Gary Bourgeault
Long only, research analyst, portfolio strategy, media

Stay Away From Harmony Gold

Mining in South Africa is fraught with risk, and in the current gold environment that doesn't bode well for Harmony Gold Mining (NYSE: HMY), which has just come off a bad quarter and is facing more challenges in this quarter and the quarters ahead.

Harmony Gold has recently entered into negotiations with unions in South Africa which have continued to make unrealistic demands. Demands in the past, as far as compensation goes, easily surpassed the cost of living. The problem is by caving in negotiation after negotiation, it has emboldened unions to continue to demand compensation the industry, and Harmony Gold in particular, can no longer afford. That could set the stage for shutdowns or slowdowns which will...

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