What do Investors See?

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Charlie.

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"We've got mountains, we've got sea..."
If you google "Eskom" you will find this article (http://money.cnn.com/news/newsfeeds/articles/newstex/AFX-0013-22564054.htm) is the number 1 result. It was published today.

THat's a CNN international article announcing that Harmony Gold has been affected by Eskom's blundering and is now sitting with only 75% required electricity.

Quote: "South Africa's mining companies were hit by crippling electricity shortages on Friday that are expected to last for a couple of weeks. The problem is part of an ongoing power crisis in the country, which has not invested enough in power stations, and Eskom has previously said it expects supply shortages to occur through to 2013."

These companies are listed on International stock exchanges, aren't they?

Our economy is also somewhat dependent on their share prices, isn't it?

What sort of anus is going to invest US Dollars in a company that is sitting with only 75% of required electricity for the next six years?

How long will it be before international investors start pulling their dollars out of ZA industries and, when they do, will we not see a "snowball" effect as the share prices drop due to rapid selling?
 
see my sig - I put that there more than a week ago - and have been proven right.
 
On the flip side you could say gold prices are way up, and SA still has lots of it in the ground to dig up, so maybe investing in the mines is a good thing. Not saying I am going to but there is always ways to make money, even if the mines are sitting idle for a few weeks, they will turn profitable again, like always...

But yeah, SA doesn't really look so peachy anymore on the world stage after this debacle.
 
What do investors see? What time of the day is it? ... and are they being load shed?
 
vespax said:
On the flip side you could say gold prices are way up, and SA still has lots of it in the ground to dig up, so maybe investing in the mines is a good thing.
Click to expand...
Really? I heard SA's raw gold reserves are on the decline.
 
Charlie. said:
If you google "Eskom" you will find this article (http://money.cnn.com/news/newsfeeds/articles/newstex/AFX-0013-22564054.htm) is the number 1 result. It was published today.

THat's a CNN international article announcing that Harmony Gold has been affected by Eskom's blundering and is now sitting with only 75% required electricity.

Quote: "South Africa's mining companies were hit by crippling electricity shortages on Friday that are expected to last for a couple of weeks. The problem is part of an ongoing power crisis in the country, which has not invested enough in power stations, and Eskom has previously said it expects supply shortages to occur through to 2013."

These companies are listed on International stock exchanges, aren't they?

Our economy is also somewhat dependent on their share prices, isn't it?

What sort of anus is going to invest US Dollars in a company that is sitting with only 75% of required electricity for the next six years?

How long will it be before international investors start pulling their dollars out of ZA industries and, when they do, will we not see a "snowball" effect as the share prices drop due to rapid selling?
Click to expand...

When enough industries pull out or close down the 25% deficiency will be gone and we can all have enough power again - get all those exploiting foreign companies out and we will be ok. The ex-employees of the closed industries will have no money for power so this will help.
 
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