Sylvania Platinum Share Discussion Threads

[dougmachin] 20/8/2021 11:09

Maybe after a few years, I'll be after a divi here!
But for now, that's my view.
Cheers

[plat hunter] 20/8/2021 11:08

They could doug that is true but investors who return their capital every year from the company's dividend arn't as likely to be bothered by interim volatility between payments.

[rabiddog] 20/8/2021 10:37

Must be about 1/3 of the capitalisation made up of cash now..shows what sentiment can do to the price and that is why technical analysis has a part to play. I’ve added more @88p, think it’s just about bottom at worst

[dougmachin] 20/8/2021 10:37

Plat - those 7p investors could take the cash and then sell out anyway.
And the rest of the investors are left with a less valuable company / less potential.

Seems to me if they want a share price rise from 7p and a divi, they want too much.
If they don't like it, sell out and give me a discount to invest in a company with a massive cash pile that I will benefit from longterm, as and when the cash is invested.

[plat hunter] 20/8/2021 10:24

Doug.. there's people here from circa 7p who will disagree and without a reasonable return, the sheer amount of equity they hold from those cheap days would translate into quite an overhang to say the least.. In fact, in the absence of any other real justification for the retrace here then one could be forgiven for seeing just a little more than coincidental correlation

[primarch1] 20/8/2021 09:40

Heading for 80 even with poor sentiment surrounding metals this is so cheap

[dougmachin] 20/8/2021 07:06

I, for one, am in favor of the cash mountain.
I want the company to be able to strike as and when it sees an opportunity.
When the money is with the company, then it is all money that can do something for me.
Give it to all the shareholders, who can then take the cash and sell up, is taking the money away from any advantage it could have for me.
Yes, I could invest the divi, but I think all that money could be better used (eventually) in one big pot to do something much more beneficial than what I would do with it.
Let the company grow itself.

[russman] 20/8/2021 06:27

The current balance sheet has too much cash; earning negligible interest.
The BoD have pontificated with numerous dividend policies over the years.
The cash mountain grows.

[johnhemming] 19/8/2021 20:55

There will be a generalised tension between stopping QE and concerns about inflation. The central bankers need to walk a tightrope on this. I am not myself bearish about commodities although the market today had a commodity pullback. The underlying prices of commodities also suffered.

Rhodium's tracker, however, went up.

[creditcrunchies] 19/8/2021 17:08

all PM miners are under the cosh at the moment with the Fed hinting on taper I personally cannot see how they can taper unless they want a market collapse, so if we get an October bloodbath I'm sure more stimulus will be on the table again.

[stemis] 19/8/2021 08:39

With regard to dividend, I suspect the company don't want to be locked into a high regular dividend when their market (and therefore profitability) is cyclical. The market hates little more than a 'dividend cut'. However the company announced plans to pay a special dividend in the y/e 30 June 2020 accounts when the cash balance was $55.9m (= total dividend for year of 5.35p). At the end of y/e 30 June 2021 cash balance is $101.1m....

[farnesbarnes] 19/8/2021 07:59

Hope? Hope is not a strategy.

[jobear] 19/8/2021 03:25

July and August are dead months anyway but this has tanked so much... Still holding though till results next month. Hope it's not as disappointing as the last one ?

[kennyp52] 18/8/2021 23:04

Plat .. I am holding out for a rise in one of my others to cash in there and come in here . 80p seems ridiculously low but if I can get a holding back at that level I’ll be happy to dive in . Dividends .. depends on how you look at it . Building a substantial cash balance is not a bad thing . Without the “special”; I agree .. the dividends are mere morsels but have said it before .. this is the solid , cautious PGM investment versus the risk taking JLP . Who knows .. the “special”; might end up the regular and that would make the share price look ridiculously cheap . The fundamentals have been looking solid for some time and the financials will be very interesting.

[charlotte2020] 18/8/2021 22:12

I completely agree with your words here.

[plat hunter] 18/8/2021 21:51

Kenny I think the divi policy is terrible here when weighed up against actual net cash and shares in issue.


I've posted many times over the last couple of years about my displeasure of the dividend policy as well as not allocating anything to capex. All that cash on the balance sheet is the shareholders. If they're not going to spend it then I'm sure there's plenty of people here who could put it to better use across their portfolios.

[plat hunter] 18/8/2021 21:43

JH...


I love this company but the chart no longer looks good, the support line looks more likely to fail than anything else now and your sub 80 isn't that far fetched according the fib retrace.

[greggphilips88] 18/8/2021 17:32

My forecast for this year's revenue, based solely on estimated basket price financials YTD, and assuming like for like 70k oz production, is for it to be slightly above the last financial year.

I'm not predicting what will happen to PGM prices the rest of year, just pointing out that we started the last financial year with much lower PGM prices, so having a far better Q1 for YOY comparison, which provides a good base for full year YOY comparisons at current prices without needing to repeat the peaks of Rh and Pd pricing seen 6 months ago.

I continue to hold, underwater currently, based on expectations of the next 24 months in terms of PGM demand and supply deficits, and a cash balance growing from its $100 million base at the start of this financial year.

I was clearly wrong about July and August share price performance though, so we shall see. To me, this current share price remains a bargain price.

[johnhemming] 18/8/2021 17:24

@kennyp52 you might be right, but I am not sure. Hence I would prefer to forgo the potential gain because I am not sure.

It may be if it gets below 80p that I will buy back in. But the forecast dividend on stockopedia is under 5% ATM.

I probably need to spend some time doing my own research on this including getting a sensitivities analysis, but at the moment I am drinking beer.

[kennyp52] 18/8/2021 16:35

Could this be reporting profits in the region of 1/4 of its Mcap ????? Not enough of a dividend huh ? How about the special 5.118c a few months ago ? Not enough ? Don't make me laugh . Not in SLP at the moment but entry looking more than likely at this share price and good luck to all holders .. but not enough profit / dividend .. ridiculous comments .

[johnhemming] 18/8/2021 16:00

I have done well out of SLP, but am currently out. What I need is a sensitivities analayis (in some from of spreadsheet) on the basket prices. To me it appears a reasonable hypothesis that we have seen another Rhodium spike and may not see another for a number of years.

It may be that SLP is still discounted, but they are not paying enough of a dividend to make it worthwhile waiting.

I think the management are being sensibly cautious and I am following their example.

[plat hunter] 18/8/2021 11:46

That's me out for scratch.. Changed my mind about this for the short term.I'll probably be back in a few days, as I can never sit still for too long.Good luck all.

[johnrxx99] 18/8/2021 09:47

Starting to get a bit painful. Rho solid but the rest quite weak.

Markets looking to China for guidance and not much forthcoming.

[plat hunter] 18/8/2021 08:04

It is Martin... It's an otc market with prices being set by a few refiners once a day, JM being one of them.Rh prices should just be used as indicative and only over the average 90 day price minus 5% as a rule of thumb as SLP produce a concentrate not a finished refined metal. Daily intraday swings in Rh don't really effect the basket price much at all. Sustained, higher or lower prices for longer is what will really move the basket