Goldplat Share Discussion Threads

[swiss paul] 18/12/2023 18:27

14.7 p,-,never - not while uncle Werner has his hand on the TILLer

[kimboy2] 18/12/2023 14:41

WHI

FY23 audited figures – Solid plans and consolidating year despite headwinds Goldplat is a precious metal producer from the by-products of mining and plant clean-up with plants in South Africa and Ghana. It today provides its final year figures for FY2023 (year ending June 2023). Eps is reported at 1.7p/sh (from 2.1p in FY2022). FY2023 was a successful year despite headwinds from electricity issues in South Africa, slow turnaround from smelters in Europe and a delay in the export licence in Ghana. Goldplat made the most of its flexibility and delivered a Group profit of £3.1m (£4.0m) with operating cash flow of £3.3m (£3.0m) and year end cash of £2.8m (£3.9m) despite capital expenditure of £1.9m. Going forward Goldplat has begun installation of a set of generators which will guarantee power in South Africa, has plans to grow its customer base in Africa and is finalising the purchase of land in Brazil to treat lower-grade wastes that are uneconomic to export. In South Africa there is also a plan to treat the old Tailings Storage Facility (TSF) once the new one is commissioned. Goldplat’s neighbour, DRD Gold, will treat the TSF once permitting for a pipeline has been received. The TSF contains a 2016 (JORC) resource of 1.4Mt grading 1.8g/t gold (82koz) with a further ~1Mt added since which (in our view) will add to the resource). We see fair value at 14.7p on the basis of an undemanding 3.5x EV/EBITDA multiplier for FY24E. We look forward to including the tailings retreatment project in our forecasts once technical, economic and commercial have been defined. Goldplat has a growing customer base delivering it parcels of waste produced as a by-product of mining. All of which contain recoverable metals, principally gold. Goldplat has a flexible plant capable of treating all sorts of types of waste. Goldplat produces 1.5-2.5koz/month of gold – depending on which material it treats, but revenues come from a mix of tolling and treatment of its own material and so is only partially leveraged to the gold price.

[shill10] 18/12/2023 13:21

hxxps://thundersaidenergy.com/downloads/pipelines-the-energy-economics/#:~:text=The%20largest%20cost%20in%20a,%2C%20to%20bottom%2Dup%20studies.

complete back of the envelope but interesting that the above website estimates rough pipeline costs at $1-2 mill per km. Goldplat is 20km from DRDGold plant so that's $1.5 mill x 20 = $30 mill total costs, of which Goldplat would pay less than half. We still don't know recovery rate of the likely c120k oz (given new tonnage figures for TSF) we have or other associated costs but at 50% recovery rate ( I know some have quoted evidence this could be higher via Uni studies but being conservative ) 60oz of Gold is currently valued at $121 million. And Goldplats market cap remain at £11 million....with a profitable recovery business thrown in.

[sea7] 18/12/2023 13:10

turning to those accounts, it is good to see the fundamental value there ..

current assets minus total liabilities is £6m.
there is £5.2m of property, plant and equipment in non current assets.

Just these two figures alone, exceed the current mcap by about £750k

[shill10] 18/12/2023 13:02

And I guess it means that Goldplat shareholders should effectively pay less than half the costs of the pipeline to their property, given how it's going to be used - we will find out in the spring how much this is per oz of Gold, that's the key metric.

[shill10] 18/12/2023 12:57

thanks kimboy, that squares that circle.

[kimboy2] 18/12/2023 12:48

ISTR that Werner said in a presentation Q&A that the construction period for the TSF pipe etc would be 9 months to a year.

The obvious thing for DRD would be to get GDP on tap first as it is nearest and then continue the pipe to 5L23

[shill10] 18/12/2023 12:44

Interesting Sea. Well DRD are negotiating with Goldplat re an agreement on this so I guess at least that is in their immediate plans. Looking at DRD I see their market cap is $720 million, so Goldplat is tiny in comparison and easily digestible at the right price, even if they may have other priorities , let's see.

[sea7] 18/12/2023 12:30

The pipeline will run all the way past goldplat to tailings dump 5L23 as is known.

5L23 is a 3.8m tonne dump. The kongiwe report states that active reclamation period will be 48 months. As goldplats dump is 2.2m tonnes, as stated in todays report, you could argue that it will be about a 32 month active reclamation period for goldplats TSF.

The report also indicates assumed timelines for the project on page 35, of

2023 - 2025 ergo ramp up period
2026 - 2032 ergo operational period (note this is six years -possibly two for goldplat and four for 5L23) goldplats is likely to be longer now - more material.
2033 - 2035 ergo ramp down and rehabilitation period.



5L23 Doesn't feature in DRD's immediate plans, as indicated in their reports, so, one way of gauging expectations for goldplat is to keep an eye out for any talk of 5L23, as that is the primary purpose of this pipeline.

[lowtrawler] 18/12/2023 12:13

shill10, apologies, I read Q4 2024 as end of the year not end of the GDP financial year. You are correct.

[shill10] 18/12/2023 11:36

it literally says in the report that this will be announced between April-June 2024 (Q4 2024), but don't let that get in the way of your agenda, Lowtrawler.

[dangersimpson2] 18/12/2023 11:31

My, admittedly not geologist, understanding is that the time sitting in the sun/air allows oxidization, and this means that gold can be extracted that wasn't the first time. So, the longer it sits there, the better the likely recovery. This means the new 1m tonnes may not allow as much extraction as the original 1.4mT. However, the recoverability of the original amount may be higher due to the further passage of time.

[kimboy2] 18/12/2023 11:21

I asked about this extra tonnage some time during the summer and didn't get a reply. The questions I asked were if it is the same grade as the rest and can it be as easily extracted.

The question was probably too much on the nose to be answered.

ISTR that GDP kept records of exactly what went on the heap and their estimate wasn't far off what the JORC came up with.

Also I don't believe the JORC covered the whole of the heap and there was quite a bit unmeasured.

There is also the fact that the extra years will have iproved the eventual recovery rate of the gold.

The fact that about 10% of the gold in the heap was in the footwall shows it has been weathered and is on the move.

I would expect this percentage to have increased and be the most easily recoverable gold.

[lowtrawler] 18/12/2023 11:16

shill10, the TSF has always been an unrecognised value for the GDP share price. As can be seen from today's reaction, the market remains unwilling to price in anything for it. IMV, it is not sufficient to know the JORC resource. GDP need to explain recovery rates and provide a range of costs to achieve recovery. In essence, there needs to be an investor briefing document.

I suspect nothing will be published until the deal with DRD is signed and the licenses are granted. Based on today's RNS, it looks like we won't see anything until the end of 2024 and probably not until 2025. For this reason, I am not expecting any major share price improvement until late 2024.

[shill10] 18/12/2023 10:39

its in todays report alm

[ih_692232] 18/12/2023 10:19

Shil
I have raised before and think it a relevant matter for the board to resolve as to why they do not obtain an update on the Jorc for the TSF the last one having been done a very long time ago and since which time a great deal of material has been deposited on the TSF -the cost of such Jorc survey would not be significant
This is an asset of the company and its shareholders and we have the right to know it’s Jorc value
It will inform not only shareholders but also the negotiations with DRG as to stripping out the TSF and the market as to the true value of what the company and shareholders are sitting on as to the TSF
Where did you get the tonnage value as to deposits ?? I would like to read up on this and pose a written question to the board
Alm

[shill10] 18/12/2023 10:15

alm- re TSF, it maybe several years until everything is finished or not, the key for the share price will be the announcement of the financial deal agreed with DRDGold - once that is known (and the last hurdle the water licence agreed) the value of this will be priced in by the market imo.

[shill10] 18/12/2023 10:11

it appears not - in the results this line caught my eye "Goldplat has a JORC defined resource (see the announcement dated 29 January 2016 for further information) over part of its active TSF at its operation in South Africa of 1.43 million tons at 1.78g/t for 81,959 ounces of gold.
Since the resource estimate was completed, more than 1,000,000 tons of material have been deposited on the TSF."

So that's at least 140,000 oz go Gold now, I was not aware it was that large. Put another way its increasing at roughly 8k oz a year, a nice stream on top of the stock that I haven't heard taken into consideration.

[ih_692232] 11/12/2023 11:29

Isn’t it crazy that the share price goes backwards-hovering around 6 whilst gold is at all time high
Surely the board have resolved the audit after last years debacle -they can’t possible let the shares be suspended again through audit delay
The board needs to start a positive agenda and communicate
For example when exactly are the SA generators going to be operative
The board needs to now confirm the audit position
The board needs to confirm the position re sales of gold as to Ghana now that licence restored

Delver some positives re the coal plan ….is there a plan ??
Regular updates re the TSF
Come on deliver some positives …..
Or is tge only time the board can communicate about this company is in its fact limited quarterly results
Alm

[russman] 05/12/2023 06:50

the same banana skin looms.

[kimboy2] 04/12/2023 08:25

The Annual Report and accounts are in the process of being finalised and will be published before 31 December 2023. Resolution 1, to receive the report of the Directors of the Company and the audited financial statements of the Company for the year ended 30 June 2023, will be adjourned until such time as they can be forwarded to shareholders and the requisite notice given.

Does that mean the shares will be suspended again?

[arlington chetwynd talbott] 28/11/2023 13:05

Are you still in here or have you knocked this one on the head?

[ih_692232] 22/11/2023 11:29

Shil
SA electricity problems have been running for years -every business that can has had back up generators for years to keep their businesses running- it was very poor management to not provide for this - yet they have the vision to invest in a coal business about which shareholders know zilch
The TSF is more like 3 or 4 years or even 5 years ahead in my view they have to construct a very long pipeline and get that all up and running - they have not signed off on any deal yet with the partner company in this
SA electricity failure to act early ghana licence and the auditors fiascos are what have knocked this share from 12 to 6 when gold is at a high
They got rid of kili - great and the money was promised back as a dividend
The board are not held accountable by its shareholders that’s the problem
Of course Africa is a hard place - to be successful you have to be at the top of your game
We are at a low place as far as the company is concerned and they need to turn things around
They won’t be buying any shares back or giving dividends for at least 3 to 5 years -and then only if shareholders somehow force them to
It’s not on the boards agenda
Alm

[shill10] 22/11/2023 10:32

they get a bad press on here imo - look how much progress they made re TSF old and new, Kili ditched, etc Africa is not easy to operate in and they've had the bad luck of electricity to deal with also which was 100% not forecastable.

[michaelfenton] 22/11/2023 10:02

Agreed shill10 but just remember this is GDP management and they cannot see sense much of the time? I am still praying.