Market Wrap - Stock pick — Harmony Gold
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Imtiaz Suliman from Sentio Capital chose Harmony Gold as his stock pick of the day.
"I'm going to go for Harmony Gold, they are in a very enviable position whereby they're benefiting from a very strong gold price and a weaker rand. If you just put in the spot rand gold price into their evaluation it looks very attractive. It is trading on an EV/EBITDA multiple of five, a price to book of one times. In two years time they would be able to pay out quite significant amounts of cash in the form of dividends as opposed to a lot of other companies which are cutting dividends in this environment."
"I'm going to go for Harmony Gold, they are in a very enviable position whereby they're benefiting from a very strong gold price and a weaker rand. If you just put in the spot rand gold price into their evaluation it looks very attractive. It is trading on an EV/EBITDA multiple of five, a price to book of one times. In two years time they would be able to pay out quite significant amounts of cash in the form of dividends as opposed to a lot of other companies which are cutting dividends in this environment."
