Sorry it seems I only have 110,000 shares. Sold some to increase my holding in AAZ which is a well run company with a big future. Do your own research please. |
I have cut my holding from 500,000 to 120,000 share and quite prepared to join any proactive group. The board have behaved like owners for far too long and I have no idea what Martin Oii is up to. I thought he would help but that does not appear to be the case? |
Low
All extremely well stated and all absolutely correct -it still astounds me that there has been no demonstration in reality as to adopting the relatively simple good practices that you refer to
Good communication and sound justification of capital expenditure
Presently the board is not called to account for- the day will come
You are right 2025 is most likely a repeat of this year and the year before
12p a share now seems a distant memory
But the day will come ….
Alm |
 GDP could and should have provided indicative numbers to the market for the TSF in order to generate interest. It would have supported the share price and been to the advantage of shareholders.
However, shareholders appear to have a very low priority in the world of Goldplat. There is no sense of urgency in resolving the TSF; they can advise shareholders the TSF will be resolved by June 2025 and only weeks later say they haven’t yet submitted the license applications with no apology or responsibility; the shares are suspended for late delivery of the accounts with nobody held accountable; they look to diversify into new activities without providing a business case; the business model changes to require more working capital and shareholders have to investigate what is happening rather than being told; they agree pricing to buy-out minority interests which disadvantages shareholders (and remember they were related parties); Investments are always made from retained earnings rather than borrowing; there is no timetable or policy for providing shareholder returns.
Currently, the annual accounts narrative indicates they expect to use all available capital for investment over the next 6 months which probably means there will be no shareholder return considered until Q4. With the license applications for the TSF not being made until the end of this month, at the earliest, we probably won’t get any price accretive news on the TSF until 2026. With Ghana going through a period of change, their financial performance will probably be below 2024 levels until the second half of 2025.
IMV, it means we won’t see the share price break out of its trading range until late 2025. Simple changes could be made that would transform the SP: produce a plan; produce a shareholder return policy; commit to business cases for any diversification; fund investment through borrowing; explain variances to plan and what has been done to prevent recurrence. All of these ideas are simply good governance.
I had been overweight GDP in expectation of shareholder returns and the TSF being unlocked by the middle of this year. I have now scaled back my holding in expectation shareholder returns are unlikely to be announced until late 2025 and the TSF will remain locked until mid 2026. I maintain a sizeable interest but cannot justify an overweight holding when GDP continue to treat shareholders as low priority. |
Rand price of gold up 6% this month. Presumably the TSF must be incrasing in value substantially.
If we actually had some figures the market may take some notice. |
Absolutely. Best wishes for 2024 |
Wig
Ok -understood -I am sure we both have the same aspirations here so let’s wish each other good fortune in 2025
Atb
Alm |
Alm. They have spent around 10 times more on the TSF, Ghana and minorities in recent years than they spent on generators+coal combined. I'm sure people can point fingers and get their knickers in a knot about generators+coal if that is their instinct, but it's not going to tell anyone a great deal about how GDP has invested in recent years. Atb |
Wig
Tell us about their investment in coal ….as just an example of how they spend shareholders money ….
I would welcome a detailed account from you on coal investment -the board seem to have been silent on that topic for a long time now -I would rather have had a dividend payment
And the generators …how necessary and effective that has been
The list goes on
I always thought the purpose of an investment is to show a return on capital invested -it’s the underlying principle of business -the board have had free capital to play with - commercial loans are repaid with interest
The companies foreign exchange losses are astonishing ….is this a managed exercise ???
I am relieved that MO holds nearly 30 per cent of the shareholding because he will inevitably realise a return on investment but what are his options ?
He can only achieve this by either the company being sold or dividends/ perhaps combined with buy backs
He will require these if the company is not sold
Selling his shares into the market will slaughter the SP
Alm |
That's true kb, but can we blame current management for what happened before 2020? We know from a recent presentation that over £11m has been spent since then on the TSF, Ghana and minorities. These all seem pretty sensible places to invest, though I accept they may have overpaid somewhat for the minorities. Given that any dividends paid over this period would have largely been funded by the now declining SA operation - and to the detriment of the developments mentioned above - I suspect the well would currently be running pretty dry. |
They burnt quite a lot in Kenya. |
The posters who keep claiming that GDP has had lots of free cash flow to pay dividends really need to do some homework on what they own. Look at the equity line over the last 10 years. Up and down and all over the place. If GDP had been consistently generating free cash flow then in the absence of dividends, one would expect that equity line to be consistently rising. But it hasn't been. In fact it has only just broken the £20m mark after years of volatility. The main reason they succeeded in growing equity last year is that one of their main projects - Ghana - has come good. Well done them. We live in hope the TSF monetisation becomes the next success. But this BS about burning free cash is just nonsense. I accept timelines on the TSF have slipped, but otherwise management have been doing a pretty decent job. Not surprising given a 28%+ holder sits on the board. ATB |
kimboy2, regardless of the ultimate TSF value, the price they paid for the SA shareholding was too much. As we understand it, the minority interest had decided to sell and we stepped in as the buyer. Nobody else would have offered anything like the price we paid. It has never been adequately explained why we would offer the price we did. We could easily have offered half the price without fear of being outbid. |
they thought the buyback of SA shareholding was cheap with Gold at $1600, that is an insight into their valuation of the TSF. |
Well one way they rewarded shareholders was the buy back of the SA shareholding. You may well say it was overpriced, but that remains to be seen.
That was £3m+ IIRC. |
Kimboy
It is a fair summary -exactly pinpoints the treason why new shareholders are not attracted -if they were attracted by dividends or buybacks the share price would climb
-the only point I am not convinced of is the near the end of Capex - the company has always found one new thing after another to expend capital upon in preference to rewarding shareholders - and thus why is it now thought Capex is at an end ?
But we live in hope
Alm |
That seems a fair summary to me. |
From Small Caps Live, 03/01/2025:
Goldplat (GDP.L)
This remains one of the cheapest stocks on the market, with a forward EV/EBITDA less than 2. Given that this company recovers gold from mine waste in Africa, many investors will think this rating matches the risk. However, this is very conservatively run, which is why the company has survived many challenges over the years. The bugbear of many investors is that these challenges have required the company to reinvest capital into the business rather than paying out dividends. However, with the planned capex now coming to an end, this should free up capital that can be directed to buybacks or dividends. Given the rating, it wouldn’t take that high a proportion of the operating cash flow to see a very material buyback or payout. This may finally lead to investors rating this more highly in 2025. |
Happy new year all |
I presume the 1% smelter royalty is a charge on the property rather than a debt with the nearly defunct GCAT.
As long as someone gets the gold out the ground GDP should be paid. Whether any of us will liv long enough to see that happen is another issue. |
It's actually held at £714k in the 2024 annual accounts - note 7. Yes, I have always considered any recovery would be a bonus and a write-down likely. |
Is it time to write off the £600k that they owe us ? |
I think the reason they didn't do it themselves was the cost of meeting the regulatory requirements for the pit.
Unless it was something exponential it may be worth re-examining. I suspect that there is a fairly substantial difference in recovery rates, which given the price of gold, may make a difference.
The problem with all of this is that GDP are not in control of this. DRD are. |
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