Harmony Gold Mining Company Ltd (HMY)

[brandemarcus]

Two things:

1. Further Financial problems world wide could lead to a flight to safety rally in the dollar vs the rand. Gold may increase more than the dollar and oil will be under pressure. This is the perfect scenario for hmy in the short term.


2a. The hidden factor in the very long term is Wafi Golpu. One of the largest copper/ gold discoveries on the planet and hmy still owns 50% after selling 50% to Newcrest back in 2007 for 525 million or 75% of market cap of hmy today.

2b. yes , it's going to cost 2 billion,but by 2020 -I think at current copper prices - Production would be 300k of gold at negative 2000 price counting the revenue copper. We have no idea how much more gold ,copper could be there. To be fair, there is also substantial risk that PNG government will do what their neighbors in Indonesia are doing to Freeport Mcmoran.