Goldplat Share Discussion Threads

[discodave4] 04/1/2017 07:43

So your implying that it's a lot cheaper shipping to Germany than down the road and spending millions on Capex!. Of cause they can survive without the largest refiner in the world, their major customer/supplier, of cause they can breach T's & C's causing a contractual dispute without impacting on future contracts/customers.Let's just agree to disagree. Hopefully I'm completely wrong and the next update will start moving this upwards.DD

[kimboy2] 04/1/2017 07:08

The point is that GDP can survive without RR, and as more elution capacity is brought online increasingly well.

[discodave4] 03/1/2017 23:56

Yep, their major partner RR forced them to seek more expensive alternatives......Doh! some well thought out plan that was!.What next?.....don't worry nothing else will go wrong, RR can't survive without GDP!.DD

[kimboy2] 03/1/2017 23:32

No they hadn't considered RR going AWOL and it was forced on them. In fact it was Gerard that opened up Aurubis as an alternative and developed the strategy due to single refiner risk.

However they were developed alternatives do exist.

[discodave4] 03/1/2017 23:22

So why did GDP start using Aurubis in the first place?, don't tell me it was all part of GDP's managerial foresight and part of their strategic single refiner mitigation plan - Nope, it was a reactive measure forced on them by RR, it wasn't in any shape or form a proactive strategy. Will say that it appears to have shaken GDP BoD into thinking about "what if" scenarios, but that's their job and the risks should have been flagged a lot sooner, also due to their lack of foresight it has cost them more in the short term to use Aurubus.No point discussing the RR issue.DD

[danielmiller1] 03/1/2017 22:58

I wonder why GDP always seems to get into a mess with its contracts and accounts etc?

[kimboy2] 03/1/2017 22:51

Well it hasn't happened already because RR & GDP are still trading with each other. It is apparent that GDP have alternatives if there is a complete breakdown with RR, and each elution column furthers this objective.

I have said earlier that the probability is that the result of the dispute is not likely to be binary. It is likely the independent adjudicator will say both made mistakes and offer a compromise.

It should also be remembered that RR make good money out of GDP. Why would they want to throw this away?

As for rose tinted specs well if GDP lost the case then there are alternatives for their material to be processed. We are in effect back to the situation last year when RR was in chaos.

Have you considered what would happen if GDP won the case outright, which they say they are confident of ? What would be the outcome of that ?

[discodave4] 03/1/2017 22:40

KB2Why is it unlikely?, it's happened already hasn't it and at what cost to GDP margins?.Sorry KB2 but IMO you have to look at potential negatives rather than dismissing them out of hand and only looking at things through rose tinted glasses all the time.Never say never.DD

[shareholder7] 03/1/2017 22:34

There's a hole in my bucket dear Lisa

[kimboy2] 03/1/2017 22:09

In that unlikely event it will go to Aurubis.

[discodave4] 03/1/2017 21:44

"All of kili production goes direct to rand refinery."Until RR tell GDP to F Off.DD

[sea7] 03/1/2017 20:46

Adding it all up, kili owes

£1,190,000 to GPL
£3,327,000 to GMR
£225,000 to GRG

Total £4,472,000 as at june 30th 2016.

Once it hits profitability then we should start to see some of these figures reduce, instead of the steady increase.

[sea7] 03/1/2017 20:30

The sale of the CIL plant to Kili is shown as £225k to GRG.

[sea7] 03/1/2017 20:25

For anyone thats interested, The extent at which Goldplat south africa has supported kili is as follows

2007 nil
2008 £157,000
2009 £1,770,000
2010 £619,000
2011 £718,000
2012 £790,000
2013 £766,000
2014 £566,000
2015 £794,000
2016 £1,190,000

Total £7,370,000.

The above amounts are for goods, services and equipment supplied to kili by GPL and for trade payables to GPL by Kilimapesa.

The total is not an outstanding amount, as only the 2016 figure as at 30 june 2016 was owed.

Kili also has loans and borrowings to Gold Mineral resources of £3,327,000.

All of kili production goes direct to rand refinery.

[sea7] 03/1/2017 19:19

In 2015 the total gold sold/transferred from recovery ops was 22831 ozs. Total sales from recovery ops in 2015 was £14,883,000. This gives £651 oz or $1029 at the average exchange rate in 2015. Kilimapesa excluded from these figures.

average exch rate in 2015 AR was $1.58/£

2578 ounces came from Ghana at $1029 oz gives $2,655,250.
In the AR, sales of precious metals to GPL from Ghana in that year comes at out $2,851,900 at the average exchange rate for the year. So I think I am in the right ball park.

Total charges to GRG by GPL amounted to $674,660 - using the average exch rate.

Subtracting the $674,600 from $2,655,250 gives $1,980,650/2578 ounces = $768 oz

I have used 2015 and not 2016 due to the silver sulphide contract distorting things.

This implies that the sales from GRG to GPL would account for all of the ounces sold that year. I see no reason why 2016 would be any different, with the exception of the RR contract taking up space at GPL.

The elution column in Ghana should be able to handle most of the production there, especially if the material is of a high enough grade.

60% seems very reasonable.

[kimboy2] 03/1/2017 18:19

The exchange rate assumed is I think $1.48/£ which makes Ghana turnover $6.6m. If output sold is the relevant number then that works out at $736/oz.

Does something like 60% seem reasonable?

[sea7] 03/1/2017 14:40

Gold Recovery Ghana sold 8964 ounces for the year. Perhaps this is the figure we should be using when trying to work out how much per oz GPL paid GRG.

[kimboy2] 03/1/2017 14:29

Ghana produced 6,883ozs so £4.459m works out at $796/oz.

Indicates the value to be gained from elution. Question is would a 4tonne column do 14kozs that GRG is likely to produce.

[sea7] 03/1/2017 14:23

Sorry should read £4,459,000 as the figure for purchase of precious metals. The £4,707,000 is the inter segment revenue figure.

Note 6 shows inter segment revenue and Note 35 shows the related party transaction by GRG and GPL in the AR.

[kimboy2] 03/1/2017 14:11

I am not sure where you get the £4.7m figure but if that is all Ghana's output it works out at about $850/oz.

[sea7] 03/1/2017 13:59

Quite a bit of Ghana's production is purchased by Goldplat South Africa and eluted there, then sent for 1-3 day refining at Rand which saves on costs and time.

The purchase of precious metals from Gold Recovery Ghana by Goldplat Recovery amounted to £4,707,000 for y/e 30 June 2016.

80% of recovery ops revenue came from Rand Refinery, the rest would have been Aurubis
and any other smaller sources.

Once that elution column is up and running in Ghana, then we should see a step change there.

[kimboy2] 03/1/2017 13:13

Yes the next operations update will be interesting. The last one was;

£m SA Ghana Kili Op Total Central cost PBTQ1/17 0.769 0.305 -0.1 0.974 -0.164 0.81



The gold prices have been a bit lower in Q2 and this quarter tends to do less well, presumably because there are less working days. There is also the potential problem of concentrate having been held up in Ghana.

[danielmiller1] 03/1/2017 13:12

See the Botboy has come up with a newer and I must say reasonable assume that of things. Can understand why he was asking over prospects then seems to answer himself.

Always did strike me as being a little confused ever since I had to put him right on margins anyway that said he is a far more knowledgeable poster that the clog S7 who thinks he knows it all but history has clearly demonstrated that in fact he knows FA.

ANYway no matter how the Botboy postulates one thing is constant......they are going to need a lotta lolly from whence it will be derived one can only guess, so I am guessing a tap on the suckers, ooopscI mean shareholders' shoulder.

[michaelfenton] 03/1/2017 12:49

Maybe the quarterly operations update due end of January will throw further light on what comes next and the current state of affairs.