Goldplat Share Discussion Threads

[nw99] 27/10/2016 18:22

With also net cash increased by more than £1.5 million to exceed £2 million, this saw me conclude that, at 5.75p (a sub £10 million market cap), for those looking for some gold exposure I'd suggest there are far worse bets out there. The shares are now back above 6p and I continue to expect more to come from here.

[kimboy2] 27/10/2016 16:08

I think shareholder is right. The market is not taking anything on trust with regard to the future. GDP has to deliver and the market will react, much the same as the rest of the miners atm.

With mining type companies nothing ever goes to plan, things are always delayed and things can also come out of the blue.

One thing that I think will push the share price up is the completion of the CIL. I think this will provide a significant benefit below the line and is low risk as it is only 6 weeks from starting operating.

We shall see.

[shareholder7] 27/10/2016 14:48

Thanks me in a nutshell Sea

[sea7] 27/10/2016 14:38

Yep shareholder, GDP has managed to find quite a few banana skins to slip up on over the last few years!!

Some of this lowly valuation is going to be attributed to the, still muted confidence in the company, based on the history to date.

You are absolutely correct regarding trust. This was lost back in 2012 when the problems started to show up and has not been fully regained since. We are in much better shape all round now, however, we do need more delivery on more projects, a resolution on the RR issue, along with clarification on the tax affairs at kili before
some of those that were burned in the share price collapse from 16.5p to 1.63p over a period of 3 to 4 years will come back.

[shareholder7] 27/10/2016 14:32

All good stuff Sea but the market is factoring in the next Banana skin GDP is going to slip up onSorry to go on about RR but without this slip up we would have been at your valuation What is GDP going to surprise us with next is the issue of the market Once there is trust then the stock should fly but we are not there yet

[sea7] 27/10/2016 14:25

Looking at a valuation of goldplat against the current sp,

If we take the measured and indicated categories for gold in the ground, the "going rate" I see for these resources are $30 oz. Figs taken from a study...see link..



We have about 50k at kili in the measured category, along with 120k ozs in the indicated, giving us a resource of 170k oz.

The TSF in benoni has about 50k ozs in measured and 28k ozs in the indicated category.

This gives us a total (M and I) resource of about 248k ozs overall. Multiplying this by $30 oz we get $7,440,000 or £6,087,932 at todays exchange rate.

The net current asset value at last accounts is £3,356,000 (current assets minus total liabilities)

£6,087,932 plus £3,536,000 gives us £9,623,932 as a value for the current assets and gold contained in the ground (excluding inferred category)

The current mcap is £10.26m. After subtracting the £9.6m quoted above we are left with £636,068.

This means the stock piles in benoni, the explo assets at nyieme, anumso and teng teng at kili, the entire ghana operation, the uranium and silver in the TSF are currently being given value of £636,068 by the market. The property, plant, equipment and ability of the company to continue in the future is valued at zero by the market.

This is still way undervalued from a takeover point of view and considerably undervalued on an ongoing operational basis.

For me, this should be trading at around 9-10p now, as that would reflect a more realistic picture of where we are today.

The lack of profitability at kili and the TSF plan not being finalised is holding the share price down, this shouldn't be for much longer.

This is obviously just my opinion.

[shareholder7] 27/10/2016 11:13

Thanks Sea

[sea7] 27/10/2016 11:01

rand have been busy at the labour court defending decisions to dismiss employees for stealing gold as well. (we have mentioned this here before)



EXTRACT..

Gross negligence or dishonest conduct in that you must have been
aware or noticed that 17 kg of gold was hidden in the workshop yet
you failed in any way to report this to management or to take any
action to remedy the situation.

[sea7] 27/10/2016 10:55

Some simply sell the news.

I haven't been able to find any comments from rand employees about goldplat yet.

[shareholder7] 27/10/2016 10:38

You certainly know your stuff Sea Do you know anyone from Rand that would give an alternative view on how they see GoldPlat We are only fed info form GoldPlat on Rand which will be biasInteresting to see more sells than buys on what is meant to be a good RNS

[sea7] 27/10/2016 10:25

rands biggest shareholder is anglo gold ashanti with 42.1%, which is where hansie and a few others at goldplat came from, sibanye are next at 33.15% followed by DRD, Harmony and gold fields.

Goldplat has contracts with most of them on an ongoing basis and they have been in place for years.

Do not forget that rand refinery, in july 2014 managed to "lose" $113m in physical metal after implementing their new computer system and had to borrow from the shareholders. This will have been a big part of the issues they faced at rand, not to mention the strike in september 2015 which went on for a month and the explosion and fires at the smelter in november 2014. They are also someway through their 5 year upgrade of the refinery itself.

They have had their fare share of problems without goldplat.

Rand refinerys website always has a scrolling feed of news, which always contains goldplats news, not that it means much...



All these players know the part goldplat plays in the environmental side of the mining industry in south africa and it is in their interests to see goldplat continue to process waste, which is not economic for them to do theirselves. They all know this.

[wigwammer] 27/10/2016 10:15

I suspect the free cash flow generated in q1 alone would be sufficient to cover the rr liability in the (unlikely) event they have to pay it out in its entirety.There is no such think as a riskless equity investment. There are always things to worry about if you go looking for them.I doubt it is chance that the biggest worriers on this board are also the ones still sitting on gdp losses.

[shareholder7] 27/10/2016 09:58

Sea how do you know RR are happy They have just been sued over a contract that would upset me.The relationship last year was bad and they had to go to Germany to process materials with high costs Until the CEO of RandPraveen Baijnath comes out saying all is great I wont be buying anymore Most of us here all have losses but we have doubled down so as soon as I can get my money back I will sell unless Rand and GoldPlat mend their relationship Take at and their look at their shareholders They are GoldPlat's customers

[discodave4] 27/10/2016 09:57

We will see.

[kimboy2] 27/10/2016 09:55

I make it 0.25p.

[sea7] 27/10/2016 09:48

We do have to remember that goldplat is a minority client of rand refinery and the fact that they are happy to continue business as normal with goldplat clearly shows that it is not that serious from their point of view.

This is over some toll treatment charges and nothing else. It will be resolved one way or the other and business will continue as normal.

Last year rand took 80% of goldplats product, which included 100% of kili production.
This is down from the previous years of 98% of total production going to rand, so we can see that one fifth went to aurubis.

If its a favourable outcome and goldplat gets paid in full, then it is just under half a pence worth of cash in share price terms.

We will hear soon enough.

[kimboy2] 27/10/2016 09:44

The customers don't seem overly pessimistic as they are still supplying material.

The numbers will force the share price I make the post tax annualised profit from these fiures at about £1.6m, which put GDP on a p/e of about 6.

Today's numbers are the best since they started issuing quarterly figures. However in order to move the share price the profitability will have to increase.

As we know this is being done by;

Investment in Kili
Stock dam development
Sourcing more better quality material
Additional elution column in Ghana

These developments will happen over the next 18 months or so, and perhaps some additional ones we don't know about yet.

The question is what will be the effect on profitability of these developments when/if they happen. I reckon £3-4m on the bottom line.

That is what will drive the price.

[discodave4] 27/10/2016 09:36

MF - The market also appears to be overly pessimistic, doesn't matter what I think.It's ok throwing share price forecasts around, doesn't change anything, this is stuck until they sort it out IMV.How many more pieces of very positive news do they need to release before the penny drops?.DD

[kimboy2] 27/10/2016 09:28

I make that an annualised pre tax profit of about £3m, ignoring finance. The VSA forecast for the year was £1.9m.

The Migori artisanal material deal will be significant IMV. If they can get the CIL filled with material at 7g/t then it is going to be very profitable. The CIL does 80tpd so you can work the numbers out.

The jump in ozs and profits at Ghana was welcome. It is to be seen if it can be maintained.

As for price movements I think we will be around 8p at Christmas. When the CIL comes on line that will basically eventually add £0.6 - £1m to the bottom line which will push the price.

I would expect cash to be down a bit because they increased their inventory of gold and of raw materials as well as the capex at Kili.

[michaelfenton] 27/10/2016 09:20

DD4 - I think you are being overly pessimistic. You may be proved right but i prefere to treat it as a one off dispute until proved wrong. All AIM companies suffer from maagement deficiencies. GDP has a long histor of poor management however things seem to be doing much better under the present team. Small companies have to create a lean management due to cost restrictions and this does lead to problems. GDP is seemingly doing better and as a long term holder I am happy to see steady if unspectacular progress. I would be happy for the share price to be at 10p at this stage in 2017.

[shareholder7] 27/10/2016 09:18

Totally agree with you DDIf you can't contract with your biggest partner than what other contracts are out there that could go bad The share price won't move until new investors come in and GDP needs to prove that they can be trusted Some time off in my opinion

[discodave4] 27/10/2016 09:00

Thanks S7,Probably missing something here, it's always only been about the silver toll recovery, nothing new IMV.It's not the monetary value in dispute per se that's the primary issue IMV, it's the damage to reputation, shows complete managerial incompetence, with potentially back dated additional claims/disputes to drip through from other customers, it's a sign they haven't got everything well managed and the longer this drags on the longer the share price will go side-ways IMO.DD

[sea7] 27/10/2016 08:44

dd,

from the update...

The independent investigation concerning the dispute with Rand Refinery
regarding the silver sulphide toll recovery project is still in process
but has been separated from the day-to-day operations between the two
companies.

It is solely related to the silver sulphide contract only. The next paragraph from the update states....

Notwithstanding the dispute with Rand Refinery, Goldplat continues to deliver concentrates to Rand Refinery, which has improved its turnaround time significantly.

They have isolated the dispute to the one contract and separated it whilst carrying on business as normal.

[discodave4] 27/10/2016 08:25

Op profit double what it was for same quarter last year.Nice to see Kili losses reducing.S7 - where does it say the RR issue is contained to an isolated contract? (Still don't see the share price holding any gains short term, will see, hope I'm wrong).DD