Sylvania Platinum Share Discussion Threads

[russman] 14/1/2019 19:51

Would be helpful if ADVFN put 3.76c eps in.

[basem1] 14/1/2019 10:15

Tipped somewhere ? Lots of buyers out there.

[thirty fifty twenty] 07/1/2019 23:40

the great thing I like re SLP is that they have increased production from c.10,000 to over 70,000 (over c.7 years) without issuing shares or being hostage to huge debt. at the most simple level it proves to me that they generate CASH which is actually quite rare for a company thus it is one of my top5 holdings.

[mad foetus] 07/1/2019 21:27

I would agree with a lot of that 305020, especially that sale may have caused weakness. It is a company that has been on my watchlist for a while: I will look into it again and possibly try to time a purchase. I am hoping that it will pullback, though who knows if it will or not?
One of my biggest holdings is BUR, which has been held back by fund managers being forced to sell in order to meet redemptions. I wish BUR had the facility to just buy back the shares, much better way of dealing with a distressed seller.

[thirty fifty twenty] 07/1/2019 21:16

hi mad foetus

I initially felt the same about that purchase but then did some thinking.....
although it was a PDMR there are maybe many (personal) reasons why they want to / need to sell. it was not a director so it would be unusual to think of al the top team it was a second tier of management that had the knowledge that the share price was very over valued / there were company problems.


so I concluded that they 'needed to sell'
the price was weak in the days before so maybe they were drip selling into an illiquid and nervous market. they had a chat with the directors and they said 'look if you need to sell a large chunk we will buy them back' - that way you get some sort of decent price and we get to avoid a share price fall on low volume.


I think the fact that the company bought back the shares means for their insider trading rules that there is no new news. the company has stated its volume targets and CASH flow and we know that the price of their PGM basket has increased materially in the last 6 months (mostly thanks to Palladium)


all IMHO DYOR + BoL
SLP is in my top5 hldgs

[mad foetus] 07/1/2019 20:30

It was buying back off a PDMR/director that worried me. Buybacks are fine

[muffster] 07/1/2019 20:20

Why doesnt a company share buy back feel good.Buying and selling creates a more liquid market? And by buying shares, the company may believe its undervalued and a right buy at the current market price

[leopoldalcox] 07/1/2019 19:02

Once Echo capex winds up there will be buckets of cash for dividends.Capex per year will drop from 11-12m to 3-4 million over the next year or two.That's another 8m available for dividends. Market cap currently at about 60m.Dividends have only started being paid and at a very modest yield, but I'm personally confident divi will grow strongly over 3-5 years. Now is the time to buy for future incomeAll IMHO, DYOR, etc, etc

[basem1] 07/1/2019 14:04

I tipped it on the RRE board on Friday evening.

[frazboy] 07/1/2019 13:44

i would guess Simon Thompson IC update?

[mfhmfh] 07/1/2019 13:22

high volume today

[podgyted] 06/1/2019 18:33

I guess my point is that with the very low PER this is valued at you should be able to do both.

[podgyted] 06/1/2019 18:11

As far as I can see they are investing heavily - capex was 5x the dividend level in 2018 - from a quick look at my screen.

[plat hunter] 06/1/2019 12:12

Earnings cover the dividend but the dividend doesn't cover investment capital.An income investor will look to how many years it will take for a dividend to cover the investment cost.Unfortunately the duration of the yeald exceeds the life span of current projects. Which means this stock is unsuitable for income investors as they will undoubtedly be drawing down on capital instead of their dividends.The board need to invest heavily in new projects or increase the cover rate.

[leopoldalcox] 06/1/2019 02:41

Could you explain more? Earnings covered dividend easily in 2018. By over 8 times according to Stockopedia. The company has no debt

[plat hunter] 05/1/2019 12:22

Dividend policy has ruined this stock.

The cover rate is wholly inadequate for the PGM basket price and project life cycle. Unless SLP invest heavily in their pipeline or there's a dramatic increase in PGMS, then there's no scope for growth here now.

Just my opinion of course, I'm sure many will disagree though

[podgyted] 05/1/2019 12:07

Liberum 4th Jan 19 :-

"Sylvania Platinum's share price has retraced 27% since peaking at the
beginning of September at 23.75p. This is despite the platinum group metal
(PGM) rand basket price, the key indicator of the company's profitability,
continuing on to multi-year highs of R16,271/oz. We believe this disconnect
is unwarranted and believe equity news flow is likely to be to the upside
over the next twelve months. The current weakness is a good buying
opportunity and Sylvania remains our preferred exposure to platinum group
metals. We maintain our Buy recommendation and see upside of 71% from
the current share price."

TP 30p

[plat hunter] 29/12/2018 12:12

I'll add to that, that I also don't think it's priced fairly this is trading at roughly 4x earnings when it should be around 5-7 times in my book.

A correction could also come very very quickly if gold keeps moving at it's current pace.

[plat hunter] 29/12/2018 12:07

Downward trend and a confirmed takeover of the bears here now. Money to be made on the bounces if you're brave enough and have disciplined stop losses.

Me personally, I'm sitting on the sidlines waiting for a base to form.

[leopoldalcox] 28/12/2018 22:51

Why was SLP hit so hard today?

[risa5] 12/12/2018 16:27

First dividend paid today all good ! (.35p)

[thorpematt] 05/12/2018 23:34

Both Pd & Rh continue to rise

Pd in particular is making news this week because, as a number commentators have noted, its rapid rise means that it is (literaly) now worth more than its weight in gold.

Also noted, is the principle that (for good reason) it is very unlikely to go down in price in the foreseeable future.




FWIW, I have been adding here of late because I perceive this latest re-trace is presenting a rare oppportunity to buy in at a low price.

Whilst it's true to say that Pt has eased in value, brokers forecast are still trending up here. The maiden divi, ridiculous fPEG and PER not to mention the weak £ all rather point to a bit of a no-brainer IMO.

[russman] 04/12/2018 09:55

The cash is rolling in.
SLP should be more imaginative.
Larger share buybacks.