Sylvania Platinum Share Discussion Threads

[novicetrade68] 07/12/2017 12:11

14p paid for 1m shares, someone is confident.

[novicetrade68] 22/11/2017 14:37

No stopping The Sylvania atm.

[mnomis] 22/11/2017 14:20

@ Redtrend, great post. JLP should be using their relatively expensive paper to acquire SLP (or at least try to) ...

[russman] 22/11/2017 12:25

Stay focused on slp.Should be producing loads of cash at the moment.

[redtrend] 22/11/2017 08:51

Nash81 (or Jeffrey on LSE) - I personally don't think you've made the right choice with JLP over SLP, but it's your choice to make. Your brief message is a fraction of the true picture though and therefore very misleading.

It really is no contest between SLP versus JLP. JLP even has a higher market cap at the moment, which is just crazy, but people have bought in to the jam later I guess.


SLP versus JLP

a) Cash: SLP has cash of $11.2m and JLP has debts of who knows what. Not only that but they have a new $50m debt facility with no terms provided to investors to understand. The financing costs likely will be substantial and will not be shown in any cash costs. So for foreseeable future will continue to rack up debt, not cash.

b) Production: SLP PGM production of some 70,000 this year, rising to potential 80,000 next year. JLP - who knows, very hard to get a clear picture from their updates and then with all the JVs, take any production figures and half them.

c) Cash costs & basket price: SLP cash cost of $500 and current basket price achieved of $1,000+. Before Capex, refining and tax, you're looking at $40m. As for JLP, they claim $400 for a tiny portion of production at Hernic, but worse than this is the basket price they are achieving or "Revenue / PGM oz" as they call it, of only $700?!!!

d) P&L: SLP continue to make profits whereas JLP continue to make losses. Unaudited "earnings" from Hernic do not translate into profit for JLP. They recently released their audited accounts and quel surpreeze, a loss.

e) Capex: outside of cash costs SLP's Capex for "Project Echo" to extend life 10yrs+ is very low. Probably round about $10m now over course of couple years. Again with JLP and the lack of clarity... who knows what their Capex is for the various Projects.


I'm sure at some point next year, unless there is another acquisition or big idea in the works, SLP will finally satisfy all long-term holders who post on here, update their dividend policy and pay out a dividend. Easy to see that if PGM prices hold up, Utrecht's 17p should be surpassed.

[utrecht_00] 22/11/2017 03:39

Jlp - plenty of debt v slp and board not trusted...and no cash in the bank.

[nash81] 22/11/2017 00:41

JLP RNS yesterday - massive profit for Hernic and the lowest cost in the world. much lower cost that SLP

yet,JLP hardly move.

JLP share price being controlled ready for chinese takeover, Or maybe Anglo Plat takeover soon?

[utrecht_00] 21/11/2017 16:08

a good trade if its worth 17p plus...

[novicetrade68] 21/11/2017 16:05

hmm, 13p paid for 300k.

[utrecht_00] 21/11/2017 14:20

given the value here I don't understand why some of the other miners don't make a bid for it- what am I missing?

[russman] 21/11/2017 12:00

I suggest slp signal something.Even a token gesture.

[utrecht_00] 17/11/2017 15:11

better to use the money to make sensible acquisitions, then buy back shares and finally a dividend. I wish someone would make a bid for SLP, offer 17p and release value that way.

[butchdogg] 17/11/2017 08:45

They pay a divi when there is nothing more imaginative to do with the cash IMO

[mnomis] 14/11/2017 17:22

Good posts. Glad I am not alone in questioning why the dividend policy has been ignored, with ridiculous comments that it was due to weak Pt fundamentals (but cash costs of production mean Pt fundamentals are just fine, and if not, why go and spend a lot of shareholder money buying another plant). Ultimately, dividends are a great signal to the market (just look at the GE recent example) - right now, Board is not signalling confidence by hoarding our cash. Hopefully, dividends come before the next questionable acquisition.

[utrecht_00] 14/11/2017 16:52

they should buy 25 million initially- cancel 10% of the shares in issue to start with.

[russman] 14/11/2017 09:55

Increase the buybacks then.
It is producing a lot of cash.
5m shares is not going to make much of a dent.

[canigou2] 10/11/2017 11:17

For discussion.

From my notes, this is SLP's cash balance over the last 15 quarters ($ '000'000)

3.9
4.8
5.3
6.8
7.8
8.8
8.4
6.8
5.1
7.2
6.7
11.1
12.7
16.6
15.3

During this time platinum spot price has decreased from approx. $1400/oz to $950/oz. This also highlights the robustness of the company model (& management performance).

SLP will really flourish when/if the platinum price increases.

[canigou2] 10/11/2017 11:05

I agree share price is presently below fair value. But I'd personally prefer the instatement of dividends. SLP would be a far more attractive investment if paying regular dividends, and this would IMHO boost the share price.

The recent cash generation supports paying dividends, even after the CAPEX on project Echo and the purchase of Phoenix platinum. SLP can afford it IMHO.

[redtrend] 10/11/2017 10:48

A divi normally results in big ups and downs in share price around the div and ex-div dates.

Based on current share price and what I see as below "fair value" (admittedly fair is open to your own perception), better value for money and long-term support of share price would be continued share buybacks and cancellations, much like the 3.3m bought by SLP on 11 Oct and cancelled and the current legacy ASX shares of which 1.5m have been bought. At least that's my preference.

This should be continued until such a point where it becomes better value for long-term shareholders to revert to dividends.

[canigou2] 10/11/2017 10:43

Here is the divi policy announcement which, you're right, has been ignored.


1/01/2013 7:31am
UK Regulatory (RNS & others)

Sylvania Platinum (LSE:SLP)
Historical Stock Chart
5 Years : From Nov 2012 to Nov 2017

Click Here for more Sylvania Platinum Charts.
TIDMSLP

RNS Number : 9682V

Sylvania Platinum Limited

21 January 2013

Sylvania Platinum Limited

("Sylvania Platinum", "Sylvania" or the "Company")

(AIM: SLP)

New Dividend Policy

Sylvania Platinum is pleased to announce its new dividend policy,which has been agreed by the Board and will be applied from H2 2013 onwards.

Background

After 5 years of continuous capital investment, Sylvania now has seven long life chrome tailings processing complexes. The Company currently has a positive cash balance, with longer dated projects on hold pending an improvement in PGM prices. This reduced planned capital expenditure enables the Company to forecast healthy positive free cash flows.

Dividend policy

Subject to the resultant company cash balance following the payment of any dividend being greater than $8 million, the Board of the Company will recommend paying a minimum of 25% of the previous half year earnings as a cash dividend. Dividends will be paid semi-annually with the first payment targeted for December 2013, and payments thereafter every June and December.

Terry McConnachie, Chief Executive Officer, commented: "Following feedback from our shareholders and in consideration of the Company's strong financial position and outlook, I am delighted to announce the new dividend policy. This demonstrates our commitment to shareholder-friendly capital allocation and creating value for our investors. The Board has not lost sight of the longer term strategy to realise value from our development projects and will look forward to our Chairman elect Stuart Murray to lead this process."

The Company also announces that it has updated its corporate presentation, which is available for viewing on its website www.sylvaniaplatinum.com

CONTACT DETAILS

For further information please contact:


Terence McConnachie (Chief Executive Officer)
[phone]
Nominated Advisor and Broker Communications
Liberum Capital Limited Newgate Threadneedle
Michael Rawlinson/Tom Fyson/Christopher Graham Herring/ Beth Harris
Kololian [phone]
[phone]

Sylvania Website: www.sylvaniaplatinum.com

This information is provided by RNS

The company news service from the London Stock Exchange

END

[russman] 10/11/2017 09:27

A Divi may support the share price.

[keith95] 10/11/2017 07:24

"Need a divi policy."

SLP has a dividend policy: it caused a 30% spike a few years back when it was announced - the BOD just ignore it.

[whentobuy] 08/11/2017 12:25

I am interested in the effect of any price movement if Lonmin continues to deteriorate. These guys are big producers and are again in breach of covenants and delaying stat’s. This could be the biggest potential upside if you he supply side via Lonmin drops off. Obviously DYOR applies - any views?

[redtrend] 08/11/2017 11:38

Thanks for time writing the article gold panda, good read.

One thing I would note is that as a tailings retreatment operation, I'm not sure if SLP falls under the auspices of the Mining Charter, which of course would be a positive thing and what mnomis pointed out to me a while back.

mnomis
21 Aug '17 - 11:27 - 896 of 941

Re Mining Charter, I actually think SLP is shielded in that is it basically a manufacturer, and most of value is in processing operations, not mining exploration properties. Mining Charter's negative impact on the big miners could be to SLP's benefit.

[russman] 08/11/2017 11:17

Phoenix did make an op loss.A reasonable purchase.Need a divi policy.