Harmony Gold downgraded to Reduce from Hold at HSBC

HSBC downgraded Harmony Gold to Reduce from Hold with a price target of ZAR 154, up from ZAR 125. The firm says the recent results season has left it more concerned regarding the challenges facing the South America gold miners. Harmony’s medium-term capex outlook continued to increase while the declining reserves at Gold Fields is concerning, which may escalate the acquisition risk for the stock, the analyst tells investors in a research note. Meanwhile, the HSBC notes reserves have been declining at AngloGold’s Australian operations, with reserve life for the region falling to five years.