Sylvania Platinum Share Discussion Threads

[faz] 31/1/2024 09:33

bought more; even at 3p dividend this represents a fantastic return, but the figures and the words are too good to ignore even with metal prices down )temporarily, it is always temporarily).

[adejuk] 31/1/2024 08:38

does anyone know the short position ?

[masurenguy] 31/1/2024 07:32

Second Quarter Report to 31 December 2023

Highlights

No Lost-Time Injuries ("LTIs") were recorded during the Quarter;
Sylvania Dump Operations ("SDO") produced 18,232 4E (23,105 6E) PGM ounces in Q2 FY2024 (Q1 FY2024: 20,173 4E (25,533 6E) PGM ounces), in line with guidance for the Quarter;
SDO recorded $20.9m net revenue for the Quarter (Q1 FY2024: $19.7m);
Group EBITDA of $4.4m (Q1 FY2024: $2.8m);
Final cash dividend for FY2023 of 5 pence per Ordinary Share, amounting to $16.7m, paid in December 2023;
Lannex MF2 flotation circuit commissioned with optimisation well advanced;
Improved recoveries are expected following commissioning of the Lannex fine grinding circuit; and
Progress of the Thaba Joint Venture ("Thaba JV") project is on schedule and construction of the earthworks and civil works package commenced during December 2023.

Outlook

Commissioning of the Lannex fine grinding circuit in progress with optimisation to follow in Q3 FY2024;
· Continuous operational performance improvements relating to the optimisation of feed sources, throughput, recoveries, and cost saving initiatives implemented;
· An updated Mineral Resource Estimate ("MRE") statement for the combined Volspruit North and South ore bodies is largely complete and final documents are expected to be signed off during Q3 FY2024;
· Preliminary Economic Assessment ("PEA") for the Volspruit project is on-going with SRK Consulting having been appointed to undertake the work. Upon the completion of the combined (North and South ore bodies) PEA, it is expected that a Preliminary Feasibility Study ("PFS") will commence; and
· The Group maintains strong cash reserves enabling funding of expansion and joint venture ("JV") initiatives, process optimisation capital and upgrading of the Group's exploration and evaluation assets.

Commenting on the results, Sylvania's CEO, Jaco Prinsloo, said: "We have again achieved an excellent safety, health and environmental performance for the Quarter. Our sustained focus on employee well-being and sustainable practices, has ensured that all operations achieved an all-injury free Quarter and the SDO remains LTI-free for the Quarter and year to date. Production for the Quarter of 18,232 4E PGM ounces was in line with the production target for the period. The 10% lower production was primarily attributed to lower current arising feed tonnages and feed grades from some of the host mines due to the festive season closure. However, the second-quarter production was supported by higher recovery efficiencies over the period. Despite these challenges, we remain on course to meet the full-year production guidance.

Net revenue was up 6% due to a smaller sales adjustment during Q2 FY2024, and consequently, Group EBITDA increased by an impressive 57%. Despite the ongoing pressure on the PGM 4E basket price, which experienced a further 3% reduction during the period, these positive financial indicators reflect the resilience and strategic adaptability of our operations. Net profit was 13% lower than in Q1 FY2024 due to the impact of inter-company dividend withholding taxes. Nonetheless, the Company maintained a strong cash position.

During the period, the Company paid the FY2023 final dividend of 5 pence per Ordinary Share, as well as provisional income and mineral royalty taxes. At 31 December 2023, the Group remains in a strong cash position allowing it to continue funding of its existing capital projects and growth opportunities and to return value to shareholders. Sylvania's interim financial results will be released on Thursday 22 February 2024 and I, and the Group CFO, Lewanne Carminati, will be hosting investor webinars and shareholder meetings over the course of the week of the release. Once again, we look forward to engaging with our valued stakeholders during this period."

[devilsprofessor] 31/1/2024 07:18

Excellent RNS this morning let's hope the market agrees!

[benchrystall1] 30/1/2024 17:33

It's not the company more the precious metal mining sector in general, I guess most here are thinking we are near the bottom and this next year/18months should see quite a run and when it does it moves incredibly fast, I have time, but thanks for the warning

[rcturner2] 30/1/2024 16:36

I have warned on SLP many times on here. Too many people sucked in by the (supposed) dividend and the cash.

[kennyp52] 30/1/2024 16:04

no news !! you don't need news when the PGM prices are on the floor .. this is why your share price has declined ...

[dilip40] 30/1/2024 12:00

15p fall from 1st jan on no news

[kaos3] 29/1/2024 17:19

i can see meaningful correlation bellow with palladium



but not with platinum

[mjneish] 29/1/2024 17:06

This is not in answer to the above question. Just an observation.

If you look back over the platinum chart over the past 8 years or so, the current price is more or less on the eight-year average. There have been ups and downs, but short-lived. The point is that today's price is around the reference price that miners have to be able to operate profitably in. Not sure where this is leading ... just that there seems to be a lot of talk about how depressed the platinum price is, but we have to go back to pre-2016 to see consistently higher prices. Is the platinum price really that low?

I'm a newbie to this industry. Don't shoot me down. :) Comments?

EDIT: for palladium and rhodium the case is clearer that these metals have been on a medium-term downtrend. But what the price seems to have done is return to the long-term trend after an anomalous blip lasting a few years.

[doctorbird] 29/1/2024 13:30

Since March of 2020, soon after my trading in SLP began, there have been four main periods of price rise, looking at the monthly chart. 1) March 20 to May 21 with XRH0 and PLAT surging. 2) Nov 21 to March 22 both metals nicely up. 3) August 22 to February 23 PLAT up with strength, XRH0 in steep decline. 4) August to December 23 PLAT up XRH0 flat.
So much importance attaches to the basket price. Is the history of that price readily available, preferably on a chart?

[justiceforthemany] 26/1/2024 14:07

Rhodium seems to have bottomed. Now up to $4,600.
Platinum, palladium also up today.
No one should be surprised given the current basket price if the dividend is reduced this year though.
Given US growing at 3.3% GDP and China rate cuts PGMs should rise.

[kaos3] 26/1/2024 13:12

maybe sa has more stable regulators than us ... regarding business

[1knocker] 26/1/2024 13:09

I hope it keeps fine for you (and the rest of us!) but I would not sleep well at night with a company operating in SA as my largest holding.

But then, DEC is MY largest holding, so WTFDIK !!

[lonrho] 26/1/2024 12:20

Dividend per their new policy is to be set at 40% of free cash flow and that is where the analysts get their forecasts from.

[slopsjon2] 26/1/2024 12:13

I also added. NAV PS of 105p.

One problem I've noticed is Stockopedia and Sharepad both have a reduced divi of 3.3p and 2.6p, I don't know where those forecasts come from, but that's not going to help investors looking for a good yield. I think SLP will pay 8p like last year, which would be a 13% yield.

[justiceforthemany] 26/1/2024 12:06

They will be earning a healthy amount of interest on that cash pile also.

[wsm812] 26/1/2024 08:42

Added today - now my biggest portfolio asset

[mjneish] 25/1/2024 18:50

justiceforthemany25 Jan '24 - 14:46 - 8448 of 8449

£97.75 million at the current exchange rate, compared to a market cap of £155.5 million.

That would make cash account for just under 63% of the current share price, while the company continues to be cash generative even at the depressed PGM prices that we're seeing.

[mjneish] 25/1/2024 15:23

kennyp5225 Jan '24 - 09:11 - 8438 of 8448

There are better things to do than to make this personal. I didn't even see the original post of yours that you're referring to. Curious that you thought I had directed it at you. I stand by what I said about fools. It's the broken clock scenario except that that clock screams "I'm right!" twice a day and keeps very quiet the rest of the time. Fine, whatever floats your boat, or sinks it, depending on your position. :)

[justiceforthemany] 25/1/2024 14:46

Market cap is approaching the cash pile...insanity.

[wsm812] 25/1/2024 14:35

Cheers tempted, like this bit...

“It’s only a matter of time before the impact of this growing global supply-demand deficit bites and we see a very substantial rise in the price of platinum,”

[tempted] 25/1/2024 14:26

Level 2 was in auction for 9mins around 2pm with one small UT trade! Lunch break ?
Checked buy 0.589 sell 0.583, transactions all showing as sells. Maybe lunch was an alcoholic beverage? No wider news.