Goldplat Share Discussion Threads

[sea7] 26/9/2016 19:09

Another interview with Gerard

[kimboy2] 26/9/2016 16:22

VSA upped their target price from 7.1 to 11.1p. Their previous analysis was ridiculously conservative, let's hope this is as well.

I suspect that Nick Gomersall is still selling and keeping a lid on the share price

Thought the share price Angel comments were very amusing.

[kimboy2] 26/9/2016 15:12

Well clearly a good report though I was a bit disappointed with the numbers as I make £600k of the profit in H2/16 was from finance which I tend to treat as irrelevant to the operating performance.

A few points that strike me;

1. I make the profit at the plants in Q4/16 as;
SA £0.57m
Ghana -£0.21m
Kili -£0.21m

I am not certain of these numbers but what I have got so far.

2. I als omake SA production 1kozs more than in the trading update.

3. SA made £0.845m in Q3/16 with production of 4,864ozs, but only £0.57m with production of 12,083ozs. Not sure why.

4. Gross profit was 19% of turnover in H2/16

5. Brazil seems to be the country and a new partner signed but no details. Thinking of a plant over there. The partner said to be in a similar line of business.

6. I had expected Kili to break even in the period which clearly was not the case. I think one problem was that the artisanal material from outside the area was a much higher grade.

7. The CIL at kili confirmed at 2,500tpm. Expected to be running this half and will eliminate losses. Not sure where material will be coming from but it sounds as though most from own mine.

8. Seems as though stock dam has been delayed by trying to get use of open pit next to plant. It is apparently the best economic solution so clearly transporting the material is a significant cost.

9. The RR dispute is because RR thought they were going to get more precious metal than materialised rather than some sort of contractual dispute.

10. South Africa entered into a pre payment agreement as well as Ghana

11. Seems to me if they are going to source material for Ghana and build an elution column they will need to build processing capacity.

12. Potential to procure tailings in Kenya look interesting.

13. Vat problem in UK was resolved satisfactorily.

14. Notice that inventories are up despite the additional gold sales. Presumably the 'gold in process' has been replaced by increase in 'raw materials'.

15. Also notice a big increase in trade payables. Presumably this is due accrued expenses from material on hand, which is basically stocks they haven't started work on yet which are owned by a client. Seems good news that they have good stocks of material to feed the plant.

16. It looks as though they have started PGMs gradually.

Anyway a good set of results with lots of developments still to come.

[sea7] 26/9/2016 13:50

www.proactiveinvestors.co.uk/companies/stocktube/6039/goldplat-ceo-we-dont-need-high-gold-price-to-make-money-6039.html

Interview with Gerard.

[sea7] 26/9/2016 13:02

DS,

It just goes to show that the results were that good they had to resort to bitter sideways comments, where in reality they did not have to comment on goldplat at all.

Their final comment about the south african industry in decline and the sourcing of material is a weak attempt at putting a dampner on what is a great set of results, considering the last few years of turmoil that the company has been through.

[dangersimpson2] 26/9/2016 12:58

s7,

Yeah the use of adjectives in the share price Angel report is hilarious. The 80-year old retiring Brian Moritz is 'displaced'!

I think they shoot themselves in the foot with that sort of report. Would you hire them to represent your company on the back of that sort of behavior?

[rolo7] 26/9/2016 12:37

Q4 numbers rough attempt,
SA 600k£
GU 0k£
Ken -110k$ loss
Sa down 200k£ on q3, Gu -156k£, ken up 50k£
so 500k q4 =2m for next year add back reduced kenya losses looks okay.

[sea7] 26/9/2016 12:08

sp angel view....you can sense the bitterness from them, since they were replaced.

Goldplat* (LON:GDP) 6.25 pence, Mkt Cap £10.5m – Results improve as Goldplat recovers from disastrous year
• Goldplat report year end results for the year to 30 June 2016 adding to information released at end August.
• The team managed to turn the business around from what was a disastrous 2015 to show a modest £1.4m post-tax profit for the year vs a loss of £0.9m a year earlier.
• Admin expenses rose to £1.836m vs £1.679m indicating less focus in this area than some others.
• Gold sales rose to 37,666oz of gold from 30,524oz a year ago with the gold recovery operations producing 35,661oz vs 28,246 yoy.
• Operating profits rose to £1.172m from £0.711m yoy and Pre-tax profits rose to £1.942m vs £0.796m.
• The Gold Recovery plant in Ghana reports an operational profit of £0.437m for the year vs a loss of £641,000 yoy
• The very small, loss making Kilimapesa gold mine in Kenya lost £0.711m for the year vs a loss of £753,000.
• Goldplat has improved its cash position to £2.056m from £0.630m a year earlier
• New chairman Matthew Robinson has taken over from displaced Brian Moritz.
Conclusion: Goldplat is recovering from a disasterous 2015. The group is still trying to generate a profit at its only gold mine at Kilimapesa in Kenya but has returned to profit at its gold recovery plant in Ghana.
The slow demise of the South African gold mining industry may make the sourcing of gold bearing waste materials, such as wooden packs, increasingly difficult.
*SP Angel analysts have visited the Goldplat’s recycling plant at Benoni in Johannesburg

www.proactiveinvestors.co.uk/columns/sp-angel/26120/goldplat-highland-gold-kodal-minerals-gemfields-kefi-minerals-savannah-resources-solgold-26120.html

[russman] 26/9/2016 10:52

I cannot see the provision for the Rand doubtful debt in the accounts.

[dangersimpson2] 26/9/2016 10:43

I wonder if we will start to get some more interest here following these results since common investment metrics like P/E, EV/EBIT, P/FCF, net cash etc. now look very good value on historic values.

Those who do the Q4 maths and maybe even a broker or two will also be able to infer the further progress next year that will improve these metrics further on a forward looking basis.

[discodave4] 26/9/2016 09:33

Just read over again, looks like the fall in sterling has added £734k to pbt. DD

[discodave4] 26/9/2016 09:18

Looks good (phew!). Still feel the RR issue will hold this back until its resolved, the disputed amount has increased £50k already! (ok possibly exchange rate movement?).There's no buy order in the background IMV, people selling because it's fair value:DiscoDave4 - 20 Sep 2016 - 01:42 - 2782 of 2812 - 0Rev approximately £20m, pbt around £2m less RR debt plus costs say £1.35m, margin 6.7%, eps 0.8p?, PE 6.3, share price 5p.2011 revenue £19.6m, pbt £3.4m, margin 17.3%, share price 12p, eps 1.9p, PE 6.3.DD

[michaelfenton] 26/9/2016 08:57

Level of sales indicate a largish BUY order?

[sea7] 26/9/2016 08:26

The dispute at rand appears to be over the processing costs, from the results...

The value of the gold equivalent ounces produced from the silver sulphide
toll-treatment project was not recognised as revenue, but only the fees
received for processing, of which approximately GBP679,000 is now being
disputed by Rand Refinery.

Good to see the dispute over vat with the uk HMRC has been withdrawn and payments are
being received again.

[mrmoneybags123] 26/9/2016 08:25

Why are people taking profit so early..?

[sea7] 26/9/2016 08:22

proactive view..

www.proactiveinvestors.co.uk/companies/news/166435/goldplat-swings-to-a-profit-in-glittering-year-166435.html

[michaelfenton] 26/9/2016 08:20

Seems a strange time to be selling?

[nick rubens] 26/9/2016 08:16

Feels like a huge buy order is being worked this morning. 6p sellers might miss out on a break out finally? I don't know. I'll be surprised if they can buy them back below 6p again, this time.

[sea7] 26/9/2016 08:14

Some highlights.

Net cash position at y/e of £2.56m against £630k last year.
cash generated from operating activities £2.44m against £131k last year.
Net current asset value increased from 1.8p per share to 2.11p per share.

[michaelfenton] 26/9/2016 07:53

Just a quick flup through RNS looks generally very positive and I am really looking forward to 2017 with better management and expansion plans. The few minor blips are of no real consequence. Looking forward to seeing what Kimboy2 thinks.

[kimboy2] 22/9/2016 17:55

The figures for Elikhulu are quite interesting;



An AISC of $650/oz on 45% recovery and 0.28g/t show the potential profitability.

Still think that the recovery at GDP will be north of that.

[dangersimpson2] 22/9/2016 16:24

Just picking up an old topic TSF recover-ability. Pan African have a feasibility study being developed on what is probably a similar but larger resource:



Elikhulu will potentially treat slimes at a processing capacity of up to 12 million tonnes per annum, at a head grade of 0.29g/t from the Winkelhaak, Leslie and Kinross tailings storage facilities. The total mineral resource for Elikhulu is 178.7 million tonnes at 0.29g/t (1.7M in-situ ounces) with a life-of-operation of approximately 14 years and 1.7Moz of contained gold. The project is estimated to yield approximately 50,000oz of gold per annum in the initial 8 years of production while treating the Kinross and Leslie tailings storage facilities and then approximately 38,000oz per annum for the remaining 6 years from processing the Winkelhaak tailings storage facility.

This works out to be a recoverability factor of about 37% = (8x50k + 6x38k)/ 1.7m

Given the higher grade of the GDP TSF I think recoverability of the GDP resource will in reality be quite a bit higher than the initial 15-20%:

The amount of silver and uranium oxide contained within the TSF, in addition to the gold content, is particularly encouraging. Initial test work suggests that conventional processing routes could result in gold recovery in the order of 15-20% through the existing New Tailings Circuit. More detailed metallurgical test work will now be undertaken, not only to determine the optimal gold extraction process, but also to optimise the extraction of silver and uranium oxide. This test work together with simultaneous processing and plant optimisation will begin immediately to ascertain how best to monetise the value contained in the TSF.

This is still gold -bearing dirt so they will struggle to push above 50% IMO but still a large increase over base case assuming they can sort out their metallurgy and processes.

[sea7] 22/9/2016 16:05

KB,

I emailed Gerard at the same time I asked on here. He says he should have a copy and will email it to me, if he can find it.

[flyingswan] 22/9/2016 13:19

Some are available just by Googling them:

Mentions Goldplat GDP