Sylvania Platinum Share Discussion Threads

[colinvest] 18/2/2020 04:39

What price SLP when platinum reached 2K (sometime this year!) ...??

[mr stephens] 18/2/2020 04:36

Look at this about a takeover of a Slp competitor and the comments about PGM from FT
old © Bloomberg
The chief executive of South Africa’s Sibanye-Stillwater hailed as a success its acquisition of Lonmin, a rival platinum producer, and forecast that dividend payments could resume this year.

Neal Froneman said the £285m purchase of London-listed Lonmin was shaping up to have the “lowest payback period” of all the deals done by the highly acquisitive company.

“It is literally going to be a little bit more than a year,” he said. “We took a lot of flak when we announced the deal but we have had commodity prices behind us. The wind in our sails.”

Johannesburg-listed Sibanye launched its all-stock takeover of Lonmin in December 2017 but the deal was not finally closed until June 2019.


The timing of the takeover surprised analysts because Sibanye’s balance sheet was stretched after paying $2.2bn in cash for Stillwater, a US palladium producer.

However, over the past year the prices of palladium and rhodium — two of the company’s main commodities — have surged to record or multiyear highs on strong demand from global carmakers.

Recommended
Analysts wonder when palladium’s record run will be exhausted
Palladium and rhodium are critical ingredients in catalysts for petrol and hybrid cars that convert toxic emissions, such as carbon monoxide and nitrogen oxide, to carbon dioxide, water and nitrogen. After nearly a decade of undersupply, analysts say stocks of the metals are almost exhausted.

“I don’t want to mention a name but there has been a senior car company that has experienced a real shortage in rhodium,” said Mr Froneman.

[thorpematt] 17/2/2020 22:07

forward valuation looks silly low now doesn't it!

[eeza] 17/2/2020 18:54

Excellent Bullster !!!

[greatpepe] 17/2/2020 18:46

I know i should have sold them at 150p :)
Hindsight is a great thing when you are trading ...greed and the story got the better of me as always

thank you for your comments......think i will have to get back in :)

good luck all

[mr stephens] 17/2/2020 18:08

According to metals daily rhodium is up to $11575 an oz and palladium $2450 Platinum steady at $975 That equates to an SLP PGM basket price of $2862 which they will be invoicing at for some of the 3rd quarter and will be the low for the 4th quarter So looking at q4 that’s $50m turnover minus say $12m costs minus capex of 2 and tax at 33% gives net profit of $24m Just for q4 Some sites are quoting rhodium at $11000 so I could be out let’s say 10% that’s still over $20m net
Broker forecast 20m profit and 70p target price
That should logically be raised to $60m profit and £2.10 target price

[bullster] 17/2/2020 18:03

SHARE PRICE Vs BASKET PRICE COMPARISON


free stock charts from uk.advfn.com

[davebowler] 17/2/2020 17:21

Just noticed on Page 19 of the Sylvania presentation that they expect Rhodium to represent 45% of the 4E 2020 revenue split.

[1jbrisky] 17/2/2020 17:17

Eeza
Thank you for the explanation, Much appreciated. I still don't always understand the extent of price movements but I'll keep learning.

[eeza] 17/2/2020 17:17

Can anyone clever with charts show the above basket in a chart form for the YTD/ 12 mth ?

[bullster] 17/2/2020 17:10

. Kitco bid prices.


PLATINUM
60%
@
$969.00
$581.40


PALLADIUM
26%
@
$2,392.00
$621.92


RHODIUM
14%
@
$10,000.00
$1,400.00


GOLD
0%
@
$1,581.60
$0.00





.
$2,603.32


.

[eeza] 17/2/2020 17:02

1jbrisky
Direction of travel is always the correct interpretation of buying/selling pressure.
Trades are only interpreted indicatively. Traders with DRM can buy at the Bid & sell at the Offer. Trades are only assigned as Buy/Sell regarding to their proximity to Mid price, but the direction of travel is never wrong..

[petewy] 17/2/2020 16:56

you should have sold them at 150p you idiot.

[bookwormrobert] 17/2/2020 16:55

Hi Pepe!
Costs down, production up, guidance maintained (with a hint about a possible increase to come), PGM prices booming...
debt free, cash in bank equal to 10p per share...
EPS (from interims, annualised, fully diluted) of 12.6p per share...
Therefore, current P/E about a very lowly 4.2...
+ PGM prices have shot up since the end of H1 (December 31st), so next quarter's results should be a blowout...
I'm not sure where else you can find as good an investment proposition right now. But DYOR!

[greatpepe] 17/2/2020 16:42

hello all
well i have been holding these since before they were even quoted in London.
Seen them rise to 150 p back in the day then wrote them off for years when they were single figures.... i swore that if they ever hit 50 would sell them and after todays rise i was disciplined and hit the button (at 57)
But am thinking to buy them back as its been part of me for 15 odd years and still love the story

what do you think????

[metis20] 17/2/2020 16:40

Record daily estimate price for 4E basket today at US$2540 using bid prices from



That is about 40% up since the start of 2020

Pd up 3.6% on the bid as compared to the same time last Friday.

[1jbrisky] 17/2/2020 16:27

Eeza, I would agree. However buys have outstripped sells significantly whilst at the same time the share price has dropped 10%. Overall I'm delighted with the days performance but how we started at 46.5p then raced to nearly 60p before dropping to where we are now is a complete mystery to me when you actually correlate the days trades. Not even close.

[eeza] 17/2/2020 15:54

Normal profit-taking taking place, imo.
News all out.

[mad foetus] 17/2/2020 15:51

I don't get the feeling the board feel the need to support the SP: the facts do that sufficiently, and I guess if they think there are institutional sellers around and they plan to buy back some shares, keeping price relatively low makes sense until buyback is done

[arcadian] 17/2/2020 15:39

Nothing on Proactive. Would have expected something.

[mr stephens] 17/2/2020 14:18

Not sure if he will
He already devoted his whole column to it last week digitally on Monday and then in paper on Friday
His digital column today is huge and no mention
I hope I’m wrong but he could leave it for later this week or even beyond

[gary1966] 17/2/2020 14:09

NK104,

Not really but the MM's know that ST would likely come out with an update. Very happy for price to hold where it is for today. Steady rises always preferable to rapid, large ones.

[nk104] 17/2/2020 13:07

More like the market maker conspiracy brigade. Price goes up, that's fine. Price goes down, it's a conspiracy.

[longterm67] 17/2/2020 12:53

He only tipped last Monday so will leave it a while normally
Looks like the ramping brigade have arrived