Sylvania Platinum Share Discussion Threads

[kennyp52] 11/11/2020 16:32

Feels like the pop bottle has been shaken and the tops about to come off..

[martinfrench] 11/11/2020 16:00

limits now 70-72

[farnesbarnes] 11/11/2020 15:53

Eod breakout would be better. Ascending triangle has 80p written all over it.

[death by donut] 11/11/2020 15:29

Dang , back down again.

[death by donut] 11/11/2020 15:27

Wooaah , there she goes!!

[plat hunter] 11/11/2020 15:25

Here she goes... All aboard :-PChooo chooo

[carcosa] 11/11/2020 12:10

It's an impairment. Not a write off. It still has value. See annual report plus various presentations over the years which justified the original acquisition expectations which are still valid today but many years away.

[plat hunter] 11/11/2020 10:22

There's also copper at Aurura too Kenny :-P

[kennyp52] 11/11/2020 09:31

It’s non cash anyway Plat but a substantial write off .

[plat hunter] 10/11/2020 23:37

Its the northern limb, I think it was a write down following a revaluation of grade.

[kennyp52] 10/11/2020 21:40

what was the Aurora project .. huge write down in the accounts ?

[kennyp52] 10/11/2020 21:28

corrientes ... it tells me the audited results confirming £15.8m operating profits were reported today by JLP . The rest is just the general market risk on attitude of investors following the vaccine announcement .

[mfhmfh] 10/11/2020 18:20

rhodium futures at $15,000 on platinum matthey.

[plat hunter] 10/11/2020 13:50

It tells me there was a gap that needed closing at 65p

[corrientes] 10/11/2020 13:46

SLP is down today and JLP is slightly up when PGM's are doing well, so what does that tell you ? At the moment, risk trumps a conservative approach, and you don't go into the stock market in order to to sustain a smaller loss, rather than a larger gain, which is what is being mooted here.

I'm in SLP, but the sentiment climate has changed considerably over the last few months, though you wouldn't think so looking at the stock price. The large cash balance might as well be a hindrance, if a large special dividend isn't declared, and soon.

[kennyp52] 10/11/2020 10:50

Plat ... agree to a certain extent but JLP are adding balance sheet value and generating profits / cash to do that . SLP is further down the road financially but maybe not as ambitious .. or should that read ... take less risks ? Both are looking good in my view and really do not understand the low MCAP here .

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

And already double the pe ratio BullsterOn a forward basis it gets even worse... All JLP's pgm earnings are getting spent on capex that is yet to be deriskedNo earnings being retained as cash = no shareholder return on capital.The penny will drop over there at some point.

[bullster] 10/11/2020 09:35

.
.

Ask yourselves this.

Will SLP double to 134p before JLP doubles to 14p ?

JLP group profit is on track to quadruple from this years finals to next.

.
.

[2vdm] 10/11/2020 07:50

Useful post carcosa. Thanks

[carcosa] 10/11/2020 06:04

I would caution against ascribing such prices to SLP realisations.

Nonetheless sustained high prices for most of SLP's commodities appear intact.

Some downside is the significant effect of ZAR/USD exchange rate in recent weeks. That alone has wiped off nearly $5m in profit. Far more than could be recouped by cost/Oz calculations.

As reported here:

Anglo Convertor Plant Unit B shutdown, as mentioned earlier in this thread removes 350,000 oz platinum, 250,000 oz palladium and 34,000 oz rhodium supply in 2020.

"We estimate that this would increase the platinum, palladium and rhodium deficits for 2020 to circa 750,000 oz (10% of gross demand), 1 million (11%) and 107,000 oz (11%), respectively," Barclays said.

"According to the WPIC, the global platinum market is already likely to show a supply deficit of 336,000 ounces this year, despite weaker demand due to corona," Fritsch said. "This deficit could now turn out to be even somewhat bigger."

I am no economics expert but if an effective Corona Virus vaccine is widely deployed over the next year I would have thought demand for PGM would rise and if the ferrochromium market recovers then SLP production grades would significantly improve too.

[whitefish] 10/11/2020 04:52

Rhodium $15,000 in Hong Kong Tuesday (8.30am) was 13,400 on the open on Monday Nov 2nd!
Palladium $2,515 in HK Tuesday (8.30am) was 2,229 on Nov 2nd.

Platinum $878 in HK Tuesday(8.30am) was 846 on Nov 2nd (but who cares at this time about platinum).

Rhodium a record high I believe and probably the PGM Basket!

Hopefully, the conservative Management of Sylvania, whilst remaining prudent will recommend a decent one-off (say 5p to 7p Metals Dividend)as the company has generated material Cash and is clearly in a position to continue to do so moving forward, without risking the business now or in the future by these actions.

Whilst nobody can have any issues with the operational performance of the company (management deserve congratulations), any future comments in 2020 or H1 2021 by the Chairman or the CEO, recommending anything less than the aforementioned amounts really is unjustifiable and would represent a total disconnect with the interests of Retail Investors. In this respect, a 5p to 7p one-off dividend would enable the Board to justify a lower ongoing, annual dividend at the year-end.

Let's hope for a great finish to Q2 and a continuation of high PGM prices for the rest of the Company's FY. More than enough Cash then to fund new Cap Ex projects and pay the 28% tax bill that frequently gets a mention. (Rather strange really, tax is referenced, most other companies do not tell the shareholders what they already know!).

Source: Johnson Matthey.

[plat hunter] 09/11/2020 21:03

Kenny, 20,000 circa