Having trouble reading this email? View in your web browser
 The Sharenet Daily 
Tuesday, 21 August 2012 - 20:00
Top News
SA Business
Company News
Company Results
World Markets (Spot Prices)
JSE Today
JSE Trading Statistics
Major Moves
Index Summary
Latest Consensus Changes / Results Expected
Recent Dividends / Ex Div
Upcoming AGMs
Stock Exchange News Service (SENS)

Harmony Gold ? Unlocking Potential in Papua New Guinea?

Harmony Gold, South Africa’s third-largest gold producer, recently released a set of strong numbers for their financial year ended 30 June 2012. The gold miner reported an 80% increase in operating (production) profits for the year to R 5.9bn, with headline earnings per share more than doubling from 223 cents to 551 cents. A final dividend of 50c brought total dividends for the year to 90c per share.

Simple start, rapid expansion

Harmony was incorporated and registered in 1950 and operated a single gold mine in agreement with Randgold until 1997, when it became completely independent. Through a series of acquisitions including Lydex, Bissett, Evander Gold Mines, Randfontein Estates, Kalgold, and West Rand Consolidated Mines, the company has evolved into a world-class gold producer that is looking for opportunity to expand even further. Much of Harmony’s recent success can be attributed to their innovative management team and executives, including CEO Graham Briggs and non-executive chairman Patrice Motsepe.


The miner’s interests in South Africa include nine continuing underground operations and three surface operations, mostly concentrated in the Witwatersrand area. Operations at Kusasalethu and Tshepong account for nearly 33% of the total gold produced locally, and contribute 37% to the production profit.

Source: www.harmony.co.za

Harmony has made a conscious effort of late to dispose of high-cost, unproductive mines, and this strategy is rewarded in that only one operation posted a loss for the year. In addition to streamlining its current operations, a renewed focus was placed on exploration and unearthing new opportunities in SA and abroad.

Harmony launched into offshore operations in 2007, acquiring royalty rights for the Hidden Valley area in Papua New Guinea. The Morobe Mining Joint Venture situated at Hidden Valley, which is a 50% partnership with Newcrest of Australia, is still in its exploration phase, with production planned to start in 2016.

This area is probably the most valuable untapped resource on the planet, with investigations and test drilling at the Wafi-Golpu site revealing the presence of vast amounts of high-quality copper and gold. The results of the pre-feasibility study on the region, which Harmony will release on 29 August, will be critical to Harmony’s future production and resultant profitability. Management hopes to mine 40% to 45% of its gold outside of SA by 2017, and establishing a flourishing operation at Wafi-Golphu can make this objective a reality.

Drivers of Profit

Harmony produced 39.642 tons of gold from a total of nearly 19m tons of ore milled, which is a slight decrease of 2% over the previous financial year. Cash operating costs increased by 20% due to increased electricity tariffs and a rise in transportation costs. The main drivers of profitability were the increase in the rand gold price by 36% and the weakening of the ZARUSD exchange rate by 11%. As a result, the increase in operating profit of 80% is mostly due to unpredictable macro factors that do not necessarily reflect Harmony’s ability to mine gold efficiently. These factors affect all gold miners similarly, and result in very inconsistent year-to-year earnings figures across the board.

Source: www.harmony.co.za

Current Valuation and Future Prospects

Harmony currently trades at a PE of 13.69, which is expensive relative to its rivals AngloGold Ashanti (8.69) and Gold Fields (8.9), and has a DY of about 1.2%. With the resources sector in general priced at very attractive levels, the opportunity to increase exposure is ever present.

Harmony’s venture at Wafi-Golphu has the potential to distinguish the company from its rivals in terms of ounces produced and ultimately also profitability, but only time will tell if the gold deposits can be accessed cost-effectively.

Investors have to decide if Harmony’s current price is low enough to pay for a capable management team, established local operations, and a potential gold mine (pardon the pun) of possibilities overseas.

Kind regards,

Cor van Deventer

021 914 4966

Tue, 21 Aug 2012
Top News
South African stocks booked a fresh record close on Tuesday as industrials and miners pushed higher on hopes that meetings on Greece's future this week and new plans drawn by the European Central Bank will help the Europe manage its debt woes.  Full story

Revenue for the year shot up to R224.8 million (2011: R180.9 million). Gross profit jumped to R103.9 million (2011: R83.4 million), profit from operations rose to R22.2 million (2011: R15 million), while profit for the year attributable to equity holders of the parent grew to R18.1 million (  Full story
Hong Kong shares ended flat on Tuesday, as strength in the Chinese consumer sector outweighed a 3 percent loss for China's leading offshore oil producer CNOOC Ltd after its first half net profit fell twice as much as the market had expected.  Full story
European shares rose in thin trade on Tuesday, boosted by renewed speculation the European Central Bank would act to rein in the sovereign. . .  Full story
U.S. stocks barely budged in midday trade on Tuesday, trimming earlier gains after the S&P 500 hit a four-year high on hopes that. . .  Full story
Gold rose to its highest since May on Tuesday, gaining 1 percent, on speculation the European Central Bank will act to help Spain. . .  Full story
Global stocks rose to 3-1/2 month highs o n T uesday and the euro jumped to a seven-week peak against the U.S. dollar. . .  Full story

Britain's top share index advanced on Tuesday in light trade, led up by miners and banking stocks, as investors speculated as to how. . .  Full story
A leading European share index rose to a 13-month closing high in thin trade on Tuesday, boosted by renewed speculation the European Central. . .  Full story
European shares extended gains in choppy, light afternoon trade on Tuesday, with euro zone banks th e best-performers as yields on Italian and. . .  Full story
European shares slightly trimmed their gains into a modestly higher start for U.S. indexes, buoyed by expectations central banks will intervene in the near-future. . .  Full story
SA Business
Platinum edged down on Tuesday, sliding from a two-month peak hit in the previous session on heightened supply worries in top producer South Africa, while expectations for easing monetary policy supported gold.. . .  Full story
Platinum prices jumped nearly 2 percent on Monday, hitting a two-month high after deadly violence at a mine in top producer South Africa triggered heavy speculative buying on supply worries. Bullion prices edged up as trading volume for U.S. gold futures was. . .  Full story

The rand rebounded against the dollar on Tuesday, and was the third-best performer in a basket of emerging market currencies, as. . .  Full story
South African supermarket chain Shoprite said on Tuesday it will spend $205 million on property development in Nigeria to overcome a. . .  Full story
British bank Barclays is in talks about combining its African operations with those of majority-owned subsidiary Absa Group in a move. . .  Full story
The Ghana Stock Exchange (GSE) will list Absa Capital's gold-backed NewGold exchange traded fund on Wednesday, marking the bourse's first ETF,. . .  Full story

South Africa's Treasury sold a total of 2.1 billion rand of its 2023, 2036 and 2048 bonds on Tuesday.. . .  Full story
Despite rising debt levels and increased social spending, South Africa is on a sustainable fiscal path, Deputy Finance Minister Nhlanhla Nene. . .  Full story
South African government bonds and the rand strengthened on Tuesday as fears subsided the deadly violence that hit Lonmin's Marikana platinum. . .  Full story
Grains, platinum and cotton posted modest gains in an otherwise moribund commodity complex on Monday, with broad market activity subdued as traders contemplated the. . .  Full story
Company News
KAP acquired the Steinhoff Industrial Assets ("the Steinhoff Industrial Assets") from Steinhoff Africa Holdings (Pty) Ltd. ("Steinhoff") and issued 1912.8 million. . .  Full story
Further to the SENS announcements dated 22 August 2011, 4 October 2011, 15 November 2011, 3 January 2012, 16 February 2012,. . .  Full story
Shareholders were referred to the specific authority to repurchase shares granted to Mvela Group at the general meeting held on 16. . .  Full story
Revenue increased 7.6% to R868.6 million from R807.3 million in the prior year. EBITDA amounted to R112.1 million (2011: R105.7 million). . .  Full story

Further to the audited results for the year ended 30 June 2012 released on SENS today, 21 August 2012 notice is hereby given that a gross cash annual dividend of 28.00 cents per share has been declared for the year ended. . .  Full story
Shareholders were advised that in line with their strategy to operate as One Bank in Africa, Barclays and its subsidiary Absa Group Limited ("Absa") are engaged in discussions about combining the majority of the Barclays Africa operations with Absa ("the proposed. . .  Full story
Company Results
Revenue for the interim period ended 30 June 2012 lowered by 13.6% to R1.3 billion (2011: R1.5 billion). Gross profit fell. . .  Full story
Revenue more than doubled to R161.3 million (R79.3 million). EBITDA more than tripled to R18.5 million (R5.7 million). The net. . .  Full story
Revenue for the year ended 30 June 2012 soared to R10.2 billion (2011: R7.8 billion). Trading profit jumped to R959.9 million. . .  Full story
Revenue for the year increased by 4% to R18.7 billion (2011: R18.1 billion). Operating profit jumped to R658.9 million (2011: R451.7. . .  Full story
World Markets (Spot Prices)
NameTimeRPMove% Move
JSE Overall17:0835832.84361.001.02%
JSE Top 4017:0031630.26331.001.06%
JSE Gold17:002450.5238.001.60%
JSE Financial17:0827025.38100.000.37%
JSE Industrial17:0041942.26396.000.95%
JSE Indust 2517:0035865.71349.000.98%
JSE Resource17:0048356.07734.001.54%
DJ Futures19:4813230.00-17.00-0.13%
DJ Ind19:5813232.27-42.93-0.32%
SP 50019:581415.30-2.86-0.20%
FTSE 10017:355857.5233.150.57%
All Ords08:454410.8018.900.43%
NZSE 5007:503687.7426.650.73%
NameTimeRPMove% Move
Gold $19:591639.6319.041.17%
Gold R19:5813512.5217.170.13%
Gold R/kg19:5843431426000.60%
Silver $19:5929.4500.67302.34%
Platinum $19:581502.5013.500.91%
Palladium $19:59622.3017.302.86%
Brent Crude19:58116.23.840.73%
Rand / Dollar19:598.2391-0.0890-1.07%
Rand / Pound19:5512.9747-0.0818-0.63%
Rand / Euro19:5510.2780-0.0079-0.08%
Rand / NZD19:586.6843-0.0536-0.80%
Rand / AUD19:558.6433-0.0602-0.69%
Yen / Dollar19:5979.2860-0.1780-0.22%
Euro / Dollar19:550.8014-0.0083-1.03%
Dollar / Euro19:591.24780.01321.07%
Pound / Dollar19:550.6333-0.0030-0.47%

Click here for the Sharenet Spot Price page
The JSE Today

Trading Statistics
* Includes all listed instruments on the JSE
Major Moves Up
SharenameSaleMove% MoveVolume
1 NEW CPA  1041820.93.%415128
2 BAUBA  1452318.85.%9300
3 AQUARIUS  522428.75.%470806
4 DELTA  650508.33.%8400
5 VILLAGE  14086.06.%4838626
6 CBH  419215.28.%80343
7 HARMONY  79173754.97.%1995057
8 CMH  1065444.31.%6429
9 SPAR  122294994.25.%360560
10 NICTUS  375154.17.%12000
11 LIFEHC  33401314.08.%6652038
12 EASTPLATS  15763.97.%29994
13 IMPERIAL  194107333.92.%649948
14 AFGRI  565203.67.%182839
15 LONMIN  82832853.56.%926892
16 OCEANA  55911923.56.%2127
17 KUMBAIO  5542217733.30.%733472
18 TIGBRANDS  285758242.97.%588896
19 MRPRICE  132253552.76.%704857
20 A-V-I  58001502.65.%701028

Click here for more Major Moves...
Major Moves Down
SharenameSaleMove% MoveVolume
1 BK-ONE-PR  900-97-9.73.%10
2 AMECOR  177-18-9.23.%3488
3 POYNTING  118-10-7.81.%66307
4 SEARDELN  125-10-7.41.%26000
5 HUGE  130-10-7.14.%47927
6 JUBILEE  119-9-7.03.%107770
7 MMG  450-25-5.26.%10000
8 CIPLAMED  770-28-3.51.%3719882
9 SENTULA  175-6-3.31.%391542
10 TASTE  275-9-3.17.%118615
11 TELKOM  1920-61-3.08.%786865
12 CAT  1650-50-2.94.%25835
13 COMPCLEAR  335-10-2.90.%10000
14 JASCO  170-5-2.86.%140550
15 HOSP-A  1400-40-2.78.%381615
16 METROFILE  360-10-2.70.%627587
17 REBOSIS  1132-28-2.41.%53920
18 URONE  2065-45-2.13.%4454
19 VALUE  510-10-1.92.%864
20 MVELASERV  855-15-1.72.%121578

Click here for more Major Moves...

New Highs
SharenameSaleHighMove% MoveVolume
1 MRPRICE  13225134503552.76.%704857
2 NETCARE  17671770271.55.%3943963
3 MTN  15846159742261.45.%5835867
4 MONDILTDP  742377561011.38.%363121
5 MONDIPLCP  74247850991.35.%456604
6 DISCOVERY  58705888701.21.%869022
7 ILLOVO  29803011301.02.%167344
8 PRESCIENT  14115010.71.%39246
9 RICHEMONT  52305270280.54.%8463827
10 ASSORE  3105031705500.16.%124070
11 OLDMUTUAL  2238225330.13.%5255920
12 ARROW-B  5806030.68752
13 HUGE  130145-10-7.14.%47927

Click here for more Major Moves...
New Lows
SharenameSaleLowMove% MoveVolume
1 PETMIN  220209-2-0.90.%885032
2 ALTRON-P  22302090-20-0.89.%70395
3 TRANSCAP  735735-3-0.41.%64894

Click here for more Major Moves...

Index Summary
Index NameRPMove% Move
Top 4031,630.00331.001.06%
Mid Cap51,422.00499.000.98%
Small Cap37,556.0046.000.12%
Resource 2048,356.00734.001.54%
Industrial 2535,865.00349.000.98%
Financial 1510,098.0046.000.46%
Financial & Ind. 3039,209.00314.000.81%
All Share35,832.00361.001.02%
Oil & Gas 26,713.00249.000.94%
Mining 31,180.00518.001.69%
Gold Mining2,450.0038.001.60%
Platinum Mining48.001.003.68%
GENERAL MINING8,044.00128.001.62%
Oil & Gas Producers 14,363.00134.000.94%
Basic Materials 26,714.00447.001.70%
Chemicals 15,458.00-3.00-0.02%
Forestry & Paper 13,889.00156.001.14%
Industrial Metals 29,169.00838.002.96%
Industrials 34,798.00239.000.69%
General Industrials
Consumer Goods 36,388.00192.000.53%
Automobiles & Parts 6,114.0057.000.94%
Household Goods166.0021.31%
Health Care 48,778.00706.001.47%
Index NameRPMove% Move
Food Producers 66,015.001424.002.21%
Personal Goods 522.003.000.65%
Consumer Services 74,200.00993.001.36%
General Retailers 62,328.00862.001.40%
Travel & Leisure 4,081.0043.001.07%
Support Services 2,148.00-4.00-0.23%
Telecommunications 75,714.00896.001.20%
Financials 27,025.00100.000.37%
Banks 49,057.00302.000.62%
Non-life Insurance 42,494.00281.000.67%
Life Insurance 22,470.00118.000.53%
General Financial 2,474.00.00-0.04%
Technology 31,164.00270.000.88%
SHARIAH TOP40 3,108.00431.43%
FTSE/JSE SHARIAH ALL3,231.00441.39%
COAL MINING23,375.004882.13%
FTSE JSE Fledgling 5,583.0090.17%
FTSE/JSE Alt X 1,059.00-48-4.40%
CAPPED PROPERTY 387.00-0.02%
RESOURCE 26,658.004141.58%
DIVIDEND PLUS198.0021.19%
FTSE/JSE RAFI 407,318.00690.95%
Capped Top 4016,692.001741.06%
Capped All Share18,126.001831.02%
JSE TABACO 5,561.0000.02%

Click here for the Sharenet Index Summary page
Latest Consensus Changes**
CodeCompany NameStatusUpdated
Results Expected**
ExpectedCompany NameFin. Date
22 Aug 2012BHPBILLJune 2012 (Final)
22 Aug 2012BHPBILL5June 2012 (Final)
22 Aug 2012EHSVJune 2012 (Interim)
22 Aug 2012EMIRAJune 2012 (Final)
22 Aug 2012FERRUMJune 2012 (Final)

Recent Dividends**
Share NameDec-DateLDTPay-DateAmount
SA CORP12-08-2012-09-2012-10-01R 0.1517
CLIENTELE12-08-1712-08-3112-09-10R 0.6700
CULINAN5.512-08-1712-08-3112-09-10R 0.0550
CIPLAMED12-08-1612-09-2812-10-08R 0.0850
STANBANK12-08-1612-09-0712-09-17R 2.1200
Ex Div**
Share NameDec-DateLDTPay-DateAmount
FIRSTRANDB-P12-08-0712-08-1712-08-27R 3.3309
NEDBANK-P12-08-0112-08-1712-08-27R 0.3730
CAPITAL12-07-3112-08-1712-08-27R 0.3328
MONDILTD12-08-0712-08-1712-09-18R 0.0890
MONDIPLC12-08-0712-08-1712-09-18R 0.0890

Upcoming AGMs**
CodeCompany NameDateStatus
FBRFamous Brands Ltd.23/08/2012Confirmed
ISBInsimbi Refractory and Alloy Supplies Lt...24/08/2012Confirmed
ANSAnsys Ltd.28/08/2012Confirmed

Stock Exchange News Service
21/08/201217:50INDWA INVESTMENTS LIMITED - listing of tap issue
21/08/201217:451TIME HOLDINGS LIMITED - Notice of appliaction for business rescue and renewal o...
21/08/201217:19Adaptit Holdings Limited - Preliminary Consolidated Audited Results For The Year...
21/08/201217:05N PLC - Statement on Marikana and Covenants
21/08/201216:50PROTECH KHUTHELE HOLDINGS LIMITED - Renewal of cautionary announcement
21/08/201216:48FIRSTRAND BANK LIMITED - Interest Rate Reset
21/08/201216:45NTERNATIONAL HOLDINGS LIMITED - trading statement
21/08/201216:42TORQUE SECURITISATION (RF) LTD - Listing of New Financial Instruments
21/08/201215:30PALABORA MINING COMPANY LIMITED - further cautionary announcement
21/08/201215:15O RESOURCES LIMITED - trading of Exxaro ordinary shares on behalf of the Exxaro ...
21/08/201215:12STANDARD BANK OF SOUTH AFRICA LD - SCIB - The Standard Bank of South Africa Limi...
21/08/201215:10STANDARD BANK OF SOUTH AFRICA LD - SCIB - The Standard Bank of South Africa Limi...
21/08/201215:00PROTECH KHUTHELE HOLDINGS LIMITED - voluntary strategic and operational update
21/08/201214:55STANDARD BANK OF SOUTH AFRICA LD - SCIB - The Standard Bank of South Africa Limi...
21/08/201214:45STANDARD BANK OF SOUTH AFRICA LD - SCIB - The Standard Bank of South Africa Lim...
21/08/201214:43Standard Bank Of South Africa Ld - Scib - The Standard Bank Of South Africa Limi...
21/08/201214:41INVESTEC BANK LIMITED - Final Dividend- SHPIHE
21/08/201214:25TOTAL CLIENT SERVICES LIMITED - Renewal of Cautionary announcement
21/08/201212:45ESORFRANKI LIMITED - directors dealings
21/08/201212:24Pinnacle Point Group Limited - Renewal Of Cautionary Announcement
21/08/201212:02Huge Group Limited - Associates Dealings In Securities
21/08/201211:03PICK N PAY STORES LIMITED - Pick n Pay Stores Limited - New Financial Instrument...
21/08/201210:47Mvelaphanda Group Limited - Repurchase Of Shares And Disclosure Of Significant H...
21/08/201210:34CALGRO M3 HOLDINGS LIMITED - Dealing in securities by a director
21/08/201210:33CALGRO M3 HOLDINGS LIMITED - CANCELLATION OF S321628 Dealing in securities by a ...
21/08/201210:30EDCON (PTY) LIMITED - Release of quarterly Financial Results
21/08/201209:30S A French Limited - Update Announcement: Mirror Listing Of Sa French
21/08/201209:05EMIRA PROPERTY FUND - Interest Rate Reset
21/08/201209:00ST BUSINESS GROUP LIMITED - Abridged Audited Consolidated Financial Statements ...
21/08/201209:00WITWATERSRAND CONS GOLD RESOURCES - Wits Golds advanced De Bron-Merriespruit (DB...
21/08/201209:00Shoprite Holdings Limited - Preliminary Results For The Year Ended June 2012
21/08/201208:31GE MAIN REEF LIMITED - Report for the quarter ended 30 June 2012
21/08/201208:12SYNTHESIS FUNDING LIMITED - SYN942 Synthesis Funding Limited - New Financial In...
21/08/201208:11SYNTHESIS FUNDING LIMITED - New Financial Instrument Listing
21/08/201208:11A HOLDINGS LIMITED - Cash Dividend Declaration
21/08/201208:09Eqstra Holdings Limited - Audited Abridged Year-end Results For The Year Ended 3...
21/08/201208:01African Eagle Resources Plc - Miyabi Gold Project New Gold Discoveries
21/08/201208:00SACOIL HOLDINGS LIMITED - Withdrawal of cautionary announcement
21/08/201208:00ABSA GROUP LIMITED - cautionary announcement:Barclays and Absa in discussion to ...
21/08/201208:00LABEL TELECOMS LIMITED - Audited Results for the year ending 31 May 2012
21/08/201207:30Aquarius Platinum Limited - Amendment Appendix 3y
21/08/201207:10BRITISH AMERICAN TOBACCO PLC - Transaction in own Shares

Click here for more SENS news