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Well if you pick them like this then good luck to you! Down another 12% since I last posted because quite clearly the market has been spooked by those awful results. Meanwhile SLP are up nearly 20% on those stellar first quarter results I was telling you about, exceeding expectations.

A generous 6% annual dividend would be about £1.64m, around £400k across each quarter and easily achievable given around the same amount ($0.5m) was spent on share buy backs in the period leaving cash build of £3.6m. Maybe we will have to wait for the FY results rather than interims but it's looking plausible

First Quarter Report to 30 September 2016 SDO achieved a new production record of 17,257 ounces for the quarter, representing a 6% increase over the previous quarter. Gross basket price increased 9% to $937/oz (Q4: $859/oz). SDO operating cash cost down 5% in Rand terms to R5,745/oz ($408/oz) (Q4: R6,070/oz ($404/oz)). SDO capital expenditure down 32% quarter-on-quarter to $0.21 million (Q4: $0.30 million). SDO gross cash margin up 24% to 46% (Q4: 37%). Group cash balance of $11.1 million, a $4.4 million increase on the previous quarter's $6.7 million. Group EBITDA up 112% to $5.5 million (Q4: $2.6 million). We have ourselves a fantastic set of results, the share price is climbing towards day highs and could well touch double figures in the coming days! Who is selling on that news? Let's break it down. At 9.5p we are valued at £27.4m and the cash position is now £9.09m ($11.1m), an increase of £3.6m ($4.4m) this quarter! EBITDA was £4.5m ($5.5m) - incredible considering our market capitalisation. That would be good enough for the year to warrant the current share price with cash position. But we have three more quarters of cash generation, increasing cash position, share buy backs and possibly a dividend to look forward to this financial year.

Not sparkling, but still shiny I would have thought, how bad can the next set of results be? In my view worth the risk at current market cap. Check out ITQ, bouncing off recent lows. Others will believe these companies have a bright future and the time to sell is when that message has been hammered home..

It has been a volatile day, hopefully we've seen the lows for platinum and palladium. Golds been fairing better recently. Rhodium is the surprise performer up to $680 now

Less than 7 trading days to go! PGM prices have lost momentum a little this afternoon but plenty of buyers around and like eye22 says, jumping in early in anticipation of some attractive results.

Blackrock increased their holding quite substantially over the past week. Clear buy signal at this level. USD index appears to have topped out after disappointing U.S. inflation data was released which lessens the chance of a rate hike and obviously is bullish for gold. Exports are likely being hit and the full effects will become apparent in the next 2-3 months so we have that to look forward to. "CPI, excluding the volatile food and energy components, rose 0.1%, missing forecasts for 0.2% and slowing from 0.3% a month earlier. In the 12 months through September, core CPI advanced 2.2%." The disappointing report led investors to push back expectations for the next U.S. rate hike. Markets are currently pricing in around a 68% chance of a rate hike at December's meeting. China is scheduled to release data on third-quarter gross domestic product today. The report is expected to show the world's second largest economy grew 6.7% in the three months to September. The economy grew by a similar amount in the second quarter and if confirmed, it could be a sign that growth in China is finally bottoming out. Precious metal stocks are recovering nicely now, SLP my largest PGM holding is expecting results end of this month and already the share price is up 10% today. The Asian nation will also publish data on September industrial production, fixed asset investment and retail sales along with the GDP report.

Wuffle - think it's normal to have a nagging doubt at the back of your mind, especially when you've researched a stock heavily and the economics stack up as well as they do here, despite little build in the share price. We've held 7.9-8p well in the face of commodity weakness and lack of newsflow but as we approach the quarterly results I'm expecting to see some buying up to 9.5p just like last time. Cash generation will be higher for certain even if production is slightly lower. Things that I am concerned about include - Project Echo CAPEX estimates (will it rise?) - Timeline of capital investment (will it be heavier in the early years than first indicated) - Falling margins (if operating costs rise) But this quarter I think we have little to worry about. I do hope it is detailed. Company transparency here is one of the big positives and keeps me confident :)

Links RE: Audley http://www.hedgeweek.com/2011/03/17/110218/audley-capital-%E2%80%93-best-event-driven-manager http://uk.reuters.com/article/uk-anglo-asset-audley-idUKKCN0QT0M120150824

steven I see you also post here too. I was looking at the producing life here, any ideas or company guidance? How do you rate this compared to SLP at current prices?

Great research, it's a shame the author of that blog didn't continue her work. Not a lot of bad press about concerning Audley but you can deduce they have lost all control of their 'exit strategy' here. SLP are generating positive cash-flow and have a healthy cash pile to fall back on but it's not always been the case here. Audley thrive when companies are "either having financing difficulties, going through restructuring, or are potential buyout or M&A targets". I don't think SLP qualify for any of those options. The latter perhaps following completion of Project Echo to extend the producing life or if SLP go looking for a financier to fund the development of the Chrome asset (unlikely at current prices). Part of the reason for Audley is selling their position could be the lack of 'events' as they term it, whereby a company falls into a distressed state. According to Treichl in the report below following the financial crisis, creating events to drive performance is more valuable than ever in flat markets. Well 2011 was pretty hairy but world markets got back on track and touched new heights this year. This can't be good for Audley's business strategy which preys on financial insecurity and market weakness. “Everyone expected a wave of distressed restructuring which didn’t materialise,” he says. “We think it’s likely that default rates will rise as we get closer to the 2012-14 bulge in repayments on leveraged loans, which could create interesting opportunities for funds like Audley.” However default rates didn't rise. Audley recently placed a huge $300m bid for a stake in a Chilean mine I believe, a long term investment but certainly not a bargain or a company who were struggling to raise funds. There were other offers I have read. So it's no surprise to me they have decided to cut losses here as and when volumes allow. They failed in their investment strategy with this one. Buying at this price for new investors is a good opportunity to take advantage of a high margin outfit operating in a low PGM environment currently. When demand pressures begin to bite, then we will see some serious cash-flow and hopefully institutions buying resource stocks once again.

Given up trying to second guess this one, so will watch and wait. I feel it's cheap but the market isn't keen yet. Falling away towards that £1 level but surely it won't get there. Next set of results this will be back to 150 range.

Interestingly the USD / CNY exchange has touched a level not seen since September 2010. RMB weakness this year in general is largely down to USD confidence and most of us here know how ill-founded that is. Perhaps rates will rise a quarter point in December. Does it justify such large currency swings?

On the economic calendar Japan’s industrial production climbed 1.3 percent, later there is data on Italy’s trade balance, EU CPI, UK leading indicators and US data includes Empire State Manufacturing index, industrial production and capacity utilisation. In addition, central bank speakers include UK’s Monetary Policy Committee Ben Broadbent, FOMC member Stanley Fischer, ECB President Mario Draghi and German Bundesbank President Jens Wiedmann – see table below for more details. The base metals have generally been consolidating at lower prices recently but so far the pullbacks look orderly and fairly limited. The two metals holding up better than the rest are aluminium and nickel. For the most part we remain mildly bullish and expect dips to attract bargain hunting unless broader markets become jittery. With that in mind we would keep a close eye on the Chinese yuan as its weakness may start to alarm markets. Gold prices remain vulnerable as they trade in a tight range after their recent fall below $1,300 per ounce. Another down leg cannot be ruled out, that said the market has had to absorb a lot of fund selling so there appears to be good underlying buying around, albeit not from the funds trading Comex. Silver prices are also consolidating in a narrow range, while the PGMs continue to trend lower, although palladium seems to have run into dip buying now. Generally we feel the PGMs have become oversold now.

Oct 17, 2016 - 7:18 AM GMT by William Adams Base metals closed mixed on Friday, October 14 with copper, aluminium and tin prices ending lower between 0.6 and 1.3 percent, while nickel, lead and zinc prices closed up between 0.4 and 0.6 percent. Three-month copper prices closed at $4,675.50 per tonne. Spot precious metals were also mixed on Friday, palladium prices rallied two percent to $649 per ounce, platinum prices were up 0.2 percent at $931 per ounce, while gold and silver prices were down 0.6 and 0.4 percent respectively, with gold prices at $1,250.25 per ounce. This morning, the base metals remain mixed with copper and tin prices up 0.5 and 0.3 percent respectively, with three-month copper prices at $4,697 per tonne, the rest are off marginally with losses of between 0.1 and 0.2 percent. Volume on the LME has been below average with 3,957 lots traded. Precious metals are more upbeat this morning with prices up across the board by an average of 0.4 percent. Buying seems to be returning to precious metals camp with strong inflow in the precious metals ETFs. In Shanghai, December aluminium is off 1.4 percent, the rest are firmer with gains varying between 0.1 percent for copper at Rmb 37,320 per tonne, to lead that is up 1.3 percent – see table below. Spot copper in Changjiang is down 0.5 percent at Rmb 37,360-37,460 per tonne, the backwardation between spot and the December contracts is around an equivalent of $20 per tonne, while with the LME / Shanghai copper arb ratio at 7.95, the arb window should be open for some traders, which in turn to help support LMe copper prices. In other metals in China, January iron ore futures are up 2.3 percent on the Dalian Commodity Exchange, while on SHFE January steel rebar is also up 2.3 percent, while gold and silver prices are off 0.1 to 0.2 percent. In international markets, crude oil was recently quoted around $51.90 per barrel. Equities closed firmer on Friday with the Euro Stoxx 50 up 1.7 percent and the Dow closed up 0.2 percent. This morning Asia is mixed, with the Nikkei up 0.2 percent, the Hang Seng is off 0.6 percent, the CSI 300 is little changed, the ASX 200 is off 0.8 percent and the Kospi is down 0.9 percent. In FX, the dollar index is strong at 98.07, the highest it has been since March, conversely the euro and sterling are weaker, recent trading at 1.0983 and 1.2155 respectively, while the yen and aussie are on a back footing at 104.17 and 0.7603. In emerging market currencies, the yuan is falling, recently trading at 6.7329, the ringgit is following suit, while the rest of the emerging market currencies we follow are neutral-to-weaker.

What's most encouraging here is the fall in GBP over the summer, which has seen the cash position of $6.7m valued at £5m (GBP/USD = 1.33) rise to £5.5m (GBP/USD = 1.22) today. This whilst the market cap has declined to £22.71m We are looking at a conservative $4m (£3.28m) cash generated in this past quarter and I would estimate a minimum cash build of $2m given tax is not due this quarter and Project Echo expenditure should come in at less than $1m per quarter. Share purchases and other group costs to factor in.

Bonkers - short term USD strength is making all PGMs look good value right now, especially given the upcoming presidential are stocks liek election volatility. We just need to be patient. On the other hand there are rival producers like JLP that have continued to appreciate over the summer, boasting a market cap of £35m despite taking quarterly earnings of just £500k. They are ramping up to be fair so that may be £600-700k this past quarter but it doesn't compare to SLP which generates much more. There appears to be quite a bit of inbuilt value as JLP approach the commissioning of their new producing facilities this December. That will be a game changer for the company once it begins to generate cash, as it processes 5-6 times more material than it's current DCM project. However it is costing them a significant amount to finish this project. They forecast it will generate annual revenues of £18m at a higher basket price than today, less than what SLP generate and I would expect SLP margins will be better. Time will tell if this turns out to be the goose that lays the golden egg

Hello mytrader, The company sells a basket of precious metals, not just platinum so we refer to the figure as 'basket price'. There are no charts or data available as this is solely related to SLP's basket price. We can make a rough estimate however as we know the split of the PGM basket was reported in the recent investor presentation. Platinum makes up 62.4%, Palladium makes up 23.7%, Rhodium makes up 13.7% and Gold just 0.2% With these percentages we can work out the daily PGM basket price and then average over a month and more importantly over the quarter. This is why in previous quarterly reports the basket price is just $860 or thereabouts despite a higher platinum price during the period. You can choose to input the figures into an excel spreadsheet like I have begun to do and track the daily average for each of the four metals. For this quarter so far I have worked the daily PGM basket prices to be 898.484 884.562 871.87 855.851 847.973 853.38 845.534 833.95 That's an average of $861 although this is up to the 12th October so it will be slightly lower again. The last quarter averaged $929 and that figure more or less will appear in the January update. The previous quarter from April to June due to be included in this months update I am still working through :)

Yesterday saw the PGM basket price drop of $834, the lowest it's been in quite some time. The average this month however is still $861 and we know the company can generate around $3.5 million cash from it's operations at this level. Current PGM weakness will affect April financial figures so the company will be prepared for swings like this. For a company which has yet to see a sustained share price rise we have plenty to look forward to. Positive cash-flow at current PGM prices will pay for the development of Project Echo and cash held will likely be much higher than $6.7m after the next two quarterly updates (October and January) following the PGM price appreciation over the late spring and summer months.

I find it hard to believe that they've managed to acquire what they have all for 2 million euros! It sounds too good to be true.