Sylvania Platinum Share Discussion Threads

[johnhemming] 13/9/2021 20:09

XRH0 is on its way down again, now below 1300. I wonder sometimes if there are algos tied into commodity prices. The subtleties of individual companies could easily pass them by.



"Spot palladium dropped to the lowest in more than a year, extending a slump in the metal amid concern over demand from automakers and prospects for substitution after a price-run-up earlier this year."

[scooper72] 13/9/2021 19:08

I guess that is a good sign. Hopefully the floor is well nailed in now?

[plat hunter] 13/9/2021 13:35

Bounce of 93 bid again for the umpteenth time

[plat hunter] 13/9/2021 08:52

Keep your eyes peeled.

[devilsprofessor] 10/9/2021 14:31

There ya go. I didn't realise that was the free section! :-)

[devilsprofessor] 10/9/2021 14:31

ProfileWhat are the company's principal business activities, how does it generate its revenues?Sylvania is a producer of PGMs including platinum, palladium, and rhodium. Unlike miners, the core business of SLP is the retreatment of PGM bearing chrome tailings material at its six plants, although the group also holds mining rights for a number of PGM projects and a Chrome prospect on the Northern Limb of the Bushveld Igneous Complex in South Africa.Sylvania produces around 70,000 ounces of PGM metals per year with the following prill split.DsGBY3WMrH1jQwgOk5j8RI0FipKTR-QoUClnfBjMQd2g4FAcKroSJlu19dKPg99IseL-Y7BkLZFo5tcy5FQIc54is-FMx-lC5_cRxp-dCnTyL5qcVX6e7aoIkWIw1LabVvrBGMvR=s0Source: Sylvania Platinum Presentation, 2021-06-09Size, Sector & ExchangeSylvania Platinum is a metals & mining company operating in the Basic Materials sector. The shares currently trade at 101p, valuing the company at £280m (or around £203m on an enterprise value basis after accounting for the group's sizable net cash position). The stock is listed on the LSE AIM market.Business strategyThe group's strategy is to generate high levels of free cash flow by producing PGMs at low cash costs (target

[teiresias] 10/9/2021 13:57

Yeah, read that too, it's free. Can you copy/paste the rest of the report? :-)

[devilsprofessor] 10/9/2021 13:48

Stockopedia have published a favourable yet balanced review of SLP. A short extract is;Sylvania Platinum is a platinum group metals (PGM) producer with six chrome beneficiation and PGM processing plants in the Bushveld Igneous Complex in South Africa. The company's share price has been on a stellar run as far back as 2018 on account of surging PGM prices but has recently given back some of these gains despite revealing in its recent Annual Report that net profit is up 143% to $99.8m and closing net cash has risen by 90% to $106m.Recent share price weakness comes as a result of softer palladium and rhodium prices (down 19% and 43% respectively on their record 2021 peaks), which have caused a drop in Sylvania's average basket price on a quarterly basis. Importantly though, these markets are still forecast to be in deficit this year, the medium term outlook is favourable, and Sylvania remains hugely profitable at current spot metal prices. Its average basket price for FY21 was up 83% year-on-year to $3,690/oz - nearly five times group cash costs of $755 per oz.There's no doubt the shares look cheap - the forecast rolling PE ratio of 3.1x reduces even further after adjusting for cash to just 2x - but how certain can we be that SLP is in fact cheap, given the degree to which profitability is driven by commodity prices? The company has demonstrated that its results - and its share price - can be volatile in the short term but medium term PGM drivers remain positive and the group is forecast to generate nearly one third of its current market cap in free cash flow over the next year alone.

[plat hunter] 10/9/2021 13:17

On the subject of the XRH0...


There's quite a lot going on here so I'll try my best. The lines are showing key support and resistance lines, as we can see Rhodium is currently trading above or on the support line of circa 1310.


On the chart we can see the red dots which visualise the direction of the trend,below the cart we can see the "accumulation/distribution index" is travelling the opposite direction using the same markers. This is called divergence and it means there's more buying in this period than selling, contrary to the price action. Same is happening on the "on Balance Volume indicator" In addition to this we can also note that the RSI is oversold.


However that said we should consider what has happened to the index since the news of chip shortages first broke, which takes us back to early may when the price was much much higher than it is today. For me it looks like the auto industry chip shortage has slowed the rate of buying and with AUTO makers shutting down production lines, we might need to wait until there's some better news from the auto makers.


The positive side of this for me is that the demand for new cars has increased, so it's not down to a lack of demand, the chip shortage will correct itself as will supply chain problems caused by covid. Which means that the bull run for PGMS is far from over imo.

[haywards26] 10/9/2021 12:05

I hold all 3 THS, SLP and JLP. Each have their own attractions.

All 3 are IMO significantly undervalued and offer great upside. As an investor I am patient and will await value outing sooner or later.

[plat hunter] 10/9/2021 11:28

XRH0 Versus SLP


Looks pretty correlated to me.

[brucie5] 10/9/2021 11:23

Jack Brumby has just written a piece on SLP for Stocko. Nothing that posters here don't already know, I suspect.
hxxps://app.stockopedia.com/content/stock-brief-sylvania-platinum-lon-slp-864610?order=createdAt&;sort=desc&mode=threaded

But among his summary points, he says

"Valuation and balance sheet - Trading at spot FY22 free cash flow yield of some 29.5% and with a cash-adjusted forecast PER of just 2x. At current levels, you could more or less buy the company with its own free cash flow in a few years’ time and run it for free beyond then. Net cash of $106m is expected to grow and represents around 28% of market cap.

Capital returns - Final dividend of 4p marks a 250% increase on prior year. This combined with the 3.75p special declared in February gives a total yield of nearly 8%. Scope for additional buybacks and special dividends."

So I guess it puts the slight mismatch between THS and SLP in context. SLP pays
a lot of special dividends.

[bbluesky] 10/9/2021 09:48

XRHO has been pretty steady in a range from 1500 to 1300 over the last month, so "XRHO is on its way down" again, currently is not factually correct. Beware! Tomorrow, of course is another day.

For me the key to the ludicrous valuation of SLP is the constant selling from Africa Asia Capital, whose holding I note in SLP's recent presentation has gone down from 21.06% to 11.14%. That is a lot of shares. They have been holders since 2010 and given that their remit is to invest in Mozambique, it would not be an unusual rebalancing of the portfolio.The big question is whether they will stop at around this figure or 10%, which would not seem unreasonable given SLP's prospects and extremely strong financial position plus the divi. Let's hope so!

[johnhemming] 09/9/2021 15:02

XHR0 is on its way down again so I am with PH on this and have sold again.

[plat hunter] 09/9/2021 12:49

Not a set target per trade so much Brucie, but more so where the fib lines correlate with other factors of confluence. I'm always happy to pay a little more than needed and get out a little sooner than what's on offer too. If you always leave something for the next man then you can always go back to it. I'm looking for circa 85p again but we'll need 93p to fail first. XD might be a factor to push it lower in the short term, so a drop to 85p and close back near a £1 in advance of XD would be a great result imo but I'm equally aware that maybe an unpopular opinion or desire for most here.

[brucie5] 09/9/2021 12:41

Thanks. Do you have a target per trade?
As I'm sure you know, this has failed to rise above the 200sm despite stonking results, so can't think what is likely to reverse that, aside from a very generous dividend policy.
But if one is happy to take the income, then THS seems better placed?

[plat hunter] 09/9/2021 12:36

Brucie... SLP for the reasons just mentioned, I like to trade.If it was a fire and forget investment then probably THS as they get more upside to chrome, although that's negligible with pgm basket at these levels.

[plat hunter] 09/9/2021 12:34

Acv... dkwn to liquidity imo, it's a poorly traded stock with a handsome spread.Peeps who like to trade around their position might prefer JLP and SLP

[acv74] 09/9/2021 12:33

From what I can see on stocko and the accounts, THS looks good value.

[acv74] 09/9/2021 12:32

I'm in SLP and JLP. Would be good to know why THS seems a bit more unloved.I'm thinking about getting a position there.

[brucie5] 09/9/2021 12:13

Plat, which do you favour out of SLP/THS, please?

[plat hunter] 08/9/2021 12:13

It's not bad, track record of dividend growth, well covered by net income and a growing cash pile. It's a no brainer to play around in for me.

[frogkid] 08/9/2021 12:08

Thats a deal

[plat hunter] 08/9/2021 12:07

28th October for 4p Froggy

[frogkid] 08/9/2021 12:04

Platty old pal, am I correct this goes xd next monthFrog