Harmony Shares Decline Due to Earnings, Quality Concernsadmin
Shares of Harmony Gold Mining Co. Ltd., the world’s fifth largest gold producer, more than 4 percent Friday after the company reported a decline in the quality of its gold.
The company reported that net income for the quarter ending Dec. 31 rose to 468 million South African rand ($64 million) from 24 million rand in the same period a year earlier. Revenue dipped 3 percent to percent to 2.7 billion rand.
But earnings slipped 33 percent from the previous quarter, analysts noted. Merrill Lynch analyst Shaylen Trikamjee wrote that the results were below Merrill’s estimates for the quarter.
Trikamjee also wrote that the company’s gold ore grades dropped 7 percent from the previous quarter.
“The major source of lower grades was also, disappointingly, at Harmony’s ‘quality’ operations,” Trikamjee said.
Shares of Harmony dropped 64 cents, or 4.7 percent, to $13 on the New York Stock Exchange.
Source: AP via biz.yahoo.com