South African gold miners downgraded by HSBC

South African miners AngloGold Ashanti (AU +0.8%), Harmony Gold (HMY +0.3%) and Sibanye Gold (SBGL +3.2%) are cut to Sell from Hold at HSBC, which says lower gold prices are cutting margins.

Foreseeing a 12-month period of "momentous pressure" on the industry, the firm expects "extremely tough operating conditions given the current tensions between management and labor, as wage negotiations enter dispute, and the negative implications of potential restructuring on industry jobs."

Gold Fields (GFI +0.5%), which spun off SBGL earlier this year, is HSBC’s preferred South African gold miner with a Hold rating.

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