The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
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We're not a billion miles away from having the market cap in cash in bank! Slight exaggeration, but you couldn't make it up haha. Happy to hold another 10 yrs. Or until august, when I expect an SP north of 70p.
The numbers actually crack me up... the market cap is ridiculous, plain and simple. Value will out itself evetually.
The cashburn for the 2 week lockdown should in all honesty, be minimal. I know someone here referred to it like it was a thing. I don't think it will be at all.
The numbers should actually be spectacular :)
The quarterly RNS has traditionally come on the last day of the following month - so that would make it Thursday.
But it's not a hard and fast rule.
Any road, I'm looking forward to it!
Think it's Thursday or Friday buddy :)
Good research provides riches.
Cash rich and SA is getting back to work.
All we need now is an RNS.
Tuesday will do.
C.
I’m repeating what my multi millionaire 84 year old neighbor has explained to me many times
This stock is undervalued
It’s cash rich etc etc
And he said that he expects good news on Tuesday
I am a novice at this admittedly but my £40k investment
Is now £61k thanks to my lovely neighbor
Read my posts previous about what he gave me
I’m an ordinary lay man who is reading listening and searching for clues!!
Tiger
just wish I was as articulate as yourself.
CJ
Sorry bud, didn't want to sound so aggressively defensive of my favourite share. Have a second look though, as Tiger explains, there is incredible value here, if you strip out the cash pile then the year end June 2020 PE will be closer to 2.
SLP has always been undervalued, even beyond the inherent risks of operating in South Africa (Eskom power shortages, water shortages, workforce issues, SA's "junk" status etc.. etc...) but it just keeps on delivering.
I've given up using the term "re-rating" but the upcoming results will certainly "drag" SLP's SP/market cap closer to where it should be. Good luck.
Doggy
Don't want to call you out mate but a quick look at your posting history tells me that you've yet to display any comprehension of insight, research or understanding.
Repeatedly posting this share is going to double/treble by teatime on all the boards you visit doesn't benefit anyone.
Read, learn and by all means ask questions, most people are happy to share their knowledge, just please stop yapping.
Will be 60p+ within 2 months
Further to previous post...
South Africa officially moving to "Level 4" status on May 1st - that includes 100% opening for open pit mining (i.e. SLP's surface plants) and 50% for underground mining.
Some restrictions regarding night curfew and social distancing remain, so it might take some time to get back to full production.
Hi CJ66!
South Africa is gradually reopening its mining industry, though with some constraints involving social distancing. Jubilee (JLP) operate similar PGM tailings operations as SLP in South Africa, and they have already announced (by RNS) that they are back at work at their two PGM sites. I'd guess that is also true of SLP, but I think we'll have to now wait for the quarterly results RNS (30th April?) to be sure.
(By the way, SLP has far superior financials to JLP, which is a bit of a curate's egg, with money-losing chrome operations and a Zambian copper/zinc refinery as well as its PGM operations. All in all, I don't know of any share with better fundamentals than SLP).
I'd say SLP is about as Covid proof as you can get, bar gold miners, insolvency practitioners, divorce lawyers, Zoom and Ocado...
CJ
Best invest in something covid proof elsewhere then.
Fact remains that the balance sheet would still remain cash positive if we had to close for 12 months. A quarter of reduced production is no more than a speed bump.
Half year results to Dec 2019 revenue and profit already significantly over full year 2018, the upcoming third quarter results will close to double full year 2018.
Whatever we manage in quarter 4 will be a bonus. All safe in the knowledge that PGM demand will ensure forward profitability.
We're looking at a full year P/E of around 3 at current share price. What more do you need?
Agree with the fundamentals....but any update from the RNS 24th March - which says all operations being shut down due to SA Covid 19.
This can only mean that any commodity prices are currently of no use, and the cash will slowly be being reduced.
1. The company is debt free and it has a $33m cash pile;
2. Rhodium and palladium prices have exploded higher since the end of H1 (December 31st), so the current quarter 's result should be absolutely amazing;
3. Company is well run - production up, costs down, reports openly, etc.;
and 4. Company has valuable development assets (Grasvally and Volspruit).
Easier to read version (!) - Points from today's Investor Presentation re challenge #3
Currently fresh current arisings and ROM fines emanating from mining operations constitute
approximately 40% - 45% of SDO’s total plant feed, but it is anticipated that only a relatively small part of this total capacity will be impacted by the downturn;
o Sylvania has the necessary resources, flexibility and infrastructure to increase dump mining, albeit at slightly lower PGM grades, to supplement any potential current arisings or ROM fines shortfall and to maintain consistent feed to the plants;
o Management is in continuous discussions with host mines in order to manage impact and evaluate potential processing alternatives that could benefit both Sylvania and our hosts;
o Sylvania remain confident to deliver on guided production target of 74,000oz to 76,000oz for FY2020
Points from today's Investor Presentation re challenge #3
Currently fresh current arisings and ROM fines emanating from mining operations constitute
approximately 40% - 45% of SDO’s total plant feed, but it is anticipated that only a relatively small part
of this total capacity will be impacted by the downturn;
o Sylvania has the necessary resources, flexibility and infrastructure to increase dump mining, albeit at slightly lower
PGM grades, to supplement any potential current arisings or ROM fines shortfall and to maintain consistent feed to
the plants;
o Management is in continuous discussions with host mines in order to manage impact and evaluate potential
processing alternatives that could benefit both Sylvania and our hosts;
o Sylvania remain confident to deliver on guided production target of 74,000oz to 76,000oz for FY2020.
Great set of results today and all the positives have been mentioned in the posts today, sad to see Terry step down, however nobody seems to be pondering over the challenges ahead as to my mind they have zero control over any of them and each could impact the business going forward although with the power outages they seem to be coping well enough, these are the only dark clouds over what is a very positive update.
Challenges
· Power utility infrastructure and supply issues resulting in distribution interruptions and instability continue to present challenges to existing operations and the execution of our expansion processes;
· Intermittent rainfall and water shortages remain a key focus of the Group with mitigatory measures continuing to be explored to assist in the reduction of overall water losses in tailings; and
· Potential retrenchments at some of the host mines due to the depressed chrome market, has necessitated the review of the Group's plant feed strategy.
This is a good company right now. Its balance sheet is in order, lots of cash, no debt, SP rising steadily.
Christmas comes early
John Rosier (investors chronical) suggested a sell of part from his pf on Friday afternoon. I don’t suppose I was the only one to set up a sell over the weekend! Fortunately I cancelled it before this the open.
But in response to the RNS he’s now added SLP to his top 10 and has just make a very bullish update
The basket keeps creeping higher as well. Rhodium at $11,500 today. A ridiculous proportion of profit is now being generated by rhodium. And this in the face of huge declines in auto production. Cant imagine where it would be without the virus and lower Chinese car manufacturing...
Hi TBTT. I missed it as well!
I wonder which desperate soul was flogging them on the open today. Probably Majedie!!
Hi Ragnar!
Yeah, the share price dropped on opening, for all of about 5 minutes.
Did I get to buy any cheap shares? - No.
Now we're blue, and I guess in for a re-rate to a more sensible share price / P/E.
Yes they are using a lower basket but still, its just not realistic that they are doing less than H1
Good results indeed, however the SP always drops on news, lets see how far this time
Hi Ragnar!
For the EBITDA forecast they are probably using lower-than-current-market PGM prices - maybe average PGM prices for H1. Also, they are probably basing it on achieving only guidance, despite the broad hint in the results that guidance may be revised upwards in due course. In short, they are being ultra-cautious and making sure that they will beat their estimate.
If the SP does indeed drop on opening, then I will be looking to buy!