Johannesburg - Mining company Harmony Gold recorded a net loss of R1.27 billion for the 2013/14 financial year ending June 30, according to its audited financial results released on Thursday.
The company said in a statement the audited financial statements contained no modifications to the results published on August 14, apart from the inclusion of three reclassifications.
This was between the operating and investing activities categories on the cash flow statements, as follows:
- Interest and dividends received (operating activities) and increase in restricted investments (investing activities) increased by R7m in the 2014 year;
- Cash generated by operations (operating activities) and other investing activities (investing activities) decreased by R10m in the 2014 year;
- Cash generated by operations (operating activities) and net additions to property, plant and equipment (investing activities) increased by R133 million in the 2014 year and R312 million in the 2013 year.
“These changes relate to the adoption of IFRIC 20 Stripping Activities during the Production Phase of a Surface Mine,” Harmony said.
“The restatements had a net zero effect on the cash flow statement and had no impact on the income statement, statement of comprehensive income and the balance sheet.”
The net loss was mainly due to the R1.38bn impairment of the company's Phakisa mine, while the company's net loss was an improvement on 2012/13's net loss of R2.3bn.
Though the impairment reduced net profit, it did not have an impact on reported cash balances, free cash flow or headline earnings.
An impairment of a fixed asset is a decrease of its value due to damage, non-use, or other reasons.
Total headline earnings per share were 26 cents a share, confirming the company's initial release of fourth quarter and year-end results on August 14.
Capital expenditure was R2.52bn, with exploration spend being R458 million.
Gold production increased by three percent to 36,453kg (1.17moz) compared to the 2013 financial year, with a four percent decrease in all-in sustaining costs to R413,433/kg for 2013/14.
Production profit was R3.8bn compared to R4.6bn in the previous financial year, mainly due to a five percent decrease in the rand gold price received, and a four percent increase in cash operating costs for 2013/14. - Sapa