| To: Rich1 who wrote (202) | 6/1/2002 11:16:57 AM | | From: sea_urchin | | | | Rich >Doest the Use it or Lose Land Act concern you???
As an investor, not particularly. I presume certain miners must be pretty upset about it but it seems they have adjusted to it. We never read about it in the papers.
The idea behind it (which I understand is similar to what happens in Canada where the State also owns all the mineral rights) is that the mining companies develop the mines and just don't sit on the "reserves" and hog them. As it is, the big mining houses obtained these rights for nothing just because of existing legislation (which they were able to manipulate in their favor). For example, the mineral rights under my house in Johannesburg belongs to AngloAmerican and not to me. They paid nothing for the rights yet I bought the property.
Anyway, we all understand what it's about. It's simply theft just like taxation or affirmative action is. In fact, the new Land Act is both. However, the upside is that with the "redistribution" of some wealth both to local blacks and the ANC government, both can now lobby for an increase in the price of gold --- which, clearly they have done. Or perhaps I should say, they have lobbied for the US government etc to stop suppressing it.
SA is the regional powerhouse in Sub-Saharan Africa and is important to the West both because it is strategic to the rest of the region and because it has (superficially) a friendly black government. In fact, the rift between West and East passes right through SA. An increase in the gold price is vital to the preservation and, indeed, to the expansion of the SA economy. The West knows this and that is why I think, for political reasons, they will allow it. Possibly even facilitate it. It may not be a coincidence that US Finance Secretary O'Neill was here only last week.
In fact, and this is what I thought you were worried about, the increase in the gold price together with the fall in the USD has contributed to a sharp increase in the value of the rand. This, in turn, has led to a fall in the SA price of gold.
sharenet.co.za
Meanwhile, the gold price has risen in dollar terms and the gold share prices have risen on most markets, including the JSE. So, it is clear that, in the face of seemingly adverse fundamentals, SA gold stocks have been re-rated upwards on world markets. |
| | HARMONY GOLD MINING -- HGMCY | Stock Discussion ForumsShare | RecommendKeepReplyMark as Last ReadRead Replies (1) |
|
| To: sea_urchin who wrote (203) | 6/1/2002 12:10:23 PM | | From: Rich1 | | | | Thanks for the response..still amazed that we are 3/4 across the world from each other and can chat...
Thanks for your insight and observations on South Africa and the Land act and how you feel it affects HGMCY...
I know from an earnings standpoint HGMCY is the leader just concerned over a government takeover..
I live in South Florida and remember what Castro did...<ggg> |
| | HARMONY GOLD MINING -- HGMCY | Stock Discussion ForumsShare | RecommendKeepReplyMark as Last ReadRead Replies (1) |
|
| To: Rich1 who wrote (204) | 6/1/2002 12:49:34 PM | | From: sea_urchin | | | | Rich >just concerned over a government takeover..
That's the Land Act and the Basic Conditions of Employment Act etc. They did it differently this time. In fact, they are more avaricious money-grabbers than the Communists were --- but in the disguise of Capitalism. I guess they learned from the US!! <gggg>
>still amazed that we are 3/4 across the world from each other and can chat...
True. The internet has made the world very small. In fact, my mind spends more time in America than in Africa and has done so for many years. |
| | HARMONY GOLD MINING -- HGMCY | Stock Discussion ForumsShare | RecommendKeepReplyMark as Last ReadRead Replies (1) |
|
| To: sea_urchin who wrote (205) | 6/1/2002 4:20:17 PM | | From: freeus | | | | Dear Searle,
I'm so glad you are on this thread. Please stay around and help those of us new to gold stock investing be patient. I believe in the next year or two Harmony will triple in price but along the way will I have the sense and stomach to keep it? That's the problem.
Now I understand about those ACTS. You are correct, here in the U.S. we buy property and the government steals the rights to what is under our property just like in S. A. So it is the same!!!!!! In fact here we have police, AFT, other organizations under uniform authority break into people's houses, steal all their stuff, take away their computers and all records, and the person is lucky if they ever get their stuff back even if they are never accused of anything!!!!!
So I guess the whole world is scary if even America is, so I'll just hold on to Harmony and go take a walk.
Thank you for being here and for answering questions. We appreciate it very very much.
Freeus (I still have this nomiker from my early S.I. days but now I know freedom is no longer possible.) |
| | HARMONY GOLD MINING -- HGMCY | Stock Discussion ForumsShare | RecommendKeepReplyMark as Last ReadRead Replies (2) |
|
| To: Bill McCabe who wrote (200) | 6/11/2002 9:55:12 AM | | From: freeus | | | | Bill have you been through this kind of pullback with Harmony before? Does it make your stomach ache? Do you still think it's better to just hold it for longer and not sell when it goes up? Do you ever use cov. calls when it has gone up significantly? (Perhaps that's the way to go on the next upturn.)
Freeus |
| | HARMONY GOLD MINING -- HGMCY | Stock Discussion ForumsShare | RecommendKeepReplyMark as Last ReadRead Replies (1) |
|
| |
