Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
Slp have been on a strong growth trajectory for around 5 years and for a company that has been so consistent the current valuation is just too low. Hell, even for a company without the consistency, the current valuation is just too low. Sp has just not been able to catch up with the growth achieved. Slight dent on PGM prices has held us back but I expect prices to rise again once chip problem is sorted.
Demand for autos seems to have reached the high pre covid levels, so even if the chip shortage eased a little, this will be good news.
Velo is a funny guy, ive seen him post his SLP SP predictions on a monthly basis for like the next 6 months straight lol.
It was Papaduke who made the comment about poor results, not me. Also his comment about ongiong shorts does not make much sense. His only post on SLP in the past 30 days, so appears to me he has an ulterior motive? Expected annual results will not be poor, as they are in comparison to the previous year.
It has been a fantastic year for the company, even with the slightly lower Q4 production. As I mentioned, an increase in NPAT of over 130%, amazing whichever way you look at it. The car chip shortage should start to abate soonish, so the downturn in SP looks to be temporary.
This time last year SP was 60p vs 88p now, whilst the company has thrashed last years performance and almost doubled net cash. The mismatch in valuation has increased drastically from a year ago.
Very much agree we could be entering buyback territory here.
If they were happy buying back shares back at 130p+, then the price now is a bargain. We remain very profitable at current basket price and with over $100mil in cash, the buyback could be substantial if the price remains at these levels. Would be a nice way to show confidence in the company and support current shareholders like they have done in the past.
If it doesn't happen, I would suspect they have other plans for the cash pile, possibly purchase of another project?
IC article published today commenting on SLP:
".... Sylvania Platinum is perplexing. Its Q4 update confirmed that cash generation is robust and the strength of the balance sheet. Year-end net cash of $102m was up from $55m a year ago, and that, after paying tax of $35.3m and a windfall dividend of $14.3m. True, the basket price of platinum group metals dropped in Q4 to $4,059 per ounce from the heady heights of $4,756 in Q3, but I think the market is too fixated on moves in the spot price. It is not looking at the year-on-year increase in the average and giving the stock sufficient credit for the low-cost nature of its production. I hope I’m not missing something. Hopefully, its results next month, with the accompanying dividend declaration, will spark more interest."
https://www.investorschronicle.co.uk/ideas/2021/08/20/banking-on-pent-up-demand/
Fool article
3 penny shares I’d buy right now
https://www.fool.co.uk/investing/2021/08/19/3-penny-shares-id-buy-right-now/
With the quarter coming to an end, anyone have an estimation of net profit for Q3 2021 (end Mar 2021) for SLP?
My estimation is around $33M (£24M) or an increase of around 60% versus the last Qtr. The increase in profit attributed to the increase in basket with most, but not all of the revenue adding to bottom line. Would be interested to know if others have the same ball park estimate? I see immense value at this price and for a company with no debt, nice cash balance and beating forecasts year on year, believe we are simply too cheap.
I think the difference between SLP and THS is proven delivery and actual growth in profits over the last 3-4 years.
SLP has a proven track record, managing to grow profits massively in the past and are still doing so, whereas THS had a 2020 on par with 2017 and 2018 and a poor 2019 in terms on net profit for the company. The past few years have not seen big growth like SLP have.
I feel both have excellent potential though, with the current PGM market but feel investors want to see actual results. Overall, I see an excellent year ahead for both companies IMO, all going well.
Interesting to note, Stockopedia has a dividend yield estimate of 9.99% for 2021 from SLP. Not sure where this number comes from.
9.99% would be pretty big and close to the highest yield on the market, amounting to approx $38M being paid out at current SP. Cash reserves at end of June 2020 were $56M and should be around $73M by now as a low ball estimate. Anything above 5% as a dividend would be good IMO and should attract more of the larger investors going forward.
The following article also predicts a massive 14p to 18p per share dividend from SLP in 2021. Personally prefer to keep expectations more conservative.
https://www.valuethemarkets.com/2021/01/19/rare-earths-pgms-and-battery-metals-key-investing-themes-for-2021/