 Thanks Kimboy. It makes sense that they could achieve a better recovery rate. Clearly it can't be straightforward for them to run it, otherwise they would have been doing it by now. As you describe it as "not typical" then perhaps their plant would need a radical overhaul to process it or it's the case that they're permanently committed to running customer's material and don't have the spare capacity
I understand and share people's frustrations with GDP, they appear to be extremely reluctant to provide much information about their operations. They also have a habit of talking about directions they might take and never updating us on them . For example, Werner discussed taking advantage of the high gold price and monitising part of the TSF by possibly trucking it to DRD. That was a long time ago and we've heard nothing since.
With the TSF potentially having such a considerable value, you would think they would want to get moving on it but you never get the impression of any sense urgency with GDP. Werner always seems somewhat guarded in his presentions and not that enthusiasic. The same applies to the website, I'm sure there used to more on it, such as a gallery section and the 5 line strategy section is not exactly impressive. I appreciate that the numbers have been very good and 2025 may well be a transformational year but that's been said about previous years.
I looked to see when I first invested in GDP the other day and was rather horrified to find that it was in 2010. A niche business that made good profits from goldmining waste, it seemed to have a lot going for it! Maybe it still has. |
Shill10, you obviously have more inside information on how the negotiations are being conducted than I do. I was not aware that Martin was leading the negotiations and playing hard ball poker with the third parties. I wasn't even aware negotiation was one of his skills. My criticism has been based on their Q1 trading update which stated:"During Q1 there has been several engagements with all parties involved and good progress has been made, with the aim of getting all approvals completed by June 2025."I have struggled to understand how that has transformed into the annual accounts update that they haven't even submitted the license applications which usually take a year for approval? Was it important to mislead shareholders with the Q1 update as part of the larger poker game or were they not in control of the approvals process? |
Looks as though it is nearly curtains for GCAT. |
all this negativity while ignoring the fact that the gross value of 130k oz at 50% (conservative) recovery is now c £136 million thanks to all these delays ....there is PLENTY to go around for all concerned, Martin Ooi is playing hardball poker with DRD and the Landowners to get a bigger slice of the pie for us, if you are a shareholder you are signed up to that strategy whether you like it or not, if you don't like it your ONLY effective other option is to sell your shares, Merry Christmas |
Well I think that GDP would get a better recovery rate than DRD. The problem with DRD is that one size fits all, and I think it has been said in the past that the GDP material is not typical.
GDP have a pit on their site where they were hoping to dump the surplus, but the requirements were too onerous.
It was confirmed to me some time ago that the material could be processed where it is, churned.
Another year ahead with nothing happening, and no guarantees, is disappointing. Especially as these 3rd party landowners are another slice of profit which is going to disappear.
I'd be inclined to run the slide rile over the alternatives. |
I don't remember ever reading why GDP can't process the TSF themselves. I have always assumed that DRD has a much more advanced process. However, after reading DRD's process description on their website, they appear to have a lot in common with GDP in terms of the method they use.
They both use centrifuges, mills and carbon leaching etc. I'm wondering what DRD does that GDP doesn't. If there is a difference, then isn't there an argument for them upgrading their plant so it matches DRD but on a smaller scale? Gradual processing of the TSF in house seems somewhat logical. It would also make them more of a takeover target for DRD, which would be good for us and perhaps them, based on the declining business in SA.
I'm sure there are excellent reasons why it can't happen. If anyone can enlighten me then I would appreciate it. |
Moaning …or actually the expressed desire to see this company progress beyond what is has remained for well over ten years
The TSF is actually fraught with difficulty -they will be held ransom by the land owners of whom there may be many and a ransom will be claimed for the water supply
And DRG will also hold goldplat to ransom
So it is reasonable to expect that the TSF may not deliver for some years to come
This is way the business needs to be run without the banana skin mentality of the past - far more careful investment and control of cash and an understanding that actually shareholders require a return on investment -as any investor does -and this is paid out as one of the prime responsibilities of the board - a dividend should be a prime responsibility -and paid annually no matter how small and profits permitting
Alm |
well said GB - the moaners on here are going to moan, the context of not wanting to give landowners visibility on the amounts involved explains the delay in terms with DRD not coming out yet (why give them ammunition to blackmail for higher amounts) and also explains the delays on the pipeline application which are out of management control...I too prefer them to play hardball with the landowners, let's see if 2025 is the year this thing gets agreed, the signs point that way, Merry Christmas. |
AR available at:
hxxps://cmsignition.co.za/download/files_1428/GoldplatAnnualReport2024.pdf
"We aim to have the final application submitted before the end of January 2025, subject to land owner consent. The approval process normally takes 365 days from submission.
DRDGOLD and Goldplat Plc are currently in the process of evaluating different variables that will impact on the processing of the TSF, as well as the commercials of doing so; this process will be completed alongside the water use license.
To enable us to process the current TSF through a DRDGOLD facility, we will require landowner consent, approval to install a pipeline to this DRDGOLD processing facility (as indicated in paragraph above) and will need to finalise commercial agreements wit DRDGOLD".
The way I see it - the more we are negotiating commercial agreements with DRDGOLD the better.
Martin Ooi as a significant shareholder means we won't be selling out SA operations or the TSF below their true value.
Highly profitable Ghana operations mean that the company isn't short of cash, in a weak negotiating position or solely dependent on a single operation or jurisdiction.
Yes, it is taking more time than we would all like. But all seems to be progressing just fine for now.
As for dividends...yes, I'd like them too. But keeping a robust working capital position while we negotiate with DRDGOLD for the next year is also OK with me. |
All correct Lowtrawler. We are all taking a punt. |
Still no sign of a dividend - shares retreat. No change there then. |
Low - I am relying on their adventure in coal in SA to really make a difference -what was it half a million invested ? And of course they have done a great job keeping us informed on how successful that is turning out !!!
Alm |
MF, the reason we are all still in GDP is because we can see the value. Highly profitable / cash generating, debt free, growing and with substantial value in the TSF not reflected in the share price On the opposing side, we have a Board who appear incapable of rewarding shareholders; consistently fail to deliver items on time; accept no responsibility when deadlines are missed; overpay when buying out minority interests; spend money on failed ventures, and; are exceptionally poor communicators.
If only they would learn from Ghana and stick to their core skills. Forget trying to retain a presence in declining markets like SA and roll into expanding markets. I would be very happy for them to sell SA to DRD, particularly if they can get similar pricing to what they gave our minority interests. Dividend the proceeds out as special dividend, move into South America and seek similar opportunities worldwide. More importantly, just deliver the opportunities sitting in front of them quicker. |
Somo many poor decisions at times I question why I am still in GDP? The number of waste of money ventures and banana skins is laughable. The TSF is now looking fragile?
I would prefer a dividend (which they can afford right now) rather than a buy back. |
Low -careful some board members will view it as really bad to criticise the board
But you are not wrong …
The share price will never go up until they announce dividends buy back and TSF resolutionn
I consider shareholders are out of patience with this board - martin I am sure is one of them
Even if they only allocated 500k to div/bay back this first step would send a signal to the market that this was at last a shareholder rewarding company
Alm |
See my 21.12.24 @14.15. Thats why |
The financial performance last year was nothing short of sparkling. Publication of the annual accounts should have been a showcase. Instead, the share price falls. Why? They have maintained the message that dividends and buybacks will only happen when the time is right while giving no indication when this will be. Having given their first official timeline for delivery of the TSF licenses with the Q1 results, June 25, within a few weeks that has become early 2026. Not an indication they have this under control. So long as they continue to deliver strong financial performance, shareholder returns will surely follow. The wording and tone of the annual report acts against shareholder interests. Once they provide a date for delivery, they need to stick with it or explain why they got it wrong. Once again, they have succeeded in making victory sound like defeat. |
Anybody going to the AGM? |
Thats the problem when Paul only looks at the here and now. Company has consistentky let down shareholders and market is aware of it, hence very little move on the results.
I think the market is taking a lets see how ths pans out(pardo the pun). |
From today's Small Caps Live (much recommended weekly freeby):
Goldplat (GDP.L) - Final Results
Better late than never (or into the new year, which would get the shares suspended!) Perhaps good things come to those who wait, though:
· Revenue increased by 73.6% to £72.7m (2023: £41.9m)
· Operating profit increased by 127.0% to £9.8m (2023: £4.3m)
· Profit for the year increased by 40.9% to £4.3m (2023: £3.1m)
· Robust cash generation with net cash flows from operating activities of £3.9m (2023: £3.3m)
· Cash and cash equivalents increased to £3.9m (2023: £2.8m)
· EPS increased by 50.3% to 2.51p (2023:1.67p)
EPS is bang in line with what Mark was expecting following the recent ahead statement. They don’t report EBITDA, but their broker, Zeus, calculates that this puts them on 1.2xEV/EBITDA. However, Zeus are not forecasting the year ahead to be as good, making them on a forward EV/EBITDA of 1.5, which is still very cheap. This aligns with what they reported for Q1, so if each subsequent quarter is similar, the 2.2p EPS looks like a reasonable estimate.
Quarterly operational reporting means that there is little surprise here, but we do get a bit of detail on the working capital requirements in Ghana:
"Looking forward, we expect inventory, trade and other payables and trade and other receivables to increase in the first two quarters, specifically in Ghana, as the Ghanaian operation is going through a business model change with the requirement to beneficiate all concentrates to doré gold bars in‑country."
Assuming they are talking about their fiscal year, then this should be peaking around now, perhaps opening the way for buybacks or dividends with the HY results. |
Interest component
GBP
GBP
Interest receivable
102,000
69,000
Interest on pre-financing of sales
(1,604,000)(956,000)
Operating foreign exchange losses
(2,040,000)(221,000)
Net Finance Costs
(3,778,000)(881,000)
Net finance costs increased to GBP3,778,000 (2023 - GBP881,000) during the year as a result of:
Increase in foreign exchange losses in operations from GBP221,000 to GBP2,040,000. During the current year we had a large foreign exchange loss in Ghana due to the depreciation of the GHS against the USD during that year. As we pre-finance a portion of our sales to the smelters, the exchange rate on the day we receive most of our funds was lower than the exchange rate on the day we recognise the sale in our records.
- GHS/USD forward exposure ; who at Goldplat is monitoring this potential liability and taking steps to mitigate it. |
I agree with kimboy2. The need for landowner consents and water licenses are not new. They may sit outside GDP's direct control but the progress has been painfully slow.
Only a few weeks ago, GDP publicly stated they hoped to have all the licenses in place by June 2025. They are now saying they hope to have applied for the licenses by the end of January and, if we get lucky, they will be in place 1 year later. That doesn't shout as if they know what they are doing. Within a period of a few weeks they have moved from expecting everything to be in place by June 2025 to "hoping" they can submit license applications by the end of January 2025 that will then take a year to process.
It's another avoidable banana skin and yet nobody ever seems to be held accountable for these failures. |
respectfully that's a little disingenuous imo, in-between they hit some issues that required a redesign, hence the delay, as you know....but if they don't meet the Jan 2025 aim then management credibility will drop further, even if its a result of "landowner " issues that are out of their control. |
Deja vu December
December 2023
The new TSF allows us to divert all deposition from the current facility, which will provide us with the ability to use the current facility to recover the JORC resource through DRDGOLD. The processing of our old TSF remains dependent on the approval of the water use license over certain areas for the installation of a pipeline to the DRDGOLD process facility. The application process is ongoing with engineering designs being finalised with final application to be done before end of December 2023. Approval is estimated to be received within Q4 of the 2024 financial year.
DRDGOLD and Goldplat Plc are currently in the process of evaluating different variables that will impact on the processing of the TSF, as well as the commercials of doing so; this process will be completed alongside the water use license. To enable us to process the current TSF through a DRDGOLD facility, we will require approval to install a pipeline to this DRDGOLD processing facility (as indicated in paragraph above) and will need to finalise commercial agreements with DRDGOLD.
December 2024
The new TSF allows us to divert all deposition from the current facility, which will provide us with the ability to use the current facility to recover the JORC resource through DRDGOLD. The processing of our old TSF remains dependent on land owner consent and the approval of the water use license over certain areas for the installation of a pipeline to the DRDGOLD process facility. We aim to have the final application submitted before the end of January 2025, subject to land owner consent. The approval process normally takes 365 days from submission.
DRDGOLD and Goldplat Plc are currently in the process of evaluating different variables that will impact on the processing of the TSF, as well as the commercials of doing so; this process will be completed alongside the water use license. To enable us to process the current TSF through a DRDGOLD facility, we will require landowner consent, approval to install a pipeline to this DRDGOLD processing facility (as indicated in paragraph above) and will need to finalise commercial agreements with DRDGOLD. |
Wig
Very impressive post -Alm |
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