Goldplat Share Discussion Threads

[shill10] 22/9/2022 17:08

in the last month Gold is down about 7%, stocks, down 15% and Goldplat is up about 25%- clearly someone buying, bet they know about the TSF deal, like you say above this will push the share price easily into the mid teens.

[lowtrawler] 22/9/2022 15:31

yorgi, ignoring the TSF, trading should probably support a higher price than where we currently sit. The market appear to have doubts on how sustainable current trading levels are likely to be and so we trade at a discount. The TSF is simply not reflected in the share price It has been going nowhere for ages and there is limited visibility as to bottom line value. Once they publish a detailed plan, it will put a rocket under the price (providing the market believes they will deliver).

[dangersimpson2] 22/9/2022 15:27

If they are moving back to the more normal timeline of results at the end of September/beginning of October then they will be in a close period.

The results will hopefully include a small dividend and a decent buyback announcement.

[yorgi] 22/9/2022 13:43

Thanks for all that Kimboy.

After Werner's last interview I had expected to see the buyback started as I though he was quite clear that was his policy but as you have pointed out a number of reason that could be why they have't.

[kimboy2] 22/9/2022 13:35

IMV they should be buying back now. Werner suggested they were going to in the last interview.

Reasons why they aren't may include;
1. Caution. They don't want to have buy backs and then have to borrow for cash flow.

2. They still owe some debt for the South African buy back and may wish to pay that off first.

3. There may be expenditure required for the TSF, South America, PGMs, water license etc

4. They are waiting for the new AGM for some reason.

5. They hold inside information which they haven't released.

IMV the most likely reason is the last one. GDP clearly know the agreement that they have reached and how much they will make out of it, subject to gold price. None of this has been released to the poor punter, not even who they are partnering.

They have given derisory numbers for recovery rates, which I personally don't believe. It would seem likely that the TSF will have more value to GDP than the current mkt cap, in which case maybe the nomad got cold feet about buy backs at this time.

That didn't stop them last time though.

[yorgi] 22/9/2022 13:26

Thanks for all that Lowtrawler, I'm quite sure you are far more up to speed all round on GDP.

I was of a mind we should be looking at a share price into the teens and I am somewhat surprised we aren't already in that ball park.

[lowtrawler] 22/9/2022 13:21

The only thoughts we have been able to come up with is they may be unable to resume buybacks due to inside information on the TSF. With the share price now over 10p and Martin nearing the 29.9% ownership limit, I think they should move to dividend. I know that kimboy thinks they should build up inventory with more modest returns for shareholders but I think there is scope to do both.

My expectation is they will announce a detailed plan for the TSF during the next 4 months and have 1 final push at buybacks. They will then announce a dividend policy.

If the TSF plan meets our lowest expectations, the share price should move into the teens.

[yorgi] 22/9/2022 12:56

Volume here is up today I notice along with the share price which is close to a new high and still undervalued IMO. I can't see gold falling from this level so everything looks good looking forwards as far as I can see.

I thought the company was going to resume the share buy back but this doesn't appear to have been actioned does anyone have a view on this ?

[lowtrawler] 21/9/2022 14:25

What news are you expecting? As far as we know, GDP commenced processing the West Wits ore in Q1 and I'm not sure there will be any updates.

[russman] 21/9/2022 13:58

Any news on West Wits.

[lowtrawler] 21/9/2022 12:27

Someone is accumulating in small blocks of 5k which is nudging the price higher. No significant sells coming in although the MM's are clearly cautious on how quickly they move the price up. GDP pricing has held well in September given the overall metals market.

[russman] 17/9/2022 17:06

An opportunity for GDP to announce their dividend policy.

[arlington chetwynd talbott] 17/9/2022 00:51

If I had a pound...

[dinky00] 16/9/2022 16:26

Might be a takeover on the way!

[arlington chetwynd talbott] 16/9/2022 14:13

Hello, we seem to be bucking the trend.

[wigwammer] 16/9/2022 10:25

agree kimboy. And let's not forget why russman set up the "gold panning with Dan" thread.. to pan the stock when it was sub 2.5p... whoopsy :)

[russman] 11/9/2022 16:09

GDP burnt their supply channels in Africa.
& "lost" their nearest refiner.
Where did GDP have to ship their concentrate - Germany.

[kimboy2] 04/9/2022 22:33

Life is too short to correct all the errors on this thread but I would point out that sourcing from South America was not a reaction to Rand Refinery's actions.

[russman] 04/9/2022 07:39

Their "dispute" with RR was a big strategic mistake.
That is why GDP started sourcing from South America.
Might also start sourcing in Australia.

[lowtrawler] 02/9/2022 17:07

The share price feels like a pressure cooker at the moment. It won't take much to explode upwards.

[shill10] 02/9/2022 16:01

gold in $ might just have put in a low, and the share price is reacting straight away, v encouraging to see.

[kimboy2] 31/8/2022 18:30

IMV it is perfectly logical. Sourcing material is the problem and they have sourced from South America for a number of years. I believe they started off in Uruguay with Orosur but have expanded.

They haven't really said what they are doing but I think that they are getting priced out from the high value gold and see an opportunity with the lower grade.

I think setting up a plant there will be to beneficiate this lower grade material to ship on to Ghana.

[baht] 31/8/2022 17:25

Does anyone have any thoughts on the mention in the 17 Aug RNS about GDP venturing into South America.

When first launched GDP said it would keep to Africa but that was a number of years and CEO's ago!

[lowtrawler] 30/8/2022 15:14

Thanks Kimboy, you're more of an expert in this area than I will ever be but I don't really understand why having inventory would be better than having contractual offtake arrangements?

I assume what you are saying is GDP currently buy batches of material for processing and leave some material behind with the miner. It gives the miner a headache handling material until the next time GDP want to buy some. You are proposing GDP agree to take all the waste material and so solve a problem for the miner?

I believe GDP currently have arrangements whereby they only pay for the material once it is processed and sold. If they applied the same approach, it may not cost extra to build up the inventory, other than cost of transport / storage?

[kimboy2] 30/8/2022 14:04

It is doing this because the market have not yet accepted we can sustain those levels. If we have another good year, those doubts will be removed.

I don't think they will.

IMV the way to reduce doubt about sustainability is to have a stockpile of material. I reckon that it costs about £60/oz. That means we have around 60kozs in inventory. To build to a 5 year inventory will cost something like another £5m, and £14m for a 10 year inventory.

Ultimately they need to diversify out into an environmental clean up company and then it would be on a completely different rating.