Goldplat Share Discussion Threads

[kimboy2] 09/2/2022 16:08

The numbers for GCAT looked encouraging on the face of it. They claim an operating cost of $960/oz with relatively low grades. These may well be weasel numbers and I would like to see a breakdown of what is actually being calculated.

I suspect it will all end in tears, but hope is always the bait.

[lowtrawler] 09/2/2022 12:34

ds2, we should get our 6 months trading update in the next few days. It may also give them an opportunity to propose a dividend. As previously discussed, I will be disappointed at anything far from 1p.

As for Caracal, I was disappointed we chose to take shares. 500 people to produce 12k ounces per year + financing / royalties / head office / directors / investment / utilities etc etc

[dangersimpson2] 09/2/2022 11:33

1koz month is about $200k/year to GDP as the net smelter royalty at current gold prices. Would be $400k/year if they get to 2koz.

I think Goldplat's intention is to pay this royalty out as a dividend, so this would be an extra 0.1-0.2p pa on top of whatever they choose to pay from normal operations.

As a mature company, I think they should be aiming for a 30-50% payout ratio from normal operations, which would give an overall dividend of between 1-2p.

It's not going to suddenly happen this year, but I suspect it could happen quicker than a c.7p share price implies.

[lowtrawler] 09/2/2022 11:27

yet they claim operating costs of under $1k per ounce!

[michaelfenton] 09/2/2022 11:11

500 employees producing 1k ounces WOW that is exciting????

[lowtrawler] 09/2/2022 10:22

Caracal gave an update today and is on the biggest fallers list. 500 employees on-site at Kili, aiming to produce 1k ounces per month, further investment needed to increase to 2k ounces per month (final target).

[lowtrawler] 01/2/2022 14:41

Sleepy hollow round here. Stable and unexciting earnings, not much progress. Keeps the share price range bound. Think investors are all waiting for dividend or TSF announcements before trading.

[camerongd53] 31/1/2022 09:21

updates etc
THe quarterly update usually appears towards the end of the month following the quarter end but last year the Dec update was issued in the 1st week of February.
The half year interim results were announced in mid March.

[kimboy2] 24/1/2022 08:18

Thought we might get an ops update today as there is the AGM part 2. They seem to be later these days.

[lowtrawler] 14/1/2022 11:45

DS, it depends where the share price is. In my view, if they were paying a good dividend and demonstrating shareholder value, the price would be above 15p. At times of stress, they could likely then raise at 10p. Much better than where we are now and where we have been.

[dangersimpson2] 14/1/2022 11:17

I agree, raising money in times of stress is a recipe for disaster. If you get it away the dilution removes all the upside to existing holders.

Imagine they'd paid 2x1p extra dividends in the good years and then ended up having to raise that c£3.3m from the market when they had the RR issue and the share price was 2.5p. They'd probably have got it away at 1p and now there would be 3x the number of shares in issue and the share price would be 2.3p today.

A listing is great to raise money for growth prospects at a time of strength. If the share price ends up somewhere way above the 20p+ that is the read-through valuation of the existing recovery ops and they want to raise money at a minimal discount to expand the recovery ops then that would be a good use of the listing. A rescue placing that dilutes existing holders at the worst possible time is not!

Thankfully, we are now a long way from needing a rescue placing and a lot closer to being able to grow the business, even if this hasn't yet been reflected in the share price.

[kimboy2] 14/1/2022 10:24

If you use the capital markets to get you through stress events then you get diluted down to sod all.

They did raise £5m about 10 years ago or so and the powers that be at the time spent it on mining projects.

[lowtrawler] 13/1/2022 16:48

DS, one of the reasons to list on AIM is to give access to capital markets. It allows you to raise cash from shareholders when stress events happen. It avoids you having to tie up capital for stress events that may never happen and to return the capital until such point the shareholders need to give it back. It means you don't need to enter into unwanted agreements to see you over short disturbances as you can tap the shareholders for capital.

Successful use of their AIM listing would mean taking action to maintain a high share price so that future capital raise can be performed efficiently. GDP have an AIM listing which has been conferring few benefits.

[lowtrawler] 13/1/2022 14:58

AIM companies always have a danger they are run for the Director's and employees rather than the shareholders. Unless you have major institutional or private shareholders exercising direction, there is a lack of stewardship. GDP have always been financially solvent and so the Director's have had money to play with. It made them vulnerable to Director whims and interests, regardless of risk.

It's another reason having Martin on board will help.

[kimboy2] 13/1/2022 13:29

I had forgotten that Werner already had 3 million at 3.05p



Not quite sure why he got some more.

It seems to me options may make management less risk averse, perhaps more so than their investors, because the relative return is greater for them personally.

Might partially explain how Kili came about.

[dangersimpson2] 13/1/2022 13:11

Good to see the share price has to be above the current mid-market price for the options to be worth anything. Too many companies these days issue nil-cost options that provide little incentive to management to perform.

[kimboy2] 13/1/2022 12:00

Options not as generous as some previously.

[lowtrawler] 13/1/2022 10:41

MF, I exited GDP for a number of months but rejoined in July with a reduced holding.

There are 2 reasons I will continue to hold: Martin Ooi, and; the TSF.

I believe Martin will extract a regular dividend from them. As long as it is 0.7p or over, this should result in a re-rating for the share price

The TSF should now get more management attention and be brought to a conclusion. I'm not holding my breath but at some point in the next 18 months, I hope we start to get benefits. If this starts to flow through the income (and appear in the dividend) we can easily double the current share price

[michaelfenton] 13/1/2022 09:03

summed up very nicely charliepapa. Shareholders are forgotten and time to concentrate management on core business and the unresolved piles that need to be monetised? I sold some yesterday and down to 100,000 shares from 750,000. Just keeping a few in case the management buck up their ideas.

[lowtrawler] 13/1/2022 08:59

There is a common complaint for AIM companies they only provide returns to the BOD. It has certainly been the case at GDP and needs to change.

[charliepapa] 13/1/2022 08:42

im in almost 10 years and agree with alm2.
now kili is gone it is becoming difficult to justify the management costs on a small company.I think it should be a good little business and i want some gold exposure but i cant park money here forever for nothing.

[ih_692232] 11/1/2022 16:52

This company has been reinvesting capital for years
I have had one dividend payment in the past ten years or more

Get the dividend policy to the fore -pay a dividend - then see what is left and wise thereafter to reinvest into the business
But shareholders and dividends have got to come first

That has not happened in the past decade
The only ones who have made any money are the board

It’s been a private gravy train club for way too long
Alm

[ih_692232] 11/1/2022 16:52

This company has been reinvesting capital for years
I have had one dividend payment in the past ten years or more

Get the dividend policy to the fore -pay a dividend - then see what is left and wise thereafter to reinvest into the business
But shareholders and dividends have got to come first

That has not happened in the past decade
The only ones who have made any money are the board

It’s been a private gravy train club for way too long
Alm