Goldplat Share Discussion Threads

[lowtrawler] 16/12/2021 14:57

dinky, the agm does include provision to allow them to buyback up to 10% of the share capital. As previously discussed, not sure Martin Ooi will want them using that option!

I'm a bit disappointed Martin didn't get them to put a dividend on the table for the agm. Maybe we will get the TSF up and running in the coming year and start to exploit the hidden value.

[dinky00] 15/12/2021 12:00

The board needs to remember who owns the company

[dinky00] 15/12/2021 11:59

Who predicted we would end 2021 lower than 2020!?!The board needs to show a genuine commitment to the shareholders in 2022 (I suspect Martin Ooi will make this happen) or times up.They've made a couple of fvk ups in 2021 which would suggest they don't give a toss about the shareholders (hugely overpaying for South Africa, taking shares instead of cash for Kilimapesa). I've been a holder for probably 10yrs and the share price is basically the same. The mkt won't value GDP accurately, and at this point the board would be better served buying GDP shares in the market sub 7p instead of looking for investment into the business

[dangersimpson2] 13/12/2021 15:09

They have to get the AGM in within 6 months of the end of the period, and also get audited accounts published prior to the AGM if they want to approve them. Looks like they will have missed the amount of notice on this one already so will adjourn that resolution

The reality is they are a relatively small management team, including no CFO on the board, that have executed some really big changes this year - simplifying group structure, selling Kilimapesa, buying out most of the minority interest - so it doesn't surprise me that it has taken a long time to get audited accounts released.

Then when you add in the Travel Restrictions to and from South Africa and the board changes then that adds another layer of complexity.

I therefore seriously doubt that there will be any surprises in the Annual Report when it is released. And, although I much prefer an AGM at the beginning of October in London where you can go, meet management and question them face-to-face, then the online on Dec 31st is a necessary evil these past couple of years.

[camerongd53] 13/12/2021 14:28

I appreciate that we are in exceptional times but the directors are leaving it quite late issuing audited accounts for an online agm on 31 December.
I will be looking closely at the Funds flow statement to see how good GDP is at converting profits into cash

[dinky00] 03/12/2021 19:21

They had their AGM on Dec 31 last year, it's a complete non event. No need to speculate on 'burying bad news'

[swiss paul] 03/12/2021 16:40

Yep and alos this little bit of a peach. Anyone going?

Goldplat plc, the AIM listed gold producer, with international gold recovery operations located in South Africa and Ghana, is pleased to announce that its Annual General Meeting ('AGM') will be held at 11:30am on Friday, 31 December 2021 at the offices of Druces LLP, Salisbury House, London Wall, London, EC2M 5PS.

A good day to bury bad news?

[michaelfenton] 03/12/2021 04:24

SA in a financial mess?

[swiss paul] 02/12/2021 20:02

9.1% interest om a loan. am assuming they 'loaned' from an interested party! Even Barclays would not fleece me that much on a loan

[kimboy2] 25/11/2021 21:13

I see that SA is back on the travel red list because of a new Covid variant. The rand is probably going to get panned, which should be good news for GDP.

It's an ill wind...

[dinky00] 23/11/2021 17:43

Any feedback from the presentation ?

[kimboy2] 12/11/2021 19:44

A bit of blurb on GCAT;



Today it is processing well upwards of the 200 tpd Goldplat was sometimes achieving – averaging above 500 tpd and on occasion in the region of 600 – 700 tpd.

“This is the result of refurbishment, optimisation and reconfiguration work on the existing plant. Based on this current plant’s delivery and some additional work we have in the pipeline (a new crushing circuit and incorporation of a second ball mill), we are confident of increasing this to 1 000 tpd which will position this mine as a 25 000 ozpa producer from which we can comfortably continue to operate for more than 25 years,” Brewer confirms.

[ih_692232] 12/11/2021 13:38

Low trader
Thank you …yes I have been a shareholder for many years… since before the last dividend was issued!
Martin I believe is very driven to ensure shareholders receive a return after many years when there has not been such a focus and the major key is getting the SA stockpile worked through
The rest of the business seems in reasonable order the bread and butter will realise good profits but the icing is the stockpile
Maybe it will take another 5 years or more to work that down to nothing but it should yield immense profits relative to this company’s size and current capital value
Alm

[lowtrawler] 11/11/2021 23:59

kimboy, I believe they made the dividend comment before Martin joined the Board specifically to look at releasing shareholder value. I anticipate we will get a new announcement on how they intend to manage distributions.

As you say, the loan repayments will limit what they can do but I am looking forward to their proposals.

alm2, welcome to the Board. I assume you have waited a long time for an event that will release the asset value? Hopefully Martin is the key and you will be rewarded for the patience shown.

[kimboy2] 11/11/2021 22:29

The company have said;
Any distribution declarations will be applicable on net earnings after 30 June 2021...

That would suggest a divi isn't imminent. They are paying over £1m/pa in capital repayments for this loan over the next 3 years so that will cramp their style a bit.

[dangersimpson2] 11/11/2021 21:37

Not sure that fixes it! If they do a tender offer then MO would need to tender more than the rest of shareholders to reduce his percentage and who would want to tender for no premium knowing that it would be to enable a subsequent buyback at higher prices! Plus a tender offer costs money to organise.

A dividend is the only reasonable option. Let’s just hope they can start paying one sooner rather then later.

[ih_692232] 11/11/2021 20:54

Not sure if I have ever posted before but I have shy of 2 per cent share holding in the company
So the question I always go back to is how much profit will be yielded over time from the 82,000ounces of gold in TSF … what at say 600 dollars per ounce
Profit-Over 50 million -so my share of that would be circa a million
Martin - 15 million ?

One day the cash will have to flow back to the shareholders

Question of time and how much how soon

Less shares in issue on buy back less to share it between

Or dividend it out

And of course share price will reflect these matters
Martin will push for buy back or dividend or both
Some of us have waited a very long time
Alm

[kimboy2] 11/11/2021 16:39

They could have a capital repayment of say 10% of the shares at 7.5p. That would solve the problem of MO going over 30%. Would also have tax advantages as would be a capital gain rather than income.

[lowtrawler] 11/11/2021 15:29

My guess is GDP have been valued similar to an explorer. Lots of undeveloped assets which can be turned into cash through investment but until it happens, you only get a few pennies in the pound on the underlying asset value.

I liken the involvement of Martin Ooi to a funding event for the assets. He will insist on money being returned to the shareholders and support investment to turn our existing assets into cash. In reality, not much investment is required. Using my earlier analogy, I believe we are moving from explorer to producer where full value for the assets can now be realised.

It will take time for the market to recognise this step change. Introduction of a dividend will be the first step but I reckon it will be 3 years or more before the market more fully reflects value.

[michaelfenton] 11/11/2021 14:48

Agreed Martin Ooi holds the whip hand and is sitting pretty with Gold likely to be quite a bit higher in future.

[lowtrawler] 11/11/2021 14:35

dangersimpson, Martin Ooi is clearly going to drive decisions on dividends and buybacks. As he already owns close to 29%, he is unlikely to support buybacks else he will be forced into selling some or launching a bid.

He is a Doctor and Goldplat is an unusual investment within his family portfolio. I guess he is diversifying into a safe haven like most of us. Consequently, I don't believe he will be interested in launching a bid. This being the case, he will want as high a dividend as possible from his holding.

I believe we can rely on Martin ensuring a dividend is introduced and at a relatively high level.

[dangersimpson2] 11/11/2021 14:09

I think we really need them to start to pay a dividend soon, even if it is a relatively nominal sum. The message needs to be that shareholders will be sharing in the cashflows of the recovery operations, not just ploughed back into the business.

I understand why they have been reluctant to do so in the past - the ability to increase their holding in the SA subsidiary is a one-off, they have some very good uses of capital going forward on rapid payback times & high IRR plus their working capital position can vary significantly.

We obviously don't want a business that pays a dividend and then needs the cash, but delaying an investment by a few months to allow a dividend to be paid would be a powerful signal to the market, even if a simple IRR suggests that the money would generate a high return re-invested.

The other option would be a buyback. This would be even more value-enhancing than paying a dividend - if you consider that they paid a read-through valuation of £20.2m for a portion of the South African operation, Ghana is probably worth similar given its profitability & growth profile, they have £1.6m GCAT shares and about £0.8m net debt, then they would be buying shares at around a 70% discount to their internal value estimate. Also, on an earnings basis, this is probably on a forward P/E of somewhere between 2-4. So any growth capex would need to be on a return on capital of 30-50% to beat a buyback of their own shares.

I think realistically they couldn't get the volume to buyback any significant volume of shares, but, like a dividend, even committing a small amount of capital to a buyback would be a powerful message to the market.

[kimboy2] 11/11/2021 13:26

Don't think you can go far wrong betting against the Rand.

[shill10] 11/11/2021 12:42

agreed,Dangers. Seems to me most shareholders still traumatised by the past of profits being wasted on Kili, now that this can't happen then Gold price strength flows straight through to the bottom line - plus we have Ghana performing the best it has and improving each quarter. And due to minority buyout shareholders own 90% of SA upside now, all in all a great mix.