March 2021
This company's performance is dependant on its product: the demand, the value and how much they can make.
Sylvania platinum's products are called platinum group metals or PGMs.
PGM's are a family of structurally and chemically similar elements that are most valued for their wide range of industrial, medical, and electronic applications. These versatile metals play a significant role in many of the products we use every day.
Platinum: Platinum is probably the most recognised of the PGMs because of its use in jewellery, but its main application is the manufacture of catalytic converters as well as other industrial applications. Platinum also has many significant applications in medicine.
Palladium: Palladium is also used to make jewellery although it’s not as popular as platinum. Palladium’s unique quality is its ability to absorb hydrogen, important for the production of raw materials for synthetic rubber and nylon. Palladium can be used as a substitute for the more expensive platinum in catalytic converters.
Rhodium: Rhodium is also widely used in vehicle emission control systems but is also used in glass production.
Because they have so many uses, the PGMs are often in high demand. The pandemic has reduced the production of these metals due to mine and processing plant closures and delays. This drove the supply down to the point where there was not enough to meet the demand (called a deficit), and so the price of these metals has gone up. The outlook for PGMs in the coming year is that both supply and demand are likely to increase: the automotive industry will pick back up and, with PGMs being integral to catalytic converters, the close focus on emissions may also increase demand.
The share price for SLP has already increased a great deal over the last year. This is largely due to the business's success; they have managed to keep production high by minimising the impact of COVID-19 at their processing plants. Additionally, the value of the PGMs themselves have also increased. However, according to our evaluations, the stock price is still extremely good value and hasn't truly reflected the earnings generated.
Images courtesy of Sylvania Platinum Limited (left) and Yahoo Finance (right)
- You can read the company's latest interim report here:
http://www.sylvaniaplatinum.com/component/jdownloads/send/81-2021/531-h1fy2021
- Another thing to note is that this company's ex-dividend date (the last date you can hold shares in the company and still receive a dividend for that period) is next week. Due to market regulations, the share price will automatically fall by the same amount as the dividend % on Thursday morning.
Images courtesy of Sylvania Platinum Limited (left) and Yahoo Finance (right)
- You can read the company's latest interim report here: http://www.sylvaniaplatinum.com/component/jdownloads/send/81-2021/531-h1fy2021
- Another thing to note is that this company's ex-dividend date (the last date you can hold shares in the company and still receive a dividend for that period) is next week. Due to market regulations, the share price will automatically fall by the same amount as the dividend % on Thursday morning.
Image courtesy of dividenddata.co.uk
- In conclusion, SLP has coped remarkably well during COVID-19, has almost no debt, pays a healthy dividend and has made an enormous amount of profit in 2020.
- We believe this company is in a good position perform strongly for the rest of 2021, and we will be adding it to our portfolio on the 1st of March.
Image courtesy of dividenddata.co.uk
- In conclusion, SLP has coped remarkably well during COVID-19, has almost no debt, pays a healthy dividend and has made an enormous amount of profit in 2020.
- We believe this company is in a good position perform strongly for the rest of 2021, and we will be adding it to our portfolio on the 1st of March.
