Sometimes the simplest stock market signals can be the most powerful. A lot of importance is currently being attached to companies that are able to maintain dividends in this market. The same logic can be applied those that have continued with share buybacks.

One such company is small cap platinum group metals (“PGM”) producer Sylvania Platinum (LON:SLP) , which today trades at 43p. Its most recent repurchase announcement came on the 1st of July. Following today's update, I've taken a quick look at Games Workshop as well - as always, great to hear what others make of the results.

Sylvania Platinum (LON:SLP)

  • Stock price: 43.68p
  • Market cap: £121.87m
  • 1y RS: +82.3%

(I hold)

I last looked at the company here in early March, a couple of weeks before the proverbial hit the fan. Its shares are down by more than 30% since an all-time high of 63p earlier this year (driven by surging basket prices). Even taking into account COVID-related earnings downgrades, the PGM producer is valued at just four times forecast earnings.

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Brokers also appear to be forecasting a remarkable yield. In fact that yield looks so anomalously large I am tempted to put it to one side. The latest broker note I can get my hands on (Liberum, 25th of March 2020) does forecast a 10.89 cent dividend payment for FY20, but I’ll believe it when I see it.

What’s more certain is the ongoing share buyback programme. Back on 17 February the miner proposed a share buyback programme of up to 12 million shares. This was on top of millions of dollars spent on buying back shares in preceding financial periods and millions spent on life extension capex as well.

Here are all the buybacks during lockdown:


Shares

Issued share capital

Treasury shares

Total no shares with voting rights






6 March

200,000

289,724,772

7,310,483

282,414,289

13 March

4,125,331

289,724,772

11,435,814

278,288,958

18 March

549,669

289,724,772

11,985,483

277,739,289

1 April

298,632

289,724,772

12,284,115

277,440,657

2 April

5,215,000

286,845,657

14,620,000

272,225,657

30 April

137,971

286,845,657

14,757,971

272,087,686

29 May

62,500

286,845,657

14,820,471

272,025,186

Since its half year results back in February, SLP has bought back around 3.7% of its shares at a weighted average price of around 48p. Today you can buy its shares for less than the company has been paying despite a recovery in operations.

SLP has updated the market twice since…

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