Harmony seeks buyers

JOHANNESBURG – South Africa’s Harmony Gold said yesterday its financial advisers were holding talks with parties interesting in buying its uranium assets.

The firm, the world’s fifth-biggest gold producer, also said in a presentation on its Web site it was progressing with options regarding its Wafi/Golpu copper-gold project in Papua New Guinea and hoped to retain a 50 per cent stake. Harmony also said tonnes of underground ore produced in South Africa and the grade during the three months to end-September rose compared with the previous quarter while cash costs declined closer to the six-month average.In August, Harmony posted a headline loss of 166 South African cents per share for the quarter to end-June due to falling production and rising costs.Gold output fell nine per cent to 527 141 ounces during the June quarter, while cash costs jumped 44 per cent to 149 180 rand per kg.Chief Executive Graham Briggs, who took over in early August, has launched a plan to cut costs and dispose of non-core operations.Swanepoel had earlier said the company would likely seek a base metals partner for the Wafi-Golpu project since it probably had more copper than gold.The presentation gave no details about the project, but elsewhere on the Web site Harmony said it had already found 9,3 million ounces of gold and 3,6 billion pounds of copper in a small area around Wafi Hill.Swanepoel told Reuters in May that its uranium assets might be valued at five billion to 15 billion rand depending on uranium prices and he was hoping to list the assets as a separate company.Nampa-ReutersHarmony also said tonnes of underground ore produced in South Africa and the grade during the three months to end-September rose compared with the previous quarter while cash costs declined closer to the six-month average.In August, Harmony posted a headline loss of 166 South African cents per share for the quarter to end-June due to falling production and rising costs.Gold output fell nine per cent to 527 141 ounces during the June quarter, while cash costs jumped 44 per cent to 149 180 rand per kg.Chief Executive Graham Briggs, who took over in early August, has launched a plan to cut costs and dispose of non-core operations.Swanepoel had earlier said the company would likely seek a base metals partner for the Wafi-Golpu project since it probably had more copper than gold.The presentation gave no details about the project, but elsewhere on the Web site Harmony said it had already found 9,3 million ounces of gold and 3,6 billion pounds of copper in a small area around Wafi Hill.Swanepoel told Reuters in May that its uranium assets might be valued at five billion to 15 billion rand depending on uranium prices and he was hoping to list the assets as a separate company.Nampa-Reuters