Goldplat Share Discussion Threads

[discodave4] 27/10/2016 09:36

MF - The market also appears to be overly pessimistic, doesn't matter what I think.It's ok throwing share price forecasts around, doesn't change anything, this is stuck until they sort it out IMV.How many more pieces of very positive news do they need to release before the penny drops?.DD

[kimboy2] 27/10/2016 09:28

I make that an annualised pre tax profit of about £3m, ignoring finance. The VSA forecast for the year was £1.9m.

The Migori artisanal material deal will be significant IMV. If they can get the CIL filled with material at 7g/t then it is going to be very profitable. The CIL does 80tpd so you can work the numbers out.

The jump in ozs and profits at Ghana was welcome. It is to be seen if it can be maintained.

As for price movements I think we will be around 8p at Christmas. When the CIL comes on line that will basically eventually add £0.6 - £1m to the bottom line which will push the price.

I would expect cash to be down a bit because they increased their inventory of gold and of raw materials as well as the capex at Kili.

[michaelfenton] 27/10/2016 09:20

DD4 - I think you are being overly pessimistic. You may be proved right but i prefere to treat it as a one off dispute until proved wrong. All AIM companies suffer from maagement deficiencies. GDP has a long histor of poor management however things seem to be doing much better under the present team. Small companies have to create a lean management due to cost restrictions and this does lead to problems. GDP is seemingly doing better and as a long term holder I am happy to see steady if unspectacular progress. I would be happy for the share price to be at 10p at this stage in 2017.

[shareholder7] 27/10/2016 09:18

Totally agree with you DDIf you can't contract with your biggest partner than what other contracts are out there that could go bad The share price won't move until new investors come in and GDP needs to prove that they can be trusted Some time off in my opinion

[discodave4] 27/10/2016 09:00

Thanks S7,Probably missing something here, it's always only been about the silver toll recovery, nothing new IMV.It's not the monetary value in dispute per se that's the primary issue IMV, it's the damage to reputation, shows complete managerial incompetence, with potentially back dated additional claims/disputes to drip through from other customers, it's a sign they haven't got everything well managed and the longer this drags on the longer the share price will go side-ways IMO.DD

[sea7] 27/10/2016 08:44

dd,

from the update...

The independent investigation concerning the dispute with Rand Refinery
regarding the silver sulphide toll recovery project is still in process
but has been separated from the day-to-day operations between the two
companies.

It is solely related to the silver sulphide contract only. The next paragraph from the update states....

Notwithstanding the dispute with Rand Refinery, Goldplat continues to deliver concentrates to Rand Refinery, which has improved its turnaround time significantly.

They have isolated the dispute to the one contract and separated it whilst carrying on business as normal.

[discodave4] 27/10/2016 08:25

Op profit double what it was for same quarter last year.Nice to see Kili losses reducing.S7 - where does it say the RR issue is contained to an isolated contract? (Still don't see the share price holding any gains short term, will see, hope I'm wrong).DD

[michaelfenton] 27/10/2016 08:22

Yes all looking good - but this is very much a long term hold and prospect. No easy buck but could turn into a decent dividend paying company with the present business model and plans. I am happy with the turnaround even if things always slip a little on the time scale.

[nw99] 27/10/2016 08:14

Good news looking good

[sea7] 27/10/2016 08:06

vsa comments..

Goldplat (LON:GDP) has released a trading update for the three months ended 30 September 2016.

Key highlights:
Overall production of 9,129oz of gold and gold equivalents (5,418oz in South Africa, 3,088oz in Ghana, 623oz at Kilimapesa)
Group operating profit of £974k for the quarter, with £769k of this from its South African gold recovery operations
Improvement in operating profitability at the recovery operations and continued reduction in losses at Kilimapesa
GDP has delivered robust results for Q1 FY 2017, with production in line with our full year estimates. Operating profit was strong despite headwinds from a Rand appreciation versus Sterling.

Particularly pleasing in our view is the work at Kilimapesa, which remains on track, with the ongoing plant expansion due to be fully completed in February 2017. We expect the expansion at Kilimapesa to drive a return to profitability and unlock significant value for the wider group.

We maintain our BUY recommendation and target price of 11.2p.

[sea7] 27/10/2016 07:42

Yep, a good update, op profit of £974k overall for the quarter, rand issue contained to an isolated contract, business with rand refinery continuing as normal.

Gold licences are taking longer to renew in ghana and a temp licence is being used, which is a good indication that the issues that occured there some time ago, have been rectified, otherwise they would not have a temp licence.

I like the removal of tailings in ghana to landfill, which gives us room for expansion.

[kimboy2] 27/10/2016 07:24

Looks pretty good to me.

[michaelfenton] 27/10/2016 06:36

The latest production figures important too.

[michaelfenton] 27/10/2016 06:31

I think the RR situation is already in the price so if it drops I will be buying again especially at 4p? The latest re important too.

[kimboy2] 26/10/2016 23:19

Well one thing I would point out and that is that Nick Gomersall has been selling into any rise or into any liquidity. He had 5 million or so to sell which is quite a bit in an illiquid market.

As for RR it was obviously a negative. My concern wasn't with RR in particular but that there may be some sort of contagion from it with further problems developing. This hasn't happened as far as I am aware.

IMV as other things develop - the CIL at Kili, the South American developments, the stock dam etc - the RR will slip from view and will hopefully be a nice surprise when/if the cash eventually arrives.

If there are good numbers tomorrow I don't think the market will ignore them because of a contractual dispute over 3% of turnover some 6 months ago, which may turn out OK anyway.

I am expecting good numbers/news tomorrow (aren't I always). If they weren't very good I think that they would have put them out before the day of the AGM. Gerard is quite keen on news management.

[shareholder7] 26/10/2016 22:29

I agree with DDRR is the key If there is good news here the share will rise Bad news I think it could go down to 4p as there needs to be a write off of £640kLet's hope for a positive RNS

[discodave4] 26/10/2016 22:10

Hi S7,Sorry but the graph and share price clearly show it's been range bound since the 11th following the large drop on the day. Why did it fall 25% on the 11th and has not, recovered?.Not POG IMV, POG has only fallen 6% since 7th July, half of the fall in POG has occurred this month. GDP on the other hand has fallen over 17%.DDPS only log the bid price, not interested in any other price ATM.

[sea7] 26/10/2016 21:56

Hi DD,

On the friday before the rns the mid was 6.875p, today the mid was 6p at the close.
This is where I see the "largely unaffected" position from. Had the company not had the ability to mitigate the effects of the RR issue then the business plan would have been impacted, along with the share price for a lot longer.

The chart shows a continual uptrend from the low 1.63p in late july 2015 until july of this year, when we level out into the current range.

We do have to take into consideration that the POG has come off its highs recently, taking some of the sentiment towards it as well, which will have slowed up interest in buying gold miners. Not to mention some profit taking.

As long as all has gone to plan, then the update will be good. I added to my holding last week.

[discodave4] 26/10/2016 21:34

Wouldn't completely disagree S7, except strongly disagree with your first para.The facts paint a completely different picture to your sentiment and views:Two days before the RNS detailing the RR issue the share price was at its 18 month high and had been climbing fairly steadily since the low around Aug 2015. On the day of the RNS 11th July the price (bid) fell 25%, to 5p, its been bouncing around 5.25 to 6 ever since.Despite what you or I think the facts speak for themselves In terms of what has happened to the share price since the RR issue despite all the positive news since the 11th July. Unless you can provide any other reasonable explanation for the share price movement since the 11th July then no offence but I will stick with what the graph and actual price movements tell me.That said, hope this does start to move upwards at a fair rate of knots as still intend to sell up soon.GLDD

[sea7] 26/10/2016 19:56

The stock price has largely been unaffected by the RR issue since the july rns. This would indicate that the market is discounting it completely, as it is contained to one contract and the financial implications of it have been mitigated by the selling of some of the inventory, which enables the capex programme to continue as planned, along with day to day opex being easily covered.

The company has demonstrated that it has returned to a stable position after completing the main parts of the turnaround and we are now at the point of seeing the first set of numbers which do not have the previous few years of troubles clouding them.

The stock price has also been fairly stable around the 5.5-6.5 range since the july rand refinery RNS as well, reflecting the current stable position of the business.

This next update should show the market that the problems are in the past, the rand issue is a side issue and the business is progressing as planned. This should then be reflected in a solid move upto the next level with the share price.

The market can see that goldplat is out of the woods, however losses at kili and the next good set of numbers are not public yet, which are keeping a lid on the share price.

Hopefully we will have that update in the morning.

[discodave4] 26/10/2016 19:15

Needs to be very good news/numbers to get the share price moving in the right direction again.RR issue - If there's been no progress, or not even a target date set for some resolution, then I feel it still will not be enough - I know, nobody else agrees!, well it hasn't moved on the back of all previous positive news since the issue was first flagged, so explain that!.DD

[sea7] 26/10/2016 16:23

If last year is anything to go by, then we should have the update at 0700 tomorrow morning, before the agm takes place.

[kimboy2] 26/10/2016 16:13

Presumably tomorrow is the day for the Q1/17 update. Hopefully some info on the several outstanding developments and a continuation of the trend from H2/16.

[kimboy2] 19/10/2016 14:26

Note 28 has nothing to do with doubtful debt. It is to do with environmental obligations.

Note 4;
A provision is established when there is objective evidence that the
Group will not be able to collect all amounts due

[russman] 19/10/2016 13:36

Note 28 £244k for rehabilitation.Cannot find the doubtful debt policy.