Sylvania Platinum Share Discussion Threads

[sdmbot] 02/11/2020 20:34

Simon Thompson - share pundit

[1jbrisky] 02/11/2020 20:03

Bit of a shame that ST has got into the habit of lobbing 4, 5 or 6 companies into his updates. Means each company only gets a column or so and lacks the impact that half or a full page would get.
ST's updates always used to be worth 10% upside minimum, not so today. Perhaps with a MC of £176m it's no longer "small cap" enough for him to influence the shares.
He also doesn't seem to have the same enthusiasm for SLP that he had when we were 20 or 30p.
Just my thoughts, may well be completely unfair but as I say, he's not moving the share price like he used to.

[risa5] 02/11/2020 14:44

Five small-caps for value and more...


Sylvania’s eye-catching first quarter profits

■ Production doubles quarter-on-quarter.

■ Cash profit surges by 55 per cent.



Sylvania Platinum (SLP:64p), a cash-rich, fast-growing, low-cost South African producer and developer of platinum, palladium and rhodium, has delivered eye-catching first quarter results that support a re-rating towards my 100p target price.

After a steady return to full production following the outbreak of COVID-19 and government imposed industry shutdown, Sylvania doubled quarter-on-quarter output to almost 18,000 ounces from its dump operations, albeit that’s still 14 per cent shy of the same quarter last year. However, with Sylvania’s gross basket price up 93 per cent year-on-year in Rand terms, buoyed by a 150 per cent increase in the price of rhodium (12.5 per cent of Sylvania’s overall basket), then the company’s quarterly revenue soared by a third to US$41.2m to drive a 55 per cent rise in cash profit to US$29.7m. Cash balances are soaring, too, more than doubling to US$60.9m (17.3p a share) in the past 12 months.

At the current run rate, Sylvania’s annualised cash profit of US$120m is 74 per cent higher than in the 2019 financial year and implies the shares are rated on enterprise valuation to cash profit multiple of only 1.4 times. A current year forecast free cash flow yield of 33 per cent is appealing, too. The shares have so far generated a 344 per cent paper profit since I first suggested buying, at 14.5p, in my 2018 Bargain Shares portfolio, and are still worth buying.

[dicktrade] 02/11/2020 12:19

miners are one area i do not understand so dont usually invest.
however i do try and take short term trading opps in ST tips in the IC.
He has updated SLP this morning and although it ticked up 5% it didnt last long
despite what on first read looked a very positive TU .
This share is really unloved.
cant see why though.

[1jbrisky] 02/11/2020 10:18

Santangello
Went XD Thursday night so any adjustment would have been Friday. Todays drop just market conditions, all my miners down again today.

[zho] 02/11/2020 08:18

SLP went xd on 29/10 I think - 2 cents, or around 1.5p/1.6p.

[santangello] 02/11/2020 08:06

I assumed we are currently xd, and the dividend of 1.0p was payable on 4 December.....it would appear that it is now 1.6p ?Ordinarily on the xd date the price incorporates the same and reduces accordingly.....so is an adjustment in the price to be applied today ?

[plat hunter] 01/11/2020 22:17

Words of warning if you're following GGP.Alex Borelli and Berkley Mineral Resources

[rovi70] 31/10/2020 13:44

lifted from timberwolf's post on GGP BOARD

Materials
Biden‘s $2 trillion clean energy plan may increase demand for solar panels and electric vehicles, according to Bloomberg Intelligence analyst Michelle Leung. Copper, nickel and silver miners could benefit from higher production of such energy sources.

The flood of stimulus expected in the wake of a Democratic sweep would fuel gold prices, boosting miners. A contested election between Trump and Biden could also send prices for the metal soaring.

hxxps://www.bnnbloomberg.ca/australian-stock-winners-and-losers-in-u-s-vote-election-guide-1.1512941

[brucie5] 30/10/2020 13:21

Thanks. Below 60p would be bearish.

[twirl] 30/10/2020 12:10

Brucie

1 General market concerns such as Biden, No Deal Brexit and Covid related economic slowdown
2 SLP specific - Chromium Mine closures/slowdown reducing availability/quality of tailings. Lack of long term visibility of pipeline for tailings as well as direct Covid shut down of SLP operations.

For these reasons I am in cash.

[plat hunter] 30/10/2020 12:09

Low visibility of AIM... Market participation is a top down game

[brucie5] 30/10/2020 11:54

Yes, of course that explains it. So what's your best theory about the stalling of the share price , to acknowledge this valuation?

[plat hunter] 30/10/2020 11:49

Brucie... this is why Kazoom was saying you then need to drill down yourself to see why.Sales is excessive in slp's circumstances because of the growth in basket price, which can see in the receivables as an increase in value and not quantity.

[plat hunter] 30/10/2020 11:42

Keep up Deme... That was hours ago

[brucie5] 30/10/2020 11:41

Plat, just thought I'd sit through a recent video from Ed Croft on Stocko. He does highlight the beneish score which as you would know is tucked away rather invisibly under the heading of 'm-score' within the Earnings Manipulation risk. SLP comes out with 'low risk' though sales growth of 1.6 crosses the box marked 'is sales growth excessive?'. A further look at what this means, comes out with the following:
"In Beneish's study, the average Sales Growth Index for companies that were not manipulating earnings was 1.134, as compared with 1.607 for manipulators."

I don't regard this as a red flag, btw, and as stated, already hold SLP within a low churn income folio. But I'm foxed by the failure of the share price on the given value and growth metrics. PE 3.8; PEG .3; and Stocko gives a whopping 14% dividend. They must be rolling forward to include a special payout?

[deme1] 30/10/2020 11:07

funny that
I can buy £45k at 64.4

[mfhmfh] 30/10/2020 10:42

Liberium raise target price to 140p

[death by donut] 30/10/2020 10:18

Not personally , but target price raised to 140p from 115p and remains their top pick.Dyor :-)DbD

[plat hunter] 30/10/2020 08:51

Can't buy but can sell.

[plat hunter] 30/10/2020 08:06

1 share traded so far lol

[plat hunter] 30/10/2020 08:02

100% Kazoon