According to a website article Harmony is valued at about R27bn and currently SGL is at about R10bn but produces more gold than Harmony. So one could project a possible value of around R26 to R39 as fair value for the share... What do you guys think? http://www.mineweb.com/mineweb/content/en/mineweb-gold-news?oid=177141&sn=Detail Where the market does send conflicting signals is the value it assigns to Sibanye Gold compared to other South African gold producers. At a market cap of R10.5bn it is roughly double that of Pan African Resources’ R5bn. Using the companies’ production profile as the only guide, the latter will produce around 220,000 ounces per year once its recent acquisition of Evander from Harmony Gold has been finalised. Sibanye Gold, on the other hand, expects to produce in excess of 1.3 million ounces per year. Similarly, Sibanye Gold’s production profile is also marginally higher than that of Harmony Gold’s combined South African and offshore assets, yet Harmony attracts a current valuation of R27.8bn.
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