Daily Metal Market News & Metal Prices
 
Daily Metal Prices & Market News
Sunday 05th of February 2012
Wednesday, August 29, 2007

Harmony faces critical six months

Story link: Harmony faces critical six months
by Gill Montia
Harmony faces critical six months

Harmony Gold Mining has sold its remaining 2% interest in Gold Fields, at a loss of R450 million.

The transaction raised R1.35 billion for the company and the money has been used to repay its entire R1.3 billion long-term debt to Rand Merchant Bank.

In recent weeks both Harmony’s chief executive officer and finance director have resigned, as results for the June quarter were delayed.

Harmony’s basic earnings reduced from R83 million in the March quarter, to losses of R652 million in the June quarter.

The result has been attributed in part to the installation of a new accounting system and several audits of the company’s systems and accounts are now taking place.

The company’s costs increased sharply in the June quarter, apparently as a result of some of the March quarter’s costs being captured in the June 2007 quarter.

Sector analysts are agreed that the next six months will be critical to Harmony’s survival.

The company will need to seek external funding to sustain its growth plans, or it could review its operations and opt for closures and retrenchments.

According to Graham Briggs, Harmony’s acting chief executive officer, the company has now adopted a “back to basics approach” to management.

 


Related posts to: Harmony faces critical six months

Harmony issues profit warning ...

Harmony plans disposals as losses decrease ...

Harmony finances in disarray ...

Harmony miners in large scale rescue ...

Papua New Guinea provides new prospects for Harmony ...

Latest Metals News:

Latest News  Gold ends session lower in New York, but gains on week

Latest News  Gold prices retreat after setting new intraday high

Latest News  Gold closes at $1,666 per ounce in New York trade

Latest News  Gold prices at new records on disappointing US data

Latest News  Gold prices lower but comes off session lows on manufacturing data

Latest News  Gold sets new intraday, closing highs to end trading week in New York

Latest News  Copper rises; precious metals prices see declines

Latest News  Gold prices drop on profit-taking, stronger US dollar

Latest News  $1,616.80 per troy ounce: Another record high for gold

Latest News  Gold trades as high as $1,624.30 per ounce in New York


Previous: «
Next: »

Visited 1397 times, 1 so far today

Gold ($/troy ounce):

Silver ($/troy ounce):

Platinum ($/troy ounce):