Goldplat Share Discussion Threads

[michaelfenton] 28/4/2020 11:57

Kimboy I always bow to your superior knowledge and research so can you please tell me why you consider Kili has become quite a valuable asset and secondly if so why they have still not managed to dispose of it?

[shareholder7] 28/4/2020 11:45

Ghana is key as we own 100percent Tax is SA crazy and we only have 74 %If we could move all production to Ghana we would be making much more money but know this is not possible

[kimboy2] 28/4/2020 11:10

Yes I thought the best thing was Ghana. It is now at an annualised £0.8m operating profit. Any increase in supply will be at good margins as overheads are already covered.

We don't know how close to capacity they are operating but I suspect that it may be about 30%. Capacity was about 10kozs IFRC, and I think they also have a machine waiting to be assembled which could increase production by 50%.

It looks as though they have purchased another 20kozs at GPL. Can't have cost them a great deal from the cash numbers. I think the main cost is haulage and it probably isn't on site yet.

On Kili we are still waiting. I suspect that it has become quite a valuable asset while we have been twiddling our thumbs though.

[lowtrawler] 28/4/2020 10:06

Sorry MP2, I don't subscribe to L2. My experience is L2 only really helps with stocks that are heavily traded and so would be unlikely to add anything for GDP.

[maxplus2] 28/4/2020 09:57

Any Level 2 data please

[lowtrawler] 28/4/2020 09:56

Thanks DS2, looks to me as if there is considerable scope for price growth with gold pricing where it is. Could even be a multi-bagger if they can sort out the kili issue.

[dangersimpson2] 28/4/2020 09:39

Pros:
- Ghana op profit increasing further.
- Ghana now sourcing from Mali with Cote D'Ivoire to come.
- SA further sourced CIL material, secures half of production for next 3 years.
- SA restarted on 20 April.
- £1.7m net cash.

Cons:
- SA Op Profit lower than expected due to covid-19 reduced production at quarter-end.
- New TSF taking forever, with approval not due until December 2020.
- Kili costing more w/o ability to process artisinal tailings.
- no sign of Kili or Anumuso being sold anytime soon.

In terms of valuation, they are probably on for an EPS of 0.5p so a P/E of c.9. However, if you adjust for the non-cash losses that are associated with Kili it would be a 'cash' EPS of c.1.1p and a P/E of about 4. Shows how sensitive these metrics are to small changes in profitability. EV/EBITDA probably a better way of looking at this and with around £5m EBITDA likely for the FY, this is on an EV/EBITDA of c1.2 which still looks good value.

[shill10] 28/4/2020 09:39

correct Lowtrawler, welcome to the mad world of GDP. Don't forget nothing priced for sale of Kili, and nothing for 88,000 oz in the TSF (current gross value £115 million). The latter is the leverage on the Gold price, even assuming 50% recovery and 50% cost, you still get a profit figure many multiples of current mkt cap, as some of us have said many times before. But the mkt won't price it until it happens clearly.

[lowtrawler] 28/4/2020 09:26

The current share price seems nuts. The 9 months operating profit is over 3m and we have over 3m cash with the whole company valued at 7.6m. That's less than 2x annual operating profit or 1x annual operating profit if you deduct the cash from our price. This doesn't even take into account the gold price appreciation.

[michaelfenton] 28/4/2020 09:25

I am not sure Kili is a valuable asset. Progress otherwise is slow?

[michaelfenton] 28/4/2020 09:22

yes shill - not too bad but Kili still there draining money?

[shill10] 28/4/2020 09:20

Other points - Ghana improvement offsets Kili losses. No progress with Kili sale/funding, but hardly surprising in current environment, and its priced at negative in the share price and Werner clearly thinks he will be able to monetise it as keeps calling it a "valuable asset". TSF progress is encouraging ,if there is news on new TSF site and expectations of starting exploiting those 88,000 oz, that's when this really gets a rocket up it - all in all, the downside risks have abated big time for me (virus and sourcing), the major upsides creep closer but remain just out of reach for now.

[shill10] 28/4/2020 09:10

" Improvement in gold recoveries from lower grade contaminated material have been achieved with further initiatives to optimize to continue. In line with this a further 18 to 24 months of material have been secured, increasing visibility to more than 36 months in South Africa." This is massive - basically the sourcing problems that hampered GDP appear over for now as they can use lower grade material at decent margins. Over £3 mill cash as well as 36 months of supply makes this much lower risk than in the past.

[philjeans] 28/4/2020 09:07

Happy with that - bought 100k.

Miles to go here.

[shill10] 28/4/2020 09:01

RNS out - good news at first read - 36 months of supply to SA, still profitable and TSF timetable.

[michaelfenton] 28/4/2020 08:30

Kimboy - thanks for your reply. Kili is my big worry - there are loans involved and still C&M costs racking up. This is an ideal time to sell or take on a strategic partner. The window is open - please get this sorted guys?

[kimboy2] 28/4/2020 08:13

We will be updating the Market on the results for the 3rd Quarter during the month of April

I thought Monday would be the logical time, but in the present circumstances perhaps not.

With gold at 32,000 rand there can't be much bad news.

[michaelfenton] 28/4/2020 07:19

Kimboy - looks like update is a tad late. This could be either good or bad? What do you think? Waiting for something to be confirmed?

[michaelfenton] 26/4/2020 20:36

Kimboy - yes Kili should be sorted BUT we have waited a long time and I am nervous?

[kimboy2] 26/4/2020 16:58

Presumably there will be a Q3/20 update tomorrow. What are we expecting?

I would have thought that if they were ever going to do something with Kili then it is now.

[sea7] 26/4/2020 08:34

No problem wan

[wanobi] 26/4/2020 08:07

many thanx sea7, all very intriguing, cheers Wan :-)

[sea7] 25/4/2020 22:25

Martin runs a hedge fund and is a former banker. He lives in the Bahamas or Barbados, cannot remember which now.

He used to have a linked in page detailing this and I did publish it on this site, however, since then his page has been removed.

[wanobi] 25/4/2020 17:26

aha many thanx mf, glad I asked then, as I'd already spent an hour online and come up with nothing,,, interesting,,, he's obviously keen to get hold of a large %,,, cheers Wan :-)

edit, for the record I took a starter position on Friday morning,,,,, GLA Holders, cheers Wan :-)

[michaelfenton] 25/4/2020 16:59

wanobi - Martin Oii is a bit of a mystery? Most of us have tried to do our own research but come up with very little of any consequence?