Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Just a thought. If you bought the entire company at today's market cap, you could make your money back in less than 18 months. Duncan Bannatyne would likely bite your hand off for an opportunity like this.
I sold the last of my SLP shares last month to fund Tharisa purchases. I've just bought back into SLP today. At today's prices both SLP and THS offer tremendous upside potential. Makes no sense to buy one or the other. Buy both!
OK so house broker predicts 2021 profit of $7m, Dave77's estimate is $10m. Anyone else have anything to offer?
Current broker forecasts for 2021 are around breakeven. Keen to hear if anyone has a different view?
Sotolo why are you so certain the current Rhodium price is in a bubble?
Bubble implies it is detached from reality or is unlikely to last
Current demand for Rhodium significantly outstrips supply. This is likely to last for at least a few years.
I've been looking back over the last few quarterly updates from Tharisa and SLP.
Every quarter SLP provide comprehensive overview of financial performance.
Tharisa on the other hand provide production and average price, but not the full revenue and profit.
Could it be that there are a lot of lazy analysts and investors who can't or won't perform a basic calculation for themselves?
If that's the case, then these people won't have yet grasped just how much money Tharisa has been making in the 24 weeks since the end of September.
When this is spelled out to the market in the Interim results I fully expect fireworks
Hi oufc,
Don't worry, I had similar concerns last year when the SLP share price was stuck in the 40s for months. Its now £1.20.
The market will correct the THS price anomaly in time.
I think a fair few new investors will be a bit disappointed with 3.75p.
They have to be mindful about not communicating potentially price sensitive information. I actually thought the presentation was extremely professional and assured.
The board upset shareholders 6 months ago with an ultra conservative dividend. I don't think they will make the same mistake again. I reckon the special dividend will be 5 to 10 cents.
5cents really should be the minimum, that's only $14m out of a cash balance which must be approaching $100m
It doesn't need to be a choice between the two. There is enough cash in the bank for both a significant dividend and significant capex investment.
Thanks Visitor, really appreciate the comprehensive reply!
Setting aside the $3.4m vs $4.3m issue, I'm more interested in profit after tax, rather than comprehensive income. EPS and dividends are calculated based on profit after tax attributable to shareholders.
PAT = $55m, less $12m attributable to non controlling interest = $43m profit attributable to owners (normal shareholders)
How do ordinary shareholders build this unknown quantity into profit forecasts?
Does anyone know how the profit attributable to non controlling interest is calculated? There isn't a note to it in the annual report.
Sirius50 what are those figures you're quoting?
Thanks Matml74. That was an interesting. Minimum three years between mining companies taking he decision to reopen/expand mines and actually producing PGMs. That should keep rhodium prices high for while...
Don't forget the 2020 dividend is payable tomorrow. This one is just the appetiser ahead of the big meaty metal windfall payment early next year
Anyone have the assumed basket price from the latest broker forecast to hand?
Strong brand, but failed business model. When the cash runs out, which it will, French Connection brand will mostly likely be acquired by Boohoo
"The research and development project undertaken so far is yielding
promising results and if successful will enable the Group to diversify into other areas and commodities"
...it sounds like they might have a long term plan for the mountain of cash, but its a bit woolly.
Stoodio you've been way too harsh here. It's a very reasonable question from Sirius50. SLP is clearly an exceptionally well run operation, but they are exposed to the volatility of the PGM market. Given the amount of cash available in the bank, it is disappointing that they have not set out plans to mitigate this risk. Either acquiring assets to increase PGM production, or diversifying into other metals would offer some protection to the current level of profit against a fall in the PGM market. I think we would all welcome this.