Sylvania Platinum Share Discussion Threads

[tigerbythetail] 06/9/2021 13:40

That's the funny thing - the risks of operating in South Africa are not that high. But UK PIs seem to think they are.
SLP isn't even subject to the SA mining charter, as it's officially a reprocessing operation, not a mining one.
The risks of operating in Russia, the ex-USSR, Chile, Peru, Mexico, most other African states and so on are, IMO, substantially higher.

[martinfrench] 06/9/2021 13:30

its the nature of slp and ths that things dont go through the roof !

[unabkxb] 06/9/2021 13:24

Everyone seems to be ignoring political risks associated with opeations in SA. Anywhere else (except maybes the STANS and other ex USSR states) and the share price would be thru the roof on these results. IMHO

[moyle] 06/9/2021 13:11

3rd December Xs 28th October

[carcosa] 06/9/2021 12:55

"When is 4p dividend due?"

RTFI (RNS)

[dubai123] 06/9/2021 12:36

Live meeting just started on investor meet company

[maxplus2] 06/9/2021 11:52

When is 4p dividend due?

[stemis] 06/9/2021 11:32

The current valuation is ridiculous. It would be decent value on 2020 results, let alone these (2020 ebitda of $70m cp to current EV of $266m) when the 4E basket price was only $2,015 - it's currently at least 60% higher. Bear in mind that if the basket price did fall to this level then it would release ~$40m of working capital into cash, so it would be ebitda of $70m v EV of $226m.

[orinocor] 06/9/2021 10:35

Just remember these results are historical. There's been more than 3 months of cash generation since then.
strong buy

[martinfrench] 06/9/2021 10:06

i'm assuming, from the above note, that the net working capital of 59m dollars is the yet to be received payment in progress for pgms ? as in a receivable not yet booked ?

[davebowler] 06/9/2021 09:41

Liberum; Target Price 190p

Sylvania have declared a final dividend of 4p, +250% Y/Y, beating our estimate of 2.9p and giving implied total yield of 9.1% for FY21. Production guidance for FY22 has been kept flat at 70koz, although we believe there is upside to this estimate given the strength of the chrome markets and return of higher quality feeds. PGM markets have been softer than expected due to chip shortage holding back auto production but we expect conditions to ease and run rates to pick up into year-end. Trading at spot FY22 FCF yield of 29.5% and cash position of $106m. Special dividend being considered againSylvania are keen to maintain an annual dividend that they will be able to continue to pay in the years ahead. However given how strong PGM prices continue to be, management are considering a second special dividend at the beginning of next calendar year, assuming their very healthy financial position continues.The 4 pence dividend that has been declared is a 250% increase on last year and beat our estimate of 2.9p. The final dividend and the 3.75p special declared in February gives a combined dividend yield of 9.1%.With a $106m cash position and $59m of net working capital, Sylvania have plenty of liquidity to keep paying large dividend or buybacks. The company also continues to evaluate the potential of its exploration projects for either sale, or development by themselves or with a partner. Management expect these studies to be completed by June 2022. Production guidance kept flat at 70kozManagement have kept production guidance flat at 70koz. However we believe that within the next twelve months, Samancor will restart its underground chrome mines that will deliver Sylvania higher quality ROM and current arising feeds, rather than the lower grade and oxidised material it is receiving now from the open pit operations. This would raise production and reverse some of the cost inflation we have seen this year.

[tigerbythetail] 06/9/2021 09:38

In all these value calculations, we need to remember:
1. SLP is debt free and has a huge cash pile;
2. Due to the way SLP do business, trade receivables minus trade payables equals a huge positive number. This is quite different from almost all companies - the number is usually negative and represents money that MUST be paid out in due course. In effect this balance is money already earns but still to come for SLP.
So, overall, this is one financially healthy business!

[martinfrench] 06/9/2021 09:23

the only thing i was concerned about was a possible negative pgm price outlook, but cant see that, since they are generally a conservative bunch

nothing to really worry about here

[mr stephens] 06/9/2021 09:10

Got it wrong forgot to apply the exchange rate
Eps 36 cents so 25.55 pence. Current share price 96p gives p/e of 3.7

[zho] 06/9/2021 09:00

>>How do you get to that figure?>>

I got the same figure after I'd accounted for cash i.e. Enterprise Value divided by post tax earnings = 2.7

[martinfrench] 06/9/2021 08:54

should get the ST headwind in next few weeks, thats what most people seem to buy on

[martinfrench] 06/9/2021 08:53

yes, if management reading this very good performance

[interceptor2] 06/9/2021 08:53

Just being conservative and subtracting FX gains before calculating PE of 4.5, certainly lower with these gains.

[luffness] 06/9/2021 08:52

How do you get to that figure?

[mr stephens] 06/9/2021 08:48

P/e is 2.7 on current share price

[tigerbythetail] 06/9/2021 08:27

Thanks to the management and employees for delivering such a stellar set of results.
This is massively undervalued...

[interceptor2] 06/9/2021 07:55

Cash rich, yield 10%, PE 4.5, Production target same again and confident of strong PGM prices in 2022, seems that downside should be limited going forward.

[greggphilips88] 06/9/2021 07:55

And $106m cash balance. Possible windfall next year, depending on PGM prices...
Also, a few hints of potential upsides in here to be teased out and discussed.
Another impressive performance from this company in the face of many events it didn't create but had to manage through.

[ddubzy] 06/9/2021 07:44

Nice increase in divi and more than expected, add into that the potential special divi early next year is great news. The temporary suspended operations at Lesedi is only short term and impact is expected to be marginal.Top job SLP

[martinfrench] 06/9/2021 07:42

I doubt it, as you say not producing

If it was important would have been announced separately as would be mkt sensitive