Dallas, Texas 02/04/2014 (FINANCIALSTRENDS) – Harmony Gold Mining Co. (ADR)(NYSE:HMY) reported decline in production levels on Feb 3, 2014. The company reported loss to the tune of $10million, which is yet to be adjusted for the previous quarter. The gold miner had reported $2million profit for the last quarter. The sharp decline this quarter is due to the fall in bullion prices as well as production fall.
HMY had reported that the fall was to the tune of 1% which was roughly to the tune of 3.6 million oz. in the previous quarter. During this period the gold price too showed a sharp fall of 4.8% valued at $1,277/oz. HMY reports all-in costs dropping 3.3% to the region of $1,222 per oz.
Just last month, in January, the mines located in South Africa found reprieve as most mines, as employees had yet to begin platinum strikes.
Harmony Gold Mining Co. (ADR) (NYSE:HMY) unlike other miners had a way out with the strikers. Along with other gold producers, the company challenged AMCU labor union through court direction. Apparently, the court settlement will determine the status of the strikers.
Previously in December, most of the gold producers have reworked on their projects. This has meant the overall production of gold in December recorded a good quarter on quarter growth for the period in comparison. The new gold producing fields included the miens of AngloGold – Tropicana as well as the Kibali projects. However, the overall fundamentals for the sector continue to be bearish in nature. The strikes in the gold mines across South Africa, is due to the pay disparity. The AMCU, which is the trade body at the largest mine in South Africa, for the mining employees had placed higher pay demands before the localized gold miners. Accordingly, HMY received a Sell rating by Citi in the midweek of January. January first week had helped most companies to see a surge as gold prices had crested well above traditional mark points.