A producer of gold and holder of gold reserves in South Africa, Ghana, Australia, Venezuela and Peru. The Company is involved in underground and surface gold mining and related activities, including exploration, extraction, processing and smelting.
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GFI is a combination of gold/uncertainty/inflation plays, a limited asset play on their gold fields, and a bet on (or against, rather) political risk. Gold demand/prices is likely to go up, long-term, given international gov't spending/debt levels. Even given the historical price highs we've seen recently, there's a strong chance that gold will stabilize higher than we're currently anticipating.
The political risk is more interesting, though. Despite some concern over the future of the gold industry in South Africa, Cape Town is not going to nationalize the gold industry, as it's actually successful and generates tax-revenue. There's a trend against nationalization in the Legislature, and in my analysis, it's not going to happen (YMMV). Investors are afraid of this "eventuality" and are pricing GFI appropriately.