I love Harmony, management rocks !!!
The rand hedge is now coming in to focus, with the gold price up and rand dropping, I adjusted the KG price by a third based on the fact that only a third of production has been hedged at R15.80, thereabouts. as the price of gold increases and the rand decreases, the adjusted price that Harmony receives increases despite the rand falling and the effect is even more pronounced.
Last week speculators dumped/shorted an undervalued share that is also a growth share. The recent market turmoil has shaken the worlds population and their risk management strategies have been disrupted. With the rebalancing I am beginning to think that responsible portfolio managers will now increasingly advise their clients to hold gold and silver and this should maintain demand and the price above 1150 at least which ensures that our mines will be profitable and cash flush. This does not account for the increase in Cu price with global recovery.
I think Harmony is an undervalued growth share with at least a 30 % upside in the month and at least 100% within 2 years if not more.
Please advise?
Gold price; gold price /3 ; gold price 2/3 ; current R ; hedge; gold price hedge ; adjusted gold price
582000; 194 000.00; 388 000.00; 14.4 ; 15.8 212 861.11 ; 600 861.11
586466 195 488.67 390 977.33 14.27 15.8 216 448.56 607 425.89
589000 196 333.33 392 666.67 14.2 15.8 218 455.40 611 122.07
Edited by Investment novice, 29 April 2016 - 08:36 AM.