Sylvania Platinum Share Discussion Threads

[mfhmfh] 02/2/2021 14:10

SLP & THS mentioned: https://twitter.com/MylesMcNulty/status/1356569253558816769

[epicsurf] 02/2/2021 13:53

If it is based on Liberum forecast they were massively wrong last year , a lot of investors bought in on the the strength of this and were disappointed when then only annouced a 1.6p dividend payment but if they stayed would have been well rewarded with the share price appreciation so would treat it with caution, The board have mention paying a sustainable dividend in the past and have tended to be Conservative in payouts ,At some point they will Have to put the growing cash pile to use, Nicer problem to have

[zangdook] 02/2/2021 10:52

That would be nice, but I don't see it happening. If TMF meant they guessed there might be a 10.2% yield they should have specified that. The way they put it implies the dividends have been announced. There ought to be a law.

[kevph] 02/2/2021 10:38

Stockopedia suggests 14.6p p/s for 2021 and 18.5p for 2022. So in that order of magnitude. Doesn't say whether this is specials or not, but would imagine it does.

[zangdook] 02/2/2021 08:08

I've just been catching up...there was a Motley Fool article posted recently which said SLP "carries a 10.2% dividend yield for 2021". Have I missed something, or was this yet another case of an idiot hack making things up instead of doing research?

[whitefish] 02/2/2021 02:11

I am always struggling to workout the best quoted price to use in my calculations with respect to Rhodium and I must confess I had not appreciated "there is no bid or offer".. price for Rhodium. Mr Stephens, I do not have any grounds to dispute this but if you are right could you explain why Kitco quote a "bid and ask" price?

[greggphilips88] 02/2/2021 00:04

I'm a holder from 38p, 60p, and recent top up at 100p, so plan to hold for a while. I was a bit underwhelmed with the results, perhaps because I was expecting higher net profit and cash balance figures. They are great results but I mistakenly expected higher profit and cash. I'm not an accountant, but having gone through the report on the website, and reviewing this section: "$5.9 million was paid out in dividends" and "provisional South African income tax for the six months to 31 December 2020 of $15.1 million was paid." took care of $21 million in profit? Then the "impact of exchange rate fluctuations on cash held at the quarter end was an increase of $7.1 million due to the strengthening of the ZAR against the USD. The Group is obliged to hold a large portion of its cash in ZAR and will convert this to USD as and when the opportunity arises.". So the $7 million increase in cash balance was actually driven by ZAR vs USD variations. Is it fair to assume then, that with similar basket prices and production for the next Quarter, there would not be tax to pay, just the PM price special dividend, and ex rate variations, and the rest to cash balance. Does seem ample room to pay the special dividend and maintain v healthy cash, but I would agree the BOD will be conservative and can't see more than 5p, and 4ish more likely. That's still a very nice pay out, but could see a short term dip in share price as some short term holders cash in? I haven't traded SLP so plan to hold long anyway. Just sharing to get any correction to my interpretation above or constructive comment. BTW - I like this board, top quality posters and contributions. V little of the nonsense you have to endure on other boards - so thanks to regular posters.

[stoodio] 01/2/2021 20:01

Mr S. 6.4p to be exact :) ATB

[stemis] 01/2/2021 19:34

hxxps://www.metalsdaily.com/live-prices/pgms/ hxxps://www.heraeus.com/media/media/hpm/doc_hpm/precious_metal_update/en_6/Appraisal_20210201.pdf?msdynttrid=yB8nMOM_n1QntIUzFj6sLpnzZ2hQ1G30gHBSnbSbLAk

[plat hunter] 01/2/2021 18:35

I must have missed that RNS, where they bought a refinery then

[mr stephens] 01/2/2021 18:30

Metis simply put Baird it you are wrong The standard used by SLP, the brokers Liberium and the scribblers such as investors chronicle are either Johnson mathey or metals daily. There is no bid or offer in rhodium there is a spot price. Today that is $20,100. The price you are quoting would mean that the SLP Basket price that SLP have themselves quoted is overstated. It would mean investors chronicle and Liberium who and I quote see the average price for rhodium staying around the $20,000 mark for the foreseeable are also wrong. Not seen you very often but suggest you listen to others that have been here since 18p like stoodio

[metis20] 01/2/2021 13:55

Baird prices referred to above are bid prices - those you refer to are ask prices www.bairdmint.com/live-metals-pricing

[stoodio] 01/2/2021 13:14

Not sure where you're getting your numbers from, but they be wrong. Rhodium has remained relatively steady at $20,100 per / oz through January :)

[metis20] 01/2/2021 12:03

Yes - Rh dipped to $14300 on 26th Jan - back up to $15500 yesterday - and that is where it is today. Those are Baird bid prices. The highest it reached was $17000 on 20th Jan.

[martinfrench] 01/2/2021 11:54

looks like rhodium back up too, though lost track last few days so maybe not

[epicsurf] 01/2/2021 10:57

Hopefully we will get a Simon Thompson update Today , not a fan of the windfall calculation methodology seems over complicated. Wouldn't be surprised if the metal tax is Conservative lots of unknowns still regarding covid,

[hpcg] 01/2/2021 10:12

carcosa, sdmbot - ditto. The withholding tax isn't too bad but a share buy back can safe some people tax on the other end too. Not me, all my SLP is in tax sheltered accounts, but tax effectiveness should be a consideration. Equally some people really like dividends and would be unhappy about buybacks. Personally I look at PGM prices and the share price and I'd be more than happy with buybacks.

[bbluesky] 01/2/2021 10:00

Share buy backs have a terrible record - avoid!

[sdmbot] 01/2/2021 09:42

I was thinking exactly the same thing. I think they did do a share buy back last year but it wasn't a particularly big one around 5M shares I believe.

[wilfieboy] 30/1/2021 13:34

Average basket price for January 2021 should be up 16% compared with the quarter to Dec 20

[wilfieboy] 30/1/2021 13:15

Extract from FY20 accounts, which explains the sales adjustment mechanism: Revenue from contracts with customers Revenue is recognised when the control of the goods has passed to the buyer and the costs incurred or to be incurred in respect of the transaction can be measured reliably. Control of ownership are considered to pass to the customer at the time of delivery of the goods to the customer. For PGM concentrate sales, the sales are initially recognised at the date of delivery. Adjustments to the sales price occur based on movements in the metal market price up to the date of final pricing. Final pricing is based on the monthly average market price in the month prior to the month of settlement. The period between initial recognition and final pricing is typically four months. Revenue is initially recorded at the estimated fair value of the consideration receivable. The revenue adjustment mechanism embedded within sales arrangements has the characteristics of a commodity derivative. Accordingly, the fair value of the final sales price adjustment is re-estimated continuously and changes in fair value recognised as an adjustment to revenue in profit or loss and contract assets in the statement of financial position. In all cases, fair value is determined with reference to month end prices. I think this means increases in metal prices should be reflected in the reported revenues, even if not yet invoiced.

[forthelongterm] 30/1/2021 09:30

If you look on the quarterly report on the Sylvania Platinum website you will find a much larger sales adjustments in Q1 compared with Q2 which substantially affected revenue and so all fundamentals. Hope this helps. I too was perplexed until I looked at the actual report.

[risa5] 29/1/2021 22:55

Sylvania on track to meet 70 000 oz production target for the 2021 financial year Aim-listed Sylvania Platinum says its operational performance in the quarter ended December 31, 2020, continued to stabilise from previous quarters as the operations teams had embraced a “new normal” of production incorporating Covid-19 protocols. The Sylvania Dump Operations (SDO) produced 18 363 oz of platinum, palladium, rhodium and gold (4E) platinum group metals (PGMs) in the quarter under review, compared with the 17 972 oz of 4E PGMs produced in the quarter ended September 30. The SDO posted a net profit of $20.3-million in the quarter under review, compared with a net profit of $20.1-million in the preceding quarter. The SDO comprises six chrome beneficiation and PGM processing plants, located on both the eastern and western limbs of the Bushveld Igneous Complex, in South Africa's Limpopo province. CEO Jaco Prinsloo says the performance during the quarter under review, the second quarter of its financial year, was in line with the company’s internal plan and that the SDO is on track to produce 70 000 oz of 4E PGMs by the financial year-end. Moreover, Prinsloo explains that the company’s western operations experienced significant power disruptions in the quarter under review relating to vandalism of Eskom substations and electrical cable theft in the area. The company was evaluating the outcomes of a power mitigation study to determine possible measures to reduce any impact in future. This while ongoing circuit optimisation at Sylvania’s new Lannex mill and spiral upgrade was progressing well, and would improve processing efficiencies and profitability, based on current feed sources. The company’s Mooinooi chrome proprietary processing modifications and process optimisation projects remain on track for commissioning during the third quarter of the company’s financial year. Sylvania continues to remain debt free and maintains strong cash reserves to allow for funding of capital expansion and process optimisation projects. The company had a cash balance of $67.1-million at the end of the quarter under review after payment of dividends, royalties and income tax. The company had paid $5.9-million in dividends in the six months ended December 31, 2020. Prinsloo concludes that the company benefited from stronger PGM basket prices in recent months and that the company will, in February, decide on whether to pay out a windfall dividend. Https://www.engineeringnews.co.za/article/sylvania-on-track-to-meet-70-000-oz-production-target-for-the-2021-financial-year-2021-01-29

[plat hunter] 29/1/2021 22:14

Look at it this way...12 months ago on results day share price was circa 43p then climbed to 53p shortly afterwards.If the earnings have doubled then it's not a stretch to assume the recent rally was priced in circa 106p with a lower end rage of 86p.Not saying 86p will happen but if it does then it would be a great time to buy imo with the current rate of cash build.