Harmony Gold Doing its Math on Hidden Valley

Gold Mining In South Africa

(Mining Weekly) – Harmony Gold, the third largest mining company in South Africa, started compiling 2014 business plans and expects to complete it by on June 30.

The gold producer Harmony Gold listed in Johannesburg Stock Exchange (JSE) and New York Stock Exchange (NYSE) said on Tuesday that it is compiling data for 2014 business plan. They noted that a fraction of the carrying value of its Hidden Valley mine in Papua New Guinea might be reduced.

The new business plan would be completed on June 30, by the end of its 2013 fiscal year, the mining company said. The plans would be used to assess the carrying value of its assets to determine any impairment required, they added. They expect to write-down the original cost values of their assets to determine any reduction in the company’s stated capital.

Decisions would take into account estimates of future gold price, exchange rates, life-of-mine plans, operating costs and capital costs estimates. These are the main factors affecting gold production costs in Africa.

Hidden Valley mine is likely to be impaired due to its recent awful performance and the recent dip in the gold price. Harmony expects to have the results of impairment testing by the end of July.

Harmony Gold shares in NYSE lost 2.67% of its value today. During the fiscal year 2012, they reported total and probable reserves of 52.9 million ounces of gold, mainly from South African sources, according to Reuters.