Harmony sees increase in profit

By Drum Digital
04 February 2013

Gold producer Harmony Gold reported a 16 percent increase in operating profit in its December 2012 quarter results, released on Monday.

"The increase in operating profit was due to an increase in the gold price received and a decrease in cash operating costs," the company said in a statement.

An interim dividend of 50 cents per share was declared.

An unprotected strike and labour disruptions at the company's Kusasalethu operations saw gold production decrease nine percent in the December 2012 quarter, from 10,013kg to 9074kg.

In November last year, two workers were killed and a third injured during violence believed to be the result of rivalry between the Association of Mineworkers and Construction Union and the National Union of Mineworkers.

Management and unions had been in talks about ending conflict at the mine since workers ended an unprotected strike on October 25.

The company's South African operations, excluding Kusasalethu, increased production by three percent.

"A six percent increase in underground grade quarter-on-quarter, and a nine percent increase in the rand gold price, contributed to a 16 percent increase in the operating profit to R1.6 billion," chief executive Graham Briggs said.

-by Sapa

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