Goldplat Share Discussion Threads

[kimboy2] 16/3/2023 07:17

Rand price of gold reaching record levels as well.

[kimboy2] 16/3/2023 07:13

Load shedding seems to be easing a bit. Reduced from 12 hours to 7.5 hours.

[lowtrawler] 15/3/2023 17:27

ACT, I know GDP is usually one of the last in the sector to respond to metal prices but it is currently being completely ignored. The audit debacle has left a bad taste in the mouth and investors are not yet ready to forgive. When combined with SA power outages, we could have a long wait for this to get going.

For those with enough patience, there is a clear buying opportunity.

[arlington chetwynd talbott] 15/3/2023 16:47

It will get going eventually.

[pog1234] 15/3/2023 13:05

This company is constantly failing in its mission. Always some s..t surfacing.
However, the business is good and if they can get their act together the potential is great.

I am just a bit frustrated about the recent performance....

[arlington chetwynd talbott] 13/3/2023 14:13

Come on Goldplat, get up and get out there - don't waste the day!

[arlington chetwynd talbott] 13/3/2023 08:16

Someone disagrees. Please expand.

[arlington chetwynd talbott] 12/3/2023 23:44

hTTps://www.cnbc.com/2023/03/12/stock-market-futures-open-to-close-news.htmlGame on.

[lowtrawler] 09/3/2023 09:37

kimboy, the problem with kili was GDP are a recovery business and not a miner. They moved into an activity with which they had no expertise. That caused the poor execution.

I do believe the Brazil and coal operations are of interest but there needs to be a strategy around them where shareholders can understand why, what, how much and how quickly these will be assessed. A little like the lack of published plan around the TSF, shareholders are left to guess the impact.

[kimboy2] 09/3/2023 08:38

Well we are getting a return of capital. It is called share buy backs.

As for the coal thing I don't know enough about it for it to fill me with dread. The problem with Kili IMV wasn't that it was per se a bad idea. The problem was that there was poor execution, for whatever reason.

If they push the button on coal then I would like to see how they are going to manage it effectively. I think it will help being in South Africa.

The bottom line is that the gold material is depleting and they need to diversify. IMV the best thing to diversify into is something within their skill range and close to home.

[shanklin] 08/3/2023 14:31

Lowtrawler, i agree we will probably keep the business but unless staff are made redundant I presume fixed costs (mwill remain whilst revenue falls sharply. Cannot really be helped but IMHO Werner could have been much clearer about the associated financials.

[lowtrawler] 08/3/2023 14:07

All, apologies if it comes across I am negative towards GDP. Quite the contrary, I think they have a strong business model and are delivering organic growth. The TSF will clearly provide a big upside.

My main issue is with how they prioritise shareholders and identify / deploy spare capital. They give an impression that shareholders are not prioritised and they first look to spend spare capital on anything that takes their interest. I believe this is how the market see's them also. Until this changes, our share price will remain well below fair value.

Shanklin / itsyou, I believe it's clear SA will perform less well this year than last. However, as all SA business is suffering equally, I don't believe we will be losing the business permanently, it will simply be pushed into the future and may actually provide us an opportunity to build inventory. As for electricity price increases, these will apply to the whole sector and we should be able to pass them onto customers after the existing contracts are fulfilled.

[itsyou] 08/3/2023 13:00

also what impact will the 18.65% increase in SA electricity prices from April 1st have on margins.

[shanklin] 08/3/2023 11:23

One unfortunate point re SA is that Werner gave zero indication of the level of monthly operational profits given the current level of electricity outages, or the level to which this might rise with the circa £50k of investment mentioned. For the former point we just need to know how much of Q2 was unaffected by the increase in outages. As it is I have no clue whether we can extrapolate Q2 profits into Q3 and Q4, whether we should expect them to be lower... ...and how much this might all be mitigated by the £50k of invest
ment.

[lowtrawler] 08/3/2023 11:01

kimboy, always appreciate your views.

1. I agree that Brazil is currently noise but there is a risk we drift more heavily into it.
2. Coal might be interesting but it is not currently an area of GDP expertise. Again, we could just drift into an activity which starts to soak up capital.
3. The BEE shares were purchased at a massive premium to the implied value in GDP and so have effectively been dilutive. The timing of the purchase was also unfortunate as it appears to have been at the top of the market.
4. Agreed
5. Fingers crossed.

GDP are currently performing well and generating a lot of cash. This is what you expect from a mature company in a mature market. If they cannot pay dividends now, when? They have a history of squandering capital and the market is clearly concerned they will do so again. It is holding back the share price

[kimboy2] 07/3/2023 23:52

Well where I am with all this is I expect to get my investment back with the TSF dividend. 4p will do it and I expect at least half the profits of the TSF to be distributed. I suspect Martin Ooi is in the same position, except he is in a position to make it happen.

On the other matters;
1. Brazil is a nothing burger. It is £100k, which is about 10 days cashflow. If they are to invest more then it is to be back to back deals once they have material. I see it as an opportunistic side hustle at this stage.

2. The coal thing is more interesting. They need to diversify from gold which is a diminishing market. It may be a good thing to invest in a technology which could potentially be widely applicable.

We shall see if anything comes of it, but I would expect that there is an overlap of skills.

3. On the dividend that is one way to return value. The other is buybacks. They did some during 2022. However the biggest buyback was buying the BEE shares, which we are paying down presently. This year £1m of cashflow is going into that.

4. They have been making an effort to build inventories, which guarantee future profits (electricity allowing). I thought the arrangement with DRD was excellent news.

In theory the greater the diversity and more certainty of profits the greater should be the market rating.

5. The audit was of course farcical and the new CFO was given the task of making sure there are no repeats. He was also given the task of reducing the interest payments and trying to untangle the amount tied up in working capital.

Overall I am pretty pleased with the direction of travel. The market will do whatever it wishes.

I would prefer to see the share price pushed north by compelling numbers and deals, rather than potentially temporary dividends.

[lowtrawler] 07/3/2023 22:43

alm, I don't think Martin want's full ownership of GDP but, if he did, a series of slips and trips causing a reduced share price would help his cause.

Like you, I believe he will either look for a well priced sale or dividends. However, he has been in a position of power for some time now and still there have been no dividends. Perhaps a sale is his real agenda?

[ih_692232] 07/3/2023 20:31

Low
We agree completely

I hope the directors take notice of shareholders views

I have close to 3 per cent ownership yet I feel like the board have no agenda which takes into account the owners views

Martin is in a good position - one would think - to influence the direction of the company

He is in a bad position if he ever wants to get out unless there is a buyout

If he drip sells his shares the share price would crater

If I was he I would want my cash back from TSF in special dividends

And regular dividends from here on in

Or I would want the company sold
Alm

[lowtrawler] 07/3/2023 12:56

Alm, I think your sentiment is pretty attuned to the market. GDP are a mature company in a mature market. They should be prioritising return of capital rather than finding creative ways to spend capital. They can't keep saying they are looking to return value to shareholders while expanding into South America and new types of recovery operations. Their priority needs to be exploiting the TSF; securing long-term supply of material for the recovery operations, and; dividends. If they believe expansion into South America and coal recovery are worthwhile investments, they need to do a better job of explaining why and getting shareholder support.

We are placing a lot of reliance on Martin Ooi to look after shareholder interests. However, none of us know what his agenda might be.

[ih_692232] 07/3/2023 12:36

I have been invested in goldplat for well over ten years had one dividend in all that time
Share price 16p over time down to 2p back up to 12 now down to 9
Roller coaster
Killi squandered all the profits that could have been dividends
The record has been better of late since killi gone
Fear is they will just do the same all over again with TSF profits

I will wait another two years

If I could get 21 I would be gone tomorrow but if it takes two years I can wait to be gone then

The board have been talking of looking at returns to investors for the past two years
440 k in buy backs is all they have achieved
Alm

[shareholder7] 07/3/2023 10:47

I am sure that with Martin being on the board they will have this at the front of their minds all the time. The question is how long do you want to be in GDP. I wound rather they spend the money on the company adding value than dividends at this stage.This is a double whammy, as we have a company and we are also investing in gold sitting in the TFS which is not on the balance sheet.I would say if you look at this on a two year basis we should be well over 21p but this share is not for the short term holder.Everywhere is a risk as the moment so where else would you put you money in

[ih_692232] 07/3/2023 10:39

Board shot the company in the foot over the audit debacle
And wholly scary plans ahead such as the coal business
Electricity supply out of their control but have they resolved alternative measures - site generators for example

Until the board realise that share price is seriously influenced by dividends this is just a company where the board and employees are all that benefit
No identification that shareholders want a return on capitl
Alm

[lowtrawler] 06/3/2023 13:32

kimboy2, I've been very lucky with my timing into and out of GDP. There is no doubt that GDP is worth far more than any recent share price but it is impossible to know when fair value will be reflected. I will continue to hold until it does but it's very frustrating to see the value against the current share price

[kimboy2] 06/3/2023 13:11

WHI View: The plans put in place and the ongoing efforts to improve material flow to the Ghana plant should enable Goldplat to continue its growth profile in our view with stable production from South Africa, together with its growth projects, acting as an anchor. We expect an improvement in the electricity supply in South Africa, but this acts as the biggest risk to our forecast. The company continues to be the go-to processor for precious-metal bearing materials and has a unique set of processing circuits to maximise recovery. We see fair value at 21p/sh.