Sylvania Platinum Share Discussion Threads

[mr stephens] 01/9/2020 12:23

Simon Thompson Just now “I have also maintained exposure to Sylvania Platinum (SLP:60p), a cash-rich, fast-growing, low-cost South African producer and developer of platinum, palladium and rhodium. Stricter emission targets imposed by governments looking to reduce pollution levels has been driving demand from the automotive industry. That’s because rhodium is two to three times more effective than platinum in an auto-catalyst, hence its appeal to car makers.

Sylvania’s shares have more than quadrupled in price since I included them, at 14.5p, in my market-beating 2018 Bargain Shares portfolio, and are up more than 40 per cent since I highlighted the pricing anomaly at the start of the year (‘Exploiting market anomalies’, 10 February 2020). Expect the share price to make new all-time highs if annual results on Monday, 7 September are well received. They should be as the company is still only valued on 2.2 times cash profits to enterprise value even though Sylvania’s platinum group metal basket price is more than a fifth higher than the average for the 2019/20 financial year.

[mr stephens] 01/9/2020 12:22

Simon Thompson to come

[epicsurf] 01/9/2020 12:07

Thank you, looks like we might be on the move

[mr stephens] 01/9/2020 11:53

My model says if they do 20,000 ozs in Q1 at the current PGM price discounted for smelting and costs go back to historical levels then they will make a net profit after tax of $17.3m. I took $2.3m off that to allow for the delayed invoicing. I admit it may be lower say $5m but it’s still well within the ballpark of $70m before dividend payout
Also when you think they will make nearly the same net profit in q1 as they did in the whole year of 2018-19........

[epicsurf] 01/9/2020 11:44

Hi Mr Stephens, are you expecting a $15 millon uplift in cash for 1st quarter from $55 to $70 million cash in the bank,was this taking into account the following statement from 4th quarter results
However, "the impact of reduced production in Q4 is expected to flow through into reduced cash generation in Q1 FY2021" many thanks

[mr stephens] 01/9/2020 11:38

Thanks I thought I’d missed something in one of the posts

[corrientes] 01/9/2020 11:26

My error Mr Stephens - I should have said the 8th.

[mr stephens] 01/9/2020 11:24

My final thought for the day “when will
Simon Thompson come out of the closet”?

[mr stephens] 01/9/2020 11:23

Corrientes you can audit my figures by looking at the SLP releases I welcome any correction if I’ve missed something
Also why will this afternoon be interesting?

[mr stephens] 01/9/2020 11:20

I do agree that in the past their financial PR has been poor and poorly written as well with too much of a focus on the negatives. The last quarters update was much more positive and I think shows the intention of the new MD to change perceptions. It is the boards interest for the share price to rise as that’s how they are incentivised
I wonder when the actual results will be published. This has to be done on RNS before any investor presentation. So despite good intentions I think they’re announcement is confusing in that it does not state release date of full year results. Or am I wrong. Would appreciate it if anyone can throw light on this

[corrientes] 01/9/2020 11:19

Mr Stephens - Let's hope you're proved right, but that it translates into a better share price. I was only putting in generic contrarian views as all possibilities need to be admitted when the share price is seemingly defying the published numbers.

This afternoon should be interesting !

[mr stephens] 01/9/2020 10:58

Note palladium and platinum up today and rhodium sitting steady. PGM basket price for SLP sitting at $2900 which is around $2200 after smelting.As I keep writing the p/e at the current share price is 3.9 cash adjusted 1.8. At some point market economics will adjust. Liberiums target price of $1.05 puts SLP back on to an historic p/e of 6.0. I believe they will raise the target price for next year to around $1.35 if guidance for production is 78 to 80,000 tons

[mr stephens] 01/9/2020 10:52

Whitefish is correct. Corrientes just go to the SLP website and get the 1sr half report and the last 2 quarter updates and add them up. $50m+ profit $55m in the bank which at the end of q1 2020 will be $70m+ in the bank. Current market cap at this share price is nearly 50% covered by cash.Duvudend is also mentioned by Liberium and I have already published the full report. Too see it tab back through the threads. I’m excited actually as this is the first time they’ve announced their presentation and results in advance. I’ve signed up to attend. As one contributor said ignore the gossip and all sign up. The link is on the RNS feed

[risa5] 01/9/2020 08:17

This must be a change, company promotion has been very poor for many years.

[someuwin] 01/9/2020 07:19

1 September 2020

Sylvania Platinum Limited

("Sylvania" or the "Company")

Investor Presentation

Sylvania Platinum Limited (AIM:SLP) is pleased to announce that Jaco Prinsloo, CEO, and Lewanne Carminati, CFO, will provide a live investor presentation relating to the Company's annual results for the financial year ending 30 June 2020 via the Investor Meet Company platform on 8 September 2020 at 2:30pm UK time.

The Company is committed to ensuring that there are appropriate communication structures for all elements of its shareholder base so that its strategy, business model and performance are clearly understood.

-- The online presentation is open to all existing and potential shareholders.

-- Questions can be submitted pre-event via your IMC dashboard or any time during the live presentation via the "Ask a Question" function. Although the Company may not be in a position to answer every question it receives, it will address the most prominent within the confines of information already disclosed to the market. Responses to the Q&A from the live presentation will be published at the earliest opportunity on the Investor Meet Company platform.

-- Investor feedback can also be submitted directly to management post-event to ensure the Company can understand the views of all elements of its shareholder base.

Investors can sign up to Investor Meet Company for free and add to Sylvania Platinum Limited via



Investors who have already registered and added to meet the Company, will be automatically invited.

[someuwin] 01/9/2020 07:18

Sylvania Platinum Limited

("Sylvania" or "the Company")

AIM (SLP)

Share Buyback Update

1 September 2020

Sylvania Platinum Limited advises that as at 31 August 2020, it has acquired 199,423 Ordinary Shares for the period 3 August 2020 to 31 August 2020, representing approximately 0.07% of the Company's issued share capital, at Aus$0.9195 per Ordinary Share. This relates to the buyback of up to 1,650,339 ordinary shares of USD0.01 ("Ordinary Shares") from all certificated non-UK shareholders who hold 175,000 shares or fewer in the Company ("the Plan"), as advised in the Company's interim financial results on 17 February 2020 and subsequently extended on 1 July 2020. The shares will be placed into Treasury. To date, a total of 878,905 Ordinary Shares have been bought back under the Plan.

Following the above-mentioned transaction, the Company's issued share capital amounts to 286,845,657 Ordinary Shares, of which a total of 15,200,273 Ordinary Shares are held in Treasury. Therefore, the total number of Ordinary Shares with voting rights in Sylvania is 271,645,384 Ordinary Shares.

[russman] 31/8/2020 04:02

Sounds like SLP's old dividend policy which had to be "reviewed".

[plat hunter] 30/8/2020 17:15

Would love to seem them take on more chrome contracts though.This could easily be doing 200 million a year if they secured additional material and a processor maybe.JLP are getting there already with multiple feed sources and sites, no reason why SLP shouldn't be able too.Recover the chrome for the mine owner and retain the benefits of the downstream pgm..

[koolio] 30/8/2020 16:40

SLP have gone on record as saying if they cannot invest and achieve a Return on capital of greater than 25% they will/world return capital to shareholders. I can’t tell you exactly what years that is in the reports but I’m thinking 2013 or 2012. When they spun off ironveld there was a nice bonus for all of us that held in Free Ironveld shares. The board and management have demonstrated trustworthy behaviour for many years and to suggest otherwise is pish. Yes; They may be a little bit leaky on the run up to figures but that is the norm in aim companies. I’m happy to hold and will continue to do so until I top-slice at +90p.
Good luck everyone and try and stay focused on the value that these shares offer and not be drawn into unsubstantiated gossip that some people use To get a hold of your shares.

[russman] 30/8/2020 06:01

The finals would be an ideal opportunity to clarify a number of outstanding legacies.

[plat hunter] 29/8/2020 22:22

Couple years of pgm prices at these prices and this is a 500 mill mcap company with only 280 million in issuance that's an share price of £2

[corrientes] 29/8/2020 18:12

It all sounds very plausible and maybe I'm worrying too much because so many have deduced that the share price should be quite a bit higher than it is. I just hope they're not going to spend most of the surplus cash on a questionable acquisition at the expense of the current shareholders.

Sorry, but over the years I've seen what happens when there's a lot of surplus cash around, and quite often rewarding shareholders with a significantly enhanced dividend isn't exactly top of the agenda. The puffed up board goes for what is sometimes just a vanity project, rather than concentrating on its bread and butter.

[whitefish] 29/8/2020 17:39

Corrientes, I am a bit like Mr Stephens confused by people worrying about the numbers!

From what I can see we already know FY Revenues, EBITDA, Net Profit and Cash balances etc? Therefore, we have a very good idea on EPS, PE EBITDA:EV.

The information of most importance next week is:

1) Projected production to June 2021
2) Corporate Presentation Forecast EBITDA (and costs)
3) CEO commentary.

Whilst the share price remains a bit of a mystery, this is not anything new with this share.

I agree with many contributors, payment of a decent dividend (say 5p) and a share buyback of (say 20m plus shares) would significantly lead to a share price rise and be in the interests of shareholders, as the buy-back would boost future EPS.

Assuming Production of say 76k ounces to June 2021 and EBITDA of >USD90m, then the Dividend payment and share buyback will be achievable alongside an increase in Yr end Cash.

The only reason Management can really justify not doing the above is because they wish to fund either major CapEx or an acquisition.

Lets not forget, over a 12 month or 18 month view the share price is trending in a very positive direction. Given Rhodium has been USD6,000 an ounce higher recently than a year ago (under USD4,000) and Palladium is up 40+ % YOY, we should be optimistic. History would also suggest if Gold continues to rise (as expected) this could start to lift Platinum, that many think will be in a new "bull" phase over around 1,050 $ an ounce. Furthermore, China Car production has recovered and South Africa PGM production is down!!

[corrientes] 29/8/2020 15:23

If the figures are not as good as expected, for whatever reason, one might be tempted to speculate that the situation is known to more than just a few insiders, which would only confirm my suspicions about the board of directors.

Let's hope I'm entirely wrong !

[epicsurf] 29/8/2020 10:02

I think the market is waiting to see what dividend is announced, we all know it is highly profitable and throwing of lots of cash there is to much sitting there not to be deployed, a significant distribution would bring it to the attention of income seekers as well,especially in the current climate