Harmony Gold Reports Loss in 3Q - Analyst Blog
May 08 2013 - 1:43PM
Zacks
Harmony Gold Reports Loss in 3Q
Harmony Gold Mining Co. Ltd. (HMY) recorded a net loss of 5 cents
per share in third-quarter fiscal 2013 (ended Mar 31, 2013),
compared with earnings of 30 cents per share recorded in the
year-ago quarter. The results missed the Zacks Consensus Estimate
of earnings of 26 cents.
Revenues and Costs
Revenues were down 26% sequentially and 5.3% year over year to $395
million.
Gold production decreased 15% sequentially and 12% year over year
to 247,529 ounces (oz). The sequential decrease in production was
due to the temporary closure of the Kusasalethu mine because of
safety and security reasons, the damage to the ventilation shaft at
Phakisa and a slow start-up at the other operations.
Cost of sales fell 10% sequentially to $367 million but rose 4.6%
year over year. Gross profit amounted to $28 million in the
reported quarter, a decline of 77.6% sequentially and 57.6% year
over year.
Financial Overview
Cash and cash equivalents amounted to $336 million as of Mar 31,
2013, versus $186 million as of Mar 31, 2012.
Cash flow generated from operating activities was $23 million as of
Mar 31, 2013, compared with $88 million as of Mar 31, 2012.
Outlook
Post the third quarter, gold prices fell sharply to about $1400/oz
and Harmony Gold will take measures to reduce costs. The company
expects to reduce services and corporate costs in South Africa by
R400 million ($44.4 million) and overall capital expenditure in
both South Africa and Papua New Guinea (PNG) by R1.4 billion
($155.3 million) for the financial year ending Jun 30, 2014.
Harmony Gold, which is among the most prominent gold miners along
with Barrick Gold Corporation (ABX),
Newmont Mining Corporation (NEM) and
Goldcorp Inc. (GG), has world-class mines in South
Africa and PNG.
Harmony Gold currently carries a Zacks Rank #3
(Hold).
BARRICK GOLD CP (ABX): Free Stock Analysis Report
GOLDCORP INC (GG): Free Stock Analysis Report
HARMONY GOLD (HMY): Get Free Report
NEWMONT MINING (NEM): Free Stock Analysis Report
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