Goldplat Share Discussion Threads

[lowtrawler] 22/4/2021 16:33

ds2, I think the dividend policy will depend on what Martin Ooi wants. Once planned debt repayment and investment is take care of, they should still have spare cash. If it can be invested in GDP for a higher return than Martin can get elsewhere, great. If not......

If I were Martin, I'd look at a potential 1p dividend and the likely impact of that on the share price. In my view, the share price would rise 4.5p and possibly more, together with the 1p dividend, that's a 5.5p return, pretty much doubling his money. Take another 0.9p as a special divi for kili.......

[dangersimpson2] 21/4/2021 23:28

They won't pay a dividend this year since the cash is earmarked to repay the expensive loan and invest in planned capex. They get big swings in working capital too so they will probably want some spare capacity there before paying any sizable dividend.

If they get the Papillion money in cash though there may be some surplus. TSF processing will take capex if they do it themselves so they may retain some for that, but of course, if they are able to accelerate the TSF, the NPV of cash flows is much higher invested into processing the TSF than paid out as a dividend.

[michaelfenton] 21/4/2021 15:35

I cannot see any good reason for buybacks compared to dividends? Assuming the Kili business is finalised soon and Ghana continues to expand then divis should be on?

[kimboy2] 21/4/2021 15:24

The problem with dividends for GDP is that their profit record has proved to be 'patchy' in the past.

Of course if they do as Werner has suggested and get a heap that will guarantee five years supply of material then that patchiness will become somewhat less of a risk.

They could always do buybacks.

[michaelfenton] 21/4/2021 14:46

I get the suspicion that they are cagey re dividends. Not sure why I feel like that?

[lowtrawler] 21/4/2021 13:50

MF, I reckon if they announced their intention to pay dividends along the lines I suggested, the current price would be 12p or more.

[michaelfenton] 21/4/2021 13:14

Lowtrawler -dividends would suit me fine and also boost the share price

[lowtrawler] 21/4/2021 13:01

MF, PPHP are just a shell and their past history has no baring on what is happening. As Kimboy indicates, they will likely already know who is going to invest and how much. The delays are around getting the prospectus approved and it is always difficult to know timing for that. My guess is they will pay us £1.5m cash rather than us retaining an equity stake.

At current share price, we have a market capitalisation of under £13m. If we get £1.5m cash for Kili, that's only £11.5m based on trading. We should be making around £4m net profit at current mineral prices and so less than 3 years trading - never mind that we have much more valuable assets. Whether you look at asset values or trading cash flows, the share price has a long way to rise. If the TSF adds to our operating profits, the ratios will start to look very silly.

I still like the idea of GDP paying the £1.5m kili proceeds as a special dividend (0.9p) and then 1p per annum as a routine dividend. It should still leave them plenty of spare cash to develop the business.

[kimboy2] 21/4/2021 12:47

ISTR that Papillon were talking about a run rate of 25kozs pa by Q2/22 and increasing to 50koz pa.

If you take a very modest profit of $500/oz then the numbers soon look very good for a relatively small investment.

I expect that they will raise the cash. Hope is a very saleable product.

[michaelfenton] 21/4/2021 12:07

ha Kimboy2 I feel sure you have worked all this out? The metrics or the numbers you know what i mean?

[kimboy2] 21/4/2021 10:51

I would have thought that the numbers for Kili, based on the plans, would look very impressive.

IIRC they were talking about an initial rate of production of 25kozs.

IMV there is good money to be made at Kili by someone for a relatively small investment.

The problem with these small mines is that they are a gamble on execution. It would be interesting to get records of what had been produced at what cost so far.

I think they will get the money and I would expect it is already lined up waiting for formalities.

The big news coming shortly for GDP is the TSF. Hopefully once the permission is received we can get on with it.

It would be nice to get the metrics on profitability of the TSF.

[michaelfenton] 21/4/2021 08:06

Well I hope they raise the money but if not GDP will recalim Kili and it must be more sailable now it is back in production?

[encarter] 21/4/2021 07:35

Long wait. I'm a PPHP shareholder and they have been suspended for almost five years. I have everything crossed that they can raise the cash but it's dragging on again which is a worry.

[michaelfenton] 21/4/2021 06:31

Yes Papillon raising the required money was always a slight worry for me? Presumably GDP are keeping a close eye on things but Papillon has a chequered record?

[lowtrawler] 20/4/2021 07:45

Given the silence, think Papillon could be another month extension. Our operating results should still impress though.

[michaelfenton] 19/4/2021 15:45

Yep it has been a long wait for news but we have some as you say dangersimpson X 2 by th end of the month. Hopefully all well. GDP is always the forgotten GOLD linked share?

[dangersimpson2] 19/4/2021 15:23

With the gold price strengthening & capital flowing back into the sector, I think the market makers got caught short of stock here since even small buys have been moving the price.

Should get Q3 results by the end of the month plus finally the listing of Papiilion which will give the read through for the GDP stake.

Hopefully these will begin to push the share price above recent highs.

[kimboy2] 13/4/2021 20:03

Well it wasn't me.

The approval for the stock dam is due shortly and once that happens, and they start on reprocessing, then GDP share price will start to reflect its assets.

[michaelfenton] 13/4/2021 16:20

A 1/2 mill share sale just registered?

[pog1234] 08/4/2021 07:10

Something for GDP to look into... would fit nicely...

[russman] 04/4/2021 21:18

another missed self imposed deadline.

[michaelfenton] 30/3/2021 10:29

No I do not think so.

[pog1234] 30/3/2021 10:03

Are the rats leaving the ship?

[michaelfenton] 26/3/2021 08:16

RNS on PPHP share signing with Mayflower. Check on LSE.

[lowtrawler] 24/3/2021 13:53

It's another unexplained oscillation, this time in a welcome direction.