Is it time to buy Amur Minerals Corporation, Xcite Energy Limited and Jubilee Platinum plc?

Are Amur Minerals Corporation (LON: AMC), Xcite Energy Limited (LON: XEL) and Jubilee Platinum plc (LON: JLP) looking good as prices recover?

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

When’s the worst time to buy shares in small miners and oil explorers? When commodities prices are plunging, I’d say, especially if they’re companies making little or no profit — a slump in the prices of the stuff they sell is far more likely to send them to the wall than it would with, say, BP or Rio Tinto.

But by the same token, surely the best time to buy such companies is when prices in their sectors are staging a comeback, as they’re more likely to reward us with multi-bagger gains than the FTSE 100 giants.

Brighter prospects

Look at Amur Minerals (LSE: AMC), for example, whose share price has been in a bit of a slump — at 4.8p as I write, Amur shares are down 90% from their high point in June 2015. But the latest independent update on the Kubuk nickel-copper deposits at the firm’s Kun-Manie project, just published a few days ago, has increased the likely available resources again. Amur now says the total measured and indicated resources at the mine in the far East of Russia have doubled since April 2015, and this latest step concludes the evaluation phase of Amur’s Definitive Feasibility Study.

There is, of course, still a long way to go, but any progress in the prices of nickel and copper will surely help. Both have been picking up, though both have dropped back a little of late — but if metals prices really have bottomed out, the prospects for Amur will surely have brightened a little.

Oil opportunity

With the price of a barrel of Brent crude getting ever closer to the magic $50 mark, the future for Xcite Energy (LSE: XEL) must be looking a little rosier too. Xcite shares are down over the past 12 months, to 14.9p, but we’ve actually seen a 32% recovery since a recent low on 20 January.

Sustainable profits from Xcite aren’t expected before 2018, and there will be plenty of debt that needs to be serviced before then — in fact, when its full-year results were released in March, the firm told us it was in talks with bondholders in order to “develop financial flexibility” regarding bond payments due on 30 June.

With Xcite’s reserves update issued the same day looking pretty positive, the chances of the firm getting its finances sorted for the longer term are looking increasingly good to me — although it’s clearly still only for those who can handle a bit of risk.

Shiny

Platinum is one of those precious metals that has uses other than just sitting around looking shiny, and the price of the stuff has been picking up lately, to $1,055 per ounce at the time of writing. And that hasn’t done Jubilee Platinum (LSE: JLP) any harm at all, with Jubilee shares having more than doubled in the past 12 months — they’ve been on a bit of a slow fall for a few months recently, but an operational update on 12 May gave the shares a boost, and they stand at 3.3p today.

The chrome recovery plant operated by subsidiary Jubilee Tailings Treatment Company is now fully operational and has achieved a sustainable processing capacity that’s 30% ahead of expectations. Production of 6,000 tonnes of chromite is targeted for May, rising to 8,000 tonnes in June, and that surely makes Jubilee shares that bit more attractive.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Alan Oscroft has no position in any shares mentioned. The Motley Fool UK has recommended BP and Rio Tinto. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

More on Investing Articles

Investing For Beginners

Here’s how I’m trying to prevent a stock market crash from ruining my portfolio

Jon Smith explains which shares he's avoiding and what he's thinking of buying to try and protect his portfolio from…

Read more »

Bearded man writing on notepad in front of computer
US Stock

Call me crazy, but here’s why I’m eyeing up the CrowdStrike share price

Jon Smith notes the carnage caused by Friday's global outage, but flags up why he's thinks the CrowdStrike share price…

Read more »

Investing Articles

What do Hargreaves Lansdown results mean for the share price?

The Hargreaves Lansdown share price has surged in recent months on takeover expectations, but what will the recent results mean…

Read more »

Middle-aged white man wearing glasses, staring into space over the top of his laptop in a coffee shop
Investing Articles

Newly minted S&P 500 stock CrowdStrike just crashed! Here’s why

Shares of S&P 500 firm CrowdStrike collapse as the company lies at the centre of a global IT outage. What…

Read more »

artificial intelligence investing algorithms
Investing Articles

Is Nvidia heading for the mother of all tech stock crashes?

Nvidia stock has soared, and the company briefly became the most valuable on the planet. But not everyone’s an AI…

Read more »

Dividend Shares

The BP share price is down 15% in 3 months. Time to buy?

In the space of just a few months, the BP share price has fallen by a double-digit percentage. Is this…

Read more »

Investing Articles

A 5.4% dividend bargain I’ll buy over Lloyds shares

Harvey Jones loves his Lloyds shares but now he's found a high-yielding FTSE 250 stock that may offer even more…

Read more »

Warren Buffett at a Berkshire Hathaway AGM
Investing Articles

Recommended by Warren Buffett, this top hedge fund’s betting on Rolls-Royce shares

When Warren Buffett ended his previous investment partnership, he recommended Bill Ruane’s Sequoia Fund. Today, its largest investment is in…

Read more »