summary28 Jan 2011 11:54
growing as expected :-
1. we produce 9772 a quarter now(well done SLV for another record) and production will increase every quarter, with lannex coming on soon and volspruit progressing.
2. johnson matthey's forecast is for an average of USD$1750 an ounce for 2011. if we remove USD$500 for costs(it will be lower), that would be a profit margin of USD$1250 per ounce.
so if we forward price/earnings ratio to end 2011, we would get (conservative figures)...
(9772*4quarters) X USD$1250 = USD$48, 860,000 of net profit
USD$48,860,000 ÷ shares in issue 301,960,000 = USD$0.1618
at today's USD>GBP mid-market rate, that's 10.17p per share. share ask price of 54.5 makes that only a multiple of 5.35 times...very cheap one year investment for a company with stable finances that is accelerating production for platinum group metals which is supported by not just jewellery demand but the automobile industry too. BUY.