Goldplat Share Discussion Threads

[dinky00] 22/2/2024 17:15

The share price is simply going to keep falling. Supply & demand. There is absolutely no demand and there is a trickle of supply. And the market makers will drive the price down as fast as they can when they see any seller - that has always been the way and I really cannot blame them

[kimboy2] 22/2/2024 09:38

Well there are a few points.

Firstly if they tried to buy £3.8m of GDP shares the price would have skyrocketed. This may have been good for some but hardly in the long term interests of the company.

IIRC the deal was something like £3.8m for 16% of the SA operation. There are 2 things we don't know.

1. The political situation. Were there other potential buyers and what would have been the consequences of trying to squeeze them. None of us know if this was a factor.

2. We don't know what the SA operation is worth because we don't know what the TSF is worth. The valuation may be justifiable just on the profitability, and the TSF is thrown in for free.

This would have all been transparent if there hadn't been the unending delays on the TSF.

One good thing is that the capex looks to be decreasing and the £1m pa for the BEE ends in July I think. Cash should be accumulating.

[lowtrawler] 21/2/2024 23:55

As an interesting aside, they spend almost £0.5m buying back shares last year, if they had spent the £3.8m buying back shares on top, rather than buying out the minority interest, where would the share price now be? My guess is well over 10p despite all the banana skins they have seen over this period.

[lowtrawler] 21/2/2024 23:38

kimboy, last year they generated £3m operating cash flow of which they chose to spend £3.8m buying out minority shareholders who would have had no choice but to sell to GDP for a fraction of that price or to stay invested. That also caused them to incur over £0.5m in borrowing costs for the minority shareholder buyout.

£3.8m may well have been a fair price to pay but the value to GDP shareholders was less than half this amount and if GDP had shareholders best interests in mind, they would not have paid more than half this amount.

Take away the dilutive spending and GDP generated £3m. A huge amount in comparison to the current share price

[kimboy2] 21/2/2024 23:19

GDP hasn't been making huge amounts of cash. Last year cash flow was negative to the tune of £1m.

[lowtrawler] 21/2/2024 22:50

dinky00, larger investors have concluded GDP will not make them money. They have a 10 year track record of not rewarding shareholders and spending money on fads, black holes, friends, acquaintances, staff and management. The hope that Martin would spark a reversal has failed to produce results and only evidence to the contrary is now likely to turn the share price around.

In comparison to the share price, GDP are producing huge amounts of cash, sit on a huge TSF asset and have the potential to reward shareholders many-fold without adversely impacting their core business. Large investors clearly do not believe these opportunities will find their way into rewarding shareholders and so the price continues to fall. The lack of management response to the fall below 6p from over 12p is testament to the disdain in which management hold shareholders.

[dinky00] 21/2/2024 18:44

Another great day for GDP

[swiss paul] 20/2/2024 20:34

Anyway - we can always sell coal lol

[kimboy2] 20/2/2024 16:35

There is also a vagueness of what comes next for Goldplat.

This is exactly right. I think there is a strategy but it is dependent on the TSF, which they don't have full permission for, or a signed agreement with DRD.

There was talk about releasing the numbers on the TSF prior to all the permissions being received. If that happens then things should become clearer.

[swiss paul] 19/2/2024 21:39

Alm 2 totally agree with what you say. I cant believe the way this compnay is (not) run. Shambolic

[ih_692232] 19/2/2024 15:14

Sea a stock that has paid no dividends for well over 10 years is never going to attract interest
There is nothing about the TSF prospect which is clearly laid out by the company -hopefully it won’t be more than a few years before that crystallised -which might just attract interest in the share

That all depends upon if they spell out how much cash this will generate for goldplat over what time frame and how they intend to distribute it
Alm

[sea7] 19/2/2024 14:21

The disappointing Goldplat share price performance may just be the result of the company not receiving the coverage it deserves. For many investors, this is a stock they simply won’t be aware of.

There is also a vagueness of what comes next for Goldplat. The CEO alludes to a declining South African gold market and says they wish to leverage their strengths into new minerals and metals but stopped short of detailing what they could actually be. Small-scale operations with the cash resources of Goldplat have the means to set out a clearly defined growth strategy, which seems to be missing.

Again, this is possibly a breakdown in communications resulting in investors being left unsure about the company’s future.

[michaelfenton] 08/2/2024 13:16

folly is the word that fits GDP well. So many and coal for sure looks another. Concentrate on what you know best and stop wasting money?

[ih_692232] 08/2/2024 12:59

Coal - the board have communicated zilch about this project except that they have spent shareholders money on it and propose to spend more
The delay in generators in SA is frankly laughable - what sort of leadership is on offer here
The TSF is where any hope lies
I am astonished that Martin Oii has not shaken this business up because on the face of it things have been shambolic for the past 18 months
My only hope is that very shortly the situation in relation to the TSF will clarify by the company being bought by DRD
The prospect of extracting dividends out of this board are slim
I don’t agree with Kimboy at all that this board has the interests of shareholders like me in mind
I put 250k into buying shares in this company well over ten years ago at average cost of 10.5p
I got 10k as a dividends watched the Sp shrink to 2p and millions go on K
What have they done since then that is so great apart from getting K off our backs
Well the answer is starting you in the face - a current Sp of 6p and yet gold at all time high
So the TSF is the only way of getting anything back out of this investment via sale or dividends
I will take a sale and gladly get out -the longer run of hoping for dividends from the TSF will be littered with giant banana skins alm

[gb904150] 08/2/2024 09:33

Really good summary kimboy2.

The only point I would disagree on is your final sentence about diversification.

As lots of posters pointed out GDP is a banana skin magnet. If something can go wrong it will go wrong. The way I see it, the more things GDP try and do more goes wrong and there is increased complication.

The solution for that is to have a narrow focus and concentrate on executing it brilliantly. Find something you do really well and do as much of it as possible.

That thing is gold recovery and processing.

I believe a lot of their problems stem from trying to do too many things at once and then they overlook the core business.

That's how you end up with unforeseen errors and generators being delayed by 6 months inexplicably.

If GDP only focused on
- Gold recovery Ghana
Keep on top of those licencing issues, keep driving that profit from Ghana, Côte d'Ivoire and South America. Keep benefiting from that free port and low tax (15%) advantages.

- Goldplat Recovery (Pty) Limited SA, South Africa
I honestly cannot believe that given the history of gold mining in South Africa, the current pretty healthy gold price and the surrounding countries (e.g. SA customs union countries (Botswana, Lesotho, Namibia, and eSwatini) there is not sufficient feed to make this immensely profitable.

- the TSF
Just let it progress in the background. These things take time in Africa. So long as they are on it and keep pushing it forward I'm OK with that.

That's why I think coal recovery is just a dead end. Unless there is something compelling about its profitability that hasn't been communicated yet it just sounds like a folly.

[russman] 08/2/2024 06:54

During January, it became apparent that due to miscommunication between the supplier of the generators and the manufacturer, the shipping of the generators has been delayed and the project will only be completed in Q4 of the current financial year.
"apparent" that GDP imperative planning is myopic.

[dinky00] 07/2/2024 11:40

They're able to take out a £4m loan to buy a stake in the SA business that values its at £20m but they can't take out a loan to do a share buyback when the entire business is worth £10m!!!!!!!!!!

[lowtrawler] 07/2/2024 09:37

More banana skins from an inept management. A 6 month delay on the power generators and a failure to recover the expected gold in the gravity circuits. An additional £500k investment requirement flagged up.

[ertugrul] 07/2/2024 09:26

Fantastic result as Ghana is the big saver and keep making good money!

[smackeraim] 07/2/2024 09:19

Good update

[michaelfenton] 07/2/2024 08:55

Well we have all been waiting a longtime so I hope you are right shareholder7.

[shareholder7] 07/2/2024 08:02

I would second that and look forward to April where I can open a new ISA and buy more.I had to transfer £20k of shares yesterday to my wife's ISA as I still thought there was £11k of capital gains exception but found out there was £6k, so had the shares in the wrong pot.I have never been more confident that this is the share to be in.