Is there an insight on why Sylvania Platinum (LON:SLP) is on a roller coster this month. There's been no releases as far I can see to justify the downs and ups.
Rhodium prices mainly I would have thought.
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Adam Whitehead
17 comments
IncredibleMosesLeroy
When you buy a commodity miner you are basically buying an option on the underlying metal price. PGM basket goes down, Sylvania Platinum (LON:SLP) goes down- irrespective of company fundamentals or announcements.
RayStraw
You may wish to check Tharisa (LON:THS) and Jubilee Metals (LON:JLP) which are similar companies.
Silver Moon
Hi Adam, you may wish to download a .pdf from Johnson Matthey Plc, it's the Pgm Market Report May 2020.
Momoko Miyamoto
Anyone's guess as to what the Rh price will stabilize at. Demand for combustion engine cars will likely remain strong globally and seems unlikely that any country will lower car emissions standards and therefore lowering PGM content of autocatalysts. . Rh supply seems unlikely to expand significantly either. But if the price remains unsustainably high then car makers may find another solution to reduce PGMs or shift more production to EVs. The Rh price increase over last 2yr seems mostly due to Chinese emissions standards being introduced earlier than anticipated but then also compounded by COVID supply disruption and consumer fiscal stimulus.
Silver Moon
Herbie, I only hold Sylvania Platinum (LON:SLP) but don't £Tharissa and £Jubille Metals have other irons in the fire and their share prices less volatile as a consequence?
RayStraw
They are all slightly different, Tharisa (LON:THS) is probably the most stable but Jubilee Metals (LON:JLP) is similar to SLP maybe even more volatile.
Patrickmylnetrade
My thoughts as to the swift drop is , profit taking (Indeed I did at £1.35), a big seller maybe ? and the drop in rodium etc. https://www.moneymetals.com/rh...
but I'm no expert
I have repurchased my shares again at 1.21
here's a link to the report silver moon mentioned.
Metatron
No holders of SLP should forget they pay great dividends and the management corporate governance is excellent .If the PGM prices go up the SLP share price will go up .The only reason to sell is if one is worried about the South African govt wacking mining companies or if spots a special situation share elsewhere and needs cash to invest
Momoko Miyamoto
well done on timing your trades, I was tempted to try the same but the big spreads put me off
m84s
Hi guys
I’m completely new to this and looking for my first couple of stocks. This one has come up a few times so I’ve been reading the comments.
would this still be a good buy ??
GloucesterBob
You could do a lot worse.
Check out the Jim Slater screen, its been a resident on their for quite a few years, bar the odd week it may mysterious disappear only to come back. Not many stocks hang around on that screen for too long.
Both the house broker (Libernum) and Simon Thompson from Investors Chronicle, predict a 200p share price, and though as stated it is dependent on the price it gets for its commodities, it is also a very well run, money making company.
The price can be all over the place, so if you are going to buy, suggest you don't plunge in all in one go, but drip feed whatever allocation you are going to make over 4 or 5 buys.
Its a fun ride
shrewdinv
just read about Chinese commodity price falls - this might be a factor
https://www.theguardian.com/bu...
Wilkonz
Good advice Gloucester Bob. Sylvania Platinum (LON:SLP) is a solid, well run company. Prices are volatile at present but anywhere between 110-120 probably represents sound value for buyers. A dollar average strategy could well be the smart way forward, as you suggest. Simon Thompson has always been a pretty good predictor for this stock - he started promoting it when the price was around 22 back in early 2018.
Momoko Miyamoto
Looking at Johnson Matthey prices Rhodium seems to have rebounded from $22k earlier this week to $25k . Oddly there seems to be a much wider spread than usual (1k) between HK and London prices. If prices settle medium to long term above $20k then Sylvania Platinum (LON:SLP) will continue to print muchos wonga.
GarryC
Donald Pond recently highlighted risks in mining, particularly single country (sorry Mr P can't find the comment). Just in from Russia.
MOSCOW, May 31 - The Russian government is looking
at the balance between profits made by its metals producers and
the taxes they pay. Russian metals producers could face a demand to pay 100
billion roubles ($1.4 billion) in additional tax, First Deputy
Prime Minister Andrei Belousov.
Not saying South Africa about to go do wealth taxing - it would damage inward investment, but the politicians at the top may need the money buy a large boat and get the hell out.
