Goldplat Share Discussion Threads

[sea7] 06/4/2017 14:34

Hi dd,

I would like to see some transcripts of the report and the case as it unfolds, however, this is highly unlikely.

We are now in a position where the CEO's of Goldplat and Rand Refinery are using the media, to talk their respective books. One says we have done what is asked the other says you haven't. Arbitration has ironed out as much as possible and what is left are the sticking points, which cannot be agreed upon, so will no doubt end up in court.

If Goldplat are vindicated in court, will rand appeal on something else, or vice versa, who knows eh!! this could drag on for ages now.

The fact of the matter is that the working relationship between goldplat and rand is over for the foreseeable future, neither will care publicly, however, goldplat will have to pay marginally higher costs to get material processed and rand will have lost business, which neither really ought to be doing.

There are in my view some ego's at play here as well and someone will be eating humble pie, whilst possibly looking for a new job at a later date.

[sea7] 06/4/2017 14:20

They have called goldplat's bluff on the matter by saying "we don't care what the report says, we are not paying"

Now that goldplat have said "see you in court" rand have to have something to come back with, this is what they have come up with as they cannot use any operational/metallurgical factors because goldplat has been validated on this front.

[kimboy2] 06/4/2017 14:20

Alleged breach of contract

[sea7] 06/4/2017 14:16

In south Africa they must go through arbitration to resolve as many points as possible, so that the only points that remain, if any, are the ones argued in court, rand are indicating that these are breach of contract and failure to perform, which goldplat vehemently deny.

You are correct about the bottom line in this matter, however, they have started this chain of events and will either see it through or bail out and settle out of court if it becomes apparent that they are going to lose it.

[dangersimpson2] 06/4/2017 14:15

I'm trying to think what possible reason that Rand could think that Goldplat's actions had cost them money. The only thing I can come up with is that they were expecting a higher recovery factor from the material than they got and they are trying to claim that the difference cost them money. It seems clear that the independent metallurgy report supports Goldplat's view of how much metal was contained in the material.

The arguments will probably be something like this:

Goldplat - we processed the Rand material through our machinery as requested and returned the metal to Rand. The amount of metal is what our standard process gives and this is as expected. We expect payment as per a proportion of the material or an agreed cost structure. Withholding cash payment because Rand didn't like the amount of metal that was actually produced by the process is totally unacceptable when we acted in good faith.

Rand - we sent the material to you containing a certain amount of metal and we were expecting a recovery of x. The actual recovery was lower, we now can't reprocess the material so you owe us the difference.

If this is the case then I would expect for Goldplat to win they would need to show that the recovery factor was in the normal range that they get for this sort of material and that the contract didn't contain any minimum guaranteed recovery factor.

For rand to win they would need to show that the recoverability factor is significantly lower than expected compared to all other processors and that this was due to negligence on the part of Goldplat in their choices of processing.

Of course anything can happen in court but it is usually much harder to prove that another party was negligent even if the result was lower than expected. If they followed a standard process and it didn't yield as high a recovery as was originally thought that is not negligence. That Rand are hesitant with their court action does seem to show that they know they have a higher burden of proof to win the case than Goldplat.

[kimboy2] 06/4/2017 14:07

It would seem unlikely that RR are claiming something new. In the arbitration they would have put every bit of evidence they had, and argument, on the table to win the case.

Presumably they disagree with the interpretation of those facts that the IE made, and his ultimate conclusion.

The bottom line is that RR didn't get as much gold/silver as they expected. Perhaps they had to challenge it as their basic competence was called into question, even if it is going to cost them more in lost business to pursue it.

Much better to have settled to start with before it became an issue.

[kimboy2] 06/4/2017 13:49

I presume the TU is 20th April.

[flyingswan] 06/4/2017 13:46

Good Morning,
You are warmly invited to attend Proactive Investors' One2One Forum which is taking place on Thursday 20th April from 6pm at the Chesterfield Mayfair Hotel. Presenting on the evening will be Goldplat (LON:GDP), Savannah Petroleum (LON:SAVP) and PrimaryBid.
To register to attend please click on the panel to the right or reply to this email
Goldplat (LON:GDP - Market Cap: £12 Million)
Goldplat is an AIM quoted gold producer with two market leading recovery operations in South Africa and Ghana and an operational gold mine in Kenya. The company produced 37,666oz gold in FY 2016 and 21,317oz for H1 FY2017, with expansion plans underway to further increase production.
Last month the company revealed that it secured a US$2 million loan facility to restructure its balance sheet and fund its plant expansion at the Kilimapesa mine in Kenya.
CEO Gerard Kisbey-Green will be in attendance to update investors on progress at the company.
Savannah Petroleum (LON:SAVP - Market Cap £105 Million)
Savannah Petroleum is a UK oil and gas company focused around the exploration, appraisal and development of the R1/R2 and R3/R4 areas of the Agadem Rift Basin in south east Niger.
Excitement is building for investors in Savannah Petroleum now that a contractor has been signed for a new exploration campaign in Niger. Savannah Petroleum now expects to start its drill programme of up to 9 wells in the next quarter.
Management will be in attendance to present an up to date investment case for Savannah Petroleum.
PrimaryBid (LON:PRIVATE)
PrimaryBid is an online platform which provides private investors the opportunity to create their own placings on their own terms.
Momentum at the company has gathered in recent weeks as the company has successfully assisted several listed companies raise money including LGO Energy, Premier African Minerals, Ascent Resources and Sound Energy.
Presenting on the night will be COO Dave Mutton who will explain how the platform works in much more detail.
Please arrive at 5:45pm to get yourself a seat and to allow for a prompt 6:00pm start. Each company has approximately 20 minutes to give a short presentation, followed by 10 minutes of Q&A.
The evening will end with a complimentary bar and canapes, giving you the opportunity to speak with the directors and other investors.

[kimboy2] 06/4/2017 13:39

Well adding the word demonstrable to me seems to be saying that it is not obvious, otherwise why not just say loss.

It would appear it wasn't demonstrable to the independent examiner as he allegedly sided with GDP. It would seem an uphill task given the arbitration has come out against you.

I fail to really see what is in it for RR. Their loss will be far greater than the sum being argued about.

One possible swift resolution may be the replacemtn of the RR CEO.

[sea7] 06/4/2017 13:32

In investing, I do not buy litigious situations, as I generally find that the only real winners are the lawyers, racking up those fees, dragging cases out. In goldplats case, as I already have a position and am confident of goldplat's chances in this, I will be keeping my holding as is.

Nothwithstanding the rand matter, we are likely to see some further share price appreciation on the back of the kenya progress and I do not think that sending the bullion to Germany instead of south Africa for refining will make any difference to the costs, as long as export paperwork is in place for bullion to Germany instead of the current south Africa.

[sea7] 06/4/2017 13:26

Yes, Rand are using lawyers before making public statements, however the use of the word "demonstrable" indicates that they are confident that their losses are obvious and apparent and they are capable of proving or demonstrating it.

So, in my view, we have the initial public shots across the bows from each side and the battle begins.

We will be sitting here in the "behind the computer screen, public gallery" and hopefully be able to follow the court room tennis, one way or another.

[sea7] 06/4/2017 13:17

Thanks shareholder,

The share price, when viewed as a barometer of sentiment towards goldplat, is leaning towards a level of confidence in the company, which is based on the alternative routes to market through other refiners being in place and the improvements at all group businesses giving rise to greater profitability. The issue with rand, has now become a more time consuming and expensive issue, with more legal work to be done.

Whilst the rand issue is completely separate from Goldplat's business now, it is going to be there, in the background, hanging around.

As rand held back on a set amount of invoices, I would assume that it is likely that the losses they claim to have incurred are around the same level. I would not be surprised to see the end result of the claims and counter claims being that one party has to pay about £1m sterling including legal costs to the other party.

Goldplat can ill afford that kind of cost and whilst rand could pay it, they won't like the idea of having to when they are facing there own problems.

Either way, the case is likely to drag on for the best part of this year and the share price is factoring in a long drawn out process at this time, with goldplat being given the market support at this time.

[kimboy2] 06/4/2017 13:14

Things clearly are going well and the potential for RR to upset that have been reduced substantially.

As for what RR said they are taking instructions from lawyers IMV. It has taken them 10 months for them to decide on a counter claim, which doesn't indicate to me that it is necessarily such a strong case.

Also 'demonstable loss' to me suggests that if you have to demonstrate the loss it is not particularly obvious. IMV lawyerspeak to try and muddy waters and mitigate the GDP claim. Some time in the future GDP will get a surprise present from RR.

Anyway some will see GDP completely through the prism of RR and see varying degrees of doom. I think the market will see GDP through the prism of improving figures and strengthening strategy that is being executed.

[wigwammer] 06/4/2017 12:45

"The share price is doing really well considering and my guess is that things outside of this are going well.."Exactly.

[shareholder7] 06/4/2017 11:59

Well balanced report and info Sea as per normal and good to see that not everyone has their head in the sand on this board The share price is doing really well considering and my guess is that things outside of this are going well and that Gerard has managed to keep the major shareholders on side and the potential new one (ones) that are buying stock

[sea7] 06/4/2017 11:31

Someone promised something somewhere and hasn't delivered. This will be found out in due course. The finger of blame is looking for the culprit.

[sea7] 06/4/2017 11:29

I think we can safely say that the relationship with rand is at an all time low and even when this is sorted, it is unlikely that any business will resume between the two companies for some time afterwards.

[sea7] 06/4/2017 11:26

Lots of posturing and high talk on both sides to begin with, as the issue is ramped up in public, prior to any court proceedings.

[sea7] 06/4/2017 11:24

It now seems that rand have moved away from the actual metal content after it was more to goldplats favour and are looking for another angle.



Excerpts.. rands comments


In a statement to Mining Weekly Online, Rand Refinery CEO Praveen Baijnath said the company is “satisfied that it has incurred a demonstrable loss resulting from Goldplat’s breach of contract and failure to perform”.

and

Baijnath stated that Rand Refinery proposed a compromised settlement “of an amount far less than [the company’s] losses as a result of Goldplat’s performance failure”.

and

“We are in the process of evaluating all of our options in this regard and this will likely involve litigation by Rand Refinery against Goldplat for the actual losses incurred by us as a result of their breach of contract and failure to perform,” Baijnath concluded.

[sea7] 06/4/2017 11:01

Perhaps you ought to do a bit of thinking before posting miller, it would prevent you from making such an idiot of yourself. Oh and do not forget to ignore my posts, as you said you would.

I know you will comment, you are so weak, you cannot help yourself.

[sea7] 06/4/2017 10:57

Then again russman, they may not divulge anything at all and will only allow the representative from Rand refinery that is dealing with the matter, to only disclose information that is relevant and specific to the case at hand, so as not to compromise any commercial confidentiality that exist on other "contracts"

Arbitration in south Africa is designed to net out as many issues as possible, so that only the smallest amount actually end up in a court room, which takes the least amount of court time and expense for all concerned.