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Real-Time news about Sylvania (London Stock Exchange): 0 recent articles
|bones30: Surprised by the share price action. Can't see any reason for it.|
sorry but I hear that kind of comment quite a lot and quite often a long term investment turns out to be a long term loss as share price slides and never recovers even if a company survives ( I must check out the balance sheet of this stock ! ). It is possibly falling and underperforming most stocks because the platinum price is falling I suppose and I hope that is the only or main reason!|
|fjp73: A Very Good Evening Chaps/Esses,
Kooba, a very interesting article and thank you. Not because of its echolalia to the RNS but for a key statement that needs breaking down. The deal brings a host of advantages that could not be explained in direct monetary terms, such as consolidation of the SDOs operations, a closer working relationship with Samancor and the potential to explore other opportunities with Samancor.
Andy, good questions:
How much did Samancor Pay? I don't think we'll ever get to find out, but SLV have also paid SamancorCr in shares, so does it matter in the scheme of things?
Why did they buy to shift straight on to us? My personal opinion is SLV needed cleaning up and I've discussed it below, but in short, expansion and clean business.
Did they buy on our behalf as we couldn't because of BEE? They bought the BEE to amend the Service Contracts between SLV and SamancorCr, so that in essence SLV are now a contractor for SamancorCr and only have to comply with SamancorCr's BEE compliancy. Under BEE regulations only another BEE compliant company could have bought the BEE, thus SamancorCr
Is this part of a master plan for Samancor to take us over? I believe so and for the reasons listed below but in short, SLV now is a good mechanism to acquire listed companies via SLV share certs whilst having a private owner
When will the new board members be joining us and will it be additions or replacements? My personal view, and sadly, is that a number of the BOD will depart with the addition of more expansion focussed, producing minded group coming on board, with a few familiar faces to enable confidence to be retained with the existing shareholders.
Et Al ("and all" in Latin lol):
Well, I do not believe it is hard if you delineate all the reforms that have taken place to work out what the entire transaction is implying.
a) Please look at the presentation to see what's happening in terms of production and where SLV is on that "journey!" I have included the link to all the presentations as it's important to back track through them and see what's changed: http://www.sylvaniaresources.com/im/presentations.php
b) SamancorCr have reduced their tonnage in the interim which impacts on the long term story of SLV, however there's plenty of development and production to be getting on with.
c) What do SamancorCr do? http://www.samancorcr.com/content.asp?subID=2
d) Who owns them? http://www.samancorcr.com/content.asp?subID=26
e) How much cash does IMR-IMS Group have? Well there's a good question, but I have this feeling SLV have just found a sugar daddy, that may want a marriage after a few dates.
f) Right, so IMS/R have a "little cash", know SA very well and want to get develop.
e) So SamancorCr are working with a company (SLV) that is in the final stages of a underpinning itself as a developing producer and becoming a small player, a new dawn so to speak. I think SamancorCr have realised this potential value.
f) "According to the press," SLV has had a number of suitors and I can only conclude that the suitors didn't like the company structure, the BEE and the deals with SamancorCr. Could the service agreements have been limiting in their very nature? Are they still? Yes I believe so, but likewise adding more value than they take away.
g) SLV has now struck a deal which will by-pass the non-commited production and start making "a full basket premium" for itself, something I suspect SamancorCr still want their cut; so why not get in to bed with SLV? After all, SLV isn't the kind of lady that has been round the block :-).
h) My personal opinion is SLV is now kitted out nicely and this is an early stage to SamancorCr's development, which I believe is part of the bigger picture.
Now if I was speculating on the way forward, I envisage SamancorCr taking SLV private because it fits nicely within their model, but will they first utilise it to acquire other PGM companies (via share certs first) and then take private? Well that's a question only a psychic will answer and I'm not one, but it looks likely. Long-term, I see SamancorCr being main listing FTSE or JSE (Johannesburg Stock Exchange) or both and IMS being able to relinquish some of their cash in SamancorCr by IPO'ing. I must not forget they are in it to make cash as well. (Initial Public Offering, sorry I always try and break things down to make it easier)
So SamancorCr will have a nice % of a PGM producer to go with their Chrome. There's a certain amount of Irony here, and something for which is clearly obvious. Think who owns Ruukki (Largest Shareholder)? Think what company did they previously own? SamancorCr! Now don't you think it's odd that two Chrome players, yes I'm going to use that phrase, as Ruukki have unsurprisingly bought Chromex, both wanted SLV. Although one is now in the camp with SLV instead of being out in the big wide world.
What is it that SLV "HAS" that would make two Chrome producers want a piece of the action? I believe a nice model that fits in with their format. Likewise a well-positioned operation that is a good model to build from, with the JV with JLP (Jubilee Platinum's Conroast), the Lannex ramp up, Everest North, albeit awaiting confirmation, the JORC increases, and the reduction in costs per ounce as ramp up continues. This, in my view, will present a value that most brokers have clearly missed. Well I say most, but not some as I suspect we'll find out in due course.
You (SLV) have got well-positioned assets, a board of directors, that I believe will be wanting to expand SLV massively and progress with low risk, low cost acquisitions. This even includes certain companies on the Bushveld that have been marketing themselves for a good period of time and being considered an ugly sister. Predominantly due to the lack of asset development or investment in their licenses to derisk the projects / make the more marketable.
So over the longer-term, SLV could potentially be the third largest PGM producer in the world. Wait, I hear you say, NKWE Platinum (NKP) should do that via Xstrata. Well there might be a close run thing there then, I didn't say assets, I said producer, for which Xstrata may or may not take the options (although as I am a shareholder in NKP I firmly believe they will). Big statement there by me and I have thought about it.
Now lets go all the way back to a) regarding presentations, if everything goes to plan the near term news flow should be very fruitful. So for the future, which has SLV got an office in Australia? I appreciate their model has been a listing on the ASX, and this gives Australian Investors peace of mind. They're an odd bunch those Ozzie's (with due respect), they will buy on the ASX but if it's another market they don't want to know, please see the Ruukki calamity as an example when that was going through. Although some say the deal fell through because SLV/Ruukki couldn't tie up BRR (Braemore Resources aka ConRoast). I perhaps now believe that BRR would have been a done deal and it was Ruukki's largest shareholder that scuppered that the entire process by making the SLV shareholders have a higher risk with the overseas listing which in turn made people think twice. Anyway, back to the future. I don't envisage an ASX listing for much longer, or any listing, but I do feel the ASX aspectwill disappear sooner, which also saves a few quid.
I will enjoy seeing things move forward, certainly some very exciting times and with a set of books and news that change the entire foundations of a company. However, don't forget risk, there is plenty in what I've written, such as, "Will they look after the original shareholders in the expansion?" I believe so, but it's still a risk. "Will they offer a decent price or shaft SLV'ers like MTL Metals Explore?" I don't think so based on my "guesstimate" for what they've paid to get this far, although remember there's no friends in "big business!" "Could there be a dip in PGM demand?" Well that's certainly a possibility. What about the potential devaluation of the Yuan, who will that impact upon a ZAR (South African Rand)/GBP (UK Pound) and U$D (US Dollar)? Well I don't know to the latter, but all the same some bloody good potential.
All the very best to SLV and the SLV'ers, certainly a very exciting week! Then again I am sad. Fraser|
|fjp73: Good Evening Ladies,:-)
Nice to see some postings going on, irrespective of share-price, all the RNS's need information and numbers extrapolating. This is another share that I'm in where the results have concluded another phase of a company to open more doors.
Harmonics, you can join my club with exposure on SLV, having completed extensive research on SLV, I'm happy. Yes there are risks that have been stated previously on this board, however I believe the upside is clearly not obvious in its entirety yet, so many possibilities, I'll wait until the management decide to update before I count chickens.
Andy, indeed, as I just mentioned, there's plenty of exposure and I wonder if I'll have to eat my hat :-), lets be seeing.
Will perhaps post once I've broken things down to layman's terms I understand...
All the very best and nice to see some positive news, irrespective of share price, this will go where it's meant to over time, certainly with developments progressing. Fraser|
|blueyes2: I have been told that Ambrian and another outfit called Ocean stockbrokers will be bringing out their respective reviews on SLV in very near future--will be interesting reading material!--lets hope they get the share price moving upwards!-LOL--|
|smelleroo: fair enough stu and agree jlp will have its time in the sun - slv share price now in line with the aussie price. a bit of buying interest and we will erase the current loss
|smelleroo: another strong share price performance again today! given that the major sell-off in the general markets today, today's performance suggests one thing imho - a bid is coming! the share price is reacting similar to when ruukki bid for slv!
amazed at just how quiet things are here!!
|smelleroo: seems odd that the slv share price has puled back recently. if the jlp cautionary announcement is about conroast, then surely given the way that two newly formed companies are structured we too will benefit. i wonder if slv had also been listed on the joburg exchange whether it would have had to make a cautionary announcement as well.
that is a bit harsh on the city - recently m&g and jp morgan have both bought into the jubilee story. in my opinion, conroast was in too earlier a stage to be listed as often perceived as "blue sky" technology. conroast should have been a private company obtaining state and industry funding, and then only seeking a listing when the technology was deemed economically viable and entering commercialisation. braemore as a whole was not cash flow positive nor in production, so not truly comparable with slv and definitely a harder story to sell to nervy investors. btw, you know i have high regard to conroast and in particular leon. no doubt the platinum sector is under researched in london.
i am not sure slv shareholders do not get it, but in fact is more a case of a few if not only one shareholder not getting things here. this is best evidenced by the recent agm results with no votes to some of the resolutions. i for one am happy taking advantage of this current opportunitity and wait until fundamentals are better reflected in the slv share price!
|steeplejack: Thanks Smelleroo for posting that interactive iii posting on JLP meeting.
Didn't like that bit about SLV producing low quality concentrate that no one wants.Can anyone amplify?
Interesting comment about "normalizing" the SLV share price.Probably a direct quote.|
Sylvania share price data is direct from the London Stock Exchange