South Africa's Harmony Gold Mining Company Limited (HMY) conducts underground and surface gold mining. It is also engaged in related activities such as exploration, processing, smelting and refining.

On October 31, 2008, Harmony Gold Mining Company Limited reported results for the first quarter of fiscal 2009 ended September 30, 2008. In the reported quarter, the company reported earnings from continuing operations of $0.012 (R0.117) per diluted share compared to net loss of $0.014 (R0.133) in the first quarter of fiscal 2008.

Revenue from continuing operations increased 25% to $275 million (R2,682 million) from $220 million (R2,140 million) reported a year ago due to higher gold price. The gold production decreased by 10% y-o-y to 396,803 oz during the quarter.

Going forward, Harmony is focused on reducing its overall operating costs through its CONOPS agreement and the shutdown of loss-making shafts. The company is also reducing its headcount to control costs. As a result, we rate the shares a Hold with a target of $7.50.