Sylvania Platinum Share Discussion Threads

[dangersimpson2] 20/11/2019 11:35

After a bit of PGM pricing strength & Rand weakness in the last few days and this is looking v. cheap again.

At current spot prices, if they hit their FY production targets then they are on a fwd P/E of around 4 and an EV/EBITDA of about 1.6, and they did 28% of their production target in Q1 so barring water issues or industrial action there is scope for a small upgrade to production above this if they continue to perform well operationally.

Next news should be Q2 production report end Jan.

[russman] 15/11/2019 09:30

and the cash keeps rolling in.

[mick1909] 10/11/2019 08:57

What amount of pgm reserves does SLP have?

[brad_k] 07/11/2019 15:36

I must admit to being rather confused by the price action over the last two days. Does anyone have Level 2 prices ... are there large sells already declared and waiting to be taken out?
If not I can't see who's interests are served by keeping the lid on the share price )other than PIs who are getting a bit longer to load up at this price).

[mfhmfh] 07/11/2019 10:10

once the seller clears this will fly. IMHO.

[davebowler] 05/11/2019 15:54

Sylvania at 20 mins in this podcast by Simon Thompson on Investors Chronicle site-

[hickersp] 04/11/2019 16:08

If she holds the current price at close of play, I'd argue we have a breakout of the recent channel. Onwards and upwards hopefully!

[qvg] 04/11/2019 12:25

Thanks Hicker, yes I agree

[mfhmfh] 04/11/2019 10:30

From cnbc.com:

Platinum futures $956 (approaching year high).

Palladium futures $1,786.

[hickersp] 04/11/2019 10:12

qvg, just worked it out with the help of IG help desk ....... when putting in the EPIC code it needs to be SLP Ln to to enable the execution of a trade. Bought in this am. Looks like it could be an interesting ride.

[qvg] 04/11/2019 09:59

I had the same problem a week or so ago. I gave up and bought in another account

[hickersp] 04/11/2019 09:36

I can't seem to trade SLP through my broker IG......... any help would be appreciated!

[mfhmfh] 01/11/2019 11:20

continuous buys coming through today.

[petewy] 29/10/2019 17:53

most relevant part:
To put the performance into perspective, in the financial year to 30 June 2019, Sylvania reported annual net revenue of US$70.5m and cash profit of US$30.2m, so the company has already booked 63 per cent of last year’s total cash profit. Furthermore, the directors reiterated production guidance of 74,000 to 76,000 ounces, up from a record 72,000 ounces in the 2018/19 financial year, so the company will benefit from higher production growth at a time when demand for palladium and rhodium, a mining by-product whose major use is as one of the catalysts in the three-way catalytic converters in cars, has sent metal prices soaring.

In fact, the rhodium price has nearly doubled in the past six months and is up by almost 400 per cent to US$4,950 per oz since the summer of 2017. The tight market environment is unlikely to change any time soon. That’s because rhodium is between two to three times more effective than platinum in the auto-catalyst, and helps reduce nitrogen oxide emissions, so stricter emission targets imposed by governments looking to reduce pollution levels is buoying end-market demand from the automotive industry. The price of palladium has risen by 62 per cent in the past 12 months, and has trebled in value since October 2016, reflecting both a market in deficit and one benefiting from demand from the automotive sector.

The point being that although Sylvania has a much higher exposure to rhodium than its peers, the ongoing buoyant market pricing is not reflected in analysts’ profit forecasts. Liberum Capital is conservatively factoring in an average rhodium price of only US$2,956 per oz in its cash profit estimate of US$36.3m for the 12 months to 30 June 2020. However, if the rhodium price holds at close to $4,950 per oz, it would drive a 63 per cent cash profit upgrade.

That’s a potential cash profit windfall of US$23m that would lift Liberum’s current year underlying pre-tax profit estimate of US$28.9m (US$23.9m in 2018/19) to north of US$50m and produce a net profit of around US$35m. On this basis, earnings per share (EPS) would more than double to 12.6¢ (9.8p), miles ahead of Liberum’s conservative full-year forecast of 6.96¢ (5.4p). In other words, analysts are going to have to push through material earnings upgrades in the coming months unless the rhodium price plunges. Also, Liberum have embedded an average palladium price of US$1,450 per oz into their 2019/20 profit forecast, or almost 20 per cent below palladium’s current spot rate.

[lasata] 29/10/2019 17:33

Anyone post extract from article on here?

[mfhmfh] 29/10/2019 16:16

huge volume today.

as bullish an article as I've read from ST.

[plat hunter] 29/10/2019 12:36

I agree leopold.. I also don't think there's much merit to the case.... Samancor are still doing similarly structured deals.

[nickjoseph] 29/10/2019 12:36

Thompson not ramped this one for a while

[metis20] 29/10/2019 12:34

Just tipped again by IC.

[leopoldalcox] 29/10/2019 11:29

Perhaps but I won't be following them. I don't see much coming from the legal case, personally. I may be wrong. The political risk is undeniable, but doesn't warrant this price. Too cheap to sell. If we get to 45p I may consider

[plat hunter] 25/10/2019 14:26

30p coming.. lots of resistance to this level at a time of increased jurisdiction risk and possible restorative action risk from 3rd party claims.

I suspect the smart money who multi bagged will be looking to derisk and take a little off the table.

GL all

[handyandy028] 25/10/2019 09:24

Well now! New bed fellows new game Could it be that old comfy arrangements have been challenged and the result is a level playing field . Much better intrigue than House of Cards

[deme1] 25/10/2019 08:41

Think it could be time for some of you to transition into jlp