Dallas, Texas 02/24/2014 (FINANCIALSTRENDS) – The $1.46 billion market capped gold mining firm, Harmony Gold Mining Co. (ADR) (NYSE:HMY) reported its second quarter results earlier in February. It ended the quarter in the red, recording a loss of $0.02 per share, which was substantially lower than the net earnings of $0.18 per share for the quarter in FY13. The net loss of $10 million for the quarter contrasts hugely against the $77 million profits it had made in 2Q13. Revenue for the quarter was down 24 percent to bottom out at $402 million when compared to its 2Q13 achievement of $532 million.
One of the positive aspects of the earnings call was the fact that production for the quarter had gone up by 5 percent to 305,913 ounces in comparison to 2Q13. But the profits for the quarter came in $97 million, which was almost 50 percent less than the $188 million the gold mining firm had reported in 2Q13. Due to the steep drop in revenue, the firm reported cash and cash equivalents going down by 24.7 percent for the quarter to $222 million.
Outlook For 2014
Harmony Gold Mining Co. (ADR) (NYSE:HMY) has disclosed its plans to bring down its cost of production to lower levels of $1100 to $1150 per ounce which it hopes will lead to a more sustainable business in 2014.
Commenting about the digging in of heels and holding the fort approach the gold mining firm took to return to profitability, Harmony Gold Mining Co. (ADR) (NYSE:HMY) CEO Graham Briggs has been quoted to have said that, “We are talking about some of the operations that are really done very well here, less than $1,000 an ounce, and we’re talking in all cases all-in sustaining cost Joel. Bambanani mine is really starting to perform well, mining the shaft fuller. The decline is almost in operation yet, but is being equipped and certainly that will be better at getting tonnes out there, and Phoenix tailings operation”.