Sylvania Share Discussion Threads

[turbotrader2] 30/11/2010 22:00

are we trying to break out?

[mrpoisson] 29/11/2010 23:07

good volumes today..........

[bones30] 29/11/2010 10:04

Sylvania Resources Ltd ALL-AIM Basic Materials Buy 77 46.5 65.6% Evolution Securities



Anyone able to get more info?

[arja] 27/11/2010 12:18

sorry , no . Just a bit nervous as I hold CZA and they do. But that is a coal mining stock which is rather different I guess. At least SLV firmed a touch on friday !

[azalea] 26/11/2010 17:07

arja
Do you have any specific evidence to support your question?

[arja] 26/11/2010 16:07

any chance that SLV will be affected by the problems with environmentalist lobby in S.A. as CZA have been ? hope not as I have suffered with that stock .

[bones30] 26/11/2010 15:15

Wendy - thanks for the comment.

[wdurham] 26/11/2010 15:12

Hmmm. Not quite correct there. Ambrian show clearly that they are yet another outfit that don't understand the PGM industry in SA, and can't distinguish between upstream, on-mine mining and concentration and the downstream operation of smelting/refining.

The metallurgy at Volspruit suggests 75% recovery of PGMs to a low grade 50 g/t concentrate. This is Sylvania's department, and nothing to do with Conroast.

Subsequent smelting of the concentrate using Conroast technology will recover - as has been demonstrated earlier with SDO-derived low-grade concentrate - up to 99% of contained PGMs.

The significance of this agreement with Jubilee for Sylvania is that the Platreef concentrate at 50 g/t would not be acceptable to any other smelting company, where the minimum acceptable grade is 160 g/t. Sylvania actually spell this out in their 30 June 2009 Quarterly Report.

However, Conroast can take any concentrate grade in its stride without a hiccup, and still perform exceptional PGM recoveries, even from very low grade feedstock.

Ironically, one of Braemore's very first heads of agreement for Conroast was with Pan Palladium for Grass Valley (now Volspruit)! This project was stopped in its tracks by a major shareholder who voted the venture down at an EGM.

Those who have focused all their attention today on the re-domicile ought perhaps to look at the Sylvania/Jubilee Joint Venture. Because without it, the Platreef is unmineable.

[bizz2bizz] 26/11/2010 14:29

CHECK THIS OUT...'GAME CHANGING'







Metals & Mining
26 November 2010


Sylvania (SLV)

Price: 45.25p Target Price: REVIEWING Recommendation: BUY Market Cap: £113m

Sylvania and Jubilee finalise a route map for the development of the Volspruit deposit

Sylvania and Jubilee have entered into a Smelting Agreement that seeks to expand on the existing co-operative agreement that the parties signed in February this year. The new deal outlines a framework whereby the two parties have agreed to:

1. Extend their joint investigations into commercialising the exploitation of PGM-bearing resources at Sylvania's Volspruit property (Northern Limb), which will involve the smelting of the concentrate product using the Jubilee ConRoast Technology.

2. Set out a timeline for the achievement of technical study milestones, which will be undertaken by a new 50:50 JV company which will carry out

o Scoping study for the exploitation of the Volspruit Project - to be completed by 28 February 2011.

o Pre-feasibility Study to be completed by 31 May 2011 (c. ZAR2m cost).

o Bankable Feasibility Study to be completed by 31 January 2012 (c.ZAR5m cost).

Comment

This is good news for Sylvania, which, despite having a more aggressive forecast production profile than almost all of its peers (from existing operations) - reaching record production levels a few weeks ago (and the rally in PGM prices), has unperformed over the last six months. The company's market value completely ignores any of the growth prospects from its Northern Limb assets.

With this latest announcement, investors now have a clear roadmap outlined for the development of the Volspruit Project (the first of Sylvania's Northern Limb Projects). If the Feasibility Study proves the project is economically viable, the implied value of its Northern Limb assets could prove 'game changing' for Sylvania.

There are, of course, additional hurdles on the route towards commercialisation of the Volspruit Project; most notably, the shortage of power allocation for a new large-scale smelting operation in the Bushveld. However, as we have outlined before, this might not prove as tricky as some commentators might think. Why not? We think that the answer might lie in a partnership with Samancor Chrome (which has already taken a 19% direct equity interest in Sylvania), as the former owns a large amount of idled ferrochrome smelting capacity in the Bushveld and possesses the necessary power allocation, environmental permits and furnaces that could/might be retrofitted for ConRoast Technology.

Recommendation

We are currently reviewing our target for Sylvania as we don't think that any value is being attributed to this asset at the moment, and we think it deserves more than an acquisition valuation within our SOTP valuation. Why do we think this? The short answer is that our confidence in the commercial viability of these assets is growing because:

· The ConRoast met test-work on Volspruit asset is clear (75% recoveries have recently been achieved).

· The strategic alliance with Jubilee Platinum (the owners of ConRoast) is cemented.

· Samancor Chrome owners (IMR) now own a 19% interest in Sylvania. We think this stake could provide an imperative for Samancor Chrome to supply technical DC smelting advice and potentially power and capacity allocation at one of its idled furnaces in the Bushveld (which could be retrofitted to run with a PGM concentrate feed rather than a chrome concentrate).



We expect to produce a full note on Sylvania shortly.



Ambrian acts as Nomad and Broker to and as a Market Maker in this company

[arja] 26/11/2010 14:02

bit of a nonsense to say that aussie investors or punters will not get involved so much as it has low volume there now ! also , they will invest of they think they will make money even if it was domiciled in MARS ! ( smile )

[bones30] 26/11/2010 12:08

"Advantages are expected to include a reduction in operational and administrative costs and the potential for a more efficient tax structure."

[arja] 26/11/2010 10:37

at least no markdown by MMs today ! as this company will probably not be taken over in foreseeable future, the lack of protection should not affect share price .

[bones30] 26/11/2010 10:14

Yes interested in people's views on the redomicile. Is it to do with tax avoidance? Or is there more to it?

[abudhabitrader] 26/11/2010 08:27

Sorry read it wrong. I could say its too early but its lunch time here LMAO

[sunseeking] 26/11/2010 08:21

Whats your views on this

"The Directors consider that potential disadvantages from the Redomicile proposal include the additional implementation costs associated with the Redomicile and reduced investor protection due to many provisions of the Corporations Act (such as the takeover protection provisions currently afforded to the shareholders of Sylvania Resources) no longer applying
ss

[azalea] 26/11/2010 08:10

If the move gives a clear picture of who the major shareholders are, that alone will be an achievement.

[arja] 26/11/2010 08:09

correct as I read it . Hope so anyway as I hold most of my shares on OZ market !!
But it time it might be delisted there if volumer levels stay low !

[ohisay] 26/11/2010 08:08

"The Board also considers that the Redomicile will result in the cost, tax and corporate efficiency of the Company being enhanced while retaining its existing listings on ASX and AIM. "

[wdurham] 26/11/2010 07:50

AD-trader -

Where does it say delist from ASX? Change of domicile, not change of listing.

[abudhabitrader] 26/11/2010 07:30

SO FJP got it spot on when he said we would de list off the ASX. The bit I like is

In addition, the Directors believe the Redomicile will make it more attractive for future corporate deals whilst also making it easier to access international investor markets, particularly North America.

Another tidy up and is this another step nearer a takeover.

[stucom] 25/11/2010 15:59

that's the one bones!.lol

[bones30] 25/11/2010 15:59

Hmmm indeed.

[stucom] 25/11/2010 15:57

aye,both coincided with each other MRP....hhhmmm....not ramping,just humming!