Goldplat Share Discussion Threads

[danielmiller1] 01/2/2017 07:56

Problem with that is the news is usually mixed or just bad

[sea7] 31/1/2017 13:44

Looking at a couple of ratio's over a few years...

year............book price............ roe...........share price at jun 30

2016........... 6.19pps................7%............6.35p
2015........... 5.38pps ...............neg 4.4%..... 2.17p
2014........... 7.59pps............... neg 1.7%..... 2.38p
2013........... 9.16pps............... neg 1.6%..... 7.50p
2012........... 9.23pps............... 18.9%.........12.80p
2011........... 8.65pps............... 13.7%.........11.50p

Goldplat traded above book price and generated a positive return on equity for the first time last June, since the end of June 2012.

Whilst these types of ratio's are rough guides, they do show us that the company has turned the corner and is making good progress.

[russman] 31/1/2017 12:27

GDP is pure conjecture.Any news would help the investment case.

[danielmiller1] 30/1/2017 17:04

Kimboy230 Jan '17 - 16:30 - 3518 of 3521 0 0
I have written Anumso off. We may be lucky and get a net smelter return.

Can't see the point of exploring when there are ready made resources which haven't got the funds to develop them.
michaelfenton30 Jan '17 - 16:45 - 3519 of 3521 0 0
Kimboy2 - you are right - exploration is far too expensive when there are productive resources that can be picked up cheap and will prove profitable quickly.

Other companies are already picking up thencheapest assets all GDP seems to be doing is
Talking about them

[sea7] 30/1/2017 16:54

As anumso was one of manolis's bright ideas, I do hope that Gerard doesn't make the same mistake.

[sea7] 30/1/2017 16:49

Anumso history....

Adansi Syndicate 1910 – 1913 Exploration & underground mining
Several shafts on the eastern conglomerate and adits on the western conglomerate

Gulf Coast Resources Inc. 1990 - 2010 Sampling of adits, trenches, old
workings & geological mapping Compilation of a Feasibility Study and granting of a Mining Lease in 2000

SEMCO & Equigold Ltd 1994 - 1995 Soil geochemistry, sampled u/g
workings & RC drilling Geochemical definition of East and West Reefs (conglomerates)

Ashanti Goldfields Ltd 2000 - 2001 RC drilling. Location of drilling and data unknown

African Gold Plc 2005 No activities Promoted the Project to investors in London

Mwana Africa
Plc 2006 Diamond drilling Drilling of eastern conglomerate

Mwana Africa
Plc 2007 Diamond drilling Drilling of eastern conglomerate & definition of a Tangible Blue Sky Estimate

Goldplat Plc 2011-2012 Diamond Drilling Drilling of eastern conglomerate &
estimation of a non-compliant mineral resource.

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

So, in conclusion, exploration on this site has been going on for 107 years and no mine as yet. Whilst the site does have an actual mining licence allowing it to build and operate a mine, based on its history to date, I am not holding my breath.

At best I am expecting them to prove up a bit more of the resource and then flog it on, for rinse and repeat.

[michaelfenton] 30/1/2017 16:45

Kimboy2 - you are right - exploration is far too expensive when there are productive resources that can be picked up cheap and will prove profitable quickly.

[kimboy2] 30/1/2017 16:30

I have written Anumso off. We may be lucky and get a net smelter return.

Can't see the point of exploring when there are ready made resources which haven't got the funds to develop them.

[sea7] 30/1/2017 15:54

Ashanti will be drilling soon....

Ashanti is currently relogging existing core and is
preparing for a drilling campaign starting in January –
February 2017.

[sea7] 30/1/2017 15:46

Short article on illegal mining in benoni.

[kimboy2] 30/1/2017 11:11

Yes the Central Rand contract wasn't about mining per se. It was just to provide another source of ore for one on the circuits at Benoni. In the end it was more hassle than it was worth and they are now opening up other sources of material.

Gerard has said in one of the interviews that the intention is to create a mining section as big as the recovery section, which is 40kozs. Indeed IIRC he seemed to indicate that this was a current ambition rather than something in the long grass.

I think this is OK as long as the recovery side is a cash cow.

[sea7] 30/1/2017 10:13

FS,

During FY 2015, GPL terminated its contract with Central Rand Gold as
the risk-reward was no longer viable. The amounts of ore produced under
this contract remained minimal and this ore has been replaced with ore
from other sources.

[flyingswan] 30/1/2017 08:54

Kimboy2 . . . Why did they give up the Central Rand Gold mining deal, which was for a 5% smelter fee? If they are looking for mining?

[kimboy2] 30/1/2017 07:47

If by any chance they got the licenses the cost would perhaps be in the form of a free carry for the government and royalties.

It would be nice if it happened but clearly the priority is to execute its current plans. However they are on the look out for some sort of mining deal and this would fit the bill perfectly.

[pog1234] 30/1/2017 07:37

Kimboy, interesting hypothesis.
But why would you think GDP would be granted the Red Rock license for free? Or do you expect them to pay for it? IMVHO it is not likely that GDP will spend more cash on a new license that will limit spending elsewhere (where it is badly needed and will generate cash short term). The only thing that I can see is feasible is that GDP succeeds with its current plans and a few years from now are able to spend some cash on the Red Rock license including building a second mine.

[danielmiller1] 29/1/2017 17:13

A lot more bought @12 and it went down?JUST SAYING,

[kimboy2] 29/1/2017 16:48

I don't think that was the plan to start with. I suspect that there was just a reluctance to throw something away which had cost so much. A natural reaction.

I have no idea if Migori is on the cards, but it would be a very good fit and allow them to leverage Kili. ISTR recently Gerard was appealing for other license holders to come together to exploit the resource.

Even if there is nothing in Migori it is the sort of thing GDP will be looking at if it intends to go into mining. Here is the Migori feasibilty study that Red Rock produced;

[michaelfenton] 29/1/2017 16:01

Kimboy2 - interesting theory and lets face it Gerard must have a very good reason for hanging in there after what has been a pretty disastrous venture up to now. So I do hope you are right.

[wigwammer] 29/1/2017 14:32

I bought under 3p and it went up a lot.Just saying.

[sea7] 29/1/2017 12:46

Yes, they will want to prove it up first. As you say, costs will be skewed by the artisanal material, which will be to the benefit of the mine.

[kimboy2] 29/1/2017 12:32

Yes I remember reading that the cash cost of kili was $1,050 and thinking it was dead in the water. Once you get a full AISC it wouldn't make a profit with a long term gold price.

However the last we heard, which was in one of those live events, the cash cost would be in the lower quartile. I think that is around the $650/oz mark.

A $650/oz cost makes each ton of ore cost $52.

The test of this will come with the new CIL. It was originally planned just to use its own ore which would produce 2,300 ozs pa.

I suspect taht before phase 2 gets the go ahead they will want to prove the cost estimates are correct.

The costs will be slightly confused because of course they are getting some artisanal material from Migori, and this will have a much higher grade.

[sea7] 29/1/2017 12:03

Incidentally,

SP Angel had this to say in that brokers note of four years ago...

Valuation and Financials
 We value Goldplat on a sum of the parts basis – applying an EV/EBITDA
multiple of 5x for the gold recovery business which on a projected EBITDA of
£5.6x puts a valuation on recovery of £28m – this accounts for 80% of the
value of the business.
 The Gold Production business has been downgraded with a £2.5 m value for
Kilimapesa based on 5,000 oz of production at a cash cost of $1,050/oz over
15 years based on long term gold prices of $1,250/oz.
 The other exploration assets are valued at £1m

[sea7] 29/1/2017 12:01

Back in 2013 inventory was shown as (at end june 2013)

consumable stores £1.725m
raw materials £957k
precious metals on hand and in process £1.755m

giving a total of £4.437m

In the brokers note of 8th march 2013 share price angel stated...

Stockpiles provide a cushion to operations amounting to 7 years of installed
capacity

Around 786 kg of gold (around 28,000 oz) is contained in materials on site
giving around several years of potential inventory. This includes wood chips
of 60,000t equivalent to 500kg of gold at 8g/t

The company have sufficient tailings material to contribute to at least five
years of growth without further purchases.