Sylvania Platinum Share Discussion Threads

[justiceforthemany] 05/7/2023 17:08

Board need to restart buy back at these levels. Why stop?

[stemis] 05/7/2023 10:11

At the current basket price it's hard to see that SLP are anything better than marginally profitable although the drop in sales revenue will release working capital into cashflow so the cash balance should be pretty high (maybe $160-170m = 48-51p/share). It will be interesting to see what their attitude is to the dividend. The cost of 8p a share is $27m (making 11p for year at a cost of $37m). Probably just about covered for this year (give or take) and buying back shares whilst cutting the dividend would be pretty harsh, but SLP have shown themselves very prudent in this regard in the past.

[dougmachin] 05/7/2023 09:58

Folks are concerned about the basket price for Q4.

But Rhodium started to go back up today! A long way to go though. It seems the price of Rhodium fluctuates wildly.

SLP bought back 6 million shares last year too. Surely this all helps to keep the dividend up. Fewer shares to divide the free cash flow into. Hoping for a good divi still.

This is coming:
The recent relogging and additional sampling data collected at Volspruit will be subject to an updated Mineral Resource Estimate ("MRE") during Q4 FY2023, which will include a rhodium resource over 100% of the project area;

This too:
Lannex MF2 construction in progress, with commissioning scheduled during HY1 FY2024, which will further improve PGM recovery efficiencies;

Only issue I have is long-term demand for Rhodium (move to electric vehicles). As work through recession fears, Rhodium price should go back up.

Buybacks ongoing (over time, they really increase shareholder value IMO). Don't think this is a time to sell.

[kennyp52] 05/7/2023 08:59

No RNS .. no changes in factors .. could this actually be manipulated by the company brokers to buy the shares back cheaply ! This stinks but company substantially undervalued . Never have liked buy-backs .. burns cash which should , by forward thinking management , be put to better use imho. I doubt their intention is to destroy shareholder value but this is the reality today . Still do not understand the drop .. should have waited in hindsight but 76 was cheap imho.

[creditcrunchies] 05/7/2023 08:47

The company is pretty close to being valued on cash alone sitting duck for a takeover

[adejuk] 05/7/2023 08:45

what did i miss? why did it fall off the cliff?

[taras73] 05/7/2023 08:38

Thanks a lot mjneish and dougmachin! Me being careless and ignoring the small print at my peril) always thought that such info would be up in the main tables/text rather than in the notes.

[dougmachin] 04/7/2023 21:58

If this is 6E:
Pt 52%
Pd 18%
Rh 9%
Au 0%
Ru 16%
Ir 5%

Then does this mean, this is 4E:
Pt 66%
Pd 23%
Rh 11%
Au 0%

[mjneish] 04/7/2023 21:51

Look in their quarterly reports, the most recent of which was on 28 April.

[taras73] 04/7/2023 21:16

Does anyone know their split of palladium, rhodium etc in 4E PGM they normally report? I couldn’t find it. Many thanks

[scubadiverr] 04/7/2023 19:29

They were clever when they delayed the initiation of the buy back, allowing a more favourable price enabling more shares to be bought. Why rush when the price is likely to fall lower, allowing a greater percentage to be bought and cancelled?

[dougmachin] 04/7/2023 18:45

The buyback, I believe, could buyback 4% of shares... not insignificant!

Currently bought back about 3.6 million shares at around 79p. About 2.8m quid.

Leaving about 5m quid (10m USD total) to buy shares at 75p. Another 6.6m shares.

That's about 10m shares bought back. Out of 263m. So about 3.9%.

Are the shares being bought in the open market? Surely they will swoop into buyback at these prices...

[mjneish] 04/7/2023 16:36

Two comments from the recent Johnson Matthey PGM market report.

Rhodium remained in surplus last year, as substitution efforts in the glass industry continued to accelerate in response to the exceptional price levels of 2021 and early 2022. The rhodium content of platinum alloys used in glass fibre production has fallen further and faster than we had previously anticipated, allowing glass companies to sell significant quantities of unneeded rhodium back to the market. As a result, non-automotive demand for rhodium declined by 43% to just 41,000 oz - less than a quarter of the 2017 peak, and the lowest level for nearly thirty years. Although primary and secondary supplies also fell sharply, this was not enough to bring the market back to balance.

...

Ongoing sales of rhodium by Chinese glass fibre producers have added liquidity to the market over the past two years, but until recently the price impact had been muted, because Chinese market participants were generally willing to hold surplus rhodium. This willingness evaporated in early 2023, when falling prices prompted Chinese rhodium holders to dispose of their metal, often at a discount to world market prices.

[deme1] 04/7/2023 16:12

80p broken, next stop 60p with strong support

[return_of_the_apeman] 04/7/2023 15:53

Not true, Rhodium is continuing it's brutal fall, hopefully it is nearly over



Anyone got to hand the individual AISCs for all the metals in the basket here?

[justiceforthemany] 04/7/2023 15:27

Even as all 3 precious metal components are up today

[slopsjon2] 04/7/2023 15:24

I can't find SLP or Tyman in any of the PMI fact sheets.

[death by donut] 04/7/2023 14:49

Beyond me , triggering stops to fill the buyback?DbD

[cassini] 04/7/2023 14:36

I wonder if they had to go to auction to clear up some backlog of trades?

But then there'd be a gap in the trades surely.

Odd.

[death by donut] 04/7/2023 14:27

UT in middle of day ?DbD

[bountyhunter] 04/7/2023 11:33

also in the Telegraph recently

"another strong pick was Premier Miton UK Value Opportunities, a £700m fund which invests in London-listed stocks of all sizes.

Unlike Liontrust Special Situations, investors are unlikely to have heard of its top holdings, which include mining company Sylvania Platinum and Tyman, which makes building materials."

[justiceforthemany] 04/7/2023 10:43

Buy back continues.
60% market cap is cash.
EV market is actually slowing. Lots of issues with EV. See Telegraph today.
Buy.

[kennyp52] 04/7/2023 09:12

Trading at a discount balance sheet to MCAP with a 10%+ yield but PGM prices deflated . As soon as they move up this should re-rate quite quickly . $144m in cash at last financials. Buy opportunity .

Top up @ 76.6p

[kennyp52] 03/7/2023 19:30

21/10/2020 Bought B768746462 63.94

Wish I’d bought when I put it on my watchlist …

SLP
Sylvania Platinum Ltd Ord Shares (DI)
78.00p
-1.50p -1.88% 1 28.25 0.78 +0.5 +176.11

[buffalobillnuts] 03/7/2023 12:18

05/07/2022. SLP Was 77p!!