Daily investor - article19 Mar 2024 09:33
Of his three stock picks, Redelinghuys was most bullish about mid-sized gold producer Pan African Resources because “things are looking fairly rosy for the gold price”, he explained.
The high gold price means Pan African Resources is likely to pay substantial dividends in years to come.
The company recently announced a new project to increase its gold production by 50%. This is a significant expansion of operations, which the company’s CEO says will bring down costs substantially.
Redelinghuys praised the company for being future-minded, saying they have a young and dynamic management team. An early adopter of solar PV, the company also invests heavily in renewable energy.
He highlighted Jubilee Metals Group as a comparable investment, which he has favoured over Pan African Resources in the past. However, he warned that Jubilee may be a take-over target for Pan African Resources.
Pan African Resources’s share price has grown by over 200% in the past five years and currently sits at a price-to-earnings ratio of just over 7.
https://dailyinvestor.com/investing/46808/three-jse-companies-petri-redelinghuys-is-betting-on/