Goldplat Share Discussion Threads

[michaelfenton] 09/5/2023 16:01

Yes this is all a worry Lowtrawler I only have 75000 shares now and these are all free. Which is the only reason why i am still in. Also what about Martin Oii surely he cannot be happy with the situation.

[lowtrawler] 09/5/2023 15:04

MF, following the interview with Werner. I have now sold 2 blocks and am considering whether to remain invested. Having a license for your Ghana operations is fundamental. Without it, they are out of business. Werner's attitude in the interview was "let's see what happens". Any other CEO would be camped out in the license office. He doesn't give the appearance of someone in control. The same impression exists for what is happening regarding the TSF. Everything just drifts and happens, or not, in its own time. The same impression for the audit debacle. The same for the power outages.

I know we are a small company but Werner is one of the least impressive CEO's I have ever come across. I worry that he will choose an easy life. Retain all the cash generated so that he never needs to worry about funding. Pass our cash onto friends via pet projects. Diversify into vanity projects using our cash.

The only thing actually keeping me here at the moment is the prospect that the TSF comes good. However, I worry he will pass most of the gains onto DRD or "friendly" contractors.

[michaelfenton] 09/5/2023 14:45

I am worried about why the renewal of the Ghana mining licence is delayed. Banana skins are regular with Goldplat and what is it now with coal? Stick to the core business guys and pay a Dividend.

[lowtrawler] 09/5/2023 14:38

baht, regarding dividends. You are correct, GDP has never been an income provider. It has always preferred to develop the business or expand into new ventures, presumably with the intent of becoming larger and more profitable. They now have an extensive track record of failures following that strategy and so investors now naturally need more justification for any proposed expansion or diversification. IMV, GDP is now a mature business and should be looking to return funds to investors rather than use the funds internally.

If GDP wish to invest, they need to do a better job of explaining what, why and the level of return expected so they can be held accountable. If investing for financial return, there is nothing wrong with taking on debt to be paid from the investment returns while providing a return to shareholders.

I don't believe we are likely to hear anything further on the audit debacle. If it was the auditor's, they should not have been renewed and so I can only conclude it was a management problem and not an auditor problem.

[russman] 06/5/2023 07:50

Nothing new; just plodding along.

[lowtrawler] 05/5/2023 16:13

Werner is not exactly proactive, is he? We hope to get our license in Ghana in Q4, let's see! Everything's running smoothly, a few problems here and there, they should sort themselves out? We'll continue to explore whether we might do anything about power for our SA operations....

Any more laid back and he'd be horizontal.

[kimboy2] 05/5/2023 13:49

Our leader speaks;

[dinky00] 05/5/2023 11:59

3m cash, on track for 6m profit.Once again 15m Mkt Cap is just bonkers. WHI admit their price target of 21p is based off undemanding forecasts

[spagboll] 05/5/2023 11:15

For what it is worth my take on it is that they have 2.7m cash and need to spend 1.1m over the next year, which leaves some spare cash plus whatever profit they make in Q4. Which due to this comment regarding Ghana - Once the new license is signed, accumulated inventory will be sold which is expected to lead to non-recurring higher sales volumes in Q4. - should be healthy and therefore potentially allows for a year end shareholder return.
Main disappointment was regarding the TSF but regardless of that things look promising, the Ghana delay may even be beneficial if the gold price keeps rising.
But I have been a holder for a long long time so no doubt something will come along to mess things up haha

[michaelfenton] 05/5/2023 10:43

I expect you are right Lowtrawler - I have taken my profits and sitting on my freebies which for obvious reasons i do not wish to sell at this time.

[lowtrawler] 05/5/2023 10:27

MF, it's the banana skins which keep the share price well below fair value. If anything, they are becoming more accident prone and so I'm expecting an even bigger discount to fair value. Hence my sell.

They had been closing the discount until the YE accounts debacle followed by the SA power outages. Add-on today's Ghana license, extra capex needs, TSF delays and smelter delays - they are likely to outweigh current strong metal prices. In combination, it will also mean we are no closer to dividends.

[michaelfenton] 05/5/2023 10:07

GDP has a long history of banana skins mainly because it is such a small entity. But all things considered things are not too bad. Wish they would pay a dividend.

[lowtrawler] 05/5/2023 09:56

Thanks kimboy. As I said last month, they are continuing to make good money even with the SA electricity problems. However, they are running into problems at almost every turn. The only thing that appears to be going well is supply of material.

I have no confidence the TSF will be advanced this year and with all their other issues, believe the share price is likely to fall further. I sold 50k early today and would have sold more had I been able to get a quote.

[kimboy2] 05/5/2023 09:00

WHI View: We continue to believe that the investment case in Goldplat is strong,
electricity supplies in South Africa aside. Goldplat offers a unique solution to
treating gold-bearing waste-material from mines and is ideally placed in Ghana
and South Africa to serve several large gold-producing regions. We see robust
profits (despite recent issues) going forward with growth potential in Ghana a
realistic ambition from the company. Whilst we hold our forecasts, as Goldplat
has obviously found ways to cope with the electricity issues in South Africa, it is
obviously an evolving situation and there is risk that we will have to downgrade
our forecasts if a solution cannot be found. We maintain our fair value of 21p on
the basis of an undemanding 3.5x EV/EBITDA multiplier for FY24E where we
assume that electricity supply problems in South Africa are resolved, and look
forward to including upgrades from the tailings retreatment project, further
progress in treating PGM-bearing wastes in South Africa and news on new supply

[kimboy2] 05/5/2023 08:28

Well GDP seem to be suffering from the endemic corruption of some African countries whether it is the non signed license in Ghana, power cuts in South Africa or the failure to sign off the pipeline for the TSF.

Having said that I didn't think the financial results were too bad. My rough and ready estimates are;


£m Q1/23 Q2/23 Q3/23Op Pr SA 0.976 0.356 1.175Op Pr Gh 0.966 1.026 0.295 SA Tax 28% -0.27 -0.1 -0.329SA Non con 9.5% -0.067 -0.024 -0.08Ghana Tax 15% -0.15 -0.154 -0.044 Finance -0.1 -0.1 -0.1 Central costs -0.17 -0.17 -0.17 PAT 1.185 0.834 0.747

[arlington chetwynd talbott] 05/5/2023 08:25

Fair comment. We can see why the market has essentially lost interest in GDP. I am sticking with it on a value basis, but it could be a while before it regains its momentum, even if the PoG makes further progress. Classic AIM.

[lowtrawler] 05/5/2023 07:14

Careful what you wish for. Disappointing Q3 on almost all fronts. The Ghana license issue is a true banana skin. Higher than expected capex. No reportable progress on the TSF. SA power problems for at least the next 12 months. Smelter processing delays.

[lowtrawler] 04/5/2023 16:25

ACT, Q3 was out on 5 May last year but mid May the previous year. Something to look forward to!

What we really need is the TSF plan but it just drifts and drifts and........

[michaelfenton] 04/5/2023 14:05

POG is the key to the future of GDP if it continues to rise. The pipeline delay is annoying and the power cuts outside our control. Luckily all our eggds are not in South Africa.

[arlington chetwynd talbott] 04/5/2023 13:49

PoG cannot hurt, but more than anything else we probably need to get out of this news desert.

[kimboy2] 24/4/2023 16:34

Power cuts are about the same



Presumably we are due the Q3/23 numbers in the next week or so.

The deadline of June for the pipeline permission is fast approaching. The company said in February.

The application for a pipeline to the DRD Gold premises is still being evaluated by the authorities and although we have indicated before that it will be by no later than June 2023, the timelines for when approval will be received are not that clear and we will update the market once we have more clarity.

In November 2021 they said.

Towards the end of October 2021 an application was made to get environmental approval for the installation of a pipeline to a process facility in the area. This pipeline could provide us with an avenue to pump and process our current tailings facility which contains circa 82,000 ounces of gold ('See the announcement dated 29 January 2016'). The approval process will take approximately 12 months.

I am not holding my breath.

[arlington chetwynd talbott] 24/4/2023 10:40

News of more power cuts or just ennui?

[arlington chetwynd talbott] 14/4/2023 15:01

More like it.

[michaelfenton] 14/4/2023 12:47

Thanks for those wise words Lowtrawler.