Sylvania Platinum Share Discussion Threads

[adejuk] 16/6/2023 15:43

not so gai.
keep up.

[gaiusgracchus] 16/6/2023 12:53

Buybacks fighting against worsening political amd economic situation in SA.

[adejuk] 16/6/2023 12:13

it could get really interesting if the buyback is over a mill.

[blippy3] 14/6/2023 17:01

I'm generally suspicious of buybacks. Buybacks tend to be pro-cyclical (i.e. they occur when the share price is high, which is the wrong time to buy). However, at a PE of 7.5, the price looks cheap, assuming that profits don't go down steeply from here. So on the face of it, it looks like a good move. Time will tell.

One advantage I'd say about SLP in particular is that there is huge geopolitical risk (in addition to commodity price risk, of course). In a sense, the buybacks represent a top-up on our behalf without us having to put down more dough personally.

I hold.

[sheffield owls] 14/6/2023 10:49

I would be very reluctant to sell my significant holding in this company with the yield likely to be in excess of 10%. I have decided to be a long term shareholder and let me executors sort out selling my shares when the times comes and until then I am going to enjoy the large dividends and let them fund my extended stays in Florida!!!!!LOL.

[kennyp52] 14/6/2023 10:17

Oh and by the way .. I think this is a tremendous entry point for new investors. As you say we still need the PGM prices to improve .. that is the key and the doubt atm.

Maybe they could diverse into gold recovery as a hedge !

[kennyp52] 14/6/2023 10:14

I agree with you boys .. but I don’t want to have to hold a share for 10 years before realising the profit I’m looking for . Long term imho is for institutional investors .. most private are looking to get in and out. The danger also is that “added” value only equates to the lost dividends they could have been paying alternatively . So it’s all perspective but we are both right 🤨

[dougmachin] 14/6/2023 09:49

Nooooooo!
1 great divi is short term good news for short term holders.
Buy back shares is long term good news for long term holders.

[wsm812] 14/6/2023 09:39

I am leaning towards agreeing with you @kenny, however we are looking short-term and they are looking long-term.

When the company's prospects improve, (PGM prices will increase in line with global demand. We are at a continued low with demand expected to continue increasing) we shall own a greater percentage of the wealth created.

Hold tight, buy this dip even, and reap the dividends.

[kennyp52] 14/6/2023 09:13

If they want the share price to flourish then buy back imho is not the way to go . Yes it means % dividend costs less to pay .. but they are sitting on a pile of cash to pay a decent dividend and put the yield well into double figure which would be eye catching . Buy-back essentially is admission they have too much cash .

[masurenguy] 14/6/2023 08:02

The company has repurchased 1,196,151 shares over the past 5 weeks for cancellation.

[wsm812] 14/6/2023 07:52

There are hopeful words in that report @justice, and I want to believe it, but there is also a lot of spin and wish in their report. Time will tell.

More buybacks yesterday, and the price went down. MMs must be holding a lot of stock. It can't last forever!!

[justiceforthemany] 13/6/2023 16:06

hxxps://techcentral.co.za/why-eskom-load-shedding-has-eased/226865/

[wsm812] 13/6/2023 11:07

Such a shame this is not reported in mainstream news. Our blindness to it can only be amplifying the situation.

[deme1] 13/6/2023 10:47

Power situation posted 4 days ago!

[justiceforthemany] 12/6/2023 22:12

SA power situation much improved I hear.

[justiceforthemany] 12/6/2023 22:12

I have had 6p final for many months now. Based on that info posted below.
9p full year. Cracking yield.
$144M net cash at last update.

[adejuk] 12/6/2023 15:39

isn't it nice to have a buyback?
returning profits to holders.

[stevie blunder] 12/6/2023 13:45

Dividend Policy

The Board has reviewed the Company's Dividend Policy and effective 1 July 2022, the New Dividend Policy will be able to pay out a minimum of 40% of adjusted free cash flow for the financial year. Where annual dividends are declared, these will be paid in two tranches with an interim dividend equating to one third of the forecast full dividend and the final dividend equating to the remaining unpaid balance of the minimum of 40% of actual adjusted free cash flow. The payment of dividends remains at the discretion of the Board.

---------------------------------

So I can see where the 6p final forecast comes from, question is what the adjusted free cash flow will be.

[rcturner2] 12/6/2023 11:47

Stockopedia has much lower dividend forecasts. Will be interesting to see what SLP do.

[sheffield owls] 12/6/2023 09:01

The company has not made any dividend predictions. I cannot believe that the company would make a final dividend payment of just 3pence a share after paying 8pence last year.

[petersinthemarket] 10/6/2023 11:27

I don't recall the company making any dividend predictions, but on 16 May the IC published their analysis (see 16 May here, #7861) which finished with the following note: There is an attractive Div on offer. Edison pencilled in a FY payout per share of 6p. House broker Liberum Capital is forecasting 9p, implying a prospective DivYld of 7-10.3%. HOLD.

[sheffield owls] 09/6/2023 22:26

I have read from various sources that the final dividend is likely to be 3pence, 6pence and 7.5pence. I personally would be surprised if they cut the dividend as they have so much cash in hand.