Jubilee is an interesting company, yet it is not a pure PGM play. It has a diversified portfolio of operations: copper in Zambia, chrome in South Africa, and PGMs in South Africa. What I really like about Jubilee is its clean balance sheet with an 11% total debt to equity. Plus, positive ROE over the last five years, despite copper/PGM/chrome price volatility.
Another way to offset the South Africa risk is simply to buy the metal. If RSA messes things up, owning the metals can't be wrong. If PGEs enter a bull market, it's the same. Can't really loose here.
I'll definitely add some metals (and stocks) at these prices.
Good point. I use leveraged ETCs to PGMs to offset business inherent risks (political, operational, financial, etc.) and get leveraged exposure to spot price.
"A recession risk is always on the table. One thing I can say with high conviction is when the recession will NOT come. This is the next 12-18 months."
What gives you this confidence and is this still your opinion?
The report was written at the end of June. Then, the macro picture, let's say, was not bad. Since then, my opinion has changed. For now, I bet on a soft-hard landing somewhere in 2025, more precisely in 2Q25 or 3Q25.
Of course, I could be mistaken. Economic forecasts possess one remarkable trait: they're almost always wrong. Mine is not an exception.
Fantastic article, thank you for sharing.
Thanks! Glad you like it.
Appreciated.
My largest position jubilee listed in london was not included but i liked your take on sylvana.
Invested in aberdeen platinum also
Thanks for your kind reply.
Jubilee is an interesting company, yet it is not a pure PGM play. It has a diversified portfolio of operations: copper in Zambia, chrome in South Africa, and PGMs in South Africa. What I really like about Jubilee is its clean balance sheet with an 11% total debt to equity. Plus, positive ROE over the last five years, despite copper/PGM/chrome price volatility.
Another way to offset the South Africa risk is simply to buy the metal. If RSA messes things up, owning the metals can't be wrong. If PGEs enter a bull market, it's the same. Can't really loose here.
I'll definitely add some metals (and stocks) at these prices.
Good point. I use leveraged ETCs to PGMs to offset business inherent risks (political, operational, financial, etc.) and get leveraged exposure to spot price.
That's the sophisticated way, I like to feel and see the metal in my hands. 😅
what are the risks of Sylvania loosing their tailings agrement(s)?
"A recession risk is always on the table. One thing I can say with high conviction is when the recession will NOT come. This is the next 12-18 months."
What gives you this confidence and is this still your opinion?
Thanks for your question.
The report was written at the end of June. Then, the macro picture, let's say, was not bad. Since then, my opinion has changed. For now, I bet on a soft-hard landing somewhere in 2025, more precisely in 2Q25 or 3Q25.
Of course, I could be mistaken. Economic forecasts possess one remarkable trait: they're almost always wrong. Mine is not an exception.