Francois Joubert, Portfolio Manager of the South African Investor says, that because of the dangerous mining environment, there’s trouble brewing for these gold mining companies that have put their employees in direct danger of contracting a variety of respiratory infections.
By the 13th of May 2016 a landmark legal decision was made by Phineas Mojapelo, the deputy president of the High Court in Johannesburg.
The target was the gold mining industry and the court has ruled in favour of a class action lawsuit against 32 mining companies representing 82 separate mines.
According to Francois, these gold stock companies are being sued for as much as R54 billion. Nothing like this has ever happened in South Africa before and it will go down in history as the biggest class action lawsuit ever to happen in South Africa.
Due to the massive scale of this lawsuit, there are certain mining shares that are going to take a beating. Even though the lawsuit is still in its infancy, Francois says you need to make sure that you avoid certain mining shares at all costs.
In this month's issue of The South African Investor, Francois will show you exactly what shares to avoid at all costs and the four gold stocks that will come out unscathed.