The cyclical nature of the natural resources sector means that the time to buy companies that are at the production stage, and are financially strong enough to weather lower revenues, is when the market has been in a bit of a down cycle but has been showing signs that commodity prices are near the bottom.
I’ve never been a fan of Bangladeshi coal miner, GCM Resources (GCM), so noticed that it suddenly seems to be popular again on various social media platforms, as often seems to occur every couple of years.
The share price of Johnson Matthey (JMAT) has been in the doldrums for some time now, and although it has improved a bit from the lows it saw around the release of its last set of financials, it is still suffering from the impact of low platinum group metal prices.
Arrow Exploration (AXL) has finally started to show some positive momentum following recent good updates, but still has plenty of potential to ultimately push the shares on even higher.
Despite the threat that a Labour government poses to the UK oil and gas industry, I still see opportunities for producers in this sector to perform well, and I particularly think that EnQuest (ENQ) is worth a look. Here's why!
Helium One Global (HE1) has been a great example of why the rewards of holding for an exploration drill result by a small natural resources company is rarely worth the risk these days.
Iron ore producer Ferrexpo (FXPO) is still very much a play on there ultimately being some sort of peace deal between the Ukraine and Russia, and ideally as soon as possible.
When I saw the latest update and guidance from Jadestone Energy (JSE) I was expecting that the market might not like it and would focus on the negatives, but I wasn’t expecting it to take around an 18% hit on not a huge volume of shares traded.
Yesterday evening, after the market closed, Canadian Overseas Petroleum (COPL) issued an RNS in response to a letter that a shareholder action group had sent it, and the thing that really stood out to me is that total debt now stands at a staggering $135 million!