Sylvania Platinum Share Discussion Threads

[petersinthemarket] 24/5/2023 18:24

I've just been reading today's truly disturbing report called ''South Africa Load Shedding'' on BBC online website:



Building a successful energy dependant company in South Africa is very difficult. As far as Eskom goes, the report is a study in corruption, sabotage, theft and even murder and the criminals appear to have powerful links right at the top of Government. It's hardly any wonder that South African industries have struggled to mitigate energy issues and diesel powered generators add to production costs.

That JLP and SLP are still surviving seems to me to be a miracle. I hold both and have posted this note on both threads.

[justiceforthemany] 24/5/2023 18:17

Added. 1 year low.
Cash adjusted P/E now 3 as per Simon Thompson of Investors Chronicle.
Should be buying back shares here

[creditcrunchies] 24/5/2023 14:01

I had to buy a few at this price it seems bonkers level atm

[the oak tree] 24/5/2023 08:28

Commodity prices fluctuate.
Wait and receive dividends in the meantime.
Simple

GLA

[kennyp52] 23/5/2023 21:01

On fundamentals and the fact it effectively does not have a life of mine issue then with the dividend return also this is an absolute no brainer imho . Hugely undervalued but it has moved with the basket price … so we might need a reversal in PGM prices to put a rocket under this one. Good luck .

[donska] 23/5/2023 09:14

Discarding the valuation of their potentially significant exploration assets?

[rcturner2] 23/5/2023 08:45

There is a deep value discussion on stockopedia, and this post may interest readers of this thread:

"I hold Sylvania Platinum (LON:SLP, share that I seem to be riding all the way up, and all the way down. It's got net cash of $124m against a market cap of £226m. PE of 7.8, and P/FCF of 4.7, which is "hella cheap". The catch, perhaps unsurprisingly, is that analyst estimates are bleak and are trending downward due to the price of commodities. 2022 net profit was $56m. Analysts are estimating $39m for 2024. So buckle up on that one. Maybe the way to play it is to wait until the PBV reduces to about 0.5 - so about half the current level - where you're virtually all in cash. Don't pay attention to the PE in that case as it is likely to be misleading."

[rcturner2] 19/5/2023 16:46

A sensible post.

[kennyp52] 19/5/2023 09:49

RCTurner .. just gone back over your posts and couldn’t agree more . PGM companies SP’s are dictated more by guidance and materials prices. The basket / PGM prices have been consistently falling whilst SLP maintain production guidance . So earnings / free cashflow are looking down . This can change very quickly if China up their factory productions / the West pull themselves out of their financial holes . The analysts put the figures into their spreadsheets and , imho , cause over reactions to expected falls in earnings for this type of company . This is why the share prices are so volatile imho .. but if you have confidence and believe a share is cheap then there are significant potential upsides . Good luck . Dividend paying also makes this share particularly attractive. If you want excitement get into JLP !!

[kennyp52] 19/5/2023 09:36

Yes really boring ..

Group cash balance of $144.2 million (Q2: $123.9 million)

That’s boring

MCAP £229m .. half in cash with an established consistent production flow .

Boring

🤷‍a94;️

[rabiddog] 19/5/2023 08:45

RCT..” Plenty of companies with good cash balances and apparently good earnings and dividends are value traps. Is SLP a value trap?”

This would indicate SLP was priced cheap for a reason, limited cash flow, limited assets, poor management etc..which is not the case. Interestingly stockopedia have Slp categorised as “contrarian221; which means they tend to think they are a quality company which is undervalued by the market. Slp are boring..boringly good.

[death by donut] 18/5/2023 08:54

Duly noted.DbD

[888icb] 18/5/2023 08:39

The one analyst offering a 12 month price target expects Sylvania Platinum Ltd share price to rise to 126.52 in the next year from the last price of 86.50.
That’s from IC website.

[rcturner2] 18/5/2023 08:38

Fair enough DbD, but I would honestly recommend that you stick to more mainstream businesses with that approach. Using simple metrics works best with value and defensive stocks imho.

[death by donut] 18/5/2023 07:47

Course i dont , i just work on a building site. Thats why I use Sharepad and simple metrics with risk management in place.Others invest just using tip sheets , some like you ( by the sounds of it ) do more in depth work , each to their own , I'm not knocking your method , GL to you.DbD

[rcturner2] 18/5/2023 07:16

RD "Saying that metrics don’t apply to materials businesses shows you don’t understand them at all."

Well fortunately I didn't say that, so that is a straw man argument. Of course profitability and cash matter but far more important is the outlook. I can see for example that the forecast earnings are showing a sharp fall and analyst estimates over the last 12 months are getting worse and worse. The analysts covering SLP are continually updating their forecast earnings to lower and lower numbers.

Plenty of companies with good cash balances and apparently good earnings and dividends are value traps. Is SLP a value trap?

[rcturner2] 18/5/2023 07:10

DbD, and therein is the rub "long may it continue" you say, and clearly you have no idea how long it will continue, you are just hoping that it does.

[brucie5] 17/5/2023 15:33

RCTurner217 May '23 - 10:17 - 7873 of 7875
0 0 0
----------------------------------------
Good point - which is why all country specific miners/oilers carry especial risk. I do hold but have been reluctant to add on this weakness, though I suspect it's more to do with price of commodities with added geographic risk, than end in sight of the underlying assets. This has so far been a well managed business, has it not?

[death by donut] 17/5/2023 13:13

Well from my builder bloke pov all i know is it picks up dirt , shakes it , rare metals fall out the bottom which has in turn put > half the mcap in cash in it's bank account and at the same time paying me a lovely divvy.Long may it continue.DbD :-)

[rabiddog] 17/5/2023 10:50

PE is just one metric and wouldn’t be used in isolation in any investment decision. Saying that metrics don’t apply to materials businesses shows you don’t understand them at all. They are part of the decision process.

[rcturner2] 17/5/2023 10:17

I don't particularly favour metrics for materials businnesses. It is much more about understanding the business model and the long term sustainability of the cash flows. If you think SLP is cheap becuase the PE is apparently low you really don't understand them at all.

[rabiddog] 17/5/2023 09:49

Pretty well on every metric it’s cheap, pretty much a pure play on PGM prices which is the key risk factor. Feed life always gets thrown up but that is continually extended, SA region also the other risk….but from a pure metric perspective it’s absolutely dirt cheap.

[death by donut] 17/5/2023 09:13

So which metrics for you then RC out of interest.DbD

[rcturner2] 17/5/2023 09:00

I used to hold this and have been keeping an eye on it.

The PE is somewhat irrelevant, surely this is lowly rated as this is valued against the amount it can extract over time, discounted to now + various risk factors.

I don't think this is cheap at all and Simon Thompson has been wrong on this for a long time. I don't think he understands materials companies.