Sylvania Platinum Share Discussion Threads

[corrientes] 08/9/2020 13:08

For a company that will never really go anywhere, you'd expect a good yield to compensate for the low share price, but that's just pie in the sky.

Every excuse under the sun will be trotted out when the so-called special divi is announced, so to avoid paying out more than a token amount.

A leopard doesn't change its spots when a bunker mentality reigns supreme. Why change a sinecure.

[zho] 08/9/2020 11:57

The WPIC in their #Platinum Quarterly has revised its 2020 supply/demand forecast from a 247koz surplus to a 336koz deficit. Driven by Covid-19 mining lockdowns and higher investment demand than preiously forecast. XPTUSD trades at a near record discount to #gold of more than $1k

[olart1] 08/9/2020 10:19

Happily take 80p :)

[martinfrench] 08/9/2020 09:55

agree on that corr, think due to its poor management on everything but the mining side, this will always be 20-30p behind true value so i say max for now 80p

[plat hunter] 08/9/2020 08:02

Lol... you missed 52 yesterday then

[russman] 08/9/2020 06:50

SLP have made various promises and excuses about their capital management policy before.
But have never delivered to date.
It is one of the reasons the shares are relatively lowly rated.

[eggy toast] 07/9/2020 21:55

Thanks for the nice opportunity to top up sellers.

This seems like a great little company & is one of my longest held shares.

GLA

[koolio] 07/9/2020 20:49

If you know of a better deal let me know, the share is cheap by any standards. 75000 share give away is a pittance. The company has performed and there may be those that aren’t happy but I’m delighted with the results and the dividend. Happy to hold

[davebowler] 07/9/2020 19:12

hTTps://www.sharesmagazine.co.uk/news/shares/sylvania-platinum-proposes-windfall-dividend-as-profit-soars#.X1YaViyL4S8.twitter

[petewy] 07/9/2020 18:19

see above epicsurf
taken from Simon T in IC seebelow
but the board plan to declare a ‘windfall metals dividend’ in the 2020/21 financial year which analysts at brokerage Liberum estimate at 3p a share. Liberum forecasts an additional 7.7p a share d on top, the total dividend being covered 1.7 times by forecast EPS of around 18.5p.

[epicsurf] 07/9/2020 18:03

Hi alan@bj
Shareholders may be disappointed by a mere doubling of the dividend per share to 2 cents (1.6p), but the board plan to declare a ‘windfall metals dividend’ in the 2020/21 financial year which analysts at brokerage Liberum estimate at 3p a share. 
Let's hope Liberum are more accurate with their predictions than last year

[alan@bj] 07/9/2020 17:05

Where did you get the 3p from petewy? I thought they were going to decide how much to pay out and announce it in February?

[petewy] 07/9/2020 15:52

So the share is 65p bottom line with 1.6p dividend and a 3p bonus divi sometime this fin year.
I can live with that.

[stra3enkater] 07/9/2020 14:51

... Sylvania Platinum said. The company added it has initiated formal review processes for the potential development or sale of its Volspruit and Northern Limb exploration assets."

Any idea why this? They swim in money already.

[russman] 07/9/2020 14:00

Disappointed SLP have not been more proactive with its cash mountain to date.

[investor0109] 07/9/2020 12:39

SLP tipped by IC today: 'Sylvania’s eye-watering cash generation'. BUY rating.

[plat hunter] 07/9/2020 12:30

Sounds like he's selling to me.

[nimrod22] 07/9/2020 12:30

Extract from IC Simon Thompson's comments today: -
"rated on a cash-adjusted PE ratio of 2.5 and offering a prospective dividend yield of 18 per cent they offer significant upside to my 100p target price. Buy".

[epicsurf] 07/9/2020 12:23

Ic simon Thompson just now
Sylvania’s eye-watering cash generation

Sylvania Platinum (SLP:63p), a cash-rich, fast-growing, low-cost South African producer and developer of platinum, palladium and rhodium, has delivered eye-catching annual results. Not even the loss of 10,000 ounces of output due to a temporary government imposed Covid-19 related shutdown failed to de-rail Sylvania. In fact, the company still delivered 69,000 ounces from its dump operations, just 3,000 ounces shy of the previous year’s record.

Moreover, with rhodium and palladium prices up 165 per cent and 47 per cent in a tight market in the 12 months to 30 June 2020, the metals accounting for 12.5 per cent of 25.5 per cent of the overall basket, Sylvania’s basket price surged from $1,277 to $2,015 per ounce, or almost three times higher than Sylvania’s all-in costs of $713 per ounce. In turn, revenue increased by 62 per cent to $114m and cash profit soared by 130 per cent to $69.6m, highlighting the attractive operational gearing to rising metal prices. Cash generation was mightily impressive, too, hence why net funds increased from $21.8m to $55.9m (15.5p a share) after allowing for the repurchase of 5 per cent of the share capital and US$5.2m of capital expenditure.

Even the Covid-19 crisis has had a silver lining. That’s because although rhodium auto-catalyst demand is forecast to fall 113,000 ounces this year due to a predicted 17 per cent fall in global car sales, according to German automotive industry body The Verband der Automobilindustrie, the market has actually tightened because of lost mining output and contraction of recycling volumes. This explains why the rhodium price is only 10 per cent shy of its pre-Covid-19 all-time high, the metal being two to three times more effective than platinum in an auto-catalyst, hence its appeal to car makers.

Shareholders may be disappointed by a mere doubling of the dividend per share to 2 cents (1.6p), but the board plan to declare a ‘windfall metals dividend’ in the 2020/21 financial year which analysts at brokerage Liberum estimate at 3p a share. Liberum forecasts an additional 7.7p a share d on top, the total dividend being covered 1.7 times by forecast EPS of around 18.5p.

The shares have quadrupled since I suggested buying, at 14.5p, in my 2018 Bargain Shares portfolio, and the risk remains to the upside. In fact, rated on a cash-adjusted PE ratio of 2.5 and offering a prospective dividend yield of 18 per cent they offer significant upside to my 100p target price. Buy.

[plat hunter] 07/9/2020 12:16

Not big at all, 25kI'm quite conservative, only trade with 5-10% lots at a time per company. Minimum 40% cash at any time too.I try and make 0.80% of total portfolio value per day and only follow no more than half a dozen companies at a time. (Managed that on slp alone today)Trying to hit a small gap at 12.8 over in BMN for the rest of the day, will give me a trade profit of 3.5% if i get it :-P