Sylvania Platinum Share Discussion Threads

[tebboc] 26/8/2020 10:57

What do these 3,333 trades that keep going through signify? MM's speak?

[mr stephens] 26/8/2020 10:51

BUY Target Price 105.0p - Publication Price 51.0p Sylvania Platinum Heading back up past the highs We expect the underlying strength in platinum group metal prices (PGMs) and weakening South African Rand to drive Sylvania’s share price even higher. The fundamentals for PGMs are improving, with global car sales growth having positively inflected in June. Visible stocks of palladium and rhodium are already low and there is minimal supply growth potential in the years ahead. Further operational lockdowns in South Africa are a risk, but the impact will be offset by even higher prices. The shares are trading at a 40% FCF yield on spot prices, making it our top pick in the 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."

[martinfrench] 26/8/2020 10:42

i dont suppose anyone has got the liberium note in full ?

[plat hunter] 26/8/2020 10:37

Come on Sylvia... I want 70p now!

[mr stephens] 26/8/2020 10:09

The average Daily trade in SLP share is 1.4m. The last few days have not got anywhere close so the big trades mentioned in an earlier post are not significant as the overall volume is too small. Simply still not enough demand yet to cause a break through. It’s a myth that the price is bring held. It’s supply and demand. Russman if you think my figures are too high what are your alternatives?. Plot hunter I agree disappointing update from Liberium re dividend and also don’t like buybacks but the company can claim it’s gone from 0.8p to 4.6p so up 475%.

[martinfrench] 26/8/2020 09:53

it would normally move on those sort of buys, how are they holding it at 60p, unless allowing someone to load up...?

[corrientes] 26/8/2020 09:52

Some of you guys say that this company needs more publicity. If gold unexpectedly experiences a downturn, then maybe punters will look for other more exotic plays, so that would help here ?

[nimrod22] 26/8/2020 09:50

some big buys going through: -
Aug 26 2020, 09:27 60.00 38,000 59.00 60.00 Buy £22,800.00
Aug 26 2020, 09:24 60.00 198,000 59.00 60.00 Buy £118,800.00

[plat hunter] 26/8/2020 09:49

They could buy another 10 years worth of ROM material and derisk for another decade for circa 20 million and then they'd still have another 20 million to distribute.I'm expecting a big change in BAU here...Not long to wait to find out anyway.

[martinfrench] 26/8/2020 09:26

although the results are great, what i think will really move things will be the fwd looking statement, regarding covid and pgm prices.

lots of other little wildcards in there as well, dont really like share buy backs especially with a small float like this but if they have to i spose they do....:-)

[plat hunter] 26/8/2020 09:25

Anything less than 7p a share will be disappointing i reckon

[plat hunter] 26/8/2020 08:53

It's a net-net on an eps basis, eventually... but they're not bought and cancelled in one go over night.Then you have the fact that there has been no income for investors or investment in the future of the company.

[someuwin] 26/8/2020 08:23

In theory of course share buy backs have the same effect as increasing divi payout.

i.e If a company buys back 10% of its shares to cancel them, then the following divi payments will be 10% higher per remaining share.

[plat hunter] 26/8/2020 07:40

Personally, I'm not interested in buy backs or M&A as only a passer by atm... Nice steady dividend policy of at least 50% will do.Fund managers been buying in the open market since November, just a matter of days now to find out why ;-P

[whitefish] 26/8/2020 05:51

You are correct! If the broker is accurate with a reduced Dividend (from original forecasts)then the company can only justify such a small Dividend (given stated policy) by Share buy-back or an acquisition.

Whilst Mr Stephens is a little optimistic with his numbers, he is accurate enough and the Company should help boost shareholder value by a positive announcement next week!!

[russman] 26/8/2020 05:38

Need to increase the dividend or the buybacks. Too much cash, nice "problem" to have.

[plat hunter] 25/8/2020 18:23

You are right Mr S... 2nd of September... i read the rns feed incorrectly

[mr stephens] 25/8/2020 17:34

In case anyone missed this post. The business is still undervalued possibly I think it’s because very little is publicly written about it outside of forums so the word has not yet spread. We are after all the market. If we don’t know how strong the performance is why would we buy at 60p plus?. O temple I do expect something close to fireworks. 1) An increase in profits after tax from $18m to around $53m or plus 180% 2) Cash in the bank of over $53m3)Dividend of around 4-5p 3)High PGM basket price bring driven by Rhodium which is in SLP’s favour. 4)Back up to full production before the new year started so a built in increase from 69,000 ounces to at least 78,000 ounces so minimum increase in net profit next year to $64-$70m which in turn means cash in the bank growing to around $64m which means another big dividend payout next year. All subject to external forces but arn’t all companies now?
If I was reading their update and I’m close,next week and Not already invested even if the the price was 70- 80p I’d buy. Pe is currently 3.8 cash adjusted 1.7.Liberium are holding their ore result target price at £1.05 Make mine a rocket

[mr stephens] 25/8/2020 17:23

Everyone. All this info is not speculation it’s on SLP’s official website. Go to the menu and select the investors tab and enjoy 😎

[mr stephens] 25/8/2020 17:21

Plot hunter. Costs in q4 were $934 per ounce and net profit was $2.6m. The increase costs were due to lockdown measures and paying all the working team full pay which I have on previous posts commended them for. Total profits for the year net of tax are circa $53m. There may be other news that changes this. Cash in Bank is $55.9m. Liberium have provided guidance that the dividend is 4.6p down from their previous estimate of 11p as the company may want to retain cash in case of further covid outbreaks

[mr stephens] 25/8/2020 17:17

Russ SLP confirmed they had $55.9m in cash in the quarterly report. This was corroborated by their broker Liberium in their update last week

[mr stephens] 25/8/2020 17:14

Results last year were 2nd September Plot Hunter. I was pretty sure but checked their website before posting

[mr stephens] 25/8/2020 17:13

CB7 not sure where you get 69k from
They were up to 60k before lockdown.Despite being closed they re opened and produced another 9k so 69k in total. In their 4th quarter report they stated they were now back at full production. Therefore if the run rate was 20k a quarter pre lockdown it’s safe to assume that full production for 2020-21 will be around the 80k mark

[plat hunter] 25/8/2020 16:55

Any day now, they were issued on the 19th August last year.Cash at hand was 21 million usd last year, so cash has increased by 150%