Sylvania Platinum Share Discussion Threads

[stockready] 17/2/2021 11:04

Wali

Thanks very much mate, this was most useful and agree with most of what you said

How about Iridium ? Are they producing much of that?

[wali19] 17/2/2021 07:40

Don't look at Platinum (XPT), just look at the price of Rhodium. And after implementation of China 6b regulations, the use of Rhodium likely to increase even more as it is the only metal that reduces NOx. With supply shortage and excessive demand of Rhodium, the price is going to go one way.The risks you mentioned were and will always be there. Look at the history of the Company, management and read directors risk mitigation plan to get yourself comfortable.The forward PE is even lower than 4.5x if we take out cash. The upside clearly outweigh the downside imho.

[edmundmorrison4] 17/2/2021 07:40

Stock ready,How did you come to your valuation?

[stockready] 16/2/2021 23:13

Thank you all for the views you shared here and love to see other views too.

Someone said follow the metal and not the stock!
Ok great i agree with that but if your fundamentals don't support the metal price (losses, risks etc) then your metal price is truly meaningless if can't be factored in to profit
Also platinum price is at 5 years high you want to follow it more that is fine but not see stronger push beyond this point as otherwise the technology will not be economically viable to be implemented so there will be cap to platinum and PGM price we like it or not.

But still appreciate all the views and please keep them
coming

I learn it hard way to never be emotional about the stocks you are investing in and this will not be any exception but may be others can shed more lights from different angle. May be i am missing something and open to other views

Many thanks

[mr stephens] 16/2/2021 23:04

Stock ready. Not you Freddy F You’re in and I’ve read your posts and your comment just now was well made thank you

[freddie ferret] 16/2/2021 22:47

Mr Stephens.

Were you talking to me or stockready?

[mr stephens] 16/2/2021 22:41

Hmmm suggest if you can’t see the upside then don’t join the party. Half year results will be nearly as much as the entire year of 2020. PGM basket now at $4300 so full years results in July over 100% up on last year. Current p/e 4.5. Tipster Simon Thompson target price when PGM was $3600 was £1.45 Brokers target price is £2. There is a deficit between supply and demand in all 4 metals SLP produce. The main income is from rhodium which is 13% of production but 70% of income. There is a one off metals dividend due which is how the board will reduce some of its cash balance of $63m at the end of q2 with the metals and corporation tax paid up to date. Forecast balance for the year end of $100m before any dividend payout
Figures have error rate of 10% as can’t forecast exchange rates between Zaar abd dollar and dollar and sterling. Note read Johnson matthey report on PGM which forecasts continued price rises for platinum in particular. That’s al for now bye

[freddie ferret] 16/2/2021 22:34

Don't follow the stock follow the metals.
Market is discounting current metal price into foward earnings stream.
Metals prices are moving up as is the fundamental demand for same.
Basically there is a bloody great shortage of Rhodium atm hence its price rise.

[stockready] 16/2/2021 21:28

Hi everyone

I am new to this share (not new to trading been doing it for 20 years now) and was studying this share fundamentals and books and figures

I love what i see and starting to understanding some of the recent risks: such as : challanges of water shortage and electricity which would have a direct effect on profits/revenue. Still good strong cash flow at low costs which is excellent and post covid things are going well so far.

The above points aside, don't you genuinely think this stock is over bought at the moment? and for someone like me this entry point is too high and not sustainable nor reasonable?


The reason i say that is because the current valuation of this stock is around 112 from what i gathered and the current price seems the top. Of course as we all know share price can always go higher as long as people buy it but that always follow a massive drop if there is not fundamentals supporting it beyond the valuation point which usually factors in all the plays.

I know the results are out next week and likely to be very strong but still logically i don't like it when stock are hyped snd over bought!

Unless i am missing something any views from anyone invested here already is more welcome and i am very much open minded about this share and appreciate your feedbacks and views if you can.

Many thanks

SR

[thelongandtheshortandthetall] 16/2/2021 20:40

Brokers don't generally claim to be 100% accurate when it comes to assigning trades to either buys or sells.
As trades are often executed within the spread and as the spread is in permanent flux the denotations given to trades is just an assumption.
At least, that's what I think 😜

[mr stephens] 16/2/2021 20:25

Thanks epic I was confused both Hargreaves and IG described trades as 92% sells. Your response thankfully restores faith in supply and demand concept. Now I wonder how they got it so wrong

[epicsurf] 16/2/2021 20:21

Hi Mr stephens, just quickly looked at advfn trades
Buys and sells look roughly equal just over 2 million each and 600,000 with a question mark

[mr stephens] 16/2/2021 19:19

Question for everyone. Why did the price of SLP go up when 4 million shares were traded AND OVER 90% were sales? If supply and demand were driving the price then surely it would’ve fallen. I really am curious to get an educated response.
Currently the market makers are holding 4m shares

[wet your knot] 16/2/2021 18:22

@Mo123 Do you know what the current demand is (to put the extra 2-4 million ounces into context)?

[wilfieboy] 16/2/2021 17:50

Basket price from 01/01/21 up 16% (compared with QE 31/12/20) based on JM average spot prices, and still rising...

[mo123] 16/2/2021 15:12

BofA - Demand for platinum in fuel cell-powered vehicles could rise to 2-4 million ounces a year by 2030.

[phar lap] 16/2/2021 14:56

Rhodium at all time high of $22,400/oz on Johnson Matthey.
Price has increased by over 30% since the start of the year.

[nimrod22] 16/2/2021 14:15

hxxps://www.biznews.com/briefs/2021/02/16/platinum-surge

hxxps://www.economies.com/commodities/platinum-analysis/platinum-turns-green-%E2%80%93-analysis-%E2%80%93-16-2-2021-79374

hxxps://www.fxempire.com/forecasts/article/a-new-commodity-super-cycle-is-here-whats-next-for-prices-700513

[metis20] 16/2/2021 14:00

Rhodium price up again today - having been steady for the past 5 trading days. Up from $16,700 to $17,400 / oz - Baird bid prices.

Since early Jan the SLP 4E basket has moved up from around US$3000 to US$3670 using those Baird bid prices - so around 22% up.

[corrientes] 16/2/2021 12:29

PGM's are extremely volatile, so I think, after all reasonable contingencies are allowed for, a meaningful windfall dividend is warranted, commensurate with the type of business the company is in. Feast today, and famine tomorrow

[juuunx2] 16/2/2021 12:26

Totally agree

[acv74] 16/2/2021 12:13

A meaningful ongoing dividend is better than a one off windfall.

[martinfrench] 16/2/2021 12:07

personally dont really care too much, more into developing other opportunities or being ambitious and merging with tharisa (will never happen)

[jon4567] 16/2/2021 11:47

What do people think the metal price windfall dividend will be? Has to be at least 5 cents / 3.5p right? Possibly more?