Goldplat Share Discussion Threads

[lowtrawler] 18/6/2024 17:38

kimboy, good post as always.

I don't believe Martin will want to be trapped in GDP for very long and will be looking for an exit plan. Monetising the TSF is key to any plan. He either has to:

1. Agree a business sale with DRD
2. Agree to sell his shares to DRD as a block.
3. Process the TSF and extract the dividends, after which he can flood the market at any price achievable. His return will already have been made from the dividends.

Of course, we don't know what price he is looking for and whether DRD would find paying that price attractive. I expect your notional 15p is not far off the mark but it's all guesswork when we have no detailed TSF plan.

[russman] 18/6/2024 06:27

£900k could be a good investment.
No figures / no estimates are given.
maybe there is a business plan somewhere.

[sea7] 17/6/2024 15:03

Niel Pretorius was asked many years ago if he would buy goldplat - his reply was "nothing is off the table" - I cannot find the link to that article, however, it must be about ten years ago.

Personally, I think goldplats regular operations are not a good fit with what DRD already do - so no, I do not see them buying the SA operation. If anything, I would expect goldplat to begin the pivot back towards the SA ops processing more platinum waste, as well as gold and moving further into coal fines.

There is nothing stopping goldplat moving into the electrical waste processing to obtain precious metals from circuit boards/pc's/phones etc - the opportunities are there.

Mine closure and clean up is another area that goldplat have historically been involved in and there are plenty in SA

[arlington chetwynd talbott] 17/6/2024 14:48

We have to ask ourselves whether they are being forced to do something that they have not, after all, seen fit to do themselves until now and whether they are accordingly just trying to put the best possible spin on this. AIM investing makes you pretty cynical, I guess. On the other hand, Ghana has always come across to me as one of the less problematic regimes in Africa.

[camerongd53] 17/6/2024 14:47

Lot of surmising going on regarding the future some or most may have a grain of trutth or is rubbish


My thoughts

DRD should have a good idea what GDP is worth - Possibly better than the GDP board.

scenario

DRD would make a low bid for GDP say 8 to 10p.

This may flush out weak shareholders.

If DRD were to get approaching an effective controlling interst, then Martin Ooi is faced with having a substantial shareholding in possibly an unquoted company over which he has limited leverage. Does he have any meaningful option other than to sell out to DRD.
DRD can pick up the rest of the company relatively cheaply - game set and match toDRD

[lowtrawler] 17/6/2024 13:34

Interesting idea shill10. I suppose the issues would be:

1. With SA barely able to break-even on normal trading, DRD would be buying purely for the TSF and would need to price in decommissioning of all SA activities.
2. If DRD expected to continue operating in SA, they would presumably become a competitor to Ghana?

Not sure whether it would make sense or not tbh

[shill10] 17/6/2024 13:03

looks like Ghana is central going forward now, big turnaround from a couple of years ago - lower tax rate (15%) than SA, this is a smart move, maybe SA could be sold lock stock to DRD ?

[kimboy2] 17/6/2024 12:05

Seems sensible.

It would be interesting to know what the rate of return is from this. Hopefully it will reduce the necessity for so much prefinancing of sales, which cost £1m last year.

[lowtrawler] 17/6/2024 11:59

RNS out. Investment in Ghana that looks sensible.

[lowtrawler] 17/6/2024 10:56

I don't think Martin would sell into the market. As I said on Friday, it looks to me as though someone decided to exit their position and the thin trading means that even 1m shares is enough to move the price significantly. I consider it a buying opportunity but if the individual has more to sell or another owner decides to sell, it could go lower.

On the plus side, if 1m shares sold is enough for a 7% fall, 1m shares bought will likely return the price to where it was.

[camerongd53] 17/6/2024 10:09

I find it hard to fathom what is going on with the share price which dropped like a stone on FRiday. Volume has not been particularily high.
My suspicion is that theree is a big sell order in the system - I hope it isn't Martin Ooi.
Anybody got any ideas??

[lowtrawler] 14/6/2024 17:17

Unexpected flurry of activity today. Still barely over 1m traded but a significant change to the share price Another buying opportunity? I suspect most of the trading came from one individual and nothing to do with underlying information.

[shill10] 14/6/2024 08:19

to those moaning about the share options, for me this is a sign that DRD Gold deal is done. No way Martin Ooi gives them that amount of the upside just for carrying on doing what they have been doing running a tiny recovery business. this is a reward for all the extras involved in getting DRD over the line and the future workload assuming no DRD bid.

[dinky00] 11/6/2024 14:01

There isn't a bid for 50,000 shares at the moment, never mind 8m.The only way the directors are ever selling these is if the company is bid for, or there are so much realised positive catalysts that it leads to trading volumes in the millions weekly at higher levels.Either way, the directors need to light a fire under this stock

[lowtrawler] 11/6/2024 09:55

There are 8m new options at a strike price of 6p. They could currently sell for 7.5p and so if they do nothing to the SP, the new options are worth a total of £120k across the 3 directors. As I see it, that is effectively a bonus with an added incentive to get the share price higher. There is no minimum holding period that I can see once the options are exercised and therefore a danger they are treated as a bonus and cashed in.

I have no real issue with the quantum of the options or the exercise price. I am simply saying it could be structured to demonstrate a stronger commitment to GDP. Give them a Director loan to purchase 8m shares and match those purchases with the 8m options conditional on all shares being held for a minimum period. That can then provide additional remuneration and show a stronger commitment to the company. The minimum holding period would also help avoid any short-term manipulation of the share price

[kimboy2] 11/6/2024 07:47

Options are always easy targets for disgruntled shareholders. A few facts;

According to BDO the median salary for an AIM CEO in 2023 was £346K and for a CFO £268k.

According to the GDP annual report all the directors and non-execs cost £381k.

South Africa is probably a relatively cheap country, but you have to pay enough to attract the right people.

If some of that salary package is contingent on success then that is okay with me. They are betting part of their salary that the company will suceed.

[lowtrawler] 11/6/2024 00:46

Pog1234, I agree. The options are effectively a bonus open to manipulation and not the same as investing their own money. I would have been happier with an arrangement that gave them an option matching each share they owned up to a limit e.g. own 2m shares, you can also get 2m options possibly supported by a directors loan.

[pog1234] 10/6/2024 17:55

LLoydypool/Wigwammer, issuing an incentive program without requiring any investment only leads to:
- Management not having any skin in the game
- Taking higher risks to get a killing without risk
- Showing shareholders/new investors that they do not believe in the company enough

So all in all a huge negative from my part.
The only way to get management to work for the shareholders is if they also invest along them. Options for free is not the way!

Only my 5 cents.

[lowtrawler] 08/6/2024 14:35

alm2, unless we suddenly have a large buyer or seller, the share price is only going to move out of the current trading range with news. We are so thinly traded that "large" doesn't have to mean that big. Naturally, we are all hoping the TSF moves along quickly but none of us know when to expect delivery. Personally, I have mentally put GDP into a 3 year+ bucket for hitting my target price of 18p. IMV, any quicker return will need a bid from DRD.

[ih_692232] 07/6/2024 15:21

Virtually no shares traded past few days yet share price marked down
Are they trying to shake out some shares by offering less !!
Well only another couple of months to wait for next qtr end and no doubt further silence from the company
Alm

[wigwammer] 28/5/2024 14:26

Agreed. I'm happy they are incentivised to get the job done, and as dinky points out, clarification around why they haven't bought shares.

[lloydypool] 28/5/2024 13:49

To be fair, at current share price the options are not worth a great deal as the exercise price is 6p. If the share price grows massively and they make a killing then everyone will be happy.

[swiss paul] 28/5/2024 13:46

yep why should they when they have mug punters like us propping up their lifestyle.

Will the dog be in the next update?