As previously reported, Macquarie analyst Yatish Chowthee downgraded Harmony Gold (HMY) and Sibanye Gold (SBGL), both to Underperform from Neutral, citing the inflationary headwinds facing the South African gold mining sector, particularly those faced by the deep level operators. He favors companies with a geographically diverse portfolio mix and views investments in the sector as better suited to the short-to-medium term given the level of volatility exhibited with gold equities, Chowthee tells investors. However, he maintain an Outperform rating on AngloGold (AU).