Sylvania Platinum Share Discussion Threads

[mr stephens] 27/2/2020 23:21

More political measures which should benefit SLP

Read below



In a budget speech on Wednesday, South Africa’s finance minister Tito Mboweni announced a series of measures aimed at fixing the country’s biggest fiscal deficit in the post-apartheid era and avoid another ratings downgrade.

One of them was a pledge to shift from the current system of strict currency controls, which has made it difficult for Anglo and other companies to access cash generated in the country, to a more flexible risk-based system.

Anglo chief executive Mark Cutifani said the move would allow South Africa’s mining industry to compete more effectively for investment.

“We are encouraged by the announcement . . .R01;of this new system for capital controls,” Mr Cutifani said in a statement. “We see considerable opportunity for South Africa to compete more effectively for global investment in its precious natural resources.”

London-listed Anglo has long traded at a discount to its peers, which include BHP Group and Rio Tinto, because of the limited ability to move money out of South Africa.

Although the gap has started to close under the leadership of Mr Cutifani, who has transformed the company from a sector laggard to one of its leaders, the discount has remained. In a recent report, Barclays said Anglo was trading at 25 per cent discount to rivals.

For many years, Anglo has effectively been forced to run two balance sheets: one for South Africa and one for the rest of the world. While Anglo has a net cash position in South Africa of $4.3bn it has a net debt position in the rest of the world of $8.9bn.

At the moment the only way it can shift cash from its operations in the country, which include diamond mines and a large precious metals business, is by paying dividends at the plc level.

Under the measures announced by Mr Mboweni, Anglo will now have more flexibility to move money around. That should be positive for the company’s credit rating and also its cost of capital.

It could also mean that Anglo, which was founded in South Africa more than 100 years ago, will be more willing to invest in the country. Equally it could also make it easier to sell assets, such as its thermal coal mines in the country.

The company’s precious metals arm, Anglo American Platinum, is looking to expand production at Mogalakwena, the world’s largest palladium mine outside Russia, by building a new concentrator or upgrading existing plants.

Profits at AngloPlats, which is majority owned by Anglo, doubled last year as it cashed in on soaring prices for palladium and rhodium, metals that are used to reduce harmful vehicle emissions.

Mr Cutifani recently described AngloPlats and its Kumba iron ore business as the “two best investment stories in South Africa by a country mile”.

[stoodio] 27/2/2020 17:48

A great write up offering very good perspective on wtf y'all need to keep in mind! Except for the village idiot of course...www.forbes.com/sites/johntobey/2020/02/27/stock-market-coronavirus-sets-stage-for-catch-up-growth-so-buy/amp/

[parob] 27/2/2020 08:43

With the current economic climate, we may see more money flowing into SLP as it's seen as a relatively safe haven.Third quarter results here look set to be stunning.

[chimers] 27/2/2020 08:09

In the UK you have until the weekend most likely to make your preparations.

Stock up and lock down.

The world has changed.

Your pathetic little investments are very quickly going to become worthless.

[chimers] 27/2/2020 08:07

Guys your not "getting" this are you.

YOU DONT BUY THE DIP OF A WORLDWIDE DISASTER.

The DOW will be 10'000 if it's lucky

The FTSE is going to 3'000 if it's lucky.

World collapse is underway.

This is a world war for survival.

The only dip you buy is guacamole (whatever that is)..........and FREEZE IT.

[metis20] 27/2/2020 08:02

The palladium market deficit widened to over
1 million ounces in 2019, as combined primary
and secondary supplies grew only modestly, while
autocatalyst demand surged higher on the back of
new legislation in China and more stringent testing
regimes in Europe.

Global consumption of rhodium on autocatalysts leapt
by nearly 15% in 2019, following a step-change in
loadings on Chinese vehicles as the phase-in of China
6 legislation got underway. Car companies in other
regions also used more rhodium, in response to tighter
emissions standards and more stringent testing

above from

[chimers] 27/2/2020 07:45

This is going to get hit hard v soon quite possibly today.

The world is now a different place.

Chinese auto sales continue to be a sinking ship on the heels of both an auto recession that has been in full swing for the last 18-24 months - and now the impact of the coronavirus.

Though the narrative coming out of China is that the country is attempting to return to some normalcy, the data from the company's auto market tells us very differently. Retail car sales in the country are down 83% year over year for the third week in February. For the week, the country's auto sales dropped to 5,411 units per day, according to the China Passenger Car Association

[parob] 27/2/2020 07:39

Palladium run might have long way to goPalladium's spectacular 87% price rise from US$1,524 an ounce at this time last year to an all-time high last week of $2,849/oz might not be the end of the story with even higher prices possible as a supply squeeze on the physical market tightens and demand remains strong.https://www.mining-journal.com/pgms/news/1381783/palladium-run-might-have-long-way-to-go

[metis20] 27/2/2020 07:27

SLP's 4E basket value has never been higher than today's current price.

[parob] 27/2/2020 06:52

Palladium breaking out on the chart.

[mr stephens] 27/2/2020 04:06

See below extract from statement by Russian company

Norilsk Nickel, world’s largest producer of palladium, says carmakers won’t switch away from the metal in catalytic converters despite a record 80 per cent surge in prices over the past year.

Norilsk said palladium consumption will increase by 100,000 ounces this year as carmakers in China and Europe reduce emissions Palladium trading at a record high

Expects the amount of palladium used in petrol cars to increase by around 5 to 7 per cent this year as carmakers in China prepare to meet the China 6 emission standard and those in Europe new real-world driving emission tests

In addition carmakers “are too busy with a transition of their internal combustion engines to EV technologies and thus do not want to spend both engineering, research and financial resources on new auto catalyst technologies,”

It said mined supply of palladium will fall by 2 per cent this year to 7.1m ounces.

[otemple3] 27/2/2020 00:37

https://oilprice.com/Energy/Energy-General/3-Rare-Metals-Every-Investor-Must-Watch-At-This-Critical-Time.html

[preciousm] 26/2/2020 22:13

Thank you homebrewruss, I had seen that. It is a short term outlook. I am interested in why the share price is not reflecting the rise in prices/profit potential and investigating likely future 3-10 yr prices and hence future SLP shr price

[thefartingcommie] 26/2/2020 22:12

RHODIUM USD/Oz 13100.00
RHODIUM GBP/Oz 10154.33
RHODIUM EUR/Oz 12038.38

PALLADIUM USD/Oz 2769.00 2808.95 68.00 2.52 2799.34 2680.53 22:11 LDN
PALLADIUM GBP/Oz 2146.18 2177.48 78.24 3.78 2168.01 2061.54 22:11 LDN
PALLADIUM EUR/Oz 2545.00 2576.00 74.00 2.99 2556.00 2467.00 22:10 LDN

[mr stephens] 26/2/2020 21:43

Read the Johnson mathey report on PGM
It will reveal everything

[homebrewruss] 26/2/2020 21:37

Preciousm, worth a read of the pgm market report re China demand etc:

[eeza] 26/2/2020 21:20

@nimrod
The buys/Sell reported are indicative only, based on the Mid price. If the trade is below Mid it will be reported as a sell, and above the Mid as a Buy.
Also traders who have access to DMA can buy at the bid and sell at the offer on SETS stocks.

So using the reported Buy/Sell totals is completely useless.

The direction of travel is never wrong and is the only true answer.

[preciousm] 26/2/2020 21:01

I read that the Rhodium price was rising due to use in Catalytic converters as China and India legislate to improve emissions
Then I read that it was an ‘investment” bubble from etf demand etc.
China car sales in Jan and Feb plunged

And electric cars will render Rhodium obsolete

Two yrs later and Rhodium is four times the price so what is going on.
DOES ANYONE know what is actually driving the price higher. Did vehicles in China not previously have cat converters?

[nimrod22] 26/2/2020 20:44

I see that SLP share price keeps rising despite there being much heavier sells than buys being posted. I'm not losing too much sleep as I'm making money, maybe more info can be gleaned on the L2 sites? I'd presume there's still some steady buying going on in the background that the average punter is not seeing?? Not overly worried, but always disappointed by the lack of transparency that's allowed. Maybe its time for a shake out on some of the dodgy practices in share trading which appears to be slanted in favour of those who set up the system.

[mr stephens] 26/2/2020 20:34

Rhodium is arguably more important
On the way to $13,000
It may only be 14% of SLO production but at this price it is now nearly 58% of the income
Note of caution as shareholders we all know what goes up.............

[thefartingcommie] 26/2/2020 17:49

2/26/2020 12:47 PM EST

Palladium $2,789.60 +75.20 +2.77%