Harmony Gold shares came in for two days’ battering after the miner had unveiled a R4.1bn transaction to buy gold and uranium assets from AngloGold Ashanti, with investors not buying the management narrative that it is a wonderful transaction for the company. For AngloGold, the deal may just have made it a target for other gold miners wanting its international portfolio after the hard work to reduce the company’s exposure to SA. While its peers are investing heavily in offshore assets — with Sibanye-Stillwater investing $2.2bn in buying an American palladium company, AngloGold pouring money into offshore assets as well as its local Mponeng mine, and Gold Fields spending in Ghana and Australia — Harmony at a stroke upped its exposure to SA by 25%. This comes while investors are deeply sceptical of SA as a safe destination because of the rampant corruption within the government and parastatals, crippling regulatory uncertainty, growing hostility between the Department of Mineral Resou...

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