Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
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Cat argue with that TBTT. Don't forget about fantastically high margins providing a buffer through tough times.
SLP EBITDA Margin %
Q219: 36%
Q319: 44%
Q419: 46%
Q120: 53% (My estimate)
Q220: 56% (My estimate)
Anyone know any debt free companies with 50%+ EBITDA margins?
I like investing in companies which are debt free and which hold a healthy amount of cash.
IMO, this will become very important if and when the next recession strikes. A strong balance sheet more or less guarantees the company's survival in even the most hostile business circumstances, and it means that the company will then be in a position to buy up distressed assets on the cheap.
Still, Sylvania may be carrying a good thing a little too far. I assume that they must be thinking about expansion in some direction or another...
It makes the paltry dividend seem even more odd, especially with the lack of any concrete growth options. Hopefully we hear more about these soon. Can't see anyone rushing to build more chrome mines right now though.
I guess a 9% return in a South African bank account is ok, if the ZAR doesn't fall 9%, which is entirely possible.
Would be more than happy with $28m too, so let's see where the chips fall!
Even crazier is that due to unique nature of SLP having to wait 4 months in payment from the PGM Refiner(s), a huge rolling Trade Receivables has built up, far larger than Trade Payables (for any other producer, it's of course normally the complete opposite). On top of the cash position, as of end June 2019 the Trade Balance in SLP's favour was just shy of $25m (Receivables (incl. contract assets which is just a subset) minus Payables).
So you're looking at 40% of market cap being backed by cash in bank + cash balance owed to SLP.
It's worth adding that if closing cash does come in at $28m (or around 22m quid equivalent), then that would represent more than 20% of the current mcap (about 105m quid) by itself. Which is crazy, in a rather wonderful way.
Hi Visitor, thanks for sharing. Here are my estimates/guesses:
Production: 20100koz
Revenue: $21.1m
EBITDA: $11.3m
Net cash flow $6.2m (closing cash $28m)
Hi Ragnar. There's lot of moving pieces hard to predict, but could see an increase in cash position of at least $8m. That's assuming deducting Capex of $2m and the 4.2m shares buyback of $1.7m. Due to 4-month delayed payments, last quarters 21,789 Oz will be hitting the balance sheet.
In terms of production for quarter just gone, I'd be happy with anything around 19k Oz to be on track for upper band of 74-76k Oz. 19k Oz coupled with current SLP PGM basket of $1,700 should equate to another $8m+ cash build for FY Q2 too.
This is why with these basket prices and Grasvally sale of $4.1m Net, I would like to see a special dividend in April/ May 2020. Thereafter would like to see 2x dividends per annum (interim + final) rather than just 1 dividend in November.
What are your expectations for Q1?
I think once we get confirmation of unconditional offer on grasvally chrome and see numbers from next q report (end of Oct), would hope to see the 40p+ realm again
Take a look at the 3 year chart view, that should cheer you up :-)
The paltry dividend SLP offer will probably keep things even here. Still somewhat disappointed by the lack of interest as Rhodium climbs to $5,500 an ounce and Palladium begins wrestling with $1,800.
Unfortunately SLP still sells over 60% Pt by volume...
So I wonder if we get a free divi today? I can sell at the same price as yesterday but now we are ex
Very soon the platinum we sell will be relegated to by-product status lol
Was just noting that myself. Pd is DOUBLE Pt now. In 2014 73% of 3E PGM revenue was from Pt, now its 32%.
The price movements are remarkable in the context of the global market backdrop:
- Average YTD basket up 44% YoY, current spot price is 53% above 2019 average;
- Q120 v Q419 +21.1%, Q2 already up 15% on Q1
On the downside Eskom is load shedding again :-(
And the rise in sterling over the last week has reduced our dividend by 5%.
Rhodium close to testing recent highs again at $5450, Palladium at highs of $1740+ and Platinum just off $900 looks like an extremely bullish start to the new quarter. Last quarter results due in less than two weeks and before that the stock goes ex-dividend tomorrow ;)