Definition Of Labour Productivity Relates Output To the Labour Hours

Jan. 27, 2012 - PRLog -- The text book definition of labour productivity relates output to the labour hours used in the production of that output. Furthermore, productivity may be conceived as a metric of the technical or engineering efficiency of production. A study in efficiency is to compare the Canadian firm Barrick Gold, the world’s biggest gold miner and Harmony Gold, South Africa’s third largest gold miner. Harmony has close to 40 000 workers and expects to mine less than 1.45-million ounces of gold this year. Barrick, meanwhile, has only about 10 000 workers but expects to produce nearly 8-million ounces of gold this year.

Anglo American, one of the world’s largest diversified mining groups, reported a pleasing set of results for the interim period to June 2011. Its performance was driven by continued strong demand for its commodities, as well as significant recoveries in the platinum and the diamond businesses. The divestment of non-core assets had also supported the group's performances. The share is currently trading on a historical P/E ratio of 10.1 times. We estimate that excluding both Anglo Platinum and Kumba Iron Ore from the valuation the group's core operations are trading on a historical P/E ratio of just over 8 times, which we feel represents value relative to the other diversified miners. In addition, any depreciation in the Rand should support the share price. Given the group's high operational leverage coupled with uncertain market conditions we would only recommend the share as a buy to longer term investors. The share price is trading below all its moving averages and the trend remains bearish. The share is moving towards oversold territory with no clear bullish signals as yet.

With the constant threat of nationalisation, increased labour and electricity costs, as well as the uncertain economic climate, commodity prices will be influenced too.

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The Johannesburg Stock Exchange (JSE), through the South African Futures Exchange (SAFEX), offers exposure to various commodities in the futures market. Traders of all sizes have an equal opportunity to participate in the market and benefit from rising and falling international commodity prices. This opportunity affords traders the chance to open "long" or "short" positions in these underlying commodities.

For further information http://www.psgonline.co.za