Sylvania Platinum Share Discussion Threads

[bountyhunter] 03/2/2024 17:16

Looking to back last year a maiden interim dividend of 3p was announced on the 21 Feb (although in years before that there were specials). I guess with the lower PGM basket price it might only be 1p this year, maybe 1.5p if we are lucky?

[bountyhunter] 03/2/2024 16:34

So what are we expecting for the interim going XD in only 17 days time?

[slopsjon2] 03/2/2024 14:51

Liberum has 3p for the whole year, 40% of fcf.

[bountyhunter] 03/2/2024 09:42

Interim XD 20 Feb so not long now, 3p?
Not much in the context of the recent falls but better than nothing. When PGM prices will recover seems to be a bit of a guessing game

[loganair] 03/2/2024 08:39

Nicky Shiels Head of Metals Strategy at MKS - Platinum 50% of mining supply under water, loss making = reduction in supply which is going to exacerbate the already on going supply deficit.

Low price of EGMs shows the West is already in a recession.

[masurenguy] 03/2/2024 08:34

"Market Cap the same as the cash now"

Not so, I'm afraid - net cash is circa 55% of market cap.
Net cash balance at the end of December was $107m (£85m). Current market cap, @58.8p, is £154.5m

[creditcrunchies] 03/2/2024 00:37

Market Cap the same as the cash now

[pooldar] 01/2/2024 12:21

Getting cheaper day by day where is the bottom?

[leopoldalcox] 01/2/2024 08:46

Totally agree with your logic meanreverter, but I think it's very difficult to anticipate PGM prices into the future.I have found sometimes that the commodity prices and profits improve, but the companies lag, such as with the goldies now. GLA. At some point I'll probably buy back in here

[loganair] 01/2/2024 08:46

Many commodity companies are now offering well above 10%/15% dividend yields because the whole sector is so unloved with over 50% of funds still going into the so called magnificent 7 on the S&P.

[greyingsurfer] 01/2/2024 07:51

17.4% is priced to go bust! What am I missing that the all seeing market is seeing?

[bountyhunter] 31/1/2024 22:06

The yield is a mere 17.4% now.

[meanreverter] 31/1/2024 19:24

LeopoldAlcox: The answer is that, if you wait for metal prices to rise, the share price of SLP will have gone up with them. In fact, the beta of metal producers against the basket of metals they produce is well above 1 (typically more than 2), because their prices are based on profits rather than revenues. Also, share prices tend to anticipate metal prices. If you think that PGMs are going to recover any time soon, then buy now; otherwise, stay clear. In the latter case, if you are right, pounce when the market in the shares makes you an offer you cannot refuse.

[seagreen] 31/1/2024 18:27

Its cheap as chips that is why

[justiceforthemany] 31/1/2024 18:25

Cash adjusted P/E is around 4.

[leopoldalcox] 31/1/2024 17:10

The question is why hold this now and not wait for the metals prices to turn positive?

[888icb] 31/1/2024 17:06

A few commentators are expecting platinum group metals to start recovering. The over supply situation is starting to correct. Also as electric vehicles are not proving as popular as expected and the move away from petrol and diesel has been rolled back until at least 2035 there are going to be a lot more petrol and diesel cars produced.The result of that is a lot of catalytic converters will still be required.

[loganair] 31/1/2024 13:26

RC - Agreed over the next 6 months or so, however if having a 2 year or more time frame then I'd say there's more Reward then Risk.

[rcturner2] 31/1/2024 12:49

Guys the risk is on the downside here.

[loganair] 31/1/2024 12:37

Invest in the commodity where people have been most disappointed....

Over the past couple of years people have been very disappointed in investing in Platinum and Palladium.

[slopsjon2] 31/1/2024 11:54

Libernum Note out today,

"Sylvania saw PGM production fall 10% q/q driven by both weaker plant feed tonnes and head grades. However, despite the basket price also being down 3%, net revenues were up 6% q/q on a positive sale adjustment. Group EBITDA up to $4.4m from $2.8m. Production remains in-line with company FY24 guidance of 74-75koz. Our estimate of 74.1koz is unchanged. Thaba JV project is on schedule, with first production due H2FY25. Cash, down to $107m from $127m, reflects $16.7m dividend payout & $4.4m in taxes during the period."

Forecast Rev $108m Net Profit $32.5 EPS 12 cents

TP 96p from 100p

[seagreen] 31/1/2024 11:30

I tried to resist honest guv but surely it will double over the next year small long.

[xasy] 31/1/2024 11:15

Stockopedia got it wrong, what else is new

[phar lap] 31/1/2024 10:56

Full year forecasts from stockopedia;

Net rev. $118M, Net profit. $28M, EPS. 13.7 cents

Actual H/Y results;

Net rev. $40.605M, Net Profit. $3.36M, EPS. 1.25 cents

[grindnship] 31/1/2024 10:35

Still 107M cash after divi payments on a 150M marketcap. Given the circumstances a decent outlook. Political uncertainty and other potential disruptions remain but cant see why you'd sell now and not take the gamble (if you even consider it a gamble..).