************* tip : Sylvania Platinum – interims, still a value and income Buy24 Feb 2023 13:21
Platinum group metals in South Africa company Sylvania Platinum (SLP) has announced results for its half-year ended 31st December 2022 and that it has increased its full-year production guidance.
The first half results show post-tax profit rising to above $30 million and, over the six months even after $25.6 million of dividends paid, cash $2.6 million higher at $123.9 million. Other current assets of $63.5 million were little changed and liabilities of $34.8 million were $6 million higher.
That was on production up by 19% year-on-year at 38,471 4E PGM ounces and full-year guidance is now for 70,000-72,000 such ounces, up from previous guidance of 68,000-70,000 such ounces. There are further development projects and it “expect to provide further clarity on the significant potential at our exploration projects as we continue our studies and increase our resources”.
The shares have responded up to 105p, but that still currently equates to just a circa $340 million market cap. There is, of course, commodities price risk, but the above continues to suggest to us that a more than 150p share price is comfortably justifiable. With also a significant dividend whilst we wait – a latest 3p per share to be paid on 6th April with an ex-dividend date of 2nd March, at up to 125p still a Buy, targeting 160p.https://*************.com/views/67025/sylvania-platinum-interims-still-a-value-and-income-buy