Goldplat Share Discussion Threads

[lowtrawler] 31/3/2023 13:53

dinky00, exactly, so why is the share price not higher?

Answer: Shareholders never see any benefit from the trading results. Historically, it has been spent on pet project after pet project. Until GDP start to reward shareholders, the share price will remain below a fair value.

Even the hidden value from the TSF is likely to exceed our current market capitalisation. Will any of the TSF proceeds be returned to shareholders or will we buy something shiny that catches the Boards eye?

[dinky00] 31/3/2023 13:36

Net profit £1.75m for 6 months.Cash ~ £3mMkt Cap £13mWow.

[lowtrawler] 31/3/2023 11:37

kimboy, if expansion into South America has a good business case, I have no problem with that happening. However, it will presumably generate a positive contribution doing so. Then it makes sense to borrow rather than coming out of existing cash.

The long-term issue with GDP has been they use any cash they generate to expand into new activities and leave the shareholders with zero return. First and foremost, the cash being generated is a return on existing shareholder investment and needs to be reflected as such.

[kimboy2] 31/3/2023 10:13

Well let's take Brazil. Is that safeguarding existing business, providing a return or expansion?

There is presently a 'larger consignment' from Brazil being processed in Ghana which will boost numbers in Q3 and Q4 and offset the sourcing risk of neighbouring countries.

[michaelfenton] 31/3/2023 09:48

So true Lowtrawler. What on earth does Matin Oii think?

[lowtrawler] 31/3/2023 09:23

As I said previously, I can understand if they need to suspend a dividend this year while they invest in the TSF and manage the power outages.

Initiatives like coal recovery and South America are strategic shifts which should be considered only after ensuring shareholders are achieving a return i.e. if they make sense then they should be treated as an investment with funds either being borrowed or the investment spread over an extended period.

Priority 1 is to safeguard the existing business. Priority 2 is to provide shareholders a return. Priority 3 is to expand. They appear to have 2 and 3 the other way round.

[michaelfenton] 31/3/2023 08:27

It appears GDP does not care about shareholders and lets face it they have invested unwisely in the past Kilimapesa for one.

[farrugia] 31/3/2023 07:40

results read like lots of investments yet to do - nothing for shareholders.

[lowtrawler] 30/3/2023 16:59

A 1p dividend, even with the power outages, should represent around 60% of their attributable cash per share. It will still allow 40% of cash generated to be reinvested - about £1.1m - and this is without eating into their existing cash pile.

I know that kimboy believes building inventories is a higher priority, and he is far more knowledgeable than I about the business. However, given they have around £4m cash, that should be plenty to build inventories. The ongoing cash generation can start to benefit shareholders.

[michaelfenton] 30/3/2023 15:59

Congrats Lowtrawler my 85000 shares are almost free from earlier profits but do hope they declare a dividend.

[lowtrawler] 30/3/2023 15:13

MF, my views on how to regard GDP will be defined by the dividend policy. If a meaningful dividend is introduced, I will retain and maybe grow my investment. I will wait until this years annual accounts before drawing my conclusion. It is possible the power outages, need to invest in the TSF and other capital commitments need to come first. My investment and trading in GDP have been fortunate and I am holding 300k which have only cost me a net £1k. Hence, I can afford to be patient.

[michaelfenton] 30/3/2023 13:51

Lowtrawler pretty much agree with your sentiments and i retain a smaller holding because the prospects look healthy especially if they declare a diviend and stop treating us like mushrooms.

[lowtrawler] 30/3/2023 12:45

MF, I actually think the management has improved which is why they are improving profitability and cash generation. Not a lot they can do about the power outages. The issue is how they treat shareholders and we now need to look at Martin regarding this.

The audit was a farce with 2 fingers being stuck up to shareholders.

Forgetting the power outages, we are looking at trading on a PER of 4 or 5 with strong growth and no value for the TSF. The reason is easy to find - nobody trusts that the company will return money to shareholders.

[michaelfenton] 30/3/2023 08:07

This is a badly managed company which seems to have no respect for shareholders. I would love to see what MO thoughts are. Having held 250,000 shares I am now down to 85,000 which I will hold and see if the ship gets righted?

[ih_692232] 30/3/2023 07:58

Low
I have the feeling that Martin will want two things -1-the sale of the company in which case his best interests are served by a greater current share price and dividends on tge way will help establish that - the market is unimpressed by the woolly growth prospects
Or 2 special dividends as and when the TSF is stripped out

And he would be happy for both 2starting and 1 happening on the way

But you are right - he will be the one to pull all the strings

The one thing he can’t do is sell his shares on a drip basis or the share price will crater

So he needs things to go right as to the company ahead and certainly no more balls ups over audits would be a good start
We all need SA to remain stable and produce electricity!!
Alm

[lowtrawler] 29/3/2023 22:25

alm2, the dividend policy will almost entirely be down to Martin. If he wants a dividend, one will be paid. If he wants capital growth through internal investment, a dividend may not be paid for many years.

[ih_692232] 29/3/2023 21:00

The board has thus far completely failed to deliver shareholders what is required - dividends -which in turn will increase share price

We provide the capital - capital requires a return on investment

Past few months have been a disaster
Alm

[lowtrawler] 29/3/2023 14:10

kimboy2, yes, sentiment and trust have been harmed. It will take a while for those to be rebuilt. In my experience, at least 2 years.

Only the power outages impact any fundamentals. With metal prices high and the TSF process underway, we should be looking at better underlying performance with a strong upside.

The lack of word on dividends continues to frustrate. Until there is a clear direction on dividends, I doubt we will move anywhere close to fair value. Even with the TSF, unless there is a clear commitment to return the windfall profits to shareholders, it will not be properly reflected in the price.

[kimboy2] 29/3/2023 13:40

This is about the price they were buying shares back last year.

[dinky00] 23/3/2023 07:36

Thanks, I didnt know this, I assumed they were in a rural area on a massive site.

[kimboy2] 22/3/2023 16:44

If they got solar, or any other renewable, to mitigate the load shedding then they would need battery storage. Just completely unviable at this point.

[itsyou] 22/3/2023 14:21

Werner already mentioned this wasn't possible in the latest Investor Meet interview on the 23rd Feb at 31m 29s. They do not have the land to install solar, as they are within an urban area.

[lowtrawler] 22/3/2023 11:46

They have said they have looked into producing their own energy and are continuing to do so. I don't think we will be able to assess what they should and shouldn't be doing from here. We will need to trust that they come to a valid answer.

[dinky00] 22/3/2023 09:14

They could also sell back to the grid when overproducing