Goldplat Share Discussion Threads

[kimboy2] 15/12/2016 21:17

The artisanal material will be a much higher grade. Whether they make more money out of it than their own production will depend on what they pay for it.

I would have thought that the artisanals are getting ripped off at the moment so plenty of scope. However I was a bit surprised when they said that they weren't going to use the artisanal that the present plant use because the transport costs make it uneconomic.

[sea7] 15/12/2016 20:53

Goldplat will have finished processing all the quoted woodchips by now, as they can do 60t per day. As they had 60000t in april 2013, they will have exhausted that supply in a 1000 days, or just under three years. We can be sure that this will have been replenished along the way as well, so I expect that we still have a good couple of years worth on site.

When the stock hit the low of 1.63p the mcap was £2.7m. The company had a net current asset value of 1.79p. In other words if the company had stopped trading that day and settled all liabilities there would have been 1.79p in cash for shareholders, plus all the property, plant and equipment. The problems were surmountable with minimal downside and worth buying at the time.

The risk we had was that the management could not deliver solutions to the problems. They did and we saw an increase in the share price of over 220% in a year.

Gerard and co. might have mining ambitions, however, they are not blind to the ability of the recovery operations, all the work done is bearing fruit and there is more to come.

It looks as though they will be processing a lot of artisanal material in kenya as well as mining, which should take the pressure off the mine, especially as gold has dropped somewhat.

[sea7] 15/12/2016 20:33

I agree, even when all the issues were at hand, I carried on buying at the lows, remembering these sorts of things..

from share price angel note march 2013

As long as mining techniques continue in their current form, Goldplat
Recovery will be able to source by-product materials for its processing
operation

and

Stockpiles provide a cushion to operations amounting to 7 years of installed
capacity. Around 786 kg of gold (around 28,000 oz) is contained in materials on site giving around several years of potential inventory. This includes wood chips
of 60,000t equivalent to 500kg of gold at 8g/t.

and

The company have built up over six to seven different circuits in South Africa
which would require a replacement capex of $15m.

and

The secret to its success is the ability to have a number of processing
solutions which can operate independently. The company brings together
materials from a variety of mines and processes these materials on a scale
not available to any individual mine

...........

Since that note a lot has been done and a lot more has been invested in the business. The elution column for one.

In the most recent accounts they reference an average gold price of $1167 for the year. Today the price is $1129. The average figure for H1 of 2017 has been higher so far, so we are still on track to exceed last years figures.

[kimboy2] 15/12/2016 19:46

Yes they are quite interesting. One of the things that sustained my confidence in GDP during the dark days of less than 2p was that the recovery operations were worth a load more than the mkt cap, if the worst came to the worst.

Still think that is the situation.

[sea7] 15/12/2016 19:42

No problem - thought I would go through some more of them.

[kimboy2] 15/12/2016 18:58

Thanks for the numbers sea

[kimboy2] 15/12/2016 14:35

The one thing the current deal does give them is an option in the future if anything worthwhile crops up. At least someone else is spending the cash.

[sea7] 15/12/2016 14:30

Yep, I am not expecting anything from anumso anytime soon.

The statement in the tech report.

"there is currently no mine plan" sums it up.

[kimboy2] 15/12/2016 14:27

I have written Anumso off. They will be lucky to see any worthwhile return.

[sea7] 15/12/2016 14:18

The south african subsidiary, from the point of view of sale value is worth way more than the mcap on its own, without taking into consideration the stockpiles and earnings.

[sea7] 15/12/2016 14:10

Cannot remember if I posted this before:-

technical report dated 26th august 2016 on anumso...



What they had to say about the shortcomings of IRES, south africa's modelling of anumso on behalf of goldplat..

The authors of this report consider these shortcomings sufficient to invalidate the resource estimate as useable by AGC or to be considered as a current resource according to CIM definitions (CIM, 2014).

This estimate is considered historic by the authors and by AGC and is reported here for the purposes of completeness.

It is considered significant and inaccurate that the IRES block model was constructed without any geological input and that an average SG value of 2.75 was used for the entire model. The IRES Datamine block model has not been provided to AGC as at the date of this report. AGC does not plan to use this mineral resource estimate, but rather undertake a more in-depth geologic evaluation and assessment of the Property, plan new drilling, and then undertake a new mineral resource estimate based on new information.

...............

They do not sound too impressed!!

[kimboy2] 15/12/2016 14:04

I wonder what the subsidiaries are worth if they were sold.

[sea7] 15/12/2016 12:38

same thing, said differently!!!

[sea7] 15/12/2016 12:27

Goldplats capex figures across the years, as stated in each AR.

2016 recovery plants £914k - mining £561k
2015 recovery plants £753k - mining £488k
2014 recovery plants £924k - mining £61k
2013 recovery plants £1.6m - mining £779k
2012 recovery plants £704k - mining £3.24m
2011 recovery plants £1.6m - mining £1.64m
2010 recovery plants £942k - mining £683k
2009 recovery plants £427k - mining £946k
2008 recovery plants £434k - mining £266k

This gives us a total capex from 1st July 2007 to 30 june 2016:-

£8.23m on recovery operations
£8.66m on mining.

Profit/(loss) before tax for the same period, 1st july 2007 to 30 june 2016:-

2016 recovery plants £2.696m - mining (£762k)
2015 recovery plants £873k - mining (£933k)
2014 recovery plants £1.796m - mining (£714k)
2013 recovery plants £4.716m - mining (£3.493m)
2012 recovery plants £5.208m - mining £583k
2011 recovery plants £3.482m - mining -
2010 recovery plants £2.542m - mining -
2009 recovery plants £2.386m - mining -
2008 recovery plants £1.857m - mining -

This give us the following:-

recovery plants pre tax profits of £25,556,000.
Mining losses of £5,389,000.

Mining actually generated a profit of £583k in the 2011/2012 year.

The sooner the mining losses are halted the better, as the recovery divisions performance is continually masked by this poor show on the mining efforts.

[russman] 15/12/2016 12:05

I think you mean goodwill.

[sea7] 15/12/2016 11:24

Goldplat takes advantage of the exemption and doesn't include an individual PL account in its annual report, however, the summary shows:-

Profit and loss account

2016 comprehensive loss £306k
2015 comprehensive loss £76k
2014 comprehensive loss £156k
2013 profit £1.23m
2012 profit £1.68m
2011 comprehensive loss £411k

For those that are interested!!!

[sea7] 15/12/2016 11:18

Page 20 of the annual report, under the heading strategic report.

[kimboy2] 15/12/2016 11:16

Sea - Where did that come from?

This was of course the Manolis strategy. The problem there was that he hadn't secured the recovery operation to make sure that it would be a cash cow. Gerard, judging from the Creamer's interview, is more confident that it has now.

IMV rather than chasing something new they should sort out phase 2 of Kili. It is ridiculous to get a jv on board and then go and buy another project.

It is all going to need cash flow. Based on Q1/17 present cf is about £1.6m pa.

The CIL at Kili will add £1m. The stock dam £2m and phase two of Kili another £2m. Another 2 elution columns perhaps £1.5m

That will give them some firepower once they have got it invested.

[sea7] 15/12/2016 10:46

I see the tax free status in ghana for the tema plant comes to an end this month.
We get an 8% rate after this.

This is the thinking of the BOD and therefore, what we should expect..

The Group’s main object is to produce gold from the recovery of by-products discarded by the primary producers and to produce gold as a primary producer itself. Strategically by developing and growing the mature recovery businesses, the Group will be in a position to maintain healthier cash levels to cover some costs as it expands its primary producer goals. Unlike Greenfields exploration companies the Group should be able to fund, if required, exploration or alternatively acquire mining operations as they become available without diluting shareholders continuously by raising capital to fund general and administrative expenses.

By taking a phased approach and organically growing the recovery and mining divisions of the Group it is possible to develop the Group into a junior mining Company.

The outlook for the 2017 year will be to focus our marketing efforts and broadening the geographic and product diversity of materials sourced to expand and grow our recovery businesses. Plant capacity at the Groups’ Kilimapesa mine will be increased not only to make this mine profitable but also pave the way for further expansions, if such an opportunity presents itself.

[discodave4] 14/12/2016 19:22

shareholderGood luck and thanks - nice to know I'm not the only one with the same views about the RR issue. Will hang on a while longer.DD

[sea7] 14/12/2016 14:24

This is a dispute over processing charges for one contract with rand, which is likely to have a third party owning the material.

It is a business dispute, not a battle for hearts and minds.

[sea7] 14/12/2016 14:21

The vast majority of arbitration cases remain confidential and the only reports usually state that a satisfactory outcome has been achieved, with all issues resolved to the satisfaction of all concerned.

If GDP gets the whole zar13.5m then they are unlikely to go on about it and rub rand refineries nose in it.

from the accounts...

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 £679,000 is being disputed by Rand Refinery

..........

The dispute surrounds the fees for processing and we may never get the details.

[kimboy2] 14/12/2016 13:57

I think I can be fairly certain that neither company are going to be explicit on the argument. What is there to gain from being so?

GDP will end up with somewhere between 0 and 13.5m rand. The question is whether the outcome will have any long term effects.

The evidence so far is that it won't.

[sea7] 14/12/2016 13:53

tks Shareholder.

on the TSF and kili...

“Evaluation of operational variables of the pretreatment stage is now under way, with testwork expected to be finalised at the end of the second quarter of the 2017 financial year.”

kili..

Kisbey-Green noted that a permit had been granted to purchase and transport tailings from Migori county, where KPG had identified “significant quantities” of good-quality surface material. He also noted that material from this community initiative would be added to KPG’s stockpiled ore





I am expecting an update on the TSF and kili in January, stating that the milling section is running and the outcome of the TSF pretreatment studies, along with an update on the RR dispute, which should show up soon.