|Sylvania Platinum Ltd
||CMN SHS USD0.01 (DI)
||EPS - Basic
||Market Cap (m)
Sylvania Platinum Share Discussion Threads
Showing 3376 to 3397 of 3400 messages
|It may be more accurate to track SLP against the "basket price" of Platinum, Palladium and Rhodium, considering the latter two make up roughly 38% of SLP's basket price and have performed better than Platinum this last quarter. Rhodium is now up to parity with Platinum at $960.
Also I would argue SLP has been significantly undervalued for a long time now, so thinking long-term it's not too disconcerting for it to outperform platinum spot in 2017 in current short-term period.
SLP still managed to add $1.6m last quarter to its cash pile at basket price of only $881. Taking today's current spot prices, SLP's basket price is around $917.
So with 12.7m cash in bank, profits being made at these prices and very little Capex over next few years to ensure smooth running for 10yrs, I personally don't think it's overvalued.
I would of course be happier to see Platinum in 4 digits again. Wonder if we will ever see Rhodium at $10,000 again?!|
|So does this mean this is overvalued ?|
|For the first time in years SLP is well clear of the 50 week moving average after back-testing it a couple of months of ago. Over the next couple of months I can see this in the mid 20s. That's, of course, with back and forth along the way. But one target at a time: 16p+ remains the near term target.|
|Not a difficult one ... +$100 rise in pop = +$1.7m / qtr (or nearly +$7m / yr)
In my view SLP has always been a downside protected highly geared play on pop. Already undervalued as is, an increase in pop will provide the blue sky.|
|what does every dollar rise in the platinum price add to the profits. Platinum looks strong and holding above $1000 now.
That must be significantly above what the last quarter was.
My average is 8p here and have a long term target of 30p but may top slice at 16p so itchy fingers.|
|Hey Husbod, an amazing coincidence indeed ;) I hear what you and Charlieeee are saying. I think Charlieeee and I are more aligned than Charlieeee thinks - i.e. some caution is warranted (which BOD has flagged), hence why I am on the sidelines, but inevitably, time will tell whether I get a good entry point back in or land up kicking myself for taking profits too early ...|
|Cheers nmomis. I have a private company that now pays me, by an unbelievable coincidence, exactly £5k in dividends which amazingly started this tax year. Hence I do not want any more dividends. I have a general investment strategy of loading my ISA with blue chip divi paying companies and going for capital growth on anything else. Mind you they are often high risk so capital loss is a regular event!
For me I'd rather the Board used the cash for expansion than paying it out to shareholders even if there is the obvious risk that the acquisition might not be shareholder value enhancing. A company like this needs to replenish its resource in any event. It is also better to sit on the cash until a good prospect appears than to blow it all on a second rate investment just to spend the money.
I would have thought that as a general view peeps who invest on AIM are not looking for divis but rather high risk capital growth. So let's live life on the edge and see what happens.|
They already do first, second and third passes.
What is different re Project Echo is the secondary PGM milling and flotation: slides 11, 26 and 27 of the September 2016 presentation refer (slide 27 being most helpful as it highlights the change for the "non-geeky").
We obviously have different views re the BOD's caution and the best way forward for the company (mine based on negative expectations re the future POP, as already discussed) so I have nothing further to add to the debate.|
|Ps Charlieee is this not third pass material as opposed to second?|
|Husbod you do know that you can receive £5K tax free dividends a year? Charlieee you highlight my second concern re cash too - that rather than give it back to shareholders it is used for new adventures as is the recent history of the mining industry.
Based on how good management is, surely they could raise money for a future venture that made sense?
I don't see why the company should sit on all that cash.|
|Agree charlieeeee but then unless I'm holding a share in an Isa I don't want dividends anyway. This is a growth stock for me.|
|Management's technical competency has been demonstrated, I would have thought, beyond doubt and in any event, Project Echo does not look that complicated: it is simply running the feed through the process twice (taking advantage of the spare kit from the dump operations at end of life).
Their caution is probably justified on the grounds they state, POP.
Platinum is a niche market.
Currently, usage is heavily dependent on diesel car sales and the various scandals have attached risk to that future, plus unpredictable amounts of recycling: it is possible to envisage a situation where the two are in balance: the fall out from that would be a survival of the fittest, with only the strongest weathering the storm.
Additionally there is political risk, reflected in currency fluctuations.
In the not so distant past, they have had the uncomfortable lesson of being a loss making operation and that can temper disastrous over confidence: even in this last half year, such a creditable performance, it is a half year of two quite different quarters and POP was responsible for that absolutely stonking first quarter.
SLP has really good management and what is needed to move this company on is diversification into a dump operation in a different commodity (and possibly a different country). Somehow, I just cannot see a dividend dribble setting the share price on fire and it would hamstring entry into any new venture as capital is so hard to raise.|
|@ Redtrend - I agree with analysis re Echo spread over 4 years, and generating lots of cash and cash currently is $12.7m. Question for discussion / Bulls is why is the Board so reluctant to pay out a dividend - previously shareholders were told that once the cash pile increased beyond $8m, they would pay out excess cash to shareholders as dividends?
What is holding them back that has them so tentative? In latest presentation they mention weak Pt (yes, is below 200dma, and may sell off), but SLP is bottom of cost curve and generating good cash flow at current prices, and can still presumably generate good cash at much lower Pt price, so this does not fly for me.
With a > 20% IRR for Project Echo, you would think it would even make sense to project finance a portion.
What am I missing?? The only thing I can think of is concern about risk of delivering Project Echo on time and budget??
I would have happily held if Board had announced a maiden dividend.|
|nice close above 12p :-)|
|Project Echo requires 12m Capex, however this is spread over 4yrs, so crudely this is only 4m per year. With PGMs at these levels, such Capex should easily be able to be funded from cashflow and still the 12.7m cash pile should increase.
Other than Echo as per the presentation today, there are other areas of expansion and exploration - Grasvally (also a potential sale), Volspruit (open pit 3.1m oz) and Northern Limb (5.1m oz inferred) Exploration.
I'm sitting on healthy profit since buying substantial holding only recently at 8.25p. No incentive whatsoever to take profit for me - this is still significantly undervalued.
Even if there's no company specific news flows until early April, if Platinum stays above $1,000 I can see this slowly increasing into next quarterly report.|
|Generating cash; no debts.What is SLP going to do with all this cash.|
|There is absolutely no certainty in the short term ... a lot of investors will be sitting on a healthy profit, so incentive to take some profit is there, with limited news flow now. Longer term, I think you will be right that share price will be higher. As am sure neither of us are trying to day trade this (which would only make money for the market makers based on the spread), calling it to the day is neither here nor there.|
|Credit to you mnomis for being right. I am surprised but there is no certainty in this game. Still think a bottom over 12p is possible here today.|
|Dogberry, time will tell, but I would be pretty surprised if SLP does not go below 12p again at some point.|
|dogberry - that was how I viewed the chart as well - great minds think alike (I hope!)
...also does still seem a bargain based on PE, 8 fold rise in profits, no debt, etc|
|On Point and Figure charts there is a triple top breakout! I doubt we will ever see Sylvannia go below 12p again, so there's no point in selling here. Platinum should also have a a great Spring once the Dollar falls into its yearly cycle low. I'm reviewing my upward targets for SLP with next resistance around 16p.|