Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
I am because I've already lost my shirt
Alexa I said buy Faberge Jewels not Fabulous Joules ….boom boom
I was pleasantly surprised by the Q2 results especially the basket price of $2892 after having wrongly predicted a price similar to that of THS (Tharissa) for the same period their basket price of $2.3k more reflected the drop in the PGMs price since Q1. So I’m guessing the mix of the SLP basket involved a higher percentage of Rhodium or Palladium or both? So with this ‘luxury basket’ and increases in PGM prices since Q2 surely H1 results will show that quality and not quantity is the key.
Nothing wrong with a bit of 'foreplay' especially on Valentines day and if it causes a rise then why not ask for more fun
.....oops sorry I meant 'funds'. That $1800 price doesn't leave much room to play either.
H1 production was down down to 32.3k ozs a drop of 2.7k oz or 7.7% but H2 Production forecast is now at 35k and with PGM prices currently at 16% above H1 prices and rising I see nothing but good things to come. Q2 was a great result $38m revenue for $15.5m net profit. Earnings per share H1 6.3p per share ........amazing
H2 based on increased production over H1 and current PGM prices (and we all know they are going up) will give a net profit of $50m for H2 and a yearly net profit of $74m minimum so the $98m net profit of last year is easily within reach.
Adding interest receivables and currency exchange profits and another 15% hike in PGMs they will smash it!.
Dividends and windfall dividends are on the cards for this year and if its not the best year ever it will be the runner up.
Q2 Revenue will depend on produced quantities we know the basket price of $2400 or thereabouts. Production has been declining but Im hoping 22k oz+ will be achieved because Lesedi is back on line and that should show a revenue of $30m . The net revenue will be affected by higher energy costs and final price settlements to some outstanding debts but still hoping to achieve $10m net profit.
If $30m revenue and $10m profit is compared to last year then the headlines should say back on course with more money in the bank and production and PGM prices increasing but on the other hand it might say......Profit and Revenue DOWN 50% .
I am hoping to get through the 2nd quarter results with a rise in production as the basket price last year for the 2nd quarter was $1000 more than expected for this year. $3323 v $2400. Production was 24.3k in that period in 2020 so a lot to live up to with current production running in the 20k-22k.
I'm guessing that too many people will not follow the advice of Liam Gallagher 'Stand by me' and 'Don't Look back in anger'
(now whose going to give an Oasis reply?)
RHODIUM is expected to trade at 22725.90 USD/t oz. by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 27181.12 in 12 months time.
Basket price will soon be back to over $3000 and revenue of $40m and then over $3500 net revenues of $50m ...... the blip is over and remember new prices apply to unpaid invoices for approx 40% of customers.
I disagree
If you follow demand you can see why PGM prices have fallen and the SP had to inevitably follow even though at any time it was a target and if I wanted a return of 12.5% on £250m I would have been eyeing this investment. The continuous rise in PGMs is being led by demand. The semiconductor makers are making contracts with some of the major car manufacturers GM is yet as well as Toyota but the skip up in prices have them talking again. This has led to a 20% rise this week in Rhodium prices and a 20% rise in the SLP basket price albeit from a low point but it means looking forward there is nothing to fear. With this in mind £250m is a takeover price with a full return in cash in 5years. 95p soon and upwards and onwards.
Pressure building on this stock this morning I had to wait to buy more. I think we are in for a tick up today. Major car makers have already covered their semiconductor business with others still negotiating so I guess that the semiconductor makers are also trying to cover their supplies.
I Bought today as its beginning to look as if PGMs are all on the rise and Ive struggled to top up below 88p for a while that is until until today. Quarter results due end of month too and if the production has increased as planned the basket price was around $2400 so they will be well in $millions of profit. I think its only up from here imho
The basket price has fallen for a long time so make no mistake the reason why the SP is still declining is due to the drop of the basket from $2790 to $2300 which means a double hit , sales in the prior months are subject to a change in there price although Rhodium hasn't moved off the 14000 spot but the other PGMS have so for Q2 Im guessing $3m net profit ....... Once upon time that was a brilliant return .... one day after chasing rainbows everyone will know the value of this share. Im going all in at .84 to buy
Nice link Velo However there are too many factors to suggest the 10% sales where nothing but a one-off caused by the shortage of petrol cars because of the catalytic shortage. The petrol crisis caused a surge in EV sales in September but the biggest reason was the tax incentives to businesses. You could buy an electric car for say £60k and use the full cost to claim against tax, saving £20k in taxes and say £10k on the saving of fuel costs so that’s a saving of £30k. What a lot of businesses caught onto was that they didn’t even need to pay for the car but instead borrowed the money at say 7% costing £4.2k. Total savings on one car £25.8k but why stop there a friend of mine bought 5 and one was never ever used.
The incentives also included grants for free chargers .
Christmas is over now for many as the scheme has now finished .