05 May, 2011 11:28
Sherilee L Lakmidas
BusinessLIVE
Harmony Gold Mining CEO Graham Briggs sees gold averaging $1,800 an ounce in the company's next financial year.
"We are gold bulls - there is no doubt about that," Briggs told those attending a presentation of the company's March quarter results today. "We think the gold price will go up," he said. This was particularly likely, given the market's sensitivity to various political and financial risks.
Mentioning the death of the world's most wanted man, Osama Bin Laden, Briggs noted the value that this event had wiped off both the gold price and market capitalisations over the past three days.
The gold price has dropped from its heady high of more than US$1,550 on Monday to US$1,523 by mid-morning on Thursday.
Harmony's share price has lost 4.40%, or R4.39, of its value this week. Its peers have also lost ground. Gold Fields has shed 5.35%, or R6.27, a share while AngloGold declined 4.70%, or R15.63, a share.
"We are very optimistic," said Briggs, who predicted that gold would reach $1,500/oz in the company's current financial year.
Harmony reported a 32% quarter-on-quarter jump in headline earnings per share to 91c for the three months to end March from 69c for the December quarter.
The company's earnings were boosted by a tax credit, whereby the SA Revenue Services (SARS) allowed the company to claim capital allowances. This resulted in a R3.33 billion credit for the company.
Production declined 2% to 316,909 ounces from 323,275 ounces in the previous quarter
Link
Sherilee L Lakmidas
BusinessLIVE
Harmony Gold Mining CEO Graham Briggs sees gold averaging $1,800 an ounce in the company's next financial year.
"We are gold bulls - there is no doubt about that," Briggs told those attending a presentation of the company's March quarter results today. "We think the gold price will go up," he said. This was particularly likely, given the market's sensitivity to various political and financial risks.
Mentioning the death of the world's most wanted man, Osama Bin Laden, Briggs noted the value that this event had wiped off both the gold price and market capitalisations over the past three days.
The gold price has dropped from its heady high of more than US$1,550 on Monday to US$1,523 by mid-morning on Thursday.
Harmony's share price has lost 4.40%, or R4.39, of its value this week. Its peers have also lost ground. Gold Fields has shed 5.35%, or R6.27, a share while AngloGold declined 4.70%, or R15.63, a share.
"We are very optimistic," said Briggs, who predicted that gold would reach $1,500/oz in the company's current financial year.
Harmony reported a 32% quarter-on-quarter jump in headline earnings per share to 91c for the three months to end March from 69c for the December quarter.
The company's earnings were boosted by a tax credit, whereby the SA Revenue Services (SARS) allowed the company to claim capital allowances. This resulted in a R3.33 billion credit for the company.
Production declined 2% to 316,909 ounces from 323,275 ounces in the previous quarter
Link
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