Sylvania Platinum Share Discussion Threads

[devonlad] 06/3/2020 12:12

Impacting prices already

RNS Number : 2958F

Anglo American PLC

06 March 2020


6 March 2020


Anglo American Platinum announces temporary shutdown of the Anglo Converter Plant (ACP) and declares force majeure

Anglo American plc notes the announcement by Anglo American Platinum Limited released today to the Johannesburg stock exchange. The text of the announcement is copied below:

Anglo American Platinum announces the temporary shutdown of the entire Anglo Converter Plant (ACP), part of the chain of processing facilities, and the need to declare force majeure.

The Company's ACP phase A converter plant, at Waterval smelter in Rustenburg, was damaged following an explosion within the converter on 10 February 2020. Nobody was injured in the incident and work has started to repair phase A, which is expected to be completed by Q2 2021.

As per normal business procedure, the phase B unit was commissioned to take over from the phase A plant and was in the process of ramping up to steady state, when water was detected in the furnace. Notwithstanding extensive testing being conducted to determine the source of the water, and a number of circuits being isolated, water continued to be observed in the furnace. This poses a high risk of explosion and the Company has determined that it has no other option but to temporarily shut down the phase B unit, to ensure the safety of all employees, and avoid a catastrophic event. It is anticipated that the repair works to fix the phase B unit will take approximately 80 days.

As a result of the temporary closure of the entire ACP, Anglo American Platinum has had to declare force majeure to customers, suppliers of third-party purchase of concentrate and suppliers of tolling material, as we are unable to complete the processing of material during the converter repair. Production from own mines will continue, and the concentrate from the mines will continue to be smelted at one of the four smelter complexes. However, production from own mines, as well as third party material will not be able to be converted to refined production while the ACP is undergoing repairs.

Initial estimates of the impact on AAP refined production are shown in the guidance below:


Refined production New H1 2020 Revised full Previous full
guidance guidance year 2020 guidance year 2020 guidance
('000 ounces)
Platinum 400 - 450 1,500 - 1,700 2,000 - 2,200
------------ -------------------- --------------------
Palladium 300 - 350 1,100 - 1,200 1,400 - 1,500
------------ -------------------- --------------------
Rhodium 65 - 75 250 - 350 --
------------ -------------------- --------------------
Total PGMs (5E + gold) 850 - 1,050 3,300 - 3,800 4,200 - 4,700
------------ -------------------- --------------------

[davebowler] 06/3/2020 11:24

Simon Thompson reiterates his buy view. Also mention here. hTTps://www.stockopedia.com/content/sylvania-platinum-cash-rich-growing-and-cheap-567712/

[fizzypop] 06/3/2020 09:14

Much appreciated Mr S

[davebowler] 06/3/2020 08:45

Good summary,Mr S.

[mr stephens] 05/3/2020 20:35

There’s the terrible panic coming re corona but if we just focus on SLP
1)ST investors chronicle tomorrow
2) SLP committed to buying back between 4m and 5m shares
At this low price I would say no time like the present
Otherwise if they wait until the price rises they are eating our money buying back the shares by paying a higher price than required. Also surely this is a time for SLP management to show support.. This has to be announced on RNS
3) the grasilly sale 8 month period is surely nearly up so good or bad it’s stock market sensitive
Hopefully good snd should be announced on RNS which would be $4m boost to cash

4)Then patience until around April 17th when the update for the 3rd quarter comes
This will be higher than Liberium ate forecasting
5) SLP are investing in better techniques for their mining process which area proven
Some should be coming on stream imminently
It is possible that there will be an increase in production
6) Despite the current conditions the PGM basket price is holding up at around $2600 to $2800 which is 40% higher than Q2
Costs per ounce of production stay the same so the increase falls onto the bottom line
7) No reason for you to but if you accept the above then liberium are being prudent at $59m net profit. I forecast this to be between $67m and $70m
Cask in the bank before dividend $70m
Conclusion
I wish I could copy my financial model here but not possible
So despite the storm clouds and choppy waters the long players have to stay strong
As you sow so shall you reap

[plat hunter] 05/3/2020 15:27

Lol Deme..when will you learn

[deme1] 05/3/2020 14:15

Another top up for me.
looks like this is just following a pattern.
In a current downtrend that SHOULD be bouncing off 50p, unless there is more to this.

[book5] 05/3/2020 14:07

western world needs to go through the same pain as china
but, we will suffer much more that china bcs shock measures cant be taken here
any way markets are manipulated
on the 4th at 00:00 market reversed upwards, yesterday at 21:00 market reversed downwards. They can put any excuse they want , truth is this is a roller coater created by some few .... so keep you nerve

[lees65] 05/3/2020 14:00

Why the drop, looks like things are getting better in China. Metal prices holding up etc.

[metis20] 04/3/2020 19:59

Pd just moved up over 2%

[cambourne] 04/3/2020 18:23

Sorry im obviuosly getting carried away.

[mr stephens] 04/3/2020 16:28

8 mins left including the auction

[cambourne] 04/3/2020 14:27

Ha Ha indeed!

[mr stephens] 04/3/2020 14:11

Cambourne we haven’t hit your 65p yrt

[cambourne] 04/3/2020 13:30

70p next week?

[book5] 04/3/2020 11:04

Slp assessing New greenfield mines on existing concessions

[thefartingcommie] 04/3/2020 10:41

“Norilsk said it expected 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.”

[preciousm] 04/3/2020 10:21

Hmm, this is a difficult one. Looks good value on normal metrics but Rhodium and Palladium prices look to have topped out and life of the mines need to be factored in.

I must admit i have given up trying to value this.

[cambourne] 04/3/2020 10:01

65+ today?

[ugandalad] 04/3/2020 09:12

Very detailed broadly supportive analysis on Stockopedia yesterday. Well worth a read as it spells out both the positives and the risks. I continue to add.

[hickersp] 04/3/2020 08:48

It takes a lot to keep SLP down these days...... much more upside to come here ...... lots of resilience shown in bumpy market all imho, dyor

[book5] 03/3/2020 18:30

I am a holder
VW car production in Pamplona, Spain is been affected because an Italian car component firm has temporally closed down

car production is a long chain, any part on the chain not working means whole cars cant be manufactured. so this virus will be damaging for the car industry


the etf of 600-European car component industry has been coming down for months now.

markets weak again

this will pass

by the way, pharma mar, a Spanish multinational has an anti-cancer drug that is already approved by the Australian authorities. today they informed the market that they are going to work in the hypothesis that the coronavirus reproducing system in the cell can be stopped by this drug. they are working on this, results next month. Also they are developing a testing kit for coronavirus to check around 98 people at the same time in less than an hour (may be half an hour , cant remember), testing it right now. They have a lab in Wuham, China. So there is hope, many brains working hard to solve the problem from many different angles.


gla

[mratranslate] 03/3/2020 14:39

well, couple of points. chimers, you look like a total m*ron right now. you don’t sell because of mass panic. I would like to see more from slp though, we have good reports across the board in major publications, risks are well discussed too. Main issue seems to be around PGM basket with which Johnson report predicts stability and holding up. Therefore we need to see some price action now, we are still way way off 90p and above. The only people making major money are day traders profiting on the constant daily upswings and sell-offs. It’s about time this share was taken seriously by some institutions and moving towards are more realistic holding point of 70-80p before Q3 results. IMHO

[mfhmfh] 03/3/2020 13:28

From the BBC today:

'The German carmaker BMW says 85% of its dealerships in China have reopened...the company was still expecting to see record sales this year.'

palladium/rhodium will still be in demand.

[mr stephens] 03/3/2020 12:59

0cambourne:

Are their Belting reviews on Investors Chronicle and Stockopedia. Should we Hold on tight and get ready for the afterburn. 90P ? 😎