According to the press release issued by the company today, Roxi’s A6 well in Kazakhstan, which is part of the BNG Project, has run into drilling problems. However, it appears that these problems aren’t severe as the group remains optimistic about the well’s potential. 

Furthermore, management notes in today’s release that the delay is unlikely to have any material impact on the company.

Drilling problems

The problematic A6 well was drilled to a depth of 4,528 metres and was believed to have 130 metres of oil bearing intervals. A 54-metre interval was supposed to be opened up, but early indications suggest the targeted area will need to be re-perforated because the first perforations failed. As the necessary equipment for re-perforation has been moved to another of the company’s wells, Deep Well A5, further work on A6 isn’t expected until after the A5 programme is complete.

Commenting on today’s news Clive Carter, Roxi executive chairman said: “The need to repeat the perforation work at Deep Well A6 is frustrating but the board believe it is unlikely to have any material impact on the final outcome at the well, which we believe remains very encouraging.”

Look to the long-term

Even though shares in Roxi lost a fifth of their value in early deals this morning, today’s news doesn’t seem to be that detrimental for the company in the long term. Delays when drilling new wells are common, so A6’s problems are nothing out of the ordinary.

What’s more, Roxi’s press release today contains some good news as well. The company has identified some areas of interest in the newly drilled Shallow Well 142 on the MJF structure. Existing wells already producing from the structure (wells 141 and 143) are producing 1,297 barrels of oil equivalent per day and Well 142 has the potential to yield an even greater rate of production. Roxi notes that Well 142 is a material step-out and therefore it has the potential to yield more scale in output than the shallow MJF structure.

The next 12 months should be an eventful time for Roxi’s investors. As the company moves on to complete its A5 well, tests well 142 and then moves to complete Deep Well A6, as long as there are no further unforeseen surprises, Roxi could end the year with a greatly increased production profile. 

City analysts are expecting the group to exit 2017 with revenue of £4.6m up threefold year-on-year. Pre-tax profit for the year ending 31 December 2017 is expected to be  a loss of £2.3m as the company’s costs continue to outpace gross profit. Nonetheless, during 2018, Roxi’s revenue is expected to surge to £22.3m and while City analysts currently expect the group to report a pre-tax loss of £1.3m I wouldn’t rule out a profit if oil prices continue to trend higher.

The bottom line 

So overall, shares in Roxi are falling today thanks to a drilling setback but this isn’t a long-term issue, and over the next few months the company should regain its composure.

The post Why shares in Roxi Petroleum plc crashed 20% today appeared first on The Twelfth Magpie.

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

Roxi Petroleum’s update includes positive news regarding its shallow and deep wells at the BNG Contract Area.

In terms of shallow wells, it has experienced success with Well 141, with drilling having commenced in August 2016. The well was drilled to a total depth of 2.5km on a turnkey basis at a total cost of $1.25m. Five oil-bearing intervals have been identified for testing. At the first of which the well was perforated over 6m at between 2,230m and 2,236m. Early flow test results indicate that the well is producing at the rate of 220 barrels of oil per day (bopd) using a 3mm choke and 480 bopd using a 5mm choke.

Regarding its deep wells, Deep Well A6 was spudded in November 2015. Roxi decided to complete the well at a depth of 4,528m based on the analysis of mud logs. Although preliminary, they suggest that the well has penetrated oil bearing intervals. Roxi will make a further announcement after the completion and analysis of a wire-line log, subject to which it will conduct flow testing.

Clearly, the market is highly encouraged by Roxi’s update. This improved investor sentiment could continue in the short run and push the company’s share price even higher. And if the price of oil continues to rise as it has done in 2016, sentiment towards Roxi could improve and mean that it’s not too late to buy a slice of the company.

Go for diversification?

However, Roxi remains a relatively small and risky purchase within an uncertain energy sector. The price of oil could come under pressure due to an imbalance between supply and demand. According to recent forecasts, this situation could worsen and it may therefore be prudent for investors to focus their attention on a larger, better diversified and more financially sound energy stocks such as Shell (LSE: RDSB).

Shell has a large degree of geographic diversity and is positioning itself to take advantage of rising demand for liquefied natural gas (LNG) over the coming years. Furthermore, its integration with BG provides the scope for significant synergies that are expected to boost cash flow over the medium-to-long term. This could enhance Shell’s dividend and make its 7.1% yield more affordable. It could even mean a rapid rise in Shell’s shareholder payouts.

The future of the oil and gas industry is highly uncertain and while Roxi has released positive news today, sticking with a lower risk peer such as Shell seems to be a better idea. Shell may not offer 25%-plus upside in one day, but its shares should perform well and offer a relatively high degree of stability.

The post Is it too late to buy Roxi Petroleum plc after its shares jumped by 25% today? appeared first on The Twelfth Magpie.

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Peter Stephens owns shares of Royal Dutch Shell B. The Motley Fool UK has recommended Royal Dutch Shell B. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

Faroe Petroleum

Faroe Petroleum has today announced the commencement of drilling of the Njord North Flank-2 exploration well in the Norwegian North Sea. It will target Middle and Lower Jurassic sandstone reservoirs of the Ile and Tilje. If successful, it will add another tie-in opportunity for Faroe in the Greater Njord Area and follows on from the significant Faroe-operated Brasse oil and gas discovery well and side-track announced last month.

As well as the drilling update, Faroe has also announced news on its acquisitions from Dong Energy. Since no existing partners in the Ula field have taken up their option, the transaction can proceed as expected.

Clearly, Faroe is adopting a fast pace of development in what remains a challenging oil environment. With costs having fallen across the industry, this strategy makes sense because it means that drilling costs are kept to an absolute minimum. This should provide the company’s investors with greater confidence in the financial capabilities of the business, while its asset base offers improving financial performance over the medium-to-long term.

As a small operator without the diversity of an oil major, Faroe remains relatively risky, but its potential rewards are also high.

Roxi Petroleum

Roxi Petroleum has today announced that it has spudded Well 141 as it seeks to replicate the success of Well 143 at its flagship BNG asset in Kazakhstan. Well 141 is located 1.1km from Well 143, with a planned depth of 2.5km. Well 143 has produced at a maximum rate of 815 barrels of oil per day (bopd) and the first indications from it were that the shallow horizon extends over a significant area. This bodes well for future drilling and means that the BNG asset continues to offer an upbeat long-term outlook for Roxi.

Roxi’s financial standing remains sound. In its most recent financial year, the company’s bottom line increased from a profit of $5.7m in 2014 to a profit of $10.6m in 2015. Furthermore, with it currently producing in aggregate 616 bopd from three shallow wells, its drilling programme appears to be relatively well-funded. This reduces the chance of a fundraising in the near future and means that the company could continue to deliver upbeat performance.

However, with Faroe having a stronger asset base and larger size and scale benefits, it’s the better long-term buy at the present time. Both companies could perform well, but Faroe has a more appealing risk/reward ratio than Roxi.

The post Which is the best small-cap oil stock after today’s news? appeared first on The Twelfth Magpie.

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

Despite this concern about house prices, Purplebricks continues to move higher and has now recorded share price gains of 45% since the turn of the year. However, the scope for further gains could be somewhat limited. Certainly, there is a major opportunity for web-based estate agencies such as Purplebricks to encroach on traditional estate agency business. But with Purplebricks trading on a forward price-to-earnings (P/E) ratio of around 44, it appears to lack a margin of safety.

With the EU referendum just around the corner, house prices set to fall and interest rates likely to rise over the medium term, such a high valuation may cause investment returns from Purplebricks to disappoint.

Also rising today are shares in Immupharma (LSE: IMM). The drug discovery and development company is up by 9% today and this takes its share price rise to 46% in the last week after it announced that it has made progress with its development of a treatment to fight life-threatening autoimmune disease Lupus. As part of its phase 3 trials, Immupharma has begun dosing Lupus sufferers with its Lupuzor treatment at its first European sites in addition to US sites.

Clearly, this is excellent news for the company’s investors and it shows that sentiment towards a stock can rapidly change. Looking ahead, further updates on Lupuzor are anticipated in the short to medium term and they have the potential to push Immupharma’s share price higher. As such, it may be of further interest to less risk averse investors, although it remains a relatively small and higher risk healthcare play.

Meanwhile, shares in Roxi Petroleum (LSE: RXP) have fallen by over 4% today despite no news flow having been released by the company. Its latest news was a set of rather disappointing results which showed that the oil producer has swung into a loss in its most recent financial year. In fact, following a $20m pretax profit in 2014, Roxi Petroleum recorded a near-$2m loss in 2015. That was due in part to the lack of a reversed impairment from 2014 which was not repeated in 2015. However, the fact that Roxi Petroleum avoided impairments at all in 2015 was a positive result for its investors.

Looking ahead, Roxi Petroleum is aiming to increase production in the current year. Furthermore, it is intent on taking advantage of lower costs to develop its BNG asset and it therefore has long term growth potential for less risk averse investors. However, with there being a number of other oil and gas stocks which are profitable and priced to sell, there may be better options elsewhere.

The post Why are Immupharma plc, Purplebricks Group plc and Roxi Petroleum plc among today’s major movers? appeared first on The Twelfth Magpie.

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• With a yield of 6.8% and a P/E ratio of 12.1, is this a dirt cheap FTSE 250 stock to consider?
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Peter Stephens has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

Clearly, there is also the potential for a rise in oil price, too. Although it seems improbable in the short run due to the glut of supply which is showing little sign of being cut, demand for black gold is forecast to rise substantially in the long run. Therefore, investing in oil and gas companies now could still yield a highly profitable return, but only in the long run.

Continued decline

That’s a key reason why investors may wish to watch, rather than buy,  Xcite Energy (LSE: XEL). Its shares have fallen by 58% in the last year, partly because of the fall in the oil price, but also because of concerns regarding the company’s financial standing.

As a business which currently generates no revenue, Xcite Energy is under pressure to bring its main asset, the Bentley field, into production as quickly as possible. Progress on this front has been much slower than anticipated and it could remain so while investor appetite for investment in new projects continues to decline. This means that there may be delays ahead and with Xcite Energy being in a financial position which requires debts to be serviced over the medium term, investor sentiment in the stock could continue to decline over the coming months.

Upbeat update

Also posting a share price fall in the last year is Roxi Petroleum (LSE: RXP). Its valuation has tumbled by 13% during that time, although investor sentiment appears to be picking up somewhat in recent weeks, with the company’s share price rising by over 10% in the last week.

Of course, this could be in response to an upbeat operations update which was released last month. Roxi reported that its shallow and deep wells at its flagship BNG project in Kazakhstan have continued to progress, with it recording good flows from its shallow well on the site. And with Roxi remaining optimistic regarding its future prospects, it could be of interest for less risk averse investors.

Increased upside

Meanwhile, Sound Energy (LSE: SOU) has today reported that it has been granted an option to acquire a 55% interest in the Meridja permit in Morocco. It is adjacent to the company’s existing Tendrara licence and is a highly prospective 9,000 km2 area which has the same fundamental geology as Tendrara. As consideration for the licence, Sound Energy will pay Oil & Gas Investment Fund $100,000, as well as the potential for further amounts if the option is exercised .

The deal is in-line with Sound Energy’s aim to build its regional position in Morocco. It will also enable the company to increase its upside potential. should drilling at its Tendrara prospect proceed as expected. As such, it appears to be a logical move for the company to make and as such, it could be a stock to watch following its 70% share price rise over the last year.

The post Do Roxi Petroleum plc, Xcite Energy Limited And Sound Energy PLC Lack Upside Potential? appeared first on The Twelfth Magpie.

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• Will SpaceX, Nvidia, or Alphabet be the first $10trn stock?

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

Although disappointing, Roxi expects that as these fluids come to the surface the periods of oil flow at deep well A5 should increase until the oil flows naturally on an unrestricted basis. Meanwhile, at deep well 801 Roxi believes the best way to tackle the problem is via a prolonged wash using less dense mud injected under pressure which is intended to lessen the density of the drilling fluids.

Of course, the use of extremely dense drilling fluids was required in order to control the high pressure encountered in drilling the deep wells. But, with such fluids being finite, Roxi remains optimistic regarding the quality of the oil from its deep, as well as shallow, wells. Regarding the latter, no blockages have been encountered and Roxi continues to make encouraging progress, with a third test interval at shallow well 143 detecting oil.

Clearly, today’s update is disappointing for investors in Roxi as it signifies a delay to the planned flow tests which are due to take place. However, such challenges are perhaps to be expected for oil exploration companies and, as such, the long term investment case for the business does not appear to have been significantly altered. For less risk averse investors, Roxi’s price to book value (P/B) ratio of 1 holds considerable long term appeal.

Meanwhile, the outlook for oil support services company Lamprell (LSE: LAM) is also relatively bright. Certainly, it is forecast to post a fall in earnings of 41% in the current year but, with a return to growth being pencilled in for next year, now could be a good time to buy a slice of it.

That’s because Lamprell’s valuation appears to fully reflect the short term challenges which it faces and, while investor sentiment could come under further pressure once its 2015 results are announced, a price to earnings (P/E) ratio of 9.4 indicates that there is significant upward rerating potential.

In addition, Lamprell also has upbeat income potential. Clearly, a yield of 2.4% is hardly enticing, but with Lamprell having a dividend payout ratio of just 22%, there is scope for rapid rises in shareholder payouts, with next year’s planned dividend rise of 38% being highly encouraging for Lamprell’s investors.

Also having long term total return appeal is Rockhopper (LSE: RKH), with its planned merger with Falkland Oil & Gas having the potential to create a more financially sound business through which to develop a relatively high quality asset base. And, with Rockhopper having enjoyed a considerable amount of success with its 2015 drilling campaign, it appears to be well-positioned to enter 2016 even though the outlook for the oil price is relatively downbeat.

For less risk averse investors, Rockhopper’s current P/B ratio of 0.5 indicates that there is considerable upside potential. And, with the company paying just at 11% premium to Falkland Oil & Gas’ already discounted share price, the combined group appears to offer good value for money and a relatively appealing asset base with, of course, a high degree of volatility likely over the medium term.

The post Are Rockhopper Exploration Plc, Roxi Petroleum plc And Lamprell Plc Set To Post Stellar Returns? appeared first on The Twelfth Magpie.

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• With a yield of 6.8% and a P/E ratio of 12.1, is this a dirt cheap FTSE 250 stock to consider?
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Peter Stephens has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

While no financial details have been provided, the partnership will integrate Blinkx’s programmatic platform, RhythmMax, into DataXu’s Demand Side Platform. This should provide a differentiated offering to advertisers and appears to be further evidence that Blinkx is slowly putting into place the steps required to move into profitability.

Of course, this is not expected to take place in either the current year or next year. As such, it could be argued that there is little reason to buy Blinkx right now, since the most obvious positive catalyst would be a return to a black bottom line.

However, news flow for Blinkx continues to be upbeat and it appears to have a strategy that is sound, relatively simple and could prove to be highly successful. As such, and with a sound balance sheet and price to book value (P/B) ratio of only 0.65, Blinkx appears to be worth buying now ahead of potentially improved financial performance and rising investor sentiment in the long run.

Similarly, Jet2.com operator Dart Group (LSE: DTG) also appears to be worth buying at the present time. It has been a star performer in the last five years, with its earnings increasing at a double-digit rate in each year and allowing the company to increase dividends per share from 1.2p in 2011 to 3.5p in the current year. That is a growth rate of 23% per annum and, with Dart still paying out less than 10% of earnings as a dividend, further rises in the company’s shareholder payouts could lie ahead.

Clearly, Dart is enjoying a purple patch at the present time and in the current year its bottom line is due to rise by 15%. This is twice the market rate of growth and, with Dart’s shares trading on a price to earnings (P/E) ratio of just 13.1, they could continue the rise which has seen them increase in value by a third in the last six months.

Meanwhile, with the oil price fall having dampened investor sentiment in the industry, shares in Roxi Petroleum (LSE: RXP) have fallen by 51% in the last year. While hugely disappointing, the company continues to make encouraging progress, as highlighted by a recent update on its flagship BNG asset.

In fact, Roxi Petroleum’s high hopes for well 143 in Kazakhstan appear to be well-founded, with oil flowing from two intervals and two further intervals having also been identified. While news flow in the short run could prove to be somewhat uncertain, Roxi Petroleum’s P/B ratio of 1.3 indicates that there is significant growth potential on offer during the medium to long term. And, with an appealing asset base, it could prove to be a sound, albeit volatile, investment at the present time.

The post Are Blinkx Plc, Roxi Petroleum plc & Dart Group PLC 3 Of The Best Small-Cap Stocks? appeared first on The Twelfth Magpie.

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• With a yield of 6.8% and a P/E ratio of 12.1, is this a dirt cheap FTSE 250 stock to consider?
• Will SpaceX, Nvidia, or Alphabet be the first $10trn stock?

Peter Stephens owns shares of Dart Group. The Motley Fool UK has no position in any of the shares mentioned. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

And, even though Roxi experienced multiple failed well tests, its high hopes for Well 143 seem to have been well-founded. That’s because oil has flowed from intervals at 2692 metres and 1935 metres and, should further testing of these two intervals to determine reliable flow rates be successful, the location of the well has the potential to extend the shallow horizon at South Yelenes from which three other wells are currently producing.

Clearly, there is still some way to go before Roxi Petroleum begins to realise its potential as an oil producer. While its news flow is positive, investors may prefer to focus on resources companies that are already relatively stable producers and which are delivering strong growth in profitability. After all, investor sentiment in the resources space is somewhat weak at the present time and, with the potential for further commodity price falls, seeking out more established companies could be a prudent move.

As such, the likes of Petra Diamonds (LSE: PDL) and Polymetal (LSE: POLY) appear to be worth buying at the present time. In the case of the former, it has remained profitable throughout the last four years and, during that time, has posted annualised growth in its bottom line of over 20%. And, while its earnings are expected to fall by 34% in the current year, this appears to be adequately compensated for in the company’s current valuation. In fact, Petra Diamonds trades on a price to earnings growth (PEG) ratio of only 0.3 since its net profit is forecast to soar by around 46% in 2016.

Meanwhile, Polymetal has endured a more turbulent recent period, with losses being posted in two of the last four years. And, with the price of gold recently hitting a five year low, it may be surprising that the company is forecast to move sharply back into profitability in the current year. This could boost investor sentiment in the company and turn the tables on a fall in its share price of 10% in the last year. Furthermore, with Polymetal trading on a price to earnings (P/E) ratio of just 10.4, there is considerable scope for an upward rerating over the medium to long term.

So, while all three stocks appear to be worth buying as part of a diversified portfolio, the consistency of profit in recent years, excellent growth potential for next year and appealing valuation of Petra Diamonds make it the preferred option at the present time.

The post Roxi Petroleum plc vs Petra Diamonds Limited vs Polymetal International PLC: Which Resources Play Is Set To Soar? appeared first on The Twelfth Magpie.

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• With a 7% yield, is this dividend share a no-brainer?
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• With a yield of 6.8% and a P/E ratio of 12.1, is this a dirt cheap FTSE 250 stock to consider?
• Will SpaceX, Nvidia, or Alphabet be the first $10trn stock?

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

For example, even though the price of silver has fallen by far less than that of other commodities such as iron ore and oil, silver mining company Hochschild (LSE: HOCH) has posted a fall in its share price of 9% since the turn of the year. And, even though its most recent production update showed that the company was on-track to meet its full-year production guidance, it is still expected to post a loss for the full year. That would make it three years in a row of losses and, as a result, it would be of little surprise for investor sentiment to decline further before it improves.

Of course, Hochschild is expected to return to profitability in 2016, with its pretax profit forecast to be around £19m. While this would be a major step in the right direction and could help to stabilise investor sentiment in the stock, Hochschild’s valuation remains difficult to justify. For example, it trades on a forward price to earnings (P/E) ratio of 31.2 and, with the outlook for the mining sector being relatively challenging, its valuation could come under pressure over the medium term.

Clearly, any investment in the resources sector comes with considerable risk at the present time, since there is a very real threat that further commodity price falls could lie ahead in the short run. However, the risk/reward ratios for Roxi Petroleum (LSE: RXP) and Falkland Oil and Gas (LSE: FOGL) appear to be relatively favourable and, while they are likely to be volatile stocks that are highly dependent upon news flow in the months ahead, their long term potential remains appealing.

For example, Falkland Oil and Gas has considerable potential via a very appealing asset base, with it having a share of what could prove to be a total haul of over 1m barrels of recoverable oil at the Isobel Deep prospect in the North Falkland Basin. Furthermore, it has a relatively sound balance sheet with sufficient cash to progress with its drilling programme and, by spreading the risk with its partners, has been able to produce an even more appealing risk/reward ratio for its investors. Certainly, its share price performance is highly dependent upon future news flow, but as far as smaller exploration companies go, it appears to be among the more appealing.

Similarly, Roxi Petroleum is also a relatively volatile stock, but has delivered a share price rise of 22% since the turn of the year. A key reason for this is encouraging news flow regarding its drilling programme, with the company being able to successfully raise a further $20m during the course of the year via a placing so as to fund future activities.

As a consequence of this fundraising and also the changes made to future royalty payments on its 58% owned BNG asset and the sale of its stake in the Galaz Contract Area, Roxi Petroleum’s long term future appears to be more stable than it was previously. And, while a weak oil price is unlikely to aid its performance, the company seems to be worth buying for the long term.

The post Why I’d Buy Roxi Petroleum plc & Falkland Oil And Gas Limited, But Would Avoid Hochschild Mining Plc appeared first on The Twelfth Magpie.

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• With a 7% yield, is this dividend share a no-brainer?
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• With a yield of 6.8% and a P/E ratio of 12.1, is this a dirt cheap FTSE 250 stock to consider?
• Will SpaceX, Nvidia, or Alphabet be the first $10trn stock?

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

With this in mind, take Roxi Petroleum (LSE: RXP), Enquest (LSE: ENQ) and Jubilee Platinum (LSE: JLP): which one should you buy right now and why, if you are looking for an opportunistic trade in the bruised and battered resources world? 

Roxi: Buy On Weakness? 

A highly speculative trade, the shares of this Kazakhstan-based oil and gas explorer, which has a market cap of £100m, have been on their way down since 9 June when they closed at 18p. In spite of a 40% drop since, they are still up 16% this year and they currently trade at 10.8p. 

Its shares shrugged off volatility for oil-related investments until early June (recording a +70% performance from 2 January to 8 June), but a recent drop in oil prices and business-related news put more pressure on the market value of a firm that, quite simply, offers plenty of uncertainty with regard to its drilling programme. 

We are almost blind on financials and projections, too. That said, its funding needs are not prohibitive and are covered, while expectations are high for its flagship BNG asset.

Finally, its management team deserves trust based on its track record, in my view. 

Enquest: Undervalued? 

Enquest is a completely different story. The explorer has significant funding needs, but has secured increased financial flexibility earlier this year by amending debt covenants. 

The problem is that oil investors have been shocked by hefty losses associated to Afren, and Enquest isn’t dissimilar in terms of size, while its books also carry a huge amount of debt — that’s where the similarities end, but it is enough to raise a red flag. 

Including net debt, its enterprise value is about twice as much as the value of its forward revenues but only about four times the value of its adjusted forward operating cash flow — a combination that could signal stress at times. 

Could Enquest be undervalued, though? That’s what management believes, and is backed by the view that its underlying business has proved to be more resilient than others in recent years, although its producing assets base and its current cost base will be severely tested over the next few quarters. 

We’ll learn more on 18 August, when its interim results are due. 

Jubilee: More Upside Than Downside From Here? 

You’ll need more time to make an informed investment decision on Jubilee, in my view. 

The shares of this small-cap miner have recorded an outstanding performance so far this year, and although shareholders may be tempted to sell out, you should consider that they are not incredibly overpriced based on the value of Jubilee’s assets. 

According to my calculations, downside is just about 30% from its current level, which is a remarkable achievement for a £27m business whose operating losses are about £1m a year. 

You should also consider, however, that nobody knows when the company will start to generate cash flow from its core business — platinum production —  and at what price. Keep this in mind before snapping up its stock.

The post Why I’d Buy Roxi Petroleum plc, Hold Jubilee Platinum PLC & Sell Enquest PLC appeared first on The Twelfth Magpie.

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