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Cop 28 has failed (once again) to ban fossil fuels suggesting catalytic converters will be around for sometime yet.
Not news to anyone here already probably but enough to get other people looking for how to invest following this.
Something's cooking with the SP this afternoon, nice rise. Not complaining.
GLA
Mr Rocka999,
I understand it is the charging temperature that is critical (the discharge or operating temperature is less of a factor).
From my understanding:
lower temperatures (whilst charging and discharging) reduces the performance of the battery whilst operating at those conditions - and then under normal conditions the battery will revert back in accordance with the life status for the battery. Lithium based batteries cannot be practically charged below 0degC as current needs to be small (so central heated garage maybe required) .
Elevated temperatures (often defined as +40degC) I am led to believe charging batteries at elevated temperatures may result in a possible irreversible reduction on battery storage/capacity. From reviewing some specs (Lithium laptop battery and others) this could be up to 20% of the total storage capacity. The other point I have noticed from certain specs - this behaviour could result not from multiple charges at the elevated temperature - but from a single charge or just a few charges at the elevated temperature.
In comparison to petrol fuel cars - consider the following:
In winter - consider the car has changed to a smaller fuel tank and you use a narrower fuel hose to fill it !
In very hot summer - consider dropping a few bricks into your fuel tank and they can never be removed.
My thoughts are - main concern would be the irreversible drop on charge capacity from charging at elevated temperatures. Even for a climate like uk - it actually reached 40degC the other year - then everyone will also need air-con units in their garages during overnight charging. Please don't ask what to do if not got garage!
I attached the following link - which I think has lots of the points mentioned. It be a nice little research project this - as there are so many devices now with batteries.
https://batteryuniversity.com/article/bu-410-charging-at-high-and-low-temperatures
This is the time of year when you find out electric cars are probably not the future ............
This is a great company and has made me a lot of money, but I am still a bit sceptical about the future of catalytic converters and electric cars!
10% rise
Precious metal prices up ++
Gold now $2,030
If platinum went up 100% today this would increase the net profit here from $19m to $38m, If Rh went up from $4k to $8k today it would be $32m. Still just 30% of what it was making in 2020 when the share price hit a high of 150p....Fundamentals matter to investors and to prospective buyers. If this had more cash in the bank than its cap or was trading at sub 50p you might get more interest but it's not. All you will get now is see-saw range trades.
Buyers like companies with no debt and a large cash position.
Growth to come.
SLP ticks the boxes.
Look at Wheaton group and what they have been buying in recent days in SA....
Is $944 and is still going up while the SP in here is either flat or kept down.
The EV bubble may be fading as supply exceeds demand with slowing global sales CME: Lithium prices have fallen by about 75% while cobalt is down by over 50%
https://twitter.com/Mayhem4Markets/status/1725429695884259466
Good morning.
I agree on FCF. I would've thought bottom line Q2 is similar to Q1 if the average basket price is similar (which it is for the quarter to date; Rh marginally higher, Pt and Pd marginally lower). Perhaps I haven't understood the revenue adjustments. Anyway, you think 15-20m for the year, I think 10-12: either way, I don't think this is a buy....yet.
The whole natural resources and energy space is a good buy I think. The green lobby seem not to understand that wind, solar and the laughable EVs are....whisper it.....made of stuff that comes out of the ground.
CYB, I would say $4-5m q. But the cap-ex is capitalized and it's $15m pa so cash build is actually not much. SLP needs to conserve cash until the basket price rises substantially.
Gold and other precious metals surging. Rhodium too most likely.
Tipped as a recovery buy last week based on the recent investments...
Nice to see Mr Reynolds adding today although Rh pricing still remains uncertain for now
Thank you Mulder. Lets hope he is accurate with his target price of 150p.
Chris Bailey, economist, Financial Orbit Founder.
Mulder
Who has the 150p target price please may I ask you?
Market cap is now ~ $210M
'Although the shares have already recovered a bit from below 65p, a market capitalisation currently equating to well below $250 million doesn’t look to allow much for the improvements potential considering its noted current performance and the cash. Having suggested share price upside to 150p+ with macro challenges in major production regions and macroeconomic recovery potential, our stance remains Buy.'
Thanks, bangrak. I have an excuse for a beach visit now!
Q2 profit will be interesting given the apparent lack of volatility in basket price and thus an expectation of lower revenue adjustments: it might give me a better steer for profit expectations for the year. Maybe my 10-12m USD is too bearish.
Hi CYB, I will the next time I'm up in BKK, i'm south on KS so if you are down this way let me know. Now prices are flat there shouldn't be large revenue adjustments so this $4-5m q looks ave. I have current PE 10 CA to 5 so the value here is better and it hit 65p exactly as someone said it would a few weeks ago ;) some might be tempted but not me at this stage. China car sales are up 13.8*% YOY.
Seconded.
ATB for your future Stuart.
DH
Thanks, Stuart, for the great job you've done as chairman. Sound operational and financial strategy, great execution, straightforward, no-nonsense.
I smiled when you quoted a number of posts, including mine, from this forum in your annual report a few years back.
If only all AIM-quoted natural resources and energy companies could have such top-notch chairmen...
All the best in future endeavours.
If that drops to the 50s then I happily add without hesitation.
Hi Bangrak
You're more knowledgeable on these revenue adjustments than I am. On my (probably more basic) analysis of operational gearing in historical numbers, I'm only getting to USD10-12m profit after tax for the year to June 2024.
You're correct that clearly JMAT aren't getting particularly bullish on PGMs for the foreseeable future. My gut says that the EV discourse has a bit of an emperor's-new-clothes moment when people realise that they're about as green as blood. This *may*, in the longer term, support PGMs, but I certainly wouldn't invest on it. The marginal ounce determines price and the Chinese have truly swallowed the EV kool aid....for now.
Completely agree on the brokers; they're just too bullish. When they adjust (probably after the Q2s), I'd expect a bit of a price correction.
My FV price is mid-fiftys given where historical forward PE has been. Therefore my buy price has to be at least 20% below that, so under 50 pence. It may never get there, but it's still worth watching: these things have a habit of over-adjusting eventually.
I should probably change my name to Sathorn if you're Bangrak. I'd be happy to meet for coffee if you're padding around the Silom area.
CYB, I've had a refresh of the JMT report again and it seems very clear to me that the 2019-22 spike caused by a supply squeeze has now normalised with supply demand seemingly well matched. What I'm not understanding is why anyone including the brokers here expects Rh to rise to the levels they are using in their analysis. Logic would say that they should be using a figure more aligned to this balanced period that is somewhere between 4100-6600 (200d ema) midpoint 5300 or net $24m. At today's SP that's a FPER of 9 cash adjusted 5, and as you say this is much higher than the norm here. Allowing for the first Q adjustments I see $16m now as net, that's $12m below (42%) the current consensus. Not a big short opportunity here but would i go short if it went up too much considering that many investors see the results and sell off? something that also might interest some is the receivables v say THS, very different periods needed to actually get the cash in. 249 days v 132 days.