HARMONY Gold, South Africa's third largest gold producer, is emerging from the woods.
The problems of the past five years have to a large extent been overcome, but the company has not yet completely reached open country as chief executive Graham Briggs explained at his presentation of the June quarter's results in Johannesburg yesterday.
Still, the five-year dividend drought had been broken with a R0,50 per share declaration, and the balance sheet had been knocked back into shape with the prospect of future developments being funded entirely from cash flow.
Briggs was confident that gold would reach $1,000 (R8134) an ounce by this year's end.
But he cautioned about the detrimental effect on revenues of a persistently strong rand against the dollar, the recent wage increase and millions of rands of sharply higher electricity costs.