Goldplat Share Discussion Threads

[shareholder7] 31/3/2020 08:39

All tied up in gold and silver Michael although added a small amount.Think we need to see if SA goes back to work in two weeks time and if that happens then will buy more at these prices if we start production again.Risk is if SA wants to crash the economy as in the UK, which will be a worse mess than the virus. We all need to go back to work as soon as the wonderful NHS has all the equipment

[michaelfenton] 30/3/2020 17:02

shareholder7 - if you still believe then you have to sell something else even at a loss to buy more GDP? I have not purchase anymore today but will again soon at this price. It is complete madness. The main drawback is how long will SA stay in lock down as it will not work there due to cultural differences.

[shareholder7] 30/3/2020 15:41

Think we have all run out of money to buy at these bargain prices.

[shill10] 27/3/2020 14:44

agreed, as usual illiquidity in the shares is the main issue.

[sea7] 27/3/2020 14:32

thanks shill

personally, the company is in a very strong position to weather this situation.

[shill10] 27/3/2020 14:12

thanks Sea.

[sea7] 27/3/2020 13:56

The bulk of the liabilities is the trade and other payables.

last accounts showed £2.8m received in advance - in other words from the scipion active trading fund - this is paid back when gold is sold - so no issues here.

£4.6m is accrued expenses, such as wages/utilities/goods services consumed but no invoice received.

the rest is trade payables.

also you add in some interest, taxation, overdraft and finance lease obligations and we just about cover it.

[shill10] 27/3/2020 13:28

also Werner will, under major shareholder instruction, have to reduce the wage bill, that is happening everywhere where lockdown means zero production eg Airlines here in the UK.

[shill10] 27/3/2020 13:25

Thanks Sea - presumably a lot of the current Liabilities would be production-related ? ie raw materials, electricity/fuel etc so are rapidly reduced when in lockdown ?

[sea7] 27/3/2020 13:12

goldplat full wage bill as at last accounts was about £416k a month and total
current liabilities stood at around a million a month.

So, assuming Werner keeps everyone on and pays them in full and it lasts 3 months, we are paying out £1.3m in wages and potentially another £1.7m in current liabilities
(just depends on the payment schedules of current liabilities - werner may be able to defer for six months or more on some.)

Werner said £2.8m in cash and a £500k facility - in my view, that gives us three months without cutting anything or even blinking - but we would be down to the last few quid of spare cash by then.

Werner could get a reserves based loan out against the TSF, I guess for a couple of million if needed - probably wouldn't be too arduous.

[shill10] 27/3/2020 11:53

my plan is to hunker down and do nothing. Those of us who have been here a long time know how illiquid GDP is and in these extraordinary times who knows what can happen to the share price short term. I'm not worried that the company won't get the chance to monetise its assets though, we have plenty of cash - in the absolute worst case there will be several interested parties (Martin Ooi/DRG ?) who will want to buy assets from GDP if they need to be sold, but I do not see that happening at all - South Africa can't afford a long shutdown, it has regrettably no option but to go the "herd immunity" strategy with limited healthcare/resources and a young population, so the terrible situation will be through the other side relatively quickly, which for GDP is what matters.

[michaelfenton] 27/3/2020 11:37

Have yet again added a small number (20K) this morning. I cannot seem to help myself and just worry that SA will become even more messy? But longterm is great and we have plenty of cash to be going on with.

[fenton1234] 26/3/2020 17:48

Likewise Lowtrawler bought on the dip today looks good value

[lowtrawler] 26/3/2020 17:21

I've dipped my toe in here. The balance sheet looks good and so they should be able to survive a period of shutdown. The massive QE can only be good for gold over the next few years and so this looks like a temporary blip to me.

[dinky00] 26/3/2020 16:42

and you couldn't buy anything at 7p a few weeks ago. Wasn't is supposed to be coming up on 20p round about now??

Another disaster to add to the list

[shareholder7] 25/3/2020 19:11

Yes sorry what I meant was the MM are selling as much as you want

[michaelfenton] 25/3/2020 19:01

Yep shareholder MAY BUY EVEN MORE GDP TOMMORROW but who knows when it will pay off?

[shareholder7] 25/3/2020 16:30

Yes go to bullionbypost.co.uk nothing available GDP however you can buy as much as you want

[michaelfenton] 25/3/2020 16:26

I tried to buy a small amount of Gold Bullion today and failed. Swiss gold bar production has halted. Is this the beginning of a Gold and Silver shortage especially if mines are being asked to shut down - however temporary that might be?

[shill10] 25/3/2020 08:58

bottom line is South Africa won't have the option of a super long shutdown that maybe richer countries that can borrow more easily could. So perversely that should limit the disruption for GDP.

[shill10] 25/3/2020 08:55

Sea and Kim, what is the profile of debt on the balance sheet,repayment dates etc if you know off hand ? We knew this had happened already, obviously not good but its what the market has been pricing in for last few weeks. On the plus side £2.8 mill cash is a decent increase from last results from memory which shows business was cash generative, guess the question is how long that will pay the bills for?

[michaelfenton] 25/3/2020 08:37

Someone still disposing - but they will be snapped up? SA is total turmoil which is a worry. 20% of the population have HIV and they have been through Ebola. My view is that the black population are fatalistic and will shrug all this off (you will either dies or you will live. The question remains as to how long Goldplat cannot trade. Somehow 3 weeks seems a tad optimistic. Time to concentrate on business in Ghana and Kenya? A perfect op to concentrate the mind. Rand still collapsing.Next update will be interesting?

[michaelfenton] 25/3/2020 08:37

Someone still disposing - but they will be snapped up? SA is total turmoil which is a worry. 20% of the population have HIV and they have been through Ebola. My view is that the black population are fatalistic and will shrug all this off (you will either dies or you will live. The question remains as to how long Goldplat cannot trade. Somehow 3 weeks seems a tad optimistic. Time to concentrate on business in Ghana and Kenya? A perfect op to concentrate the mind. Rand still collapsing.Next update will be interesting?