Sylvania Platinum Share Discussion Threads

[makinbuks] 14/8/2023 17:22

There's no doubt that this share carries a huge country risk, but in any society, popular parties say simplistic things which the electorate lap up and the party becomes more popular. However, almost inevitably, if they get into power, or even influence power, reality dawns. Things could turn out differently, but I'm an optimist and I think SA is a mature enough democracy, despite all its problems, to come through and embrace a wide spectrum of opinion

[makinbuks] 14/8/2023 16:23

There's no doubt that this share carries a huge country risk, but in any society, popular parties say simplistic things which the electorate lap up and the party becomes more popular. However, almost inevitably, if they get into power, or even influence power, reality dawns. Things could turn out differently, but I'm an optimist and I think SA is a mature enough democracy, despite all its problems, to come through and embrace a wide spectrum of opinion

[rabiddog] 14/8/2023 09:24

Yeah geopolitics is a risk factor for all SA companies and is priced in. Malema and the EEF has been spouting this for 10 years now. Nationalisation of the mines would destroy the country economically.

[bagpuss67] 14/8/2023 08:27

Not a great read. But these guys can only get 10-15% of vote. Issue is that they are king makers and drag the ANC into a more populist stance even though they are in decline. I hear official opposition is largely uncorrupt and OK but have white senior leadership which stifles their chances. So yes it is a mess but hopefully EEF don't get into power

[rcturner2] 14/8/2023 07:32

I recommend anyone with investments in South Africa to read this article:

hxxps://www.spectator.co.uk/article/beware-south-africas-rising-star/

[sheffield owls] 14/8/2023 07:00

I expect the final dividend to be paid in early December.The total dividend paid last year was 10.25p so 11p would be an increase in the dividend compared with last year.

[masurenguy] 13/8/2023 11:36

Patience here is required. Shareprice movements are not logical otherwise you could program a computer to work them out and to find the tops and the bottoms. The recent fall in the shareprice primarily reflects the lower PGM prices. These will recover in due course and when they do the JV with Limburg should prove to be an excellent deal. The reality here is that roughly half the current market cap is cash, the PER is circa 6 and the yield (if 11p is maintained) is now around 15%.

Next dividend - the final for the year - should be announced in circa 4 weeks and paid sometime in October.

[jackthecat1] 13/8/2023 11:26

except that the shares have dropped from 120p to 70p, so it aint working!!. We should be going well up not down & in the addition the JV adds ongoing value.

All very strange to me. When's the next divi paid please?. cheers

[soilderboy] 13/8/2023 09:49

Because in theory, the less shares, the more valuable they become. Does it work? Debatable.

[kennyp52] 12/8/2023 15:07

… which is why I do not understand the share buy-back if they can get significant returns by deploying the capital . Just a broker ruse in my opinion . If anything they could have deployed the cash with a higher dividend to support the share price 🤷‍a94;️

[rabiddog] 11/8/2023 13:23

I suspect the jv may have focused where excess capital is deployed. Maybe other irons in the fire as well

[sheffieldowls] 11/8/2023 11:28

jackthecat1

That's a very good question and it's not a vote of confidence in the company that they must consider buying back shares at this depressed level is not a good investment for the company and its shareholders. Its about five weeks now since any buy backs has occurred. What do they know that we don't know I am wondering.

[jackthecat1] 11/8/2023 10:11

whats happened to the ongoing Share buy backs??.

[bountyhunter] 10/8/2023 18:48

"The £197m capitalised group is due to announce its final results for the year to end June on Thursday 7th September.

Upon this JV announcement analyst Ben Davis at Liberum Capital has upped his Target Price for the Sylvania shares from 110p to 122p."

[makinbuks] 09/8/2023 15:40

Indeed so the JV partner seems to have no cash or needs a free carry to the point of production. But I would assume the interest accrues from the point of draw down. Good point about the plant potentially running late. Again our management are pretty savvy, I'm sure that's covered off in the terms

[nk104] 09/8/2023 15:34

Payments would only start from the first anniversary of the commissioning of the plants so any repayment wouldn't start until H2 2026 - assuming the plant is built on time.

[makinbuks] 09/8/2023 14:36

Good use of the cash pile. I wonder if the 20% +IRR includes interest earned on the loans to the JV partner and JV itself or if that is icing on top of the cake. Again much better to be loaning the cash like that than having it sitting in the bank. Interest linked to the SA central bank rate which is very attractive in comparison to the developed world

[js910] 09/8/2023 13:00

Going back above 80p soon

[ddubzy] 09/8/2023 11:09

Love this company. Fabulous management, happy to hold and increase holding as and when. GLAH

[rabiddog] 09/8/2023 10:34

It’s great news. Management stated they were always confident that they had many possibilities to extend tailing processing but it was still a question posed by investors. This is just the start of future resource expansion I suspect.

[1knocker] 09/8/2023 09:29

'unincorporated' just means not a company. Some joint ventures are operated through jv companies, which have their own legal personality separate from the companies or individuals which hold their shares. Other jvs are conducted through partnerships between the joint venturers created for that purpose, and other jvs are regulated simply by contractual arrangements between the joint venturers.

An unincorporated association is the legal description of a group of people operating together for some purpose, such as a sports club for example. Such an association has no legal personality (status) separate from its members. A company (an incorporated association0 does have a legal personality (status) separate from its members. For example, its assets and liabilities are its own, and it makes contracts in its own right on which it but not its shareholders are liable.

[fft] 09/8/2023 08:53

TP has risen from 110 to 122p after today's news

[kaos3] 09/8/2023 08:50

i see this news as excellent. second leg of operation. getting new source - a different one - access to the tailings. our JV partner is well connected to the chrom production in SA and so we get access to the new tailing universe.

regarding uniincorporated association - it is usually due to regulations and taxes - which are specifical to the local jurisdictions. not very helpful without being fluent in SA taxes and regulations.

but one is sure - one has to have complete trust in the JV partner imho

[davebowler] 09/8/2023 08:49

Liberum-Alongside its very strong operational performance (Sylvania Platinum (BUY, TP 110p) - Record year for production (8 pgs)) and our bullish rhodium and palladium view (Commodity priceDECK - Ebb tide (59 pgs)), Sylvania Platinum is one of top picks in our coverage universe.