Dineo Faku
HARMONY Gold, South Africa’s third-largest gold producer, reported a R60 million boost to net profit for the financial year to June.
Harmony, which published its annual report yesterday, said the financial statements in the report contained a change relating to taxation following the handing down of a Supreme Court of Appeal judgment in the matter of the mining ring fencing application made by the SA Revenue Service on October 1.
Profit from continuing operations and net profit for the year each increased by R60m to R2.053 billion and R2.645bn respectively.
Headline earnings a share increased by 14c a share to R5.65, while diluted headline earnings rose to R5.63 a share.
The increase in earnings was mainly as a result of the increase in the average dollar gold price received of 23 percent and the 11 percent weakening of the rand against the dollar, the company said.
It added that headline earnings a share had been increasing and were showing a positive trend since the 2008 financial year.
Its total comprehensive income for the year increased by R60m to R4.232bn, and as a result, retained earnings advanced from R3.247bn to R3.307bn.
Harmony issued a final ultimatum to the 5 400 striking workers at its Kusasalethu mine near Carletonville last Tuesday, as the wildcat strikes crippled the mining industry. The strike ended as 98 percent of the workers returned to work last Thursday.
As a result of the strike, Kusasalethu lost about 20 days of production, amounting to nearly 13 000 ounces.
Harmony said the results would be presented at its annual general meeting on November 28.
Harmony shares fell 2.7 percent to R69.28 yesterday, a drop that partly reflected general weakness in the sector.