Harmony Gold Mining Company has posted a net profit for the March 2014 quarter of R31 million, compared to a net loss of R91 million in the December 2013 quarter.

All-in sustaining costs decreased by 18% from US$1 509/oz for the nine months ended March 2013 to US$1234/oz for the nine months ended March 2014 and remained steady compared to the December 2013 quarter.

Furthermore, its underground recovered grade increased for a third consecutive quarter, representing a cumulative increase of 17% for the 2014 financial year. Harmony’s net debt reduced by 13%, leaving the company with a strong cash balance of more than R2 billion. Study work at Wafi-Golpu continued to evaluate underground access options and a substantially lower capital expenditure development option.

“Various structural changes have been effected in Harmony which will aid in the pro-active management of unplanned events which have negatively impacted on our production. In parallel, our revised planning strategy will shift the focus toward de-bottlenecking and optimisation, and should also result in an increase in the Company’s margins. We remain committed to increasing our profits and cash flow to enable us to pay dividends in the future”, said Graham Briggs, chief executive officer.

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