The next focusIR Investor Webinar takes places on 14th May with guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Not to mention MoneyHawk too ! (my bad)
Interesting conversation this one so thanks to Jammer and TBTT for posting. It's very good to see SLP s SP reacting so well to the increase in basket price now highlighted through their interims.
I've just popped on my rose tinted specs of course but you would think that JLPs SP should be well positioned to react in the same manner or better when their interims are out. The increase in basket price will be documented but added to this should be a vast ramp up in output so a double result.
A positive update on Kabwe before or alongside would be the 'cherry' though.
Interesting few weeks ahead and I expect buying in anticipation.
Regards to all
As others have said the SLP basket price is gross i.e. before any processing costs of the PGM concentrate and penalties for impurities in the concentrate. Based on a 6E PGM basis, and assuming revenue is defined in the same way for both companies, I have calculated the net average basket price received for SLP and Jubilee during the last 6 months of 2019 to be $1024 and $991 per oz respectively. I have assumed a £ to dollar rate of 1 to 1.3. This result looks reasonable as the rhodium content in the Sylvania basket is believed to be around 40% more. The difference in prices since the beginning of the year will have provided a far greater value advantage in the basket price for Sylvania due to the huge increase in rhodium prices in particular. Sylvania's 3rd quarter figs will be amazing if the current PGM prices, and particularly the rhodium price, hold up.
I couldn't agree more with TBTT's valuation of Sylvania's SP.
Looked at SLPs revenue figures, and the actual basket price they’re receiving for 6E PGMs is more like $1,025 per oz.
So not that different to JLP, just need to do a bit of working out to compare the two.
But is a good update from them, and looks like great timing for our increased pgm production through Windsor.
Hi Sumoskier!
Some considerations for you, off the top of my head:
1. SLP basket very heavy in rhodium (they have some tailings which are 15% Rh (as % of 4E pGM content))
2. SLP report as 4E PGM (i.e. Pt, Pl, Rh and Au). JLP report as 6E PGM (including ruthenium and iridium, which SLP treat as by-products) - this makes a big difference as ruthenium is cheap.
3. SLP accounting very conservative - they actually have a huge "trade receivables - trade payables" surplus, which is very unusual. It means their cash balance ($36m) is, in effect, a minimum figure.
Personally, I make SLP a raving buy at the current price. Its P/E at 50p is about 4, based on this morning's interims. And that doesn't allow for the company having no debts and 10p per share in cash, and it doesn't allow for the boom in PGM prices since December 31st.
JLP is probably also a buy, especially for the medium term, but less blatantly so.
SLP report on the full value of the basket price for pure PGMs, not pgm concentrate, JLP report on what they actually receive for the concentrate.
I haven’t looked at SLPs update today, but normally the SLP basket price quoted is wildly different to what they have received per oz when you divide revenue by ozs produced.
Looking at SLP’s results their basket price seems to be U$1803, JLP’s seems to be under a U$1,000 based on their ops update? Either there is a massive difference in mix or I wondered whether SLP are accounting differently/have different sales contracts to bring value forward? Any thoughts from those in the know!
Thanks for the mention of Sylvania TbTT. Fingers crossed that JLP's are as impressive.
Talking of interims, SLP interims out this morning. I'd recommend taking a look, they are very strong.
I just wish JLP would copy SLP's way of reporting, so that we could see more clearly how the company was doing.
28/3/19 was when last years were RNS'd.
BB
Does anybody know when there due