The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
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I have all three THS , SYP and JLP but the cheapest is THS and I have the most of those 150k+ now and growing ....
In the end I bought both THS and SYP.
SR123 - I don't think anyone can accurately answer that until we see the Pre-feasibility Study for the Karo Resources area, which as TBTT mentions is some 96m 4E PGM Oz at 3.2g/t based on detailed info from Zimplats - Zimplats was forced to relinquish the contract areas to allow more entrants into the Zim market. On top of the historical info acquired from Zimplats, THS have done their own drilling and will all be factored into any initial report, that I believe is due to be released this year.
Whilst the dates mentioned in this article are of course out of date due to COVID19 and other factors causing delay, this article from Apr 2020 gives a good overview of the THS Zim assets:
https://www.miningreview.com/platinum-group-metals/tharisa-developing-a-future-in-zimbabwe-through-two-project-acquisitions/
THS currently hold 26.8% of Karo Resources, but believe they have an increase to acquire majority stake.
In today's AJ Bell/ Sharesmag presentation be good to get a brief update on Salene Chrome as that 90% option appears to have lapsed. Whilst Salene Chrome is completely separate from Karo, it is a small operation allowing THS to get used to doing business in Zim.
Hi Lucky!
Essentially, THS have 14 year life of mine as an open pit, and 40 years underground. Output and profitability from the mine should increase with the Project Vulcan plant ($50m capex, now being built, produces ultra-cheap chrome from tailings), with improved PGMs grades and recoveries (200K oz PGM per year targeted), and with taking PGM smelting and refining in-house (work in progress, but this should increase PGM revenues by 15%). Longer term, Tharisa have the massive Karo deposit (96m oz PGMs) in Zimbabwe to develop, and maybe other plans as well.
SLP have a shorter mine life at their current operations - it's blurry, but think 8 to 10 years. Their main development asset is Volspruit, and we're waiting to hear what they plan to do with that.
It's a fair question to ask what SLP are planning to do with their ever increasing cash pile. With Tharisa we more or less know the answer to where the free cash will be invested.
Thank TBTT
indeed one info I am missing is the life of mine reserve/resources between the two companies. I can see THS has some interest in KARO Holding which seems a promising project, not sure their current reserve/resources what is and its potential.
On SLP potential I found this:
The Northern Limb Projects include four “hot spot” platinum group metal (PGM) exploration targets in close proximity to each other at the extreme north of the northern limb of the Bushveld Igneous Complex.
Meaning that with some exploration/investments both companies are not going to run out of assets to mine any time soon.
Hi Lucky!
Tharisa vs. Sylvania is a really complex comparison.
In essence, SLP is a PGMs only producer and it has very low costs. It also has spent very little on capex for some years.
Tharisa is a substantially bigger operation. It produces both PGMs and chrome and has higher costs. It has a longer Life of Mine and it also spends much larger amounts on capex, which means that it has clearer growth potential going forwards.
Both are well-managed, highly profitable, dividend paying companies. Both have very high (world-leading) percentages of rhodium in their prill splits, meaning they benefit fully from the current rhodium boom. Both are (IMO) very undervalued.
Given current pricing (i.e. there are decent profits to be made on chrome, and super-profits on PGMs) I believe Tharisa offers more upside. But I'm invested in SLP as well.
Hi
TigerByTheTail mentioned to me the above companies for investment. No doubt the cash generation and commodities price are a compelling case for investment. I am trying to understand why THS and SYP have a different valuation in deciding which is best to invest. Mind you looking at the sp graph in the last year it seems they are following each other +-....
After looking at some numbers from the balance sheet of both companies and considering their market cap, its clear that SYP has higher valuation due to no debt and better receivable, deferred tax etc....very roughly and with old information I made some $100 millions better off. Anyhow these are my metrics and possibly when it comes to valuation other factors should be taken in consideration.
One thing that impressed me most though is the profitability of the two companies. Full year to June SYP was at some 35% net profit, whereas THS net P at Dec 2020 was some 13.5%.
Yet as I said their sp trend is following each other, hence the market seems to have decided that this is the right valuation. I am wondering when numbers will come out with much higher PGM Prices/oz, if the profitability will make a difference in valuation....