HomeGoldHarmony forecasts lower third-quarter production

Harmony forecasts lower third-quarter production

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Johannesburg, South Africa — MININGREVIEW.COM — 01 April 2010 – Harmony Gold Mining Company “’ the world’s No.5 gold producer “’ says third-quarter production is expected to fall due to safety issues and closure of shafts, but the company forecasts stronger fourth quarter output.

In a statement released here, Harmony said it would lose about 41 796 ounces overall, partly to due the closure of loss-making shafts, in the third quarter which runs to the end of March.

This resulted in a loss of about 26 000 oz of gold, compared with the previous quarter, and a R120 million cost, due to the shaft closures.

Harmony said the rest of the losses in output resulted from a slow start-up after the Christmas break, lower grades, safety stoppages and other operational issues which had affected some of its South African mines.

“This has been a difficult quarter,” said Harmony CEO Graham Briggs. “Longer term the effect of this decision (shaft closures) will be shown to have been the correct one, lowering the cash costs and eliminating losses. However, the first 3 to 6 months of these decisions are always painful,” he added.

“In general, we expect to see improved results during the June quarter, with all of our management teams dedicated to meeting production targets,” Briggs predicted.