Updates on LON: SLP, LON: VOD & LON: AAL
News on 3 stocks im watching.
This week lets take a look at some highlights. Notably the insider buy from Sylvania Platinum and their realise of their Interim financial results for the six months ended 31 December 2023. The lower price of PGM basket price had an effect on the revenue and lowering by 10%.
Vodafone have had some major updates with selling their Italian business to Swisscom. Good news for investors who want to see the group lower their debt.
From Anglo America, they have been tipped by the questor (Russ Mould is investment director at AJ Bell) this week. Tipped as a buy is good news for investors who want to see the Share price increase.
Sylvania Platinum:
Insider deals-
Last week, Sylvania Platinum (LON: SLP) released its interim financial results, causing its stock price to decrease by 3.36% to 51.7p. At one juncture, the price dipped to 47.5p. Eileen Carr, the company's chair, purchased 60,000 shares at a price of 49.74p each, adding to her existing ownership of 130,000 shares.
Financial Summary:
- Net revenue for the period was $40.8 million, down from $79.9 million in the previous year due to a drop in basket price in USD terms.
- Group EBITDA decreased to $7.3 million from $45.6 million in the prior period, also impacted by the drop in basket price in USD.
- Net profit declined to $3.1 million from $32.6 million in the previous year.
- Earnings per share for the six months ended December 31, 2023, were 1.17 US cents.
- Cash balance at the end of December 2023 was $107.2 million, down from $123.9 million in the previous year.
- 684,750 ordinary shares were bought back from employees and PDMRs and transferred to Treasury.
- An interim dividend of 1 pence per ordinary share was declared for HY1 FY2024.
Operational Summary:
- Sylvania Dump Operations (SDO) delivered 38,405 4E PGM ounces, comparable to the previous period.
- Improved PGM recovery efficiencies and reduction of work-in-progress stock aided in maintaining PGM ounce production.
- Final signed-off updated Mineral Resource Estimates (MRE) for Volspruit North and South ore bodies were announced.
- The assessment of Aurora Project exploration data continues to determine the best approach to unlock value.
Outlook:
- FY2024 production guidance remains at 74,000 to 75,000 4E PGM ounces.
- Commissioning of the Lannex secondary milling, fine grinding circuit commenced in Q2 FY2024.
- The Thaba Joint Venture (Thaba JV) is expected to commence production in HY2 FY2025.
- The Group is debt-free with sufficient cash reserves for capital expansion and exploration projects to enhance shareholder value.
Sylvania Platinum Share Price 1 year
Vodafone
Vodafone has announced discussions regarding the potential sale of its Italian business to Swisscom. This move, spearheaded by CEO Margherita Della Valle, aims to streamline the telecommunications conglomerate. The proposed deal would place a value of €8 billion on the Italian unit. Vodafone stated that such a sale to Swisscom would offer optimal benefits in terms of value creation, immediate cash proceeds, and transaction assurance for its shareholders.
Vodafone share price 1 year
Furthermore, in October, Vodafone finalized an agreement to sell its Spanish business to Zegona Communications for a potential amount of €5 billion. Zegona Communications is a fund established by two former Virgin Media executives.
Anglo America
The shares where tipped on the Telegrpah Questor this week.
Questor says: buy
Ticker: AAL
Share price at close: £17.27
Summary from the article: Summary:
Anglo American, a giant miner, recently reported disappointing full-year results for 2023, including decreased profits, a dividend cut, and weak free cash flow. Chief executive Duncan Wanblad and his team have faced criticism for not simplifying the company's structure, selling assets, and reducing costs and debt, contributing to a significant decline in the share price. However, factors beyond management's control, such as declining platinum and diamond prices and the Woodsmith potash project inherited from the acquisition of Sirius Minerals, have also impacted performance.
Anglo American share price 1 year
Mining is inherently cyclical, tied to global economic momentum and investment trends, suggesting a potential cyclical bottom. Despite recessions in certain countries, stimulus measures and inflation concerns may support real assets like commodities. Anglo American's stock trades at a historically low valuation, potentially offering value for investors, especially considering planned cost and capital expenditure reductions. The article advocates for considering Anglo American as an investment opportunity amidst the current sentiment favoring technology stocks.
Have a great weekend when it comes and let me know your thoughts on the three stocks.