In prevailing market conditions, where participants are fixated on downside risk, looking for quality, growing companies with safe balance sheets and margins of safety is more important than ever. Sylvania Platinum (LON:SLP) might be one of those companies – if you believe the current prices of palladium and rhodium can be maintained. Sylvania is a low-cost South African producer and developer of platinum, palladium and rhodium. Surging platinum group metals (PGM) prices have propelled the group’s shares ever higher in recent weeks. Barring a one day drop last Friday, it has also held up relatively well in the recent risk-off market conditions. That is probably due to an attractive combination of rocketing profitability, stacks of cash on the balance sheet, and a shareholder-friendly use of prodigious amounts of free cash flow. The group’s shares currently trade on just 2.8 times forecast earnings and brokers have been busy more than doubling their EPS estimates for FY20 and FY21. Sylvania has a market cap of £135m, but it also has $33m of cash, virtually no debt, and there is every indication the company will have added to this cash pile by the…
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