Harmony Gold Mining Co. (NYSE:HMY) has been plagued with many problems, including a mining accident leaving 3,200 workers trapped and new accounting software that revealed expenses 45% higher than previously reported. A number of sources now agree that the company is in a weakened position and trading well below its intrinsic valuation.

The South African gold mining company is unlikely to attract any takeover bids because of its recent problems; however, many investors are demanding that the company consider breaking up. After all, Harmony's quality assets are its longer-life low cost shafts while its growth assets are its new projects expected to come to fruitation in two to three years.

Typically, gold companies only focus on one of these areas, which has many investors pushing for a breakup of these two divisions. Investors looking for a safer play could buy into the quality asset group while those looking for a more speculative play linked to gold prices would buy into the leveraged growth unit. After all, in its current state, investors don't want anything at all!

Any success on the front to breakup the company would likely unlock substantial value in the company's shares that are depressed for several reasons. Moreover, the recent new leadership in the company may enhance the probability of this taking place. Combined, these factors make HMY a stock worth watching!

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