Value Microcaps Junior Miners

[silver100]

I think the case for South African miners is more of a currency play than anything else - Betting that the Rand's recent rise will reverse and that costs of companies based there will go down.

"Companies such as Johannesburg-based Anglo Platinum Ltd. and Sasol Ltd., which incur costs in rand and make dollar- denominated sales, have said that the rand’s strength is eroding their profit margins. Grain SA, a farmers group, said on Oct. 13 that the rally in the currency was hindering efforts to export a 4.5 million metric ton grain surplus."

From: South Africa Cuts Rates to Record as Rand Surge Keeps Inflation in Check

http://www.bloomberg.com/news/2010-11-18/south-africa-cuts-rates-to-record-as-rand-surge-keeps-inflation-in-check.html