Harmony to remain competitive in tough times

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“Our business plans for the financial year (FY15) were designed to ensure that the company is profitable and cash generative at a gold price of 425,000 rand/kg. As 91 per cent of our gold production is produced in South Africa, the rand US dollar exchange rate remains important,” he said.

“We are gold bulls and believe that the company must continue to be competitive in times of low gold prices to ensure that when the gold price strengthens, we will reap the benefits for all our stakeholders.”

The South African miner saw its gold production increase by six per cent to 9,435 kg for the quarter ending 30 September 2014 from 8,935 kg for the quarter to June 2014.

[DATA HAR:Harmony Gold]’s Bambanani, Target 1, Target 3, Doornkop and Masimong operations were among those that contributed to the production increase while gold production at Tshepong, Joel and Hidden Valley were lower.

(READ MORE: Harmony’s Target 3 placed on care and maintenance)

During the quarter, the company reported revenue growth of 18 per cent to 4.4 billion rand from 3.7 billion rand in the June 2014 quarter.

However, it also reported a loss before taxation of 302 million rand in the September 2014 quarter from a loss of 1.5 billion rand in the previous quarter and a basic loss per ordinary share of 61 cents from a loss of 282 cents.

(WATCH VIDEO: Harmony Gold falls into Q4 loss)

“Our efforts to improve efficiencies are aimed not only at mining and processing, but in every aspect of our business. We remain the most efficient South African gold miner, focused on improving our margins and funding our capital,” Briggs said.

“Harmony owns 50 per cent of the spectacular Golpu ore body in Papua New Guinea, which has the potential to develop into a world-class copper gold mine and will allow us to sustain our business well into the future.”