Tuesday, 9th August 2005 (2419 views)

Harmony Group has announced disappointing June quarter and FY05 results but remains optimistic about the future.

The company produced 2,97 million ounces of gold at an average operating cost of US$412 per ounce.

Although this shows an 11 per cent decline in production for the year, Harmony chief executive, Bernard Swanepoel was upbeat.

"Following a number of delays our re-structuring process is approaching completion. This has seen the transformation of our balance sheet through the sale of non-strategic assets and the completion of the re-structuring should see us restore operating health to our South African mines," he said.

Harmony is now operating at a profit; the figures have already risen up from an operating loss of R55 in March to a profit of R45 in June.

In the future, Harmony plans to invest in both existing and new projects with surface infrastructure upgrades and systems replacement aiming to increase production.

Harmony has been hard hit by the low rand gold price in South Africa as the majority of its operations are there.


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