Goldplat Share Discussion Threads

[danielmiller1] 15/8/2016 11:49

Lololololololololololol

All the name calling yet no one can prove Dan wrong on this dawgie. In fact as the posts are now running there is tremendous support for what Dan has been saying over the years. And no matter who they ramp this dawg it just keeps falling back!



Lolololololololol well done Dan.

Bye the way fresh strawberries and blackberry crumble for high teas today!

[danielmiller1] 15/8/2016 11:17

See the rubbish some locked shareholders will post to bolster this dawgie. But Dan knows better.

Here is a note Dan found from a few years back when the company was painting a completely false picture which fooled many into buying share and losing out.

Today they are still up to their old tricks.

A Golden Takeover Opportunity, which proved to be a punteres dead lead disaster

This wrote some years back about Goldplat (LSE: GDP), a small-cap gold producer specialising in gold recovery but with a growing mining business.

At the time, Hevcommented that it was about to publish its full-year results, of which great things were expected. Hecwas pleased to say that like the proverbial milkman, Goldplat delivered albeit with much glossed over figures high added added an unexpected bonus of a maiden dividend of 0.6p per share. At the current share price of around 15.6p, that equates to a yield of 3.8%.

The Results they would have been nice if they had been correct and therefore sustainable

You can see the company’s results in all their glorious detail on the company’s website, but here are the main highlights:

Maiden dividend proposed of 0.6p per share totalling £1.01 million
52% increase in profit before tax to £5.24 million (2011: £3.43 million)
48% increase in operating profits to £4.53 million (2011: £3.05 million)
52% increase in net cash position of £4.57 million as at 30 June 2012 (2011: £3.01 million)
Market leaders in gold recovery in Africa – production from Ghana and South Africa totalled 31,354 ounces
Establishing a new gold recovery processing unit in Burkina Faso; registered a new trading company, Midas Gold SARL, and initial plant designs are underway
Achieved first gold pour at Kilimapesa Gold Mining Project in Kenya in January 2012
162% JORC compliant resource upgrade at Kilimapesa to 649,804 ounces at 2.44 g/t gold
Strong progress made to advance gold development portfolio in Ghana and Burkina Faso
Aim to delineate in excess of 1 million ounces of gold resources across Kenya, Ghana and Burkina Faso gold mining projects by the end of 2012
All in all, a decent set of results. The company’s share price didn’t move all that much when they were published, but the gains were trailed in advance to some extent, and small cap share prices sometimes do take a little longer to react to good news.

It was good to see that the then new CEO Russell Lamming had already put some of his own money into the company — Lamming bought 200,000 shares at a cost of around £31,000.

HE SOON WISED UP TOMTHE FACT THAT WHAT INFO HE BOUGHT UPON WAS FALSE. HE CLOSED HIS BOOK AND WALKED AWAY AS FAST AS HE COULD.......FEELING VERY DISPONDANT WITH. THOSE WHO FED HIM A LIE.

[wigwammer] 15/8/2016 09:59

Those are eye opening points, DD.I think we all have a better perspective.

[sea7] 15/8/2016 09:55

Thanks DD,

I would be more than happy to see you move into profit before your timeframe expires. We all have our viewpoints, strategies and timeframes that we work to.

Thats the difficult question, will you make the return here by waiting, or making back the loss and more, somewhere else in a shorter timeframe.

[discodave4] 15/8/2016 09:33

Boom this is as cheap as chips!This is worth double what it is now.Wouldn't won't to be out of this over the weekend.Mr Ooi clearly knows something we don't.South America has no recovery ops anywhere near as expert as GDP, the contract their is imminent and this will fly, get in whilst you can.Kili will be making millions if the price of gold goes as high as they say.Blah blah blah blahIs that better......hopefully now all I have to do is sit back watch the share price at least double then I can sell at B/E.Good luck all.DD

[sea7] 15/8/2016 09:04

DD,

The writing off of a bad debt, the loss to the company, the delays in the capex programme and knock to profitability are obviously negatives, however, as this does not create a show stopping event at goldplat, the sustainability and viability of the business over the longer term is unaffected, therefore, the share price drop that could occur if this money is not paid would present an opportunity to buy parts of the business at a much cheaper price, if you do not have any time horizon on your investment.

The positive exists in the opportunity created to take advantage of a short term negative issue by obtaining more stock at a lower price.

If we look at the results to end june 2010, when the gold price was in a similar range, albeit lower at some points and not quite as high as now, we see that goldplat delivered the following..

end june 2010

Gold price 1 july 2009 - $940oz
Gold price 30 june 2010 - $1240
Gold low in period $910 high $1260

Goldplats results to end june 2010 were

Gross profit £3,516,000
Op profit £2,059,000
profit for the year after tax/finance £1,230,000
comprehensive income after exchange translation £1,726,000
Diluted EPS 0.96p

This was achieved with both recovery plants producing 21,461 ozs.

Goldplat stated in these results that average production costs at the recovery plants were £330 oz in south africa and £441 oz in ghana. (probably around $500 and $661 respectively, using a rough £/$ exchange rate.)

Kili was not producing anything at this time, however, still making a loss.

................

Taking out the rand refinery invoice issue and the problems of the past few years, we can see how well the business performs without the fog of problems in the way.

The business is in much better shape now and producing more gold than in the 2010 AR. It has the potential to be far in excess of the results to end june 2010 as all the problems of the last four years come to an end.

Incidentally, anglo gold ashanti has come out today with the announcement that their profits have more than doubled. They are not the first gold company to report much healthier returns. Goldplat will be as well.

[discodave4] 15/8/2016 08:34

wigwammer,Eh?DD

[discodave4] 15/8/2016 08:32

Your last post is all factual and didn't contest any of those points as you didn't mention them. Was just stating a fact that the £25m profit you mentioned is complete speculation, which it is.DD

[wigwammer] 15/8/2016 08:31

I think worrying on a board and threatening to dump shares of an illiquid stock is a pretty sure way of depressing the price. Bit of a self fulfilling prophecy. I'll leave it to others to decide why someone might want to do this. Perhaps they just really like getting all the sides of a story, or creating uncertainty by asking questions they know no one can answer. I'm a bit of a cynic, though.

[kimboy2] 15/8/2016 08:27

Well the 82,000ozs in the stock dam isn't sepculation, neither is the fast SA produced a profit of £0.845k in Q3/16. It is also not speculation that they did better in Q4/16 before the potential bad debt.

Nothing is certain of course but that doesn't mean we can't have a good guess based on what we know. That is after all the basis of all forecasts.

[discodave4] 15/8/2016 07:44

KB2I was referring to DS2's post.It's all complete speculation, they havnt even come back with any further update on the TSF, £25m!, pick a number, it's all pie in the sky at the moment.DD

[michaelfenton] 15/8/2016 05:56

Kimboy2 - good stuff we are all mostly guilty of being too short term.

[kimboy2] 15/8/2016 00:40

DD
If I said that, for certain, GDP would be 20p in July 2018 would you rather it was 6p today or 4p ?

This hypothetical exercise only breaks down if you allow your underlying valuation of the company be affected by short term factors.

There may be times where the long term viability of a company is affected by short term factors of course, but a £300k bad debt isn't in this case.

In terms of valuation I have pointed out that there may be a £25m profit in the stock dam. What is that worth today if it were sold ?

Similarly GDP South Africa is presently producing an operating profit of £4m pa (and increasing), without the stock dam. What is the 76% that GDP owns worth ?

In both cases it is well north of the present market cap.

[discodave4] 14/8/2016 23:28

DS2How can writing off £300k-£600k and the share price falling, to 4p or not, be in anyway shape or form a positive, jeez!.So failing materially to achieve expectations, possibly incurring a loss for the year, halting their capital development programme at Kili and GRG.......is a positive!, no offence but it's anything but IMV.DD

[kimboy2] 14/8/2016 21:44

The only point I would disagree with is the £600k write off. If we take off tax and the BEE we get about £300k write off to GDP.

On the valuation front the stock dam is interesting. If we take 50% recovery and $500/oz costs, which I am assuming, then we have a potential profit of some £25m at present prices from the heap in total.

We could produce it ourselves at a rate of 4-5kozs pa. It may also be possible to sell it to someone like DRD whoc could eat through that heap in a few weeks and realise that profit now.

[dangersimpson2] 14/8/2016 21:28

There are typically 2 ways of investing. One is to try to guess what the market expectations are around short term future events, what the most likely real short term future scenario is and what the market reaction will be to the variance. The second is make a conservative estimate of the real long term value of the business and buy when the share is trading at a significant discount to that.

Both are perfectly valid ways just in my experience the former way is significantly harder and very few people have the ability to do this consistently. That's why most successful long-term investors gravitate towards the latter and intentionally spend as little time on the former as possible.

That's also why most posters here are not particularly fazed if the RR 600k was written off and the share price dropped to 4p. In fact that would be a highly positive event worth celebrating. A 600k one-off loss would take c£3m off the market cap and give you a great opportunity to increase one's holding in a business worth significantly more. In fact it would be illogical not to buy more at 4p since the drop of share price would have underweighted your Goldplat holding in your portfolio. Unless of course you are currently overweight Goldplat relative to it's risk/reward potential which would be illogical in the first place.

[danielmiller1] 13/8/2016 12:44

Lolololololololololo then you wil be very busy buying MF



michaelfenton 13 Aug'16 - 11:47 - 2600 of 2600 0 0

Thanks. DD - I have held for about 2 years and am now breaking even although i often sell a few when in profit but am a long term holder so will buy more on dips.

[danielmiller1] 13/8/2016 12:42

Yep always seems to be the inevitable problem with finances when dealing with GDP, but hell what can you expect with a FD that can't make 2+2 Equal 4

[sea7] 13/8/2016 12:08

neiljoepeg,

You are assuming that this would actually end up in a court.

Disputes of this size, if not resolved outside of the expensive and time consuming legal settings, have to go to high court, pre-hearing conferences, which are aimed at resolving as many points as possible, anything left unresolved ends up in the court room.

Goldplat are still using rand refineries 1-3 day bullion service.

This is a separate issue, over one contract that rand asked goldplat to carry out for them, this was done in line with the contract, rand are now disputing some invoices.

[michaelfenton] 13/8/2016 11:47

Thanks. DD - I have held for about 2 years and am now breaking even although i often sell a few when in profit but am a long term holder so will add if price drops some more.