Goldplat Share Discussion Threads

[lowtrawler] 06/7/2022 16:47

Didn't see that fall coming!

[arlington chetwynd talbott] 06/7/2022 16:22

And even more so now!

[arlington chetwynd talbott] 05/7/2022 11:08

Hopefully they are cracking on with buybacks at these levels!

[itsyou] 05/7/2022 08:56

Mali borders back open, which should assist Ghana supply issues.

[lowtrawler] 03/7/2022 16:22

kimboy, if the initial causes of inflation have no knock-on impacts, you are correct. However, as with the 1970's, the initial shock of oil and commodity price increases fed through to higher finished goods costs which fed through to higher wages and we got a spiral of price increases.

It seems to me that Western governments are pinning their hopes on wage and price restraint so that the spiral does not happen this time. I believe that is wishful thinking. When the initial cause of price inflation is a distant memory, the knock-on impacts will continue to fuel inflation.

[kimboy2] 03/7/2022 08:20

Well IMV interest rates do not have to rise to the inflation level to control price rises. There is already a big squeeze on the economy from rising prices, reducing real income and the rise in interest rates.

Next year some of the large increases will be dropping out of the numbers and we will find that inflation is going to fall fairly rapidly, assuming there aren't any more shocks in the pipeline.

Crypto currencies have dented the rise in gold IMV and hopefully they are going to collapse in the not too distant future. I saw that the BoE were doing financial stability tests for the cryptos becoming worthless.

I think cryptos will be regulated out of existence.

[michaelfenton] 03/7/2022 06:35

Hope you are right Lowtrawler.

[lowtrawler] 03/7/2022 06:13

itsyou, if Central banks really don't manage to increase rates to at least match inflation, there are 2 inevitable consequences:1. Inflation will move out of control.2. Gold pricing will head higher than our wildest dreams.Remember, countries can always service higher interest rates with QE! It's economic madness but so was QE over the past 10 years. Do government's really care if their citizens go bankrupt and lose their homes?As I see it, fiat currency underpins all current economic regimes and the greatest risk to that system is inflation. If Central banks lose control of inflation, the whole world economy breaks down. I don't see they have a choice but to move to double digit interest rates. The impact will be a 1930's style depression.

[itsyou] 02/7/2022 19:16

B23,
Wow, that's a massive gamble switching from GDP with a PE of ~3, with profits set to further increase, to one with a PE of +27 with profits declining.

BTW, watch forward looking rates drop, as recession fears take effect.

It's all bravado from the central banks wrt rate hikes, as they know they can't afford the interest on their debt with higher rates, while they also know the public who are in the same boat, can't do the same either.

[blackhorse23] 02/7/2022 10:22

Raising interest rates pushing down gold prices, I have switched to MCL which is making profit 7.50 million & revenue over 200 millions

[camerongd53] 01/7/2022 16:45

About a week ago the shares were nudging 10p
Dropped today to 8.35 with no announcement from the company

How do describe this - absurd, Irrational etc.

[lowtrawler] 01/7/2022 14:37

lower pog and general market malaise are both headwinds. Fundamentals have not altered. If it falls further, company should look at doing more buybacks.

[camerongd53] 01/7/2022 14:20

Now its July, we are in a new financial year.
Quarterly update due about the end of thee month and annual results due about a month later.
Update on TSF due sometime.

Good news could be positive for the share price

[lowtrawler] 23/6/2022 16:16

ACT, relax. It appears to me we are settling into a new trading range of 8.6p - 9.6p pending next developments. A couple more announcements on the TSF and a good trading update will move us up.

[arlington chetwynd talbott] 23/6/2022 15:37

I really miss the buybacks.

[arlington chetwynd talbott] 22/6/2022 15:01

I miss the buybacks.

[kimboy2] 16/6/2022 10:11

I would have thought the quickest and easiest way to build the pipe would be to mole it. Not sure how deep the soils are at Gauteng but a metre would allow this.

[norry2] 16/6/2022 09:59

Good points LT. Cheers.

[dangersimpson2] 16/6/2022 09:58

I’ve no idea I’m afraid.

[lowtrawler] 16/6/2022 09:46

Norry2, I think there is more unannounced knowledge on the TSF than today's announcement:

- Expected Recovery Rates
- Heads of agreement with processing partner
- Likely pipeline costs and timeline
- Updates on JORC resource - it is widely believed the 82k is now nearer to 100k

[norry2] 16/6/2022 09:40

Is it likely that the Board's knowledge of progress on the TSF preparation was what stopped the share buybacks? If so, is it possible they restart shortly?

[lowtrawler] 16/6/2022 09:33

ds2, what's your view on pipeline build time?

[dangersimpson2] 16/6/2022 09:30

This is very good news, licensing is always a risk for these sort of things and water was the big one since it had the potential to impact all operations.

I doubt there is much risk of licensing for the pipeline since lots of pipelines have historically run through the area and I think even some of the culverts etc will still be in place.

The time required to build the pipeline may be the biggest factor going forward. At current gold prices and 50% recovery then this will be highly profitable, and while there is certainly a lot of variables, the TSF profits will be very material compare to the current share price.

What you have to consider is the time value of money though. The cost of capital here is high given the location of operations & industry. I am certainly not invested here for a 5% annual return but for the reasons that WH Ireland point out on their latest note - this could double from here and not look expensive even excluding the TSF & PGM potential.

The high cost of capital means that the sooner they get the TSF processed the better and hence getting water permits on-time is such good news. The other side of this is that with a high cost of capital the value of the TSF to equity holders rises rapidly as they de-risk the project and approach production.

[lowtrawler] 16/6/2022 09:27

MF, those will be the limit orders set at 10p. Always difficult to gauge what's really happening on the day of an announcement. I'm looking for it to settle into a new range over the next 2 weeks. Movement after then will depend on buybacks / dividends / pog / general market as the current news should be baked in.