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GDP Goldplat Plc

6.15
0.00 (0.00%)
Last Updated: 08:00:12
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Goldplat Plc LSE:GDP London Ordinary Share GB00B0HCWM45 ORD 1P
  Price Change % Change Share Price Shares Traded Last Trade
  0.00 0.00% 6.15 54,920 08:00:12
Bid Price Offer Price High Price Low Price Open Price
6.00 6.30 6.15 6.15 6.15
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Gold Ores 41.88M 2.8M 0.0167 3.68 10.32M
Last Trade Time Trade Type Trade Size Trade Price Currency
10:49:56 O 9,919 6.006 GBX

Goldplat (GDP) Latest News

Goldplat (GDP) Discussions and Chat

Goldplat (GDP) Most Recent Trades

Trade Time Trade Price Trade Size Trade Value Trade Type
10:49:576.019,919595.74O
10:12:406.0345,0002,713.73O
10:04:086.3010.06O
2024-03-18 16:19:186.033,055184.23O
2024-03-18 16:16:086.225,120318.46O

Goldplat (GDP) Top Chat Posts

Top Posts
Posted at 19/3/2024 08:20 by Goldplat Daily Update
Goldplat Plc is listed in the Gold Ores sector of the London Stock Exchange with ticker GDP. The last closing price for Goldplat was 6.15p.
Goldplat currently has 167,782,667 shares in issue. The market capitalisation of Goldplat is £10,318,634.
Goldplat has a price to earnings ratio (PE ratio) of 3.68.
This morning GDP shares opened at 6.15p
Posted at 12/3/2024 14:51 by lowtrawler
GDP has to be one of the most frustrating investments I have ever made. I have made far more money trading GDP than I would deserve but it has always failed to deliver on the promise.

They have a lovely profitable business that is reliably turning in a decent return. They have the enormous TSF JORC resource and finally have the prospect to monetise it. They are no longer encumbered by Kili. They have a major shareholder sitting on the Board. Yet, the management keep shooting themselves in the foot so the share price can't get moving.

Start share buybacks, then stop; Shares suspended as can't produce audited accounts; Failure to properly manage SA power outages; Not applying for licenses in time; Not managing the mix of product to obtain planned outputs; Working capital requirements massively increase without warning; pay a dilutive amount to buy-out the SA minority interest; indicate a possible move into coal recovery without any discussion or explanation; No commitment to further buybacks or dividends; No published plan for the TSF; No published plan for the main business; Lip service paid to shareholder communication.....
Posted at 08/3/2024 10:57 by lowtrawler
kimboy2, many thanks for laying the opportunity out so clearly.

If we ran with the $70m profit and deducted $20m for capex and clean-up costs, we would still have a pre-tax profit of $50m. Discount that over, say, a 5 year period deducting tax and it should probably be reflected in our current share price at around $25m less associated risks. Clearly, it is either valued at nil in the share price or something close to it.
Posted at 21/2/2024 23:38 by lowtrawler
kimboy, last year they generated £3m operating cash flow of which they chose to spend £3.8m buying out minority shareholders who would have had no choice but to sell to GDP for a fraction of that price or to stay invested. That also caused them to incur over £0.5m in borrowing costs for the minority shareholder buyout.

£3.8m may well have been a fair price to pay but the value to GDP shareholders was less than half this amount and if GDP had shareholders best interests in mind, they would not have paid more than half this amount.

Take away the dilutive spending and GDP generated £3m. A huge amount in comparison to the current share price
Posted at 21/2/2024 22:50 by lowtrawler
dinky00, larger investors have concluded GDP will not make them money. They have a 10 year track record of not rewarding shareholders and spending money on fads, black holes, friends, acquaintances, staff and management. The hope that Martin would spark a reversal has failed to produce results and only evidence to the contrary is now likely to turn the share price around.

In comparison to the share price, GDP are producing huge amounts of cash, sit on a huge TSF asset and have the potential to reward shareholders many-fold without adversely impacting their core business. Large investors clearly do not believe these opportunities will find their way into rewarding shareholders and so the price continues to fall. The lack of management response to the fall below 6p from over 12p is testament to the disdain in which management hold shareholders.
Posted at 07/2/2024 05:09 by kimboy2
The price paid for the SA shares in 2021 was much the same as the 'price' paid in 2016 when the shares were acquired. They valued the SA operation at £20m which, given in 2020 it made a post tax profit of £4.55m, is perhaps not unreasonable.

That is before we take into account the TSF.

In economic terms it is justifiable. The whole thing is of course political, which we are not in a position to judge.

You say that GDP has been generating good amounts of cash for many years. Of course loads got funnelled into Kili. I gave up counting at £10m. It was a failed venture, and I see GCAT aren't doing much better.

If we take the last set of accounts, Kili free, GDP made a post tax profit of £3m. However cash flow was negative £1.2m.

The fact is at the moment there are various drains on cash
1. Build up of working capital, for various reasons.
2. Reduction in profits due to electricity problems
3. Cost of generators to mitigate problem
4. Cost of new dam
5. Loan repayment for buying back BEE shares

Then there is potential capital expenditure for processing the TSF with DRD.

The main frustration has been the continual dalays with the TSF. However I think the fact is that compared to processing it 5 years ago the delay will have worked massively to our advantage with the rand price of gold rising from 18k rand/oz to 38k.

IMV management are doing a decent job, despite the apparent irrationality of the share price
Posted at 07/2/2024 00:14 by lowtrawler
kimboy, you mention the SA transaction. The payment made far exceeded the value of the business within the GDP share price. Nobody else would have bought the shares for anything like that value. Why did GDP pay more then the value reflected in their own share price? It wasn't as if the sellers had anywhere else to go. To me, it is another example of management paying lip service to shareholder value.

GDP have been generating a good amount of cash for many years but always found a way to spend the cash rather than rewarding shareholders. The share buybacks were a good start and likely prompted the run to 12p but a policy of returning cash to shareholders needs to be published and a track record of delivering against that policy needs to be formed. New business ventures can be funded from debt and repaid from the returns generated by the new venture. This is a mature business where the majority of cash generated should be getting returned to shareholders.
Posted at 06/2/2024 01:44 by lowtrawler
I agree that the current share price is below what the fundamentals would suggest GDP to be worth. However, the cause is clear. At 12p, the market was beginning to believe GDP were serious about returning money to shareholders and was beginning to value GDP as an income stream returned to shareholders.

The annual accounts debacle, unconvincing response to power outages and guidance they were looking to expand into exciting new business areas prior to rewarding shareholders brought an end to our bull run. This was exacerbated by the short term loss of our license in Ghana and tying up significant cash within debtors. Add to this the poor presentations from Werner and a complete lack of ownership for these problems, you have the perfect storm.

Thankfully, the fix is easy. Return the majority of cash generated to shareholders. Have this as a published policy and the price will bounce.
Posted at 26/1/2024 10:01 by kimboy2
He appears invisible because he doesn't make publc pronouncements. However it is clear that what he says goes. That is just the mathematics of the situation and I know he is active.

I think he feels that Gerrard Kemp has brought a sense of direction and a plan to the party. There are a number of opportunities which are being investigated, but they are probably waiting for the TSF monies to be actioned.

There is a thinking on this board that any diversification will end in disaster. Kili certainly did, but Ghana has been a success.

It is a fact that the recovery business will decline in the long term. Grades are getting lower and material more difficult to source. Diversifiction is essental if GDP is going to survive.

Brazil seems to me to be a no brainer. The capital invested is minimal.

I don't know the numbers on the coal thing. It would seem likely to me that the decision has been taken to progress it once funds are available.

GDP is intending to divesify within the theme of recovery operations. I think this argument applies to DRD as well. GDP would be a useful diversification for them, and could probably be completely financed by the TSF.

IMV the only thing preventing a sell out is Martin Ooi. Clearly exiting a 30% holding would be difficult for him if done through the market. A take out is the optimal exit for him.

The question then is price, and when the best possible price can be obtained. The obvious time when the TSF is derisked and before the gold starts going to DRD, which will be some time in the next 18 months.

It is a fact that the value of Martin Ooi's holding has increased recently, though not in terms of the share price When the Jorc was done gold was $1100, it is now $2,000 and the rise is even greater in rand terms.

He has made money sitting on his hands, but I don't think that will continue indefinitely.
Posted at 23/1/2024 18:39 by kimboy2
I reckon that the GDP heap is about 3 days supply to Ergo. ISTR that the suggestion was GDP would do about 1-200,000 tpm.

Presumably they are not going to stop the plant to put the GDP stuff through. That means that the JORC is going to be the basis of the contract with DRD.

It would seem sensible to leave it as late as possible to allow as much as possible to be dumped on there.

Presumably DRD have already been doing tests on the material to find out how the GDP TSF fares under their processing. This also will form part of the contract.

Once the button is pushed the only thing that will be unknown for GDP is the price of gold. The tonnage, amount of gold and recoverability will already be in the contract.

It would seem a reasonable assumption that DRD's process is sub-optimal for the GDP heap. That may be why GDP is so cagey about the recovery rate.

The question for the board was whether GDP could have a sufficiently high recovery rate to have compensated for DRD's low processing cost and relatively low capital expenditure.

Plus of course the management time that would have been taken up with it. In addition GDP is getting a load of freed up storage space.

Probably a no brainer but depends on what % of profits DRD want. I presume that this has already been agreed otherwise what basis are they proceeding on.
Posted at 18/12/2023 11:16 by lowtrawler
shill10, the TSF has always been an unrecognised value for the GDP share price. As can be seen from today's reaction, the market remains unwilling to price in anything for it. IMV, it is not sufficient to know the JORC resource. GDP need to explain recovery rates and provide a range of costs to achieve recovery. In essence, there needs to be an investor briefing document.

I suspect nothing will be published until the deal with DRD is signed and the licenses are granted. Based on today's RNS, it looks like we won't see anything until the end of 2024 and probably not until 2025. For this reason, I am not expecting any major share price improvement until late 2024.
Goldplat share price data is direct from the London Stock Exchange

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