Goldplat Dividends - GDP

Goldplat Dividends - GDP

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Stock Name Stock Symbol Market Stock Type
Goldplat Plc GDP London Ordinary Share
  Price Change Price Change % Stock Price Last Trade
-0.05 -0.55% 9.00 16:14:28
Open Price Low Price High Price Close Price Previous Close
9.05 9.00 9.10 9.00 9.05
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Industry Sector

Goldplat GDP Dividends History

Announcement Date Type Currency Dividend Amount Period Start Period End Ex Date Record Date Payment Date Total Dividend Amount

Top Dividend Posts

kimboy2: The only real unknowns on the TSF (apart from when) are the cost and the deal with the processor. I have tended to assume about $800/oz cost though the figure that was put to me was about $500/oz, though this was some time ago. I know that some of these tailings companies have incredibly low costs. As for the processor cost my view would be that GDP is in effect a supplier of material, rather than a joint venturist. GDP aim for a 20% operating profit of revenue. I would expect the processor to get less than this. That will depend on the alternatives which GDP have, which no doubt their potential partners will be aware of, and which GDP keep emphasising they have.
dangersimpson2: Just catching up after some time away and getting to read the new WH Ireland note in detail: hTTps:// First up, they have significantly upgraded their fair value estimate to 18.7p per share and this doesn't include any upside from the PGMs or TSF reprocessing. EPS for FY22 is upgraded to 2.3p EPS which is a significant increase vs the previous estimate of 1.5p EPS. Given the first half EPS was 1.2p then this looks realistic and with scope for a small beat if Q4 happens to go particularly well for the company. FY23 EPS estimate of 2.5p EPS again looks reasonable with the opportunity for this to be upgraded during the year if the business continues to expand and doesn't face any major issues. Indeed, WHI say they believe the 2023E numbers are conservative. This is exactly what you want to see - underpromise & over-deliver. This note also corrects all of the issues in the previous note which is good to see and the block model now looks like a reasonable conservative estimate. Although specific dividends are not assumed by WHI in their model they do flag the expectations of both dividends and buybacks being resumed. The block model shows FCF of at least £1.8m per year going forward. If this was paid out as a dividend then this would be over 1p per share. So we have the potential for at least doubling the share price in the near term, or a very decent capital return if the market continues to ignore the valuation gap here. As WH Ireland say in the note "what's not to like?"
lowtrawler: I'm not one of the long-term holders here and so might not have the full picture. However, he seems to have:1. Got GDP to buy kili2. Made a pig's ear developing it.3. Setup a takeover vehicle to buy kili at far less than GDP have invested in it.4. Now sees the takeover vehicle as more investable than GDP.5. All the while, he has raked in salary and cheap options from GDP.In any other company, he would be persona non grata. The sooner he disappears, the better.
lowtrawler: For low PER companies, I often find it amusing to consider for how long they would need to pause investment to generate cash equal to their market capitalisation. In the case of GDP, it would be around 2.5 years. Think about that, GDP could offer to purchase every share at the current market price in 2.5 years time simply by pausing investment over that period. Usually low PER's correspond to higher risk, company volatility or underlying company problems. GDP is relatively stable, entering growth and with a huge hidden asset in the TSF. I believe buybacks will help correct the share price towards a more realistic multiple of around 6, particularly if a dividend gets introduced. The TSF presents a further bonus opportunity and may even contribute late 2023. It gives me a target share price around 15p without the TSF and a bonus arising from the TSF which could easily be another 10p or more.
lowtrawler: camerongd53. There is no bid triggered from Martin if GDP buyback enough shares to push him over the takeover limit. He will have a period of time to divest shares to bring him back under the limit or an exemption can be applied for if supported by a shareholder vote. As the current buyback programme has likely been initiated by Martin, he will already have plans. My expectation is the buybacks will stop short of pushing him above the takeover limit and money will then be moved towards dividends. However, he may choose to sell some of his own shares and have the company continue to buyback. He could then retain an undiluted interest in GDP whilst still getting cash returned to him. So long as the share price is below fair value, buybacks are an excellent way of returning value to shareholders. From a pure maths perspective, if you believe fair value prior to buybacks is 15p and we buyback 10% of the shares for 7.5p, it will push up fair value to 15.83p, a 5.5% return. The same amount paid as dividend would give a 5% yield and reduce fair value by 5% to 14.25p. Through creating a capital gain rather than providing income, it can also have beneficial tax implications. The closer to fair value, the less beneficial are buybacks.
kimboy2: DRD are quite interesting. They will have much lower costs than GDP for processing. Every $100/oz they save earns an extra $4m. It seems clear that GDP haven't bitten off DRD's hand (or whoever it is). In the interims GDP say a key initiative is; Evaluating the investment into larger tailings storage facility and additional mill and leaching capacity to enable us to reprocess our current TSF; Not really sure why DRD doesn't just take over GDP and that would sort out the negotiation. They could pocket the TSF and sell what's left probably for a good deal more than they would need to pay. Perhaps Martin Ooi's shareholding is a bit of a block.
lowtrawler: MF, as far as I can tell, Martin is simply managing family investments. Presumably he has looked at GDP and seen the value, in the same way we have. I doubt he would ever wish to take GDP private and so will be as reliant on a dividend as the rest of us - unless he has contacts to initiate a competitor bid. The appearance given to shareholders is that they don't wish to be held accountable for actions. They don't publish plans, so can't be held accountable for failures to deliver. They don't explain expected benefits from initiatives. They don't adequately justify inventory held. They have no dividend strategy. These are common features of AIM companies and can either be disregarded as something only larger organisations have time to do or they can be seen as red flags. Like our friend shill10, I can see Werner has made a difference but we find out what he is doing only when an RNS is issued rather than being able to track against a plan. I am convinced if GDP were to publish a 5 year plan with costs, benefits and timing for the TSF, dividends etc, we would re-rate closer to fair value.
lowtrawler: shill10, I comprehensively answered that in post 9481. I have not said the current management are bad, I have said GDP have a history of frittering away excess cash and enriching related parties at the expense of GDP. With that history, it is important to demonstrate change by introducing a dividend and publishing a dividend strategy. There might be good reasons to not introduce a dividend currently. However, even with the list of items requiring funding posted by Kimboy, I struggle to see more than £6m of cash outgoings over the next 3 years and so failure to introduce a dividend remains a mystery. If GDP published a 5 year plan, we might get a better idea of what funding is required and have a means to judge management delivery. Similarly, if they produced a plan for new initiatives, we could see why they wish to undertake them and decide to give them our support.
lowtrawler: shill10, I've been involved in setting dividend levels a couple of times in my career. The starting point is a Board decision to announce a dividend. Soundings are then taken from the brokers and major shareholders as to their dividend expectations. In the case of GDP, they likely only need to discuss with Martin. The Finance Director then produces a paper which suggests a sustainable dividend level based on expected trading performance, future investment needs and suitable contingency. The paper will usually project a few years forward to ensure the dividend can be sustained over an extended period. In the case of GDP, pog will create trading volatility but trading projections are likely to suggest ongoing profitability of over £4m even if gold were to fall back to 1600. Announcing a maiden dividend of less than 50% sustainable profits should not unduly stress the business and provide scope for future increases. I believe 1.5p would be an upper limit to the available dividend. The BOD and management have had the benefit of strong cash generation over recent years which allowed them to become lazy. Removing the excess cash will require them to more actively manage the business and become more efficient. I expect the BOD to argue for a lower dividend to keep their comfortable approach and for Martin to argue higher. I will be very disappointed at anything below 0.8p.
lowtrawler: In my view, the share price will respond to recognise around a 10% yield against any dividend announced (unless they only go for a token dividend). Hence, a 1p dividend will create a 10p share price, a 1.2p dividend, a 12p share price. If GDP can increase future dividends by 0.2p per share, it will add 2p to the price at a cost of less than 1.5p AND provide higher per share dividends as we move forward.
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