Sylvania Platinum Share Discussion Threads

[graham86] 17/8/2020 17:42

Investors Chronical GARP (growth at a reasonable price)showing 25m debt

[mr stephens] 17/8/2020 17:04

Investors Chronical feature SLP in their alpha report only available to online subscribers so can’t send link. It’s on Algy Halls GARP (growth at a reasonable price) screen. In the aim company section it’s one of the top performers and passes 6 out of 7 of the garp screen tests. No other share does better. Quote “this approach is not overly exacting but over the years it has proved a very effective way of identifying great investment opportunities when combined with other factors that suggest there are solid foundations to the value and growth measure used by the ratio”
SLP is mentioned as resurging

[plat hunter] 17/8/2020 15:14

The quoted Rhodium price is the finished refined product, sold over the counter with the price set by the refinerSLP only produce and sell a concentrate.Concentrate is purchased by many industries for many different uses But if you was a pgm refiner like JMAT, you'd buy the concentrate for your catalyst systems and or refine for other advance uses and pure bullion.Imagine being a sugar cane farmer, you wouldn't expect to get paid the same value that tate and lyle sell a bag of sugar for would you?A little more nuanced in reality but thats a good start

[someuwin] 17/8/2020 09:10

Figure 1: PGM Rand basket prices versus Sylvania's all-in cash costs
(R/4PGMoz, RHS) & share price (pence, LHS)

[mr stephens] 17/8/2020 09:06

There is no bid and offer Trading price on Rhodium Like there is on other PGM metals but there is a spot price available. The most consistent site is Johnston Mathey. They provide daily and monthly average charts. SLP”s quoted basket in their accounts matches the JM figures. They are then discounted by around 20% as this is the fee or payment to the smelters. I have been in for 4 years and Monitored this as you would expect. Based on their accounts the facts indicate they get the current market price.How else would their quoted PGM basket price be so close. Also the importance of Rhodium is often cited by tipsters such as Investors Chronicle as a reason to select SLP above other mining stocks

[2vdm] 17/8/2020 08:58

Plat, can you explain that please?

[plat hunter] 17/8/2020 07:59

SLP don't achieve anywhere near the BID on Rhodium let alone the ask.

[mr stephens] 16/8/2020 17:44

Old news that was 29th May. Also a $100 shift for example makes a $26 difference in SLP PGM basket. The most important component is Rhodium sitting at $11000

[nimrod22] 16/8/2020 15:45

hxxps://fxdailyreport.com/palladium-futures-top-2200-as-us-auto-sales-lift-demand/

[mr stephens] 16/8/2020 15:25

I wonder if IC will post tomorrow
Good articles plus the news from SA will certainly support the share price

[mr stephens] 16/8/2020 15:21

One of the he motley fool articles is terrible.
it focuses on platinum driving the share price. Also the author would appear not to have looked at the 1st half results which alone have the company trading on a p/e of 6 and a cash adjusted p/e of 3.5. He quoted a p/e of 11 which is based on last years net profit of $18m not this years actual of over $50m. The author needs to do some more research
The second article Written by Mr Chester is better and more informed and does not quote out of date specifics
I’ve just seen it’s been added to this thread

[risa5] 16/8/2020 15:20

G A Chester: Sylvania Platinum

Sylvania Platinum (LSE: SLP) has built a record of strong operational performance in recent years. This is founded on its low-cost, low-risk extraction of platinum group metals (PGMs) from chrome tailings in the renowned PGM-rich Bushveld Igneous Complex in South Africa.

The company’s strong operational performance has been matched by a sensible financial strategy. It’s debt-free. It’s strong cash flows fund capital expansion and process optimisation projects. And also support opportunistic share buybacks and shareholder dividends.

Adding a single-digit earnings multiple to the strong management and focus on shareholder value makes Sylvania my top stock to buy right now.

G A Chester has no position in Sylvania Platinum.

[mr stephens] 16/8/2020 15:15

Texas what do you mean? SLP is not a lifestyle share I’m confused. You may have a point but I don’t understand it

[texaschaser] 16/8/2020 14:26

no sign of 90p 'afterburn' lol. more like indigestion from lifestyle company waiting for price dump.

[felchandbart] 16/8/2020 13:14

A nice little write-up here on SLP.

[epicsurf] 16/8/2020 12:22

Hi Mr Stephens,your right lots of reasons to be cheerful, have been in slp for a while so aware of basket prices broker and dividend forecasts etc.sold in the the low 60's due to unfolding covid story and rebrought in high 30's, a forecast 5p dividend is huge and if this is achieved I expect the share price to be significantly higher

[mr stephens] 16/8/2020 10:40

Epicsurf. the shares hit 67p and then collapsed post covid to around 35p. They’re creeping up now. The brokers initially forecast a target price of 1.05p which they re-iterated in a new circular last week however they reduced their dividend forecast from 11p to around 5p stating that the company may hold back due to the current covid situation. My own view is that profits after tax will be over $50m which, if the share price stays as it is, means a p/e of 2.7. There is over $50m cash in the bank so the cash adjusted p/e is approx 1.7. The share price often moves based on platinum movements which is understandable due to the name but the highest financial contribution comes from Rhodium 14% of production but 59% of cash. The markets as in investors seem to miss this. The current PGM basket is just under $2600 made up of Rhodium $1540 palladium $551 platinum $477. This impacts q1 2020 -21 and shows that cash balances and profits are going to increase going forward. So there will also be a good dividend going forward. This is important as investors will gain confidence that SLP is not a one hit wonder. Next year should also be better from a production perspective. This was lower than guidance at 69,000 ozs this year so an increase to at least 78-80,000 is already aceivable. Finally they have 2 mines on the books up for sale. Grasvaly was subject to a binding offer but there have been no updates. So this years good results coupled with consistent prospects going forward and lockdown bring lifted is all good news. The press need to pick up on this as well as the markets and all of us who are frustrated at the clear undervaluation should finally have our day. Lots of reasons to be cheerful

[mr stephens] 16/8/2020 10:22

South Africa out of lockdown

I do know SLP is already back up to full production but this is good news not just for SLP but the country

Reasons to be cheerful

[epicsurf] 15/8/2020 12:34

On paper slp seems the perfect investment , I often wonder what is holding the share price back from it's true value not that I'm complaining at the chance to buy more shares cheaply,you see many aim stocks rise 20% plus on news ,yet you look at the fundamentals nice cash pile and growing,
low p/e,so what would be the catalyst that would drive this up, is it all about what they do with the cash in the bank ? On buybacks they obviously think the share is undervalued and represents a good opportunity to buy them back cheaply , For me the catalyst could be the dividend if they announced a significant increase or a special or even quarterly payments as a percentage of profits at some point in time the money has to be put to use hopefully a return to shareholders while maintaining a balance of being debt free and cash reserves for the future

[2vdm] 14/8/2020 08:31

Yes, I can't see any evidence of a seller and have bought in after reading favourable reviews.

[martinfrench] 13/8/2020 19:43

Santangelo,

No evidence of a distressed seller, vine is too low and they would force the price down if that was the case.

We did have one when it went back to 39p

[koolio] 13/8/2020 19:36

What and who is a distressed long term seller?
I’m sure that any seller distressed or not who had a significant quantity of shares to get rid could offer them to the company or a pension fund and would not drip feed them to the market. I agree that this is probably the best value company that you will ever get the opportunity to buy in to. It’s been a long journey.

[santangello] 13/8/2020 16:16

I am adding here most weeks, and (funds provided), will do so up to around 80p. Price is being held back by a distressed long term seller and I would expect this narrow 45/55p trough to remain for some time (until the seller finishes).The most important factor for me is the Company and not the share price, as the price will eventually follow, and the Company is healthy, so I sleep at night.

[someuwin] 11/8/2020 11:37

"Capable of paying a bumper dividend

With cash balances of $55.9m and no large capital expenditures planned, the company is very well placed to pay a much higher dividend this year. We are currently assuming a dividend of 5.8 cents per share, equivalent to a 25% payout ratio, 9.1% dividend yield and over 5 times higher than the dividend paid out last year. Clearly, with the uncertain operational outlook caused by COVID, we wouldn’t be surprised if management consider it prudent to pay a smaller dividend for the time being and further extend its share buyback program. We believe that Sylvania’s outlook remains very good for the medium term and that further dividend increases will be easy payable in the years ahead."