Goldplat Share Discussion Threads

[michaelfenton] 03/9/2016 21:19

wigwammer - one person who I listen to is Kimboy2 as his research is generally sound and he does not miss the negatives.

[wigwammer] 03/9/2016 20:02

Absolutely mf. I'm confused and I don't think things are written precisely on tins, as has been suggested.

[kimboy2] 03/9/2016 19:56

Well IMV the share price has lagged the recent news. The positives have been;
1. Very strong SA performance
2. Depletion of gold in process putting cash on the balance sheet
3. SA capacity about twice previous.

The negatives have been;
1. Dispute with RR
2. Fall in Ghana output
3. Kili still losing

The main reason the share price hasn't kept pace is that Nick Gomersall has been selling a significant quantity into the news limiting any rise.

It may be that he knows something beyond what the rest of us know. It may be that he bought most around 2p and wants to take a profit.

IMV the positives are much greater than the negatives, and as I say the numbers will drive the price eventually.

[michaelfenton] 03/9/2016 19:45

wigwammer - well they sure are causing confusion and different interpretations? As you have just pointed out?

[wigwammer] 03/9/2016 19:27

"announcements are a trifle vague"Apparently they are all exactly what it says on the tin.

[discodave4] 03/9/2016 16:57

MFAgree.We will see soon enough I guess.DD

[michaelfenton] 03/9/2016 16:34

DD you have a valid point. I too am a longterm holder. GDP has a history of bananas skins. They seem to have turned the corner but announcements are a trifle vague although positive. Capex will have been large which augurs well with no banana skins. RR situation is an example how did it get to the stage of 600K dispute maybe eye off the ball perhaps.

[discodave4] 03/9/2016 16:03

MaybeSumWas just answering wigwammers post, is that OK?. Did I say they didn't have a strong quarter?.Some posters on here only want to hear nothing but positives, well tough, I am concerned as a LTH here that the prelims will also contain some bad (or not so good) news, paranoia, lack of belief in GDP, call it what you want but the share price action is saying the same thing IMV and I've seen it all before with GDP.Can you explain why the share price is still not back to where it was pre the news about the RR issue, can you explain why after the news about year end being about £2m pbt that there has been a constant stream of selling and the share price has not reflected this level of profit in the mcap?. Instead of having childish digs try putting up your answers / views.This is a free, allegedly non biased, bulletin board where all views, positive and negative, should be welcomed, so tough if you objected to my last post not being sufficiently positive, despite the fact that you just latched onto the last comments.Hopefully I'm completely wrong, the prelims will have nothing but excellent news, the share price will rocket and all my concerns will disappear (there you go, is that better for you MaybeSum).DD

[kimboy2] 03/9/2016 15:33

I am not sure why anyone expects anything untoward in the prelims. We basically know the numbers and the operating performance.

IMV GDP should do something like £4m after tax and minorities this financial year. That puts us on a foward p/e of 2.5.

All that needs to happen is that GDP needs to keep doing what it is doing and the numbers that it will produce will grind the share price north. In the final analysis the numbers are what count.

[maybesum] 03/9/2016 15:21

DD The CEO also said in his update of the 31st Aug that Q4 had seen "a very strong performance " by the company. Why did you choose to miss that out? The company clearly is doing very well as the prelims no doubt will show .

[michaelfenton] 03/9/2016 14:23

It seems that the share price reflects a general worry re the prelims. However we should be looking ahead that is what the share price should reflect - so next year should be good and a rerate is due? Agree or disagree anyone?

[discodave4] 03/9/2016 12:23

From the trading update 24th August:....."the Directors expect the Company's revenues for the year to be approximately GBP20 million and consolidated profit before tax to be in the order of GBP2 million."It is exactly what it says on the tin, for the YEAR £2m PROFIT BEFORE TAX, that's profit including all other costs except tax!.......oh yeah, and also excluding any outstanding debt and associated costs that may have to be written off (I.e. RR @ £628k + costs).The "Operational Update" on the 31st Aug, was exactly what it says on the tin, an operational (production) update, hence the comment by GKG: "whereas the results reflect the operational performance only".....he then provides some indication of the financial implications of their "operational performance" by going on to say that the group was profitable (operating profit) during Q4.Sounds like your a tad worried about the prelims!........I am.DD

[wigwammer] 03/9/2016 11:08

"Whereas the results reflect the operational performances only, I am pleased to report that including all head office costs and costs associated with non-operating subsidiaries, the Group was profitable during the Quarter." I still do not understand this line.What results? Does he mean the £2m pre tax profit number? What else can he mean?So the £2m is before head office and other central costs, a very sizeable sum (£1.6m in 2015, from memory).Happy to be shown that I'm misreading this.

[sea7] 03/9/2016 09:31

Yep, I wasn't expecting over 11k ozs from SA alone for a quarter.

Good to see though and will be looking to see the Q1 numbers to see how much of a drop off, if any is shown.

[kimboy2] 03/9/2016 08:07

I think that may have been specific to the material in the stock dam.

It is difficult to pin down the numbers as there are a lot of moving parts. For example I had assumed that they did about 2kozs out of their own stockpiles each quarter, which doesn't leave much for anything else.

The last two quarters have surprised me a bit with good numbers. I think part of it may have been working through the backlog which was probably contracted at a higher price, so reducing margin if any.

[sea7] 02/9/2016 19:20

I would also think that the thesis submitted by temitope oladele last december, will have been read thoroughly and some of the recommendations and results will have been incorporated into goldplats elution processes, which will have enhanced recovery rates as well.

[sea7] 02/9/2016 17:26

Thanks for that Kb,

This would also fit with the higher gold prices and suppliers of feedstock requiring more of the gold returned to them, in return for a set fee in cash or gold, for the service that goldplat provides. If the suppliers believe gold will increase in the near term then they may like to keep it and sell later.

[kimboy2] 02/9/2016 17:17

It is interesting to see what GDP have actually produced on their own acount i.e. total production - gold transferred from South Africa;


Production Op. Profit (£)Q1/16 - 4,533ozs 0.415mQ2/16 - 4,179ozs 0.275mQ3/16 - 3,889ozs 0.845mQ4/16 - 2,838ozs 1.5m ?



The amount transferred went up from 975ozs in Q3/16 to 9,131ozs in Q4/16. I had noticed that trade payables were increasing and the main part of that is metal to transfer, I believe.

This would suggest that they are getting better grade material as more of it is being transferred back, ceteris paribus.

[sea7] 02/9/2016 15:58

Perhaps the entire operation was constrained with the amount that rand would take at a time. They would have been in a position to dictate how much they would accept for processing, as they would have other customers to consider.

Goldplat would be able to use the one to three day refining for the eluted material from the previous 1 tonne a day column and may have been subject to quotas for the rest, meaning that the company structured its operation around this to avoid backlogs.

With the increase in elution capacity and the reduction in reliance on rand, plus the use of other refineries, the circuits have been able to operate closer to their maximum operating levels, which when combined with all the improvements, efficiencies and upgrades, we may simply be starting to see just what the plant can actually do.

I guess we must also remember that Demetri considered the market mature, saw no reason to upgrade the outdated and old equipment in south africa, some of which was nearly 30 years old, to focus on mining. So we may simply be seeing a lot of efficiencies through modern equipment, which is all in place and operational now.

I have to admit KB, that I am speculating on the reasons and there could be other reasons in conjunction with my suggestions.

Gerard did say somewhere that they had cancelled a few of the lower grade contracts, to focus on higher grade material, so this will have had some effect as well.

[kimboy2] 02/9/2016 14:40

I don't really understand why the new elution capacity should increase the capacity of the whole plant. Presumably what is now eluted previously went out the gate to RR and wasn't a bottleneck. Any ideas?

The company haven't made much of the increase but it must increase substantially the potential profitability of the plant. I would suspect that they will need the third elution column sooner than later.

[flyingswan] 02/9/2016 14:37

Do you know anyone in the area who may have a tailings deposit needing processing?
" JOHANNESBURG (miningweekly.com) – As dual-listed Central Rand Gold (CRG) ramps up the processing of gold-bearing ore under a joint venture (JV) tolling agreement, the group is in talks for further opportunities for a target tailings deposit.
The group on Monday said it was in discussions with the owner of an undisclosed target tailings deposit near CRG’s metallurgical plant and was contemplating a transaction structure to operate its current tolling JV and the target tailings deposit concurrently."

[sea7] 02/9/2016 13:57

This interview with proactive says about the same as the directors talk interview...

www.proactiveinvestors.co.uk/companies/stocktube/5459/goldplat-plc-boss-kisbey-green-upbeat-as-momentum-builds-5459.html

[sea7] 01/9/2016 23:37

In 2008 goldplat produced 15239 oz in SA and 4083 oz in ghana.

In 2009 goldplat produced 13960 oz in SA and 7108 oz in ghana. average production cost in this year was quoted as £413 oz in SA and £456 oz in ghana.

In 2010 goldplat produced 17263 oz in SA and 4198 oz in ghana. average production cost in this year was quoted as £330 oz in SA and £441 oz in ghana.

In 2011 goldplat produced 18190 oz in SA and 9995 oz in ghana. some material was processed off site in ghana.

In 2012 goldplat produced 13592 oz in SA and 17762 oz in ghana, along with 7976 oz of silver in SA. - first year ghana outproduced south africa.

In 2013 goldplat produced 16231 oz in SA and 18868 oz in ghana.

In 2014 goldplat produced 16075 oz in SA and 13739 oz in ghana.

In 2015 goldplat produced 22135 oz in SA and 6111 oz in ghana.
During this year CIL plant shut down, tolling agreements ceased in ghana.

To end June 2016 goldplat produced 27790 oz in SA and 6883 oz in ghana.

The drop off from the H1 2015/16 figure of 4694 oz in ghana, to 304 oz for Q4/16 is quite a drop, whereas the SA plant has produced almost as much in Q4 as it did in H1.

Gerard stated that he did not think that the current Q4 production rate was sustainable, however, the 40k oz per year was about right.

I would say that we are in the region of around 50k oz capacity across all three operations at this time. This capacity will expand further, although most of the increases are likely to be outside of SA.

At todays prices fine carbon at 500g/t is worth about $20,000 a tonne before processing costs, which makes transportation costs fairly insignificant.

A new CIL is over $2m so shipping the old one to kenya has meant a big saving there.

The deep value of the stock is not recognised in the share price as the effects of all the issues, still cloud the view. It will be once the numbers really start to show that this is a profitable 50k oz a year business, with expansion to come.

[kimboy2] 01/9/2016 16:59

I don't think Ghana has any artisanal material any more since the tolling stopped and the CIL was packed off to Kili.

The incinerator section treats high grade carbon which has 1-400g/t of gold. Presumably it is because of the high value thatit is worth carting across the from South America.