[miningmx.com] – CAPE Town-based asset manager, Allan Gray, swam against the tide again today increasing its stake in South African gold producer, Pan African Resources, to 7% equal to 128.3 million shares.
The company announced on July 23 that it had increased its stake in Harmony Gold to 15.38%, a development that made it the single largest shareholder in the troubled gold producer and raising the possibility the company was a takeover target.
The dollar gold price has been tipped by Goldman Sachs to fall to $1,050/oz in the next 12 months but in rand terms, the gold price received is still relatively healthy for South African gold producers at some R440,000/kg, although below the R500,000/kg it achieved in 2012.
