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John Polomny is an individual investor and speculator seeking unique, overlooked, and well researched opportunities and speculations from all over the world.
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  • Sylvania Platnium Reports Annual Earnings And Affirms Shareholder Returns As A Goal 0 comments
    Oct 7, 2013 3:53 PM | about stocks: SAPLF

    I wrote about Sylvania Platnium back in June of this year. The company recently came out with its year end earnings and report. The company was profitable this year even though it struggled through the effects of the labor issues in South Africa. None of its employees were involved in the strikes but neighboring mines and other miners threatened Sylvania's workers. The strikes have ended but tenuous negotiations between mine operators and workers continue as the high cost deep miners struggle to contain costs (Most of the industry has costs that exceed the current price of platnium and palladium). Nevertheless Sylvania was able to cut its G&A costs, suspend some exploration, and delay some expansion capital plans. The company increased cashflow for the year and bought back more shares. I am extremely encouraged that they will continue to focus on costs and look to make their dump processing business more efficient. The new CEO affirmed in the letter to shareholders that returning capital to shareholders via dividends and buybacks will be a priority for the company. Of course this will depend on the performance of the company and the price of PGM's. With most of the industry destroying capital due to high costs there will be a downsizing of the industry. As Sylvania is a low cost operator they should do well long term as supply is constrained due to rationalization of high cost operations and prices rise longer term. I have recently added to my position.

    Annual report

    Most recent company presentation

    Disclosure: I am long OTC:SAPLF.

    Stocks: SAPLF
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