1. How much rand revenue per ounce was Harmony generating on September 11, 2001? Three years later?
2. The average exchange rate during 2001:Q2 was R8.04/$; in 2004:Q2, it was R6.60/$. Compare Harmony's earnings per ounce in rand terms during 2001:Q2 with the same figure in 2004:Q2.
3. Given the exchange rates in question 2, by how much would Harmony have to reduce its rand costs per ounce in 2004:Q2 in order to make the same rand profit per ounce it was earning in 2001:Q2?

The notion of gold as a store of value has flourished since September 11, 2001. On that horrible day, the price of gold stood at $288 an ounce. Three years later, it was around $420 an ounce. Harmony, a South African mining company, should have flourished as well from the jump in the price of gold. However, the rising value of the South African rand has stolen much of that gain. On the day the Twin Towers fell, the dollar bought 8.62 rand. Three years later, it bought only R6.35. Gold is priced in dollars but South African miners are paid in rand and their wages have risen rapidly as well. Harmony has felt the pain.
When gold was at its dollar low in April-June 2001 (2001:Q2) of $252, Harmony made a profit of $20 an ounce. In 2004:Q2, with gold at $390, Harmony lost about $50 an ounce.