Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Dutch Central Bank Sale Announcement Imminent? -- Ignore unavailable to you. Want to Upgrade?

To: ild who wrote (18124)	4/29/2003 10:39:25 PM
From: sea_urchin	Respond to of 81011

ild > Do you need all or any? Are you referring to the Viagra? As far as gold is concerned I can't see what will cause me to return as a buyer in the immediate future. Even if the price rises and the gold shares rebound, as it/they well might, I will then consider my position as having "missed the train". I will certainly not run after it.

To: ild who wrote (18124)	4/30/2003 9:28:56 AM
From: sea_urchin	Read Replies (1) \| Respond to of 81011

ild, "Gold firms shafted by strong rand" What we have been speaking about. bday.co.za >>>RAND strength notched up its latest victims in the form of gold mining companies Durban Roodepoort Deep and Harmony Gold yesterday, with the currency's 19% surge against the dollar this year savaging their first-quarter earnings. Marginal gold miner Durban Deep, which plans to fire 1000 workers after its profit plummeted 95%, said "tight monetary discipline" was "exacerbating" the rand's rise. Monetary policy was "seemingly at odds with SA's reliance on export growth, the attainment of full employment and social redistribution", said Durban Deep CEO and chairman Mark WellesleyWood. The rand touched a 31-month peak against the dollar on Monday, capping last week's 5,6% gain. The rand took on a life of its own last week after Bank governor Tito Mboweni said it was not overvalued. At the same time, statements by the Bank last week raised doubt about an interest rate cut in June. High domestic interest rates, which attract foreign cash into local bond and money market assets, are seen as a key reason for the rand's strength. Yesterday saw the rand seesawing once again, weakening sharply in morning trade to as low as R7,3063, before climbing back to close at R7,08 from the previous day's R7,1610. Wellesley-Wood said the rand's surprising appreciation was caused partly by dollar weakness and was exacerbated by Reserve Bank policy. "This has attracted short-term money into the rand at a time when policy should have been more benign," he said. "Far from bringing money into the country, it is more likely to deter real fixed investment in wealth-creating activities such as gold mining." Durban Deep's concerns were echoed by SA's third-largest gold producer, Harmony Gold, which saw its profit plunge 45% in the first quarter. "I wonder if the decision makers appreciate that they can destroy more jobs with the strong rand than they created," said Harmony CE Bernard Swanepoel. He warned of "fairly significant retrenchments" if the rand stayed at R7,20 to the dollar. The rand has risen 19,53% against the dollar since the start of the year. The earnings of mining companies have been hardest hit, as they pay costs in rand and sell their product in dollars. Their problems are likely to worsen, with costs expected to rise in coming months as biennial salary talks get under way. "It's very bad" said Allan Cooke, an analyst at HSBC Securities. "In the second half of this year we are going to have cost increases because of wages," he said. The bad news from Harmony and Durban Deep dragged the JSE Securities Exchange SA's gold index down 6,51% yesterday. Harmony share price fell 11,36% to R73,44, while Durban Deep lost 10,11% to end the day at R16. <<< Need I say more?