Revenues decreased 17.5% year over year to $292 million in the third quarter from $354 million registered in the year-ago quarter. The decline resulted from lower gold volumes and gold prices in the reported quarter.

Harmony Gold currently carries a Zacks Rank #4 (Sell).

Better-ranked stocks in the mining space include Sandstorm Gold Ltd. SAND , Vista Gold Corp. VGZ and Primero Mining Corp. PPP . All of these stocks carry a Zacks Rank #2 (Buy).

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PRIMERO MINING (PPP): Free Stock Analysis Report

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


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

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