Sylvania Platinum Share Discussion Threads

[parob] 26/2/2020 17:46

Palladium price moving up strongly today. Looks pretty close to breaking out again on the chart.

[chrisatom] 26/2/2020 14:43

Held up very well after an initial sell, still low volume up to previous high though so I can imagine balancing out here for a bit as someone previously mentioned, but value being accepted up here which is a good sign of strength.

[book5] 26/2/2020 14:37

slp doing well
markets calming down

[mr stephens] 26/2/2020 10:19

Last trade a big buy at 61.8

[mr stephens] 26/2/2020 10:18

Of course you’re correct but they will be sitting on a pile of cash at the year end
Liberium are in house and would not have said that if they didn’t have some knowledge
If you think they are entrusted with the re purchase of 12m shares they must be pretty much on the money
When if it is going to happen the share price should react so I suspect it will be in Sept when the year end is announced
So you’re correct and it’s speculative but based on info from the broker

[eeza] 26/2/2020 10:01

Yes, I've read it.
But no mention from the Co of Div increase.

[mr stephens] 26/2/2020 09:45

Read the liberium broker report regarding dividend strategy
It’s quoted in earlier threads

[eeza] 26/2/2020 09:39

The Co has never mentioned increasing the div.

[stoodio] 26/2/2020 09:39

Yup. It's just a shame the end of the world is nigh... or maybe tomorrow. Or the next day, but it's coming honestly... :)

[mr stephens] 26/2/2020 09:27

Significant that an asset management company that recently grew through merger is investing even more heavily in SLP
Sign of confidence in performance and dividend payout
It’s approx an £8.5m stake

[stoodio] 26/2/2020 09:09

Interesting...

[parob] 26/2/2020 08:48

Premier Miton over 5%, holdings RNS

[risa5] 26/2/2020 01:32

Sub-10 P/E ratios. 7.7% dividend yields. I’d buy this stock as market jitters rise

Growth + dividends

With safe-haven metal demand expected to remain solid, City analysts expect Sylvania’s earnings to shoot 229% higher in the fiscal year to June 2020. This results in a rock-bottom forward P/E ratio of 3.7 times.

It leads to predictions of more dividend growth, too and therefore a bulky 7.7% dividend yield.

[risa5] 26/2/2020 01:20

Hydrogen fuel cells

Platinum and palladium, however, have another application that may mean demand (and then prices) for the metals will rocket even further, giving a big boost to AAL, EUA and SLP. The particular properties of these metals makes them ideal catalysts in hydrogen fuel cells that may represent the future of electric cars. Many Japanese carmakers are investing heavily in this area.

That is why platinum metals are in high demand from the car industry now and likely to be so over the next decade.

For me, the biggest mystery surrounding Sylvania Platinum is why the shares aren’t higher priced. It has zero debts, pays dividends, has a relatively modest P/E, has seen rapidly rising profits and another record half-year for production.

[preciousm] 25/2/2020 23:57

Interesting slant from mfool but I’m not sure it’s the virus fear that’s pushing palladium/rhodium prices. It’s the demand for material used in catalytic converters. If you fear financial meltdown you might go buying gold but rhodium that’s already exploded in price?
No, I’m in similar position to chives in that I might want to buy but I’m in two minds

A.On the one hand: The rise in the pgm prices may not be in the share price and if the shortage continues prices and therefore profits will continue to rise. Low rating.

B.On the other: the prices are a bubble about to burst. The CEO has said he expects Rhodium to return to 2-3k. Car production is falling and the switch to electric vehicles accelerates so demand for pgms will fall off/ become obsolete

The shares have a low rating because the windfall profits are not expected to continue and/or the electric cars will replace the need for catalytic converters. So investors need to balance the short term profit explosion and high divi with the depreciation of the overall business to potentially nil value over what is an unknown term. Standard discounting of future earnings over life of the business hence the low rating. Will catalytic converters become obsolete and if so by when? If electric replacing petrol/diesel wasn’t a realistic proposition the share price would have shot up much higher imo.

The current fundamentals look attractive but the med-long term prospect doesn’t look good. So if most investors see it this way they’ll want to ride the pgm price rise but won’t want to be late jumping ship. Hmm Risk/Reward

Just mulling things over, open to reasoned argument

[mad foetus] 25/2/2020 23:22

Chimers is just a foul mouthed fool. Best ignored. He is sometimes right, sometimes wrong, but like everyone who spends his time posting about how great he is, isn't worth listening to

[preciousm] 25/2/2020 23:12

Can’t understand the mentality. He was holding until a few days ago


Ahh.. I think I know what he thinks he is doing, haha

[mr stephens] 25/2/2020 23:07

Chimers I have tried my best to acknowledge your wider picture views but really I wish you would just focus on SLP and the facts
Otherwise I think you may be an insider and deliberately trying to manipulate the share price
You are also patronising
Novice investors

[nickwild] 25/2/2020 22:30

rhodium price up again

[chimers] 25/2/2020 20:38

Oh dear, it is very entertaining watching novice investors make the classic mistakes over and over again.

Catching falling knives
Falling in love with a stock
Ignoring the bigger picture
burying their heads in the sand
Cognisant dissonance
Herd mentality.

Hey Ho you seem intent on learning the hard way.

You're going to 20p in due course.

And It tanks tomorrow again on the bell as it will multiple times now as hope gives way to reality.

ENJOY.
IDS.

The truth

Senior Japanese Government Adviser Says Coronavirus Can't Be Stopped

Posted on February 25, 2020

Japan is shifting strategies in its battle against the Covid-19 coronavirus and admitting it cannot stop the spread of the virus. The virus is proving difficult to contain completely so they are focusing more on caring for those hit hardest by the virus - the most serious cases - and slowing down the virus's spread.
A story in The Washington Post quotes Shigeru Omi, a senior Japanese government adviser, as saying, "We shouldn't have illusions. We can't stop this, but we can try to reduce the speed of expansion and reduce mortality."

The virus spreads so quickly - and sickens a large enough percentage - that there are not enough hospital beds to take care of the sickest people. Hospitals and staff quickly become overwhelmed. The seriously sick people are also staying on ventilators for extremely long periods. A Bloomberg story says, "Critical care resources in central China are being strained by coronavirus patients needing a month or more on mechanical ventilators." Tens of thousands of people requiring mechanical ventilators will overwhelm hospitals even in countries with modern healthcare systems.

[1jbrisky] 25/2/2020 19:29

Motley Fool write up this afternoon


Sub-10 P/E ratios. 7.7% dividend yields. I’d buy this stock as market jitters rise
Royston Wild
Fool.co.uk25 February 2020, 13:07 UTC
Stock market graph with Chinese dragon background
Growing fears over the coronavirus means that investors need to take steps to protect themselves. I reckon Sylvania Platinum (LSE: SLP) is a sound way to achieve this.

Sentimental shiny metals always experience frantic buying in times of high tension like this. Gold’s gallop above $1,670 per ounce and to fresh seven-year highs this week has commanded plenty of attention. But the platinum group metals (or PGMs) have also soared on high safe-haven demand.

Platinum itself has soared through the $1,000 per ounce marker for the first time since 2018 in recent weeks. Palladium, which has doubled in value over the past 12 months just burst to new record peaks above $2,700. And rhodium, which has burst through the $12,000 barrier for the first time has risen around 500% from the same point in 2019.

Virus fears to persist?
It’s no shock to see Sylvania’s share price boom in response. It’s up 50% since the beginning of February alone as the global spread of the coronavirus has rocked investor nerves. And it could gain much more ground in March.

Global chief executive officer at UBS, Mark Haefele, commented that “the incubation period of the virus [means] the next two weeks will be critical in determining the extent of the outbreak, the steps authorities are willing and able to take to contain it, and the economic effect of those measures.”

Other analysts believe that markets will remain tough for some time longer. Michael Hewson of CMC Markets notes that “for now, there appears little prospect that financial markets look likely to settle down in the short term, which means investors will have to get used to an extended period of uncertainty and volatility.”

Fresh Brexit bother
It’s not just coronavirus-related alarm that could bolster demand for fight-to-safety assets in the coming weeks either. Tension over the Brexit process was a significant driver of gold and other precious metal prices in 2019 and could continue to be so.

The start of tense trade talks between Britain and the European Union will officially begin on March 3. But terse comments from both sides already suggest that things could prove bumpy. Just today German Europe minister Michael Roth urged the British government to “keep your promises” concerning previous agreements on the Northern Ireland border

This follows cautious words from French premier Emmanuel Macron at the weekend too. He warned that it could prove difficult to hammer out a trade deal by the end of the year given the short time frame and range of difficulties that need to be addressed. Under UK law, a failure to create such a deal will mean that Britain will embark on a Hard Brexit at the end of 2020.

Growth + dividends
With safe-haven metal demand expected to remain solid, City analysts expect Sylvania’s earnings to shoot 229% higher in the fiscal year to June 2020. This results in a rock-bottom forward P/E ratio of 3.7 times.

It leads to predictions of more dividend growth, too and therefore a bulky 7.7% dividend yield. Sylvania has been having some issues on the production front recently. Indeed, second-quarter production dropped 8% to 19,206 ounces from the prior three months as power outages and water shortages hit. Still, these troubles are reflected by that low earnings multiple in my opinion. I’d buy it today on the likelihood of solid metals prices in the weeks and months ahead.

The post Sub-10 P/E ratios. 7.7% dividend yields. I’d buy this stock as market jitters rise appeared first on The Motley Fool UK.

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Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Motley Fool UK 2020

[thefartingcommie] 25/2/2020 18:26

Spot Price of Palladium

Palladium

Palladium $2,717.00 +70.70 +2.67%

[mr stephens] 25/2/2020 17:57

The actual split in ounces across the SLP mines is Rhodium 14% Palladium 26% and Platinum 60%

In value rhodium accounts for 54% at the current PGM prices

They also have other precious metals such as iridium

This is all available in their accounts which are downloadable in pdf format from their website

Don’t worry too much about Chinese car manufacturing
I do understand and do not underestimate the impact of corona virus
But there is the rest of the world
India in particular is on a major drive to hit the e6 emissions targets especially for their diesel trucks and their population is pretty large. Demand from that market alone would swallow production
Also in general SLP production is already sold
I’m confident it will do $70m full year profit based on current PGM basket prices
We’ll find out in mid April