Petri Redelinghuys of Herenya Capital Advisors on how we are rotating our portfolio to take a position in gold and platinum.
Sasol (SOL)
We here at Herenya have looked at Sasol extensively and have held positions on the stock for some time, but we think the time has come to sell. Sasol has seen phenomenal gains since the start of the unfortunate conflict in the Middle East, and those gains are simply due to the supply and demand of oil, which has seen global disruptions. With talks of a potential ceasefire looming, which will drive the oil price down, we believe it is time for us to take profit. Currently, we still think Sasol will trend higher, and are looking for a goal price of R225, but are comfortable with the profit we are seeing.
Rotating Into Precious Metals
During the course of this war, we shifted our positions to try to stay safe by looking at offshore energy markets like gas and coal. Now, with talks of negotiations and a potential ceasefire, we are looking to rotate back into resources like platinum and gold, which were doing well before the war, but have since fallen quite a bit. We are looking forward to a time when the markets bounce and rally once things start cooling off. Some might call this brave; this is, in reality, a tactical trade, since we are seeing some reports of US troop movements and deployments to the surrounding Gulf as “strategically placed forces”, but we find the fact that there are even talks supposedly happening reassuring. We know President Donald Trump wants to find a quick resolution to this war to protect his approval rating, which is declining rapidly as this war goes on. We will be looking at Valterra Platinum, AngloGold Ashanti, Harmony Gold Mining Company, Impala Platinum Holdings, and Sibanye Stillwater.
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