Goldplat Share Discussion Threads

[lowtrawler] 06/5/2020 11:09

Some of the undervaluation is really quite absurd. I was attracted by a post made by kimboy2 on 18 April regarding some contaminated stock we purchased for £600k.

Synopsis of this was that it was said to be marginally profitable at a Gold price of 16,000 RAND. Kimboy2 had estimated that at an 80% recovery rate, it may contain 6.4koz. On further probing, it may be more realistic to assume a 40% recovery and so 3.2koz. Gold is now at 31,600 RAND.

Kimboy2 also made the point that since we purchased the stock, we have installed new machinery with a higher recovery rate and a reduced cost to perform the recovery.

On this basis, you can be fairly certain that we will make around 17,000 RAND per Oz recovered (900 USD). With 3.2koz recovered, it will be a gross profit of 2.9m USD - deducting tax and minority interests, we will be left with around 1.5m USD (1.25m GBP). Not bad from a small contaminated stockpile that represents a fraction of our pipeline.

[lowtrawler] 06/5/2020 10:22

Trying to register at share prophets in order to read the tip but struggling. Can you summarise?

[lowtrawler] 06/5/2020 10:17

I think the problem is that we're seen as a dirty, scavenging, small time, opportunistic business. We take others waste, get dirty, and turn it into gold. Big investors think this is beneath them.

[sea7] 06/5/2020 10:08

low trawler

£9m mcap

operating profit/loss for six months ending december

2018 - loss £653,000
2019 - profit £2,221,000

a swing of over £2.8m to the upside.

cash in the bank at end april was £3.2 million.

With gold at $1700 and above, currencies being weakened, the outlook is favourable for gold companies.

we have an asset base far in excess of the current cap. Undervalued as usual.

[lowtrawler] 06/5/2020 09:53

It could just be returning to a fairer reflection of underlying value. 2m shares is only 100k and so might just be a value investment. I'm not a big time investor and still have 400k of these shares.I don't have anything like the insight that other posters on this board do. My assessment is that anything below 8p screams outstanding value. Unless we get unexpectedly bad news, I expect us to tick up on a weekly basis to over 7p.If kili can be resolved..... Maybe add a further 2 or 3p? What do others think?

[michaelfenton] 06/5/2020 09:45

Yes recent positive comments - Hot Stock Rockets tip.

[shareholder7] 06/5/2020 08:34

Any thought here guys why the uptick?I saw 2m shares traded yesterday could this be the start of a takeover ?If you want to buy Kili then why not buy the whole company at these prices.

[maxplus2] 05/5/2020 10:42

Looking positive today

[russman] 05/5/2020 09:36

Sourcing suitable material still seems to be a problem.
Might be useful to publish what is held in stock / WIP.
Some broad measure i.e estimated ozs owned in WIP by subsidiaries.

[russman] 04/5/2020 11:57

Still disappointed GDP do not give more detail in their update.
Tonnes processed, ozs sold etc, etc
Operating profit is too vague

[michaelfenton] 02/5/2020 14:18

Ha Kimboy I agree with all this - : Predicting the price of gold is a mugs game: but you are confident that the price of gold is going to remain high for some time: Looks like a prediction to me? Everything else makes complete sense.

[kimboy2] 02/5/2020 10:39

Predicting the gold price is a mug's game but notwithstanding that I am fairly confident that the gold price is going to remain high for some time.

One thing that hasn't been mentioned much is the secondary effects of the crisis. The government debt around the world and the recession.

In particular another Euro crisis is brewing. What are Italy, Spain and Greece's debt levels going to be when it is all over. Are haircuts coming for bond holders?

Overall I think that there are various things that GDP have to do to maximise potential, but is a rising tide that will float all gold boats.

[sea7] 02/5/2020 09:35

gold at $1700 is generating significant free cash flow yield in the gold miners - which incidentally is one of the few sectors doing well in this crisis.

The miners still lag the gold price. Add this to the mental money printing and gold miners will soon move higher.

[michaelfenton] 02/5/2020 08:15

What to do all weekend? Oh yes I know try to follow Kimboys lead and do more research. I am looking into the past to see where Gold might go. Firstly the stock market especially US cannot sustain these levels forever whatever Trump says.The crash will come and then hopefully POG will rise accordingly. It may take a while and be a tad volatile in the intervening period. I hope GDP will be ready to take advantage. Even more stockpiling for starters. Expansion in Ghana and disposal I hope of KIli (not core business) we are not miners?

Enjoy the weekend.

[sea7] 01/5/2020 11:47

shareholder

the installation of the elution column in ghana removed the process of grg sending concentrate to south africa to be eluted before going to rand refinery - there was a charge for this to the ghana plant from SA plant.

now ghana elutes its own material and sends direct to the refinery and not necessarily rand refinery - as they have others online now.

There is also an elution plant in kili

[kimboy2] 01/5/2020 11:45

Given that Kili will at some stage be sold and assuming whoever buys it will expect to make a profit, then the losses are an asset.

If you can make £10m profit then being tax free is an asset.

As for Ghana being the growth area I think that Gerard said this several times, though I don't think they are mutually exclusive.

[sea7] 01/5/2020 11:40

no offence taken camerongd53

[camerongd53] 01/5/2020 11:38

SEA7
Apologies for any offence you took.
The structure of GDP may not be the most optimal, whether tax or otherwise.
The tax losses at Kili are a potential asset only if an owner which may include GDP can use them against future profits. I would only consider tax losses an asset if we can get anything for them.

[sea7] 30/4/2020 22:09

Camerongd53

I have made no post regarding governmental taxation - I presume you mean someone else.

[camerongd53] 30/4/2020 21:11

Sea7
You appaear to me naive on how governments operate tax. I know of no government that allows its resident companies to set losses made by subsidiaries in other jurisdictions against profits in companies profits made in their home country. If this were legitimate, government would hardly receive any tax revenue from companies AS Corporate Tax would become voluntary and an even bigger industry of tax avoidance planning would be created .
My recollection (very old and possibly mistaken) is that when a company is sold in the UK, tax losses can be lost if there is a change of ownership - I am no expert on Kenyan law either.

[shareholder7] 30/4/2020 10:20

Thanks for the correction but the point is that Ghana has more potential than SA if they can get material.The issue with GDP is it is very tax ineffective. As you say lots of tax losses in Kenya but we are paying 30 to 38 percent in SA and we can't nett off as all separate companies.I would assume that the tax losses at Kili would roll over if we sell, so in effect these are an asset to any buyer. Amazing that we are no where near selling this supposedly valuable assets.

[kimboy2] 30/4/2020 09:14

Not quite because these is a 15% tax rate in Ghana and 5% on all gold produced.

The return to GDP of pre tax profit is something like 53% in South Africa and 75% in Ghana

In Kenya, if they ever make a profit, there is about £10m of losses to absorb.

[shareholder7] 30/4/2020 08:41

Thanks Sea1000 profit in Ghana is the same as 2000 profit in SAHopefully there is plenty of space for growth.

[camerongd53] 29/4/2020 22:21

overall I was neither disappointed nor ecstatic with yesterday's results.
Lack of progress with Kili, TSF & anumso is disappointing and is going to be difficult in the current Cov19 environment.

Hopefully in the next few months progress will be made and I am expecting a higher share price next year even without progress onKili and TSF

Very surprised with the share price yesterday when it dropped like a stone but was relieved when it bounced back. Over the 2 days it has dropped slightly which I think is not justified