Sylvania Platinum Share Discussion Threads

[rcturner2] 10/7/2023 09:10

That's a good question Garth.

If they moved to a discount to the net cash that would certainly be interesting.

However, the company specific factors (South Africa and the basket price outlook) are very difficult to get past.

[garth] 10/7/2023 07:57

RCTurner2,

I've trawled back a few weeks through your posts on here. I've been in and out over a couple of years and been aware of them beyond that. Would you mind sharing what you feel would need to happen here to tip the investment case for you and tempt you to invest?

With thanks,

G.

[cb7] 10/7/2023 07:10

The main problem is ST and many others place value on their cash, but sadly the UK stock market doesnt. I see this now with other companies in different sectors (and over many decades). They might as well have no cash and debt instead, as the market places little value on it.

[rcturner2] 10/7/2023 06:37

I have repeatedly warned about SLP on this thread. Simon Thompson in the IC and many others simply do not understand this company.

[justiceforthemany] 09/7/2023 23:32

Positive news.

[stemis] 09/7/2023 20:43

Sure. I think the dividend is going to be interesting. They've shown themselves very prudent in the past re conserving cash, so paying out 20% of it as a final dividend, when they aren't generating much/any, might be a step too far.

[kennyp52] 09/7/2023 20:12

steMis .. my misunderstanding .. I think we are basically agreeing on this . 66% of MCAP as cash with a yield of 12% and so much cash they are buying their own shares back seems ridiculous BUT … PGMs need to recover

[scubadiverr] 08/7/2023 11:29

Isn't aggressive enough? It looks to me that the objective is quite rightly to buy back and cancel as many shares as possible to boost future EPS, rather than to temporarily support the share price To let the share price drop and take advantage of that drop is best for the company, so what they should do

[gaiusgracchus] 08/7/2023 11:14

Buyback isn't aggressive enough. Would love to see a massive tender offer but UK companies don't seem to go in for that. How much cash to they really need for growth opportunities?

[zangdook] 08/7/2023 04:15

I wonder if they determined the buyback was supporting the price and decided to pause it to let the price fall before restarting? Is that something they might do? I presume they haven't reached any sort of limit.

[death by donut] 07/7/2023 18:59

Well my trade got stopped out , bstrds .DbD - Still long tho. :-)

[justiceforthemany] 07/7/2023 17:46

Brokers have a valuation of c. 160p....
food for thought

[stemis] 07/7/2023 16:39

Actually the claim I was responding to was

Peeps thought 80p was an insane valuation now it's 65p it's only a few pence from being valued on cash alone without a business

Post 8009

[kennyp52] 07/7/2023 16:35

MCAP currently £176.25m @ bid 66p. Cash expected $150m . Exchange .78 = £117m .

117/176.26 x 66p = 38p excusing receivables which really should also be factored in but agreed Stemis . So over half of the MCAP is currently in cash .. which I think was the claim ? In fact on above figures 66% .

Rhodium is starting to recover last couple of trading days … have to wait and see how that plays out but over $4,000 . Platinum is predicted to be in short supply 🤷‍a94;️

Imho .. massively oversold and a plaything for MM’s

[mjneish] 07/7/2023 16:05

Cash was $144.2 million according to their Q3 results on the 28th of April.

[rabiddog] 07/7/2023 15:30

Yes but tailings aren’t an issue, as stated in pretty much every yearly financial review. This is a pure PGM weakness fall exaggerated by technicals.

[madpearce] 07/7/2023 14:48

If they run out of good quality tailings they havent got a business ?

[frazboy] 07/7/2023 12:23

Due to todays drop in the share price the EV is around $65 million on those numbers. Platinum and palladium are weak but not so weak as to cause such a sudden deterioration in the share price Are we missing something?

[justiceforthemany] 07/7/2023 12:13

You also need to factor in the depreciation of the Rand which helps margins.

[stemis] 07/7/2023 11:20

I doubt it's got more than 50p a share in cash

To put more meat on that bone. As at 31 December (per interims) the company had $124m in cash and £55m in receivables. In Q3 net profit was $6m and capex $2m. I'd be surprised if Q4 was better than breakeven. Depreciation is about $2m a half year, so overall cashflow of $6m in H2. So even assuming a 50% reduction in receivables, that's a year end cash of around $157m ($124m + $6m + $27m). It's also bought back 3.7m shares at around 80p, a £3m (= $4m) outflow, leaving $153m. For comparison it was $144m at end of Q3.

Number of shares in issue 264.7m. $153m = £120m. £120m/264.7m = 45p a share. Off that you can take the 3p interim dividend, so 42p a share. Even allowing for the approximate nature of the calculation it's going to be hard for cash to exceed 50p a share.

[farmers son] 07/7/2023 10:25

calm down
it's just trading lower on weak short term fundamentals and the technical break of 80p

[deme1] 07/7/2023 10:25

Kenny

It looks like the buyback was the one thing holding the share price up.

Have SLP finished the buyback? No RNS for the last few days. If so then there is no one to absorb the sells, share price drops sharply and unfortunately stops will get hit. I don't think this is manipulation, it's more to do with the cost of metals being trashed especially rhodium which was a BIG earner for SLP

[kennyp52] 07/7/2023 10:06

Stemis .. no CAPEX going on .. free cash flow should be maintaining at least the bank balance. Who is selling ? Effectively the company buying cheap off their own shareholders ? They should have to buy at a premium . If their stockbrokers are manipulating this is any way to hit stop losses etc . The it needs looking into . Spivs all of them . Basket price was already priced in . A buy back is supposed to add value not kill it .

[stemis] 07/7/2023 10:00

I doubt it's got more than 50p a share in cash