Harmony Gold Falls After Saying Third-Quarter Output Drops 15%

Harmony Gold Mining Co. (HAR) fell after Africa’s third-largest producer of the metal said output in the third quarter through March declined 15 percent from the previous three months.

The shares declined as much as 4.8 percent, the most since April 4, and were 3 percent lower at 54.50 rand by 3:33 p.m. in Johannesburg. Safety concerns relating to weeks of strikes and violence led Harmony to suspend output at Kusasalethu, its biggest mine, the Johannesburg-based company said in a statement.

“More than half of the employees at Kusasalethu have returned to the mine to date and Kusasalethu is expected to return to normal production levels after June 2013,” the company said. “Kusasalethu’s and Phakisa’s performance may further impact Harmony’s June 2013 production quarter.”

Gold output dropped 9 percent in the December quarter from the previous three months because of work stoppages and violence at Kusasalethu in Carletonville, west of Johannesburg. Mining strikes that started at platinum operations and moved to gold, iron-ore and coal mines cost Africa’s biggest economy about 11 billion rand ($1.2 billion) in tax, Finance Minister Pravin Gordhan said on April 2.

To contact the reporter on this story: Jaco Visser in Johannesburg at avisser3@bloomberg.net

To contact the editor responsible for this story: John Viljoen at jviljoen@bloomberg.net

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