Sylvania Platinum Share Discussion Threads

[zangdook] 05/3/2024 07:50

At such a low price I favour buybacks, even on a small scale.

[briggs1209] 05/3/2024 01:32

I think you are both right here about the buybacks.

Bountyhunter is right, the buy backs will increase EPS and future dividend payouts. Given that IMHO we are closer to the end of the cycle than the start, and that the price has fallen significantly, this is a good time to buy back shares.

However, Stemis is right here too. Until sentiment turns these little buybacks will do nothing for the price of the shares.

I would not want the company to go back to the cash balances of 2018 though.

What will be the capitulation price of this cycle? 40p? 30p?

[davebowler] 04/3/2024 15:30

Simon Thompson -
Modest valuation
Admittedly, after factoring in a better second-half performance, full-year pre-tax profits and earnings per share (EPS) are still forecast to fall 24 per cent to $50.7mn and 13¢ (10p), respectively. The annual dividend is set to decline, too, from 8p to 3p a share. On this basis, the shares are rated on a forward price/earnings (PE) ratio of 5 and offer a prospective dividend yield of 6 per cent. Strip out the bumper cash pile and Sylvania’s enterprise valuation equates to only two times operating profit estimates.

Although the holding is up 450 per cent in my 2018 Bargain Shares portfolio, it is now showing a 30 per cent loss in my 2022 Bargain Share Portfolio, following a similar share price reversal since the annual results (‘Sylvania is due a re-rating, 7 September 2023). However, an expected recovery in PGM prices should deliver strong capital upside as highlighted by Liberum’s target price of 96p. Recovery buy.

[wsm812] 04/3/2024 13:30

Thanks to all comments; I am more inclined to agree with Warren on this. I beleive the purchases are being made at a significant discount to value and will be deemed a prudent action this time next year.

Let's re-open this subject in February 2025! Haha

[bountyhunter] 04/3/2024 12:54

Warren Buffett on buybacks recently:

Buffett, who determines the level of buybacks at Berkshire, has repeatedly said he is price conscious, noting in his annual letter: “All stock repurchases should be price-dependent. What is sensible at a discount to business-value becomes stupid if done at a premium.”

Buybacks increase EPS and decrease the future dividend bill as there are less shares to pay dividends on, provided that the bought back shares are cancelled as is the case here.

[stemis] 04/3/2024 12:53

The theoretical 'benefits' of buybacks are that they concentrate value in the remaining shareholders and/or that they take out loose holders from the market that would depress the share price. A small buyback of $3m isn't (IMO obviously) going materially to do either. Can't see it's going to make any real difference to the share price.

[rcturner2] 04/3/2024 12:44

Lots of people think buybacks don't actually help the share price and implies that management have run out of ideas.

[wsm812] 04/3/2024 11:44

Explain your comment SteMis, objectivity is a good thing. I like to hear both sides of any policy.

[wsm812] 04/3/2024 08:38

I am very pleased to read about the buy backs, this is a very good use of their capital in my view.

[kennyp52] 04/3/2024 07:32

Decent use of surplus cash .. if they have no investment opportunities ! Should prop up the share price for a month or two . Fundamentally need PGM prices to recover and so far this year there is no real sign of that. Fingers crossed . Well run company .

[bountyhunter] 04/3/2024 07:16

Sylvania Platinum Limited (AIM: SLP) announces that it intends to conduct a Share Buyback on-market to purchase Ordinary US$0.01 Shares ("Ordinary Shares") of the Company's issued share capital, up to a maximum consideration of US$3 million.

The buyback shares are to be cancelled.

[wsm812] 29/2/2024 11:16

We are Ex-dividend today, holding up quite well considering.

[return_of_the_apeman] 28/2/2024 14:14

Cheaper than turnips baldrick

[wsm812] 28/2/2024 10:14

That's a cunning plan there Baldrick :)

[baldrick1] 27/2/2024 21:06

I already bought some at 51p ;)

[bountyhunter] 27/2/2024 18:48

So why go on and on about it then?
Anyone would think you have an agenda.

Oh I see from your previous posts that you are hoping it falls to that price so you can buy back in at "43-45p".

"43-45p my target.to buy back in.."

[baldrick1] 27/2/2024 15:09

I doubt the 44p touted about @ the lse chatter board will materialise.

[justiceforthemany] 27/2/2024 14:19

Palladium up strongly.

[mjneish] 26/2/2024 18:20

Edison have updated their coverage of SLP.

Sylvania’s Q224 and H124 results were overshadowed by a lower PGM basket price, which resulted in a 10% reduction in revenue. With the delay in the PGM price recovery we expected, we have pared back our forecasts, particularly for platinum and rhodium. This, combined with Sylvania’s weaker-than-expected Q224 results, has resulted in a 30% reduction in our FY24 EPS estimate to 7.4p, with cuts of 23% and 14% for FY25 and FY26, respectively. Our new valuation is 118p/share, down 13% from our previous 135p/share. With exploration assets valued at book value and conservatism in our Thaba joint venture (JV) valuation, our valuation offers upside as projects graduate from exploration to production over the coming years.

[zho] 26/2/2024 17:49

Simon T also a fan of JLP:

[rabiddog] 26/2/2024 09:24

SLP is definitely not a dead horse. We are at a pivot point though and do need PGM prices to recover to add impetus to share price. Keeping an eye on the narrative for their investment streams as well.

[yf23_1] 26/2/2024 08:16

He does that a lot.

[rcturner2] 26/2/2024 07:18

Simon Thompson still flogging a dead horse.

[jackthecat1] 23/2/2024 22:11

100%. a strong buy and LT hold & Divi's.no brainer really at these crazy levels.