[miningmx.com] — HARMONY Gold’s full-year production target seems to be out of reach after the company reported a 2% quarterly output decrease.
Posting results for the three months to end-March on Thursday, Harmony said it produced 316,909oz during the period, down 2% from the December quarter.
The group has in its financial year to date produced 976,834oz of gold, leaving it with probably too much to do in its final quarter to reach its original target of between 1.63 million oz (moz) and 1.65moz.
However, CEO Graham Briggs said its South African assets would bear fruit over time.
“We have invested significant capital to build and commission some of the
best South African gold mining assets and the results of these efforts will be fully realised in the future,’ said Briggs.
“Our transformational efforts and strategic initiatives undertaken over the last few years are all aimed at achieving robust and sustainable financial results, with better cash costs and improved grade.
“These together with Hidden Valley will be significant contributors to Harmony`s set production targets.’
The group reported headline EPS, of 91c in the three months to end-March, versus 69c in the previous quarter.
That was below the average estimate of 97.3c in a Reuters poll of analysts. Harmony said last month it expected a deferred tax credit to lift its earnings.
Harmony is the first of South Africa’s big three gold miners to release results for the March quarter, a period analysts expect will be a tough one for the industry due to post-Christmas sluggishness and other factors.
