Goldplat Share Discussion Threads

[kimboy2] 22/2/2017 11:08

VSA Capital Mining Analyst Oliver O’Donnell caught up with DirectorsTalk for an exclusive interview to discuss Goldplat plc (LON:GDP)



Q1: Goldplat had a difficult 2016, do you think it’s put its issues behind it now?

A1: Yes, I think these results really show that they’ve really turned it around. Obviously, at the start of calendar 2016 there were issues that impacted the financial results last year and now you can see production up 22% year on year to 21,300 ounces with production up both in South Africa and Ghana. Revenues are up very strongly and EBITDA up to £1.4 million, up 161% year on year and so they are well on track for our full year estimate of £3 million which is a 60% increase year on year. Net income as well, they reversed the losses that they experienced in the first half of 2016, earning 742,000 in this period, it was slightly down because of some FX losses but I think that’s to be expected given the moves that have happened in the currency last year. I think what’s important to note is that as well as turning the company around, Goldplat took the chance to really improve the efficiency in the way that they’re running the business and I think that’s showing through in these earnings as well.



Q2: You touched on FX, how have the currency moves impacted Goldplat’s interim results?

A2: Well, obviously, it’s a company operating in Ghana and South Africa but they’re reporting in sterling and there have been some big moves in currency over the past 6 months with Brexit in June. So, you’ve seen sterling depreciate heavily against the dollar which has meant as well as gold prices rising in dollar terms, this has been enhanced and sterling gold prices have risen even more significantly. However, the rand has appreciated versus the pound as a result of Brexit as well and so that’s had a negative impact on Goldplat’s costs but overall that impact of higher gold prices seems to have won over and so revenue up 35% year on year to £14.4 million, a bigger part of that is the higher sterling gold price. That is even with the fact that Goldplat withheld 5,000 ounces or so from Ghana which explains the discrepancy between production and sales in this period, they have announced that that gold has now been sold and was shipped in January so that impact should work itself through in the second half so, we do expect ounces produced and sold to be fairly similar by the end of the year.



Q3: The Kilimapesa development appears to be on track, how important will this be for Goldplat plc?

A3: So, we’ve talked about this recently and, obviously, the impact hasn’t started to show through on the interim earnings as the plant was only commissioned earlier this calendar year. It is now running at 60 tonnes per day with stages 2 and 3 due to be completed in the next few months which will bring it to 200 tonnes a day and an annual production of around 6,000 ounces from next year onwards will really change the asset in terms of value for Goldplat. The mine lost £600,000 at the operating profit level last year and so at a breakeven level and then returning to profit that’s really going to unlock a significant amount of value for the group and as an asset standing alone. So, this is really one to watch as the key catalyst to allow Goldplat to rerate from where it’s currently trading.



Q4: You upgraded your outlook for the full year production, how significant will this be?

A4: Obviously, the rand impact on costs has been negative and so this is quite important that they’ve had a strong first half in South Africa so now we are expecting 28,000 ounces of production in the full year, they’ve produced just over 12,000 in the first half. I think one of the key things, one of the proactive ideas that have been enacted in this period, has been having dedicated personnel who are going out looking for material and new contracts for Goldplat’s to process and they’ve now got such a strong stockpile of inventory ready to process that now annual production at the South African operations is likely to be high year on year. I think that project is exactly the kind of proactive approach which I think shows the company has recovered operationally and it’s now able to ride out issues like a sudden move in FX and make this level or earnings far more sustainable. At the moment, £3 million suggests it’s trading on less than 3 times EV/EBITDA which is about half of where its historical average has been so I think this is a really key time for Goldplat and with that key catalyst of Kilimapesa coming through, it looks like a very interesting time for the company.

[kimboy2] 22/2/2017 10:26

i think that the market is just taking on board the financial implications of the Kili investment.

[wigwammer] 22/2/2017 10:24

With the shares at a 3 year high I suspect a few people have been blinkered about the positives.Perhaps that's just the way some people are.Happy days!

[kimboy2] 22/2/2017 10:22

Remarkable rise today given the RR dispute.

On saving face RR have already lost face. Gerard has clearly laid it at their door and said the whole process was unecessary. They, in effect, accused GDP of skimming, and were in fact found to be incompetent in so far as they didn't know how much metal was in the ore they had bought.

Might explain where their two tonnes of gold went.

On another front it looks as though they may be considering financing the Ghana elution on debt. It would give them another £1.5m to spend elsewhere and could be repaid in a year.

On the costs of dealing with others the answer to this is obviously to do as much elution themselves as possible. I am hoping they get going on the next elution column in South Africa soon.

I think the main problem with Aurubis is the delay rather than them being more expensive. RR certainly aren't cheap.

[danielmiller1] 22/2/2017 10:12

7.50 from 7.75 looks like down to me........just as DAN has said it would be going.

They let the price run up to trap a few and wham slap it down.......MMs have made their money out of the suckers who always fall for it

Lolololololololololol

[discodave4] 22/2/2017 09:57

CEO also stating what was posted here for over 7 months and got slagged for it by those that refuse to listen to any negatives:"We as a management team have no doubt that that's been capping our progress in terms of our share price performance".In the meantime....pmsl.DD

[discodave4] 22/2/2017 09:54

Well done shareholder, at least those in the know.....know and aren't blinkered:"We as a management team have no doubt that that's been capping our progress in terms of our share price performance".DD

[wigwammer] 22/2/2017 09:37

In the meantime, stock hitting multi year highs.CEO talking positively about prospects - the market is listening and rewarding.

[discodave4] 22/2/2017 09:30

Trouble is S7 their contracts aren't worth the paper their written on, no way should a client be able to change payment terms of a live contract.They are now having to renegotiate with all existing clients to mitigate the impact of this change in payments from RR - unbelievable.DD

[wigwammer] 22/2/2017 09:22

Up we go again.Well done kimboy, and all the others who ignored the detractors and held on.

[danielmiller1] 22/2/2017 09:16

TAKE PROFITS ON THE PRICE RISE NOW WHILE YOU CAN......ITS GONNA FALL BACK FOLKS.

WHEN THE CURRENT BOUT OF HYPE DIES DOWN PUNTERS WILL REALISE THAT THEY ARE LEFT WITH.................THE SOS ie NOTHING?

[sea7] 22/2/2017 09:06

DD,

Thanks.

I am expecting some sort of negotiated resolution, whereby no one really loses any face. I do not expect to see the details published, however, we should at least be able to hear "how much" Goldplat has been able to recover from the dispute.

Whilst Gerard is still confident of goldplats position on it, he is giving a timeframe of months, which indicates some uncertainty over the timeframes being given by involved parties.

We also have the investigation by the Kenyan tax authorities in progress, which does appear to be making headway, with years 2010-2013 largely complete, although it must be like wading through mud.

There is also the possibility that as goldplat's volumes have reduced to rand that it may affect the overall contract pricing. I do not know how they structure these arrangements, however, I do know from experience, the more business you do, the better the terms. I am quite sure that they will be well aware of that though, if it were to be an issue.

[discodave4] 22/2/2017 08:59

.....as well

[discodave4] 22/2/2017 08:35

Thanks S7 for your post 3661.For the arrogant, opinionated and conceited KB2, read it and weep, your a waste of time and have ruined this board with your inability to take on board other people's views - it's not always just about numbers, get over yourself and get in the real world.You may have completely different views about GDP than the scum Miller, but in a lot of ways your no different - obsessive, opinionated, won't compromise or listen to others and as a result have ruined threads and prevented people from posting.Gerard on the RR issue:"We as a management team have no doubt that that's been capping our progress in terms of our share price performance".It's worth posting again IMO:"We as a management team have no doubt that that's been capping our progress in terms of our share price performance".No doubt KB2 you disagree with GDP management as well.DD

[discodave4] 22/2/2017 08:35

Thanks S7 for your post 3661.For the arrogant, opinionated and conceited KB2, read it and weep, your a waste of time and have ruined this board with your inability to take on board other people's views - it's not always just about numbers, get over yourself and get in the real world.You may have completely different views about GDP than the scum Miller, but in a lot of ways your no different - obsessive, opinionated, won't compromise or listen to others and as a result have ruined threads and prevented people from posting.Gerard on the RR issue:"We as a management team have no doubt that that's been capping our progress in terms of our share price performance".It's worth posting again IMO:"We as a management team have no doubt that that's been capping our progress in terms of our share price performance".No doubt KB2 you disagree with GDP management as DD

[kimboy2] 22/2/2017 06:52

One thing that has been a patent success is the sourcing and employing people purely to source. They seem to have material coming out of their ears.

Next half is already guaranteed to be record production.

[danielmiller1] 22/2/2017 00:34

GDP, MAN ITS ALL HERE.

[discodave4] 21/2/2017 19:06

"I see that Gerard feels as though the share price performance is being capped by the rand refinery issue and that he hopes for this to be resolved completely within a few months."He's not the only one!!.........took his time though, instead of poncing around satisfying his ego he should have nipped it in the bud ages ago........he was too blasé about it and was saying it will be resolved quickly 7 months ago.Good Luck S7.DD

[danielmiller1] 21/2/2017 17:20

Obviously Dan's posts are getting you rattled botboy. But then I would be too if I held that may shares in this dawgie.

Strange how you once bitterly disagreed with Dan when Dan
Said this dawg was bust and now you admit that is was. It was only luck ,that saved it cetainly not good judgement and management skills, as one rarely finds qualities such as that in the bottom of the bottle Mortitz viewed the world from.

You like waggy touged mouth are still on this hype that the share price Has increased, allow me to remind you that that the measure for statemnts such ad that are normally taken from the time of the IPO and therefore this dawgie is on thst premiss, way, way way down.....AND...AND I may add if whats lirking in the background ever escapes then your buying price may even look a tad expensive .........
meanwhile Dan continues to lololololololololoolololololololololololololololololololo