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[TOP STORY] When ‘once-in-a-lifetime’ market opportunities come along more often

Jubilee Metals Group’s share price has surged from 50c to R3.46 in a few months: Petri Redelinghuys, founder Herenya Capital Advisors.

SIMON BROWN: I’m chatting to Petri Redelinghuys. He is of course the founder of Herenya Capital Advisors. Petri, good morning. I appreciate your time. Jubilee Metals Group. Whenever I talk small mining stocks, and you chatted about Orion Minerals a few weeks ago – folks always ask, what about Jubilee? You raised it to me about a year, maybe a year-and-a-half ago; it was at 50 cents back then, and now R3.46. This is a tailings operation, relatively small, but they’ve got operations around the continent and it’s actually a decent-looking little junior miner. And at R3.46 it’s still looking decent.

PETRI REDELINGHUYS: Yes. Good morning. I think what we spoke about initially – it was on the small-cap investor show if I’m not mistaken – was sort of around their reinventing of themselves. Jubilee has been around for a long time. They do have a giant platinum deposit as well, but it’s just too deep to be practical to get to. So they’ve been spending a lot of time reinventing their business and developing a particular way of reprocessing tailings. Reprocessing, basically, mine dumps and extracting metals from that. 

They started operations on that new tailings venture of theirs about, I think, the beginning of last year, which was the first time that they started operating. They have a whole bunch of offtake agreements and agreements with most of the mines around the platinum area, as well as some operations a bit further north in Zambia and so on, where they have this sort of ramp-up into production over the next couple of years. Their own projection for what their earnings are going to be looked absolutely ridiculous around two years ago.

But if you look at what’s happening, they’re managing to stick to that schedule almost, and they’re starting to make a bit of money – and the share price is starting to react.

SIMON BROWN: I remember when we were on air and I looked at this, and I thought what they are promising is just crazy. But the point is, as you say, they are delivering. That caused you to make a comment to me over the weekend, which I thought was really spot on. I’ll quote you. You said those once-in-a-lifetime opportunities often come once a year. That’s just it. My sense is that we never need to go all-in on something because it’s never once-in-a-lifetime. They come, maybe not every year, but they come along. Jubilee is a seven-bagger in, what, a year-and-a-half?

PETRI REDELINGHUYS: Yes. And I think that’s something I’ve been thinking about quite a bit because everyone asks, well, did you buy Sasol at R22? And the answer is no, I was too scared.

SIMON BROWN: Me too.

PETRI REDELINGHUYS: That feels like I’ve missed this once-in-a-lifetime opportunity. So it creates a lot of sort of dread and anxiety and all sorts of stuff. And I think also what happens, particularly in the shorter-term trading world, when its markets like this, is that you have to do it now. 

And also bitcoin. This thing is topical and people are going to talk about it even more for the rest of the year. So everybody’s kind of chasing this while it’s now or never. I’ve been at this now for like 12 years or something and every time, almost every year, there’s this chance where you think, well, if I’d taken this it would have changed my life. 

I remember a couple of years ago, AngloGold AGL–

SIMON BROWN: Anglo American. 

PETRI REDELINGHUYS: [It] was sub-R45 at one point, and [its] back at R600 now. It’s five/six years down the line. So the market provides endless opportunities, or an endless stream of opportunities, that sometimes seem once-in-a-lifetime. But, if you’re patient enough, you’re going to see a couple of those a decade, or at least one a year. 

SIMON BROWN: You’re going to get many, many lifetimes in that market.

We’ll leave that there. Petri Redelinghuys the founder of Herenya Capital Advisors, I appreciate your early morning.

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Personally I wouldn’t sweat it gents. Warren buffet missed the tech rally, gold rally, bitcoin rally etc, and by his own admission many other opportunities throughout his decades long investing. Yet he remains the best investor on record and the 7th richest man in the world. Investing is about patience and not losing money. There are thousands of penny stocks, distressed companies, start ups etc….if you start chasing them all you may as well go to the casino and bet on red or black. My favorite adage from Buffet…rule 1; Dont lose money. Rule 2….refer to rule 1.

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