Sylvania Platinum Share Discussion Threads

[1ups1de] 13/2/2021 14:38

The fundamentals are certainly pointing to strong price momentum :- we know the interims will look excellent... and so is the rest of the year which now looks a slam dunk - in Qtr 3 recent PGM price momentum ,now supported by Platinum price surge ,should see the gross price basket 85% ahead of the similar qtr last year. -in Qtr 4 there is the production catch up vs yago . Probably an extra 8-10k Oz more production ozs with no Covid lockdown.- And the Zar recovery vs US $ ( + 5% in last month ) means the cash pile continues to grow.What a Hatrick of near term positives to look forward to.

[charlotte2020] 12/2/2021 22:39

Just be patient. Eventually the share price will catch up with fundamental. Keep the faith

[risa5] 12/2/2021 22:35

Stock investing: 2 of the best UK growth shares I’d buy in a Stocks and Shares ISA today I’m looking for top UK shares to buy in 2021. Here are two I’d happily add to my Stocks and Shares ISA today. #2: Metal mammoth Share pickers seeking better value for money might want to check out Sylvania Platinum (LSE: SLP) instead. This UK stock — which digs for platinum group metals (or PGMs) in South Africa — trades on a forward P/E multiple of only 4 times. The mining ace boasts a 4.5% dividend yield too. City analysts reckon annual earnings at Sylvania will soar 173% in the financial period to June 2021. A quick look at the platinum price in recent hours illustrates just why. The metal’s just spiked to six-year peaks above $1,200 per ounce on expectations that industrial demand is about to soar. PGMs are critical components in car exhaust systems where they clean up exhaust emissions. And growing environmental legislation means that more and more of the commodity is needed. It’s possible that Sylvania Platinum shares could fall if the economic recovery stutters. A slow rebound would hurt industrial demand for the metal, in turn damaging the price the UK share can expect to get for its product. That said, I think the long-term outlook for the company remains pretty exciting. https://www.fool.co.uk/investing/2021/02/11/stock-investing-2-of-the-best-uk-growth-shares-id-buy-in-a-stocks-and-shares-isa-today/

[wilfieboy] 12/2/2021 19:41

The US$ continues to slide against ZAR. While this increases local production prices (incurred in ZAR, reported in US$), SLP will be receiving more US$ for its production (received in US$). This said, exchange rate controls require most of the US$ revenues to be converted back to ZAR, before it can be re-converted and paid to shareholders. FX is a nightmare in this company, but a strong ZAR vs US$ is generally a good thing.

[wilfieboy] 12/2/2021 19:04

Hi All, as mentioned above, the average basket price is higher than the company actually receives, but is nonetheless a good indicator. There seems to be a close correlation between JM average prices and the SLP published basket price ($4 difference according to my calculations for the quarter to 31/12/20). Using JM prices, the increase in the basket price for the period 01/01/21 - 12/02/21, compared with the quarter ended 31/12/20 is a little over 15%.

[doobz] 12/2/2021 17:21

All three metals look like they may close very strong again going into the weekend, Monday could be the start of the next rally and new highs

[martinfrench] 12/2/2021 10:48

dont you just love this share also now in ths

[farnesbarnes] 12/2/2021 09:19

Any leveraged plays...?

[davebowler] 12/2/2021 09:12

A pure play on Precious Metals including Platinum and Palladium is PHPM.

[mo123] 12/2/2021 09:00

Citi pretty bullish on palladium. The 27% surge that Citi expects in palladium is set against a bullish global backdrop, and would require an increase in automotive purchases as mobility returns to normal following the Covid-19 pandemic. Citi’s projection of a two-year deficit in the metal is fairly conservative, and assumes substitution rates of 5% to 10% from palladium to platinum in catalytic converters. This year the strategists expect the palladium market to have a deficit of over 400,000 ounces, even after assuming platinum substitutions of 375,000 ounces. They forecast that the price will enter the $2,800 to $3,000 band by the third quarter of 2021.

[freddie ferret] 11/2/2021 19:28

Pt is both an investment metal as well as a industrial metal. Pt used to be at a substancial premium as compared to gold in $ terms. In recent times it has been at a discount to gold. Possibly that is reversing?

[farnesbarnes] 11/2/2021 14:37

Fluctuations

[saltraider] 11/2/2021 14:14

Or maybe its just the MMs playing games???

[saltraider] 11/2/2021 14:11

Not sure. Day traders seem to be pumping it up in the morning and dumping it at a profit in the afternoon. It's a nice swing trade, I think. But the underlying trend is still firmly upwards.

[bigdazzlerreturns] 11/2/2021 13:08

Maybe a ST from investors chronicle comment after recent results???

[kennyp52] 11/2/2021 12:20

Spoke too soon ... it is reacting :-)

[saltraider] 11/2/2021 12:17

@ Martin French ... and a bookshop, and maybe a home furnishings outlet ... ;-)

[mr stephens] 11/2/2021 12:14

Agree with whitefish and Martin. Those of you who doubt PGM pricing should have a read of the Johnson Matthey report on PGM published yesterday. Essentially it’s down to supply and demand and there is a big gap between the two on all three metals. You can go to their site or access it on metals daily and enjoy watching the price movements whilst you read the report. Incidentally those of you wondering about platinum and the effect on share price may not be taking into account Rhodium. It may only be 13% of the ounces produced but it is 60% to 65% of the revenue. The GROSS basket is around $4300 so platinum is $750 palladium is $620 Rhodium $2930 These are approx and before smelting costs which are around 25%

[martinfrench] 11/2/2021 11:36

carcosa, to say pgm prices are an aberration is a bit ungenerous, its the flow of the mkt, you could also state that the old low prices were an aberration too. they are up with current demand in the industrial mkt, and while they will not be high forever they go in cycles the board will undoubtedly be cautious, they will not change now i would like to see them expand, do something with their other assets, and maybe add a cafe onsite for a bit of extra revenue etc :-)

[whitefish] 11/2/2021 10:54

You only have to work-out worse case for costs and deduct from Cash balances to realise just how many years of surplus cash Sylvania have after Dividends, tax (including increased Royalty tax)and Cap Ex. even at an increased level. Yes, PGM prices will not be at current levels for ever but you cannot ignore the Cash already held and what will be generated in the next 1 to 2 years. Please could someone explain to me with numbers why Share buy-backs or Dividends of GBP27m pa is not sustainable for at least 3 yrs (probably longer).

[corrientes] 11/2/2021 10:27

As the PGM market is extremely volatile, and this has been the history, I would expect the board to be very cautious about paying out too much, just because today's prices look so good. Doubtless, they'll calculate how much they need to conserve at varying prices for x years, and pay out the excess. At least that's what I'd do.

[carcosa] 11/2/2021 10:21

I do not think it would be sensible to have a stated pence per share amount as a dividend policy. Look what happened in 2008, platinum at $1,850 per ounce and for rhodium at $7,500 per ounce and a month later the prices were $850 and $750 per ounce respectively. The prices did not recover quickly (unlike the recent March 2020 collapse of rhodium that lasted a few weeks). The end result was the near bankruptcy of another PGM producer operating company in SA, an emergency rights issue was undertaken. SLP managed to avoid that situation with their 'lazy' balance sheet. The current SLP policy has been discussed several times as a reason not to pay a dividend but a more simplified measure of say x% of Operating Profit would be agreeable to many. It also has to be remembered that dividends are subject to Bermudan company law, which in some circumstances ties the hands of the company for future expansion Furthermore paying 8% withholding tax on dividends is something that the company need to address; I've asked the question for the forthcoming presentation. Maybe something along the lines of getting paid in another class of share is viable (i think that loop hole was closed under UK company law a few years ago) People seem to think that current PGM prices are here to stay. History says otherwise. Todays' commodity prices are an aberration. To be enjoyed whilst they last. Can all head south very quickly so it's important the directors remain prudent with a view to the long term.

[doobz] 11/2/2021 10:16

So the concern isn't over the special divi? Rather what they will state the regular divi to be?