I often see people saying that you can’t actually invest inshares in AIM miners and the only way to play them is by trading the swings they have along the way.
Sylvania Platinum (SLP) is a company which I’ve followed for quite some time and hold shares in myself - and I view today’s unexpected acquisition news as being positive for the company moving forwards.
As long as there is nothing fundamentally wrong with the company itself, then with any leveraged play on commodity prices, which is basically what many producers are, the time to be buying is when the price of the underlying commodity is near the bottom of a cycle. It is usually hard to judge exactly where the bottom is going to be but, when it comes to platinum, I think we are nearing that area.
I’ve been a fan of Sylvania Platinum (SLP) since early last year and during that time the share price has doubled, and the latest operations update has certainly done nothing to alter my view of the company.
I’ve been a fan of Sylvania Platinum (SLP) for some time now and it is a company in which I hold shares myself, and after the latest update I see no reason to change that stance.
Unfortunately with many AIM companies these days, news is hyped up so much that when it actually arrives it can rarely meet the expectations of investors.
Platinum prices have recovered very well since the early part of the year and have been consistently trading at above the $1,000 area, a big increase on the lows of around $810 that we saw.
Platinum mining in South Africa has been a decidedly challenging business of late, with a prolonged miners’ strike rising costs and weak prices combining to sap confidence at many companies. One exception to the sombre tone is AIM-quoted Sylvania Platinum (SLP), whose Chief Executive Officer Terry McConnachie sounds in robust mood, as he suggests the company could receive an official mining right approval for its five to six million-oz. Volspruit open-cast platinum group metals (PGM) project in South Africa’s Bushveld region ‘within one to three weeks‘.
The world’s number one mining analyst Roger Bade has again stuck the knife into Sylvania Platinum (SLP) warning that big asset write-downs may well see the next set of results drowned in red ink.
Sylvania Platinum (SLP) announced its annual results today and the world’s No 1 mining analyst Roger Bade of Whitman Howard reckons that what was published really does not tell the whole (unimpressive) story. Bade writes:
