Goldplat Share Discussion Threads

[sea7] 10/4/2017 10:08

dd,

My first investment was a loss as well. I did loads of research, bought In below cash and then they had a takeover blocked, which would have generated decent profits for me, I sold at a loss and the stock was subsequently wound up, after directors were accused of insider trading. They suspended trading and you had to apply to them in Israel if you wanted your money back. Thankfully I had sold on the open market before suspension.

It proved to me that, no matter how good your research, there can always be some unexpected piece of news to ruin the investment. I am still learning as well and always will be, what I learnt from that was to always bank some profits along the way and be ready to take the hit if needed.

I may be optimistic in nature, however, I am sceptical and pessimistic with it!!!

[sea7] 10/4/2017 10:02

Hi shareholder,

tks, I think we've all been there, especially with aim stocks, seeing great profits emerge when the share price rises, only for them to evaporate rapidly and you end up kicking yourself for not banking a bit of it.

I learnt that lesson some time ago, the hard way like everyone else!!!

[discodave4] 10/4/2017 10:01

S7Well played, free carry can't get better than that!.Hindsight investment is fantastic, but wish I had not bought in here as my first investment - picked completely the wrong time, and the wrong company tbh (despite my research was still very green), should have gone a lot safer and learnt the ropes - still learning!.All the best.DD

[sea7] 10/4/2017 09:59

Kilimapesa hill is being mined and has 13143 ozs in the measured category
red ray has 48319 ozs in the measured category.

This gives just over 61k ozs in the measured category.

The rest is indicated and inferred.

On the licence SL91B in lolgorien, there is teng-teng which they getting into. some results have been 15-20g/t

I have not heard much on vim/rutha or alpha ray.

The licence also contains:

blue ray mine - the largest of the known mineralised locations
Caldwell mine
Masarura Mine
Embitir Workings
kili hill was not exploited during colonial times.

what they said in 2007...

Goldplat plc would like to clarify that the joint venture holds the rights to develop the gold potential of the ten targets, amounting to a total area of approximately 14 sq km, selected by Goldplat and referred to in the announcement within the Lolgorien licence area in the historically producing Migori Archaean Greenstone Belt in western Kenya.


The entire known mineralised target package in this area extends the length of the licence (15 km) and has an estimated width of approximately 1 km.

Gerard knows all this and will be looking at it more closely when the current capex programme there is complete.

[shareholder7] 10/4/2017 09:57

Thanks for sharing Sea and well doneExplains your very balanced view unlike KimB who has far too many shares and just looks for good news

[sea7] 10/4/2017 09:38

DD,

No they do not have any firm contracts in SA as far as I know, they are still proving this up, although what they have done has been profitable.

Top slicing,

I have managed my holding, by buying/selling specific amounts as the stock hit prices to the upside and downside. I am now in a position whereby I have reduced the size of the position, however, it is a free carry, which is still in the hundreds of thousands of shares. All my initial capital and some profit is off the table.

For the record I did this before the rand refinery rns came out recently. I was buying heavily in the 2's and 3's, a bit at 1.75 and some at 4p/5p. The highest price I paid was 7.73p in November 2013. During the recent run up into the 6's and 7's I sold a fair bit into that before the volume dried up, so I could put this part of my investment strategy into play.

The size of my position at one point was way too much to sell in one go. It took a few months of targeted trading to achieve the desired objective. Goldplat is historically an illiquid, thin market stock and you can not usually exit large positions easily. A good investment it may be, however, in this market, position sizing is as important. No good having profits if you cannot realise them!!!

I have completely derisked, banked some profits, preserved my initial capital and am ready to buy in if the price drops for any daft reason. As I said, my current holding cost me nothing and it allows me to capture some upside as well as keeping cash ready for buying ops to the downside.

[shareholder7] 10/4/2017 09:18

Drilling at Kili Not sure of this info but from my understanding the low hanging fruit has and is being mined and it's shallow so easy to get atThe better grade is deeper and requires more skill and equipment and that's the danger Might be wrong here but Kili has not been properly assessed as to where the best grades can be found At the moment Kili is classified as an artisan mine

[discodave4] 10/4/2017 09:09

..............your second para is everything in the garden is rosey. :)Not aware they have any firm South American contracts in place, still assessing its economic viability I thought, as you say the TSF is way behind schedule, getting any JV's or investment partners for mining has dried up........won't mention the RR word!.Let's hope your right and you do ok here..........are you not tempted to top slice a bit though? (don't have to answer that, none of my business really).DD

[sea7] 10/4/2017 09:06

I am expecting kili to have further exploratory drilling to happen soon, to prove up the resource further and expand the scope for mining there. It would be unwise not to attempt to replenish the extracted gold sooner rather than later. As we all know, a mine is an ever depleting asset, which is either replenished by additional ounces in or near it, or it becomes uneconomic very quickly.

I am primarily thinking of gerards ideas of a new venture somewhere else in the region, or even a different country.

[discodave4] 10/4/2017 09:02

They have already stated that further exploratory drilling will be carried out at Kili, didn't say when but wouldn't be surprised if it's in hand - contractor already signed up? - strikes me that GKG couldn't wait to get more into mining, the loan has given him the opportunity (well it did before RR but that won't stop him IMO).DD

[sea7] 10/4/2017 08:34

I am hoping that Gerard will ensure that all that needs to be done at the recovery plants is done and that kili is running smoothly before he commits to another mining project.

If we see that the TSF is up and running, at least one more elution column is in, procurement in south America is running at a clip and the whole rinse and repeat cycle there Is working well and the german refinery pipeline is operating at a seamless level, then I think that no one would be too worried about committing to a new mining venture as there would be decent, spare cash available and the recovery plants would be in the state we expect them to be.

[discodave4] 10/4/2017 08:18

Thanks S7, balanced as ever.The desire for further exploration was another reason I decided to sell up, it will put an additional drain on funds when they should be focusing on their bread and butter.DD

[sea7] 10/4/2017 08:11

Goldplat will deliver on all of its plans, however, it Is the time frames that are being hit. We are already one year behind schedule on the current capex programme.
We should be putting the third elution column in at benoni this year, not the second one in Ghana.

The TSF has not had much activity, apart from studies, which were completed around may last year and almost a year has passed.

No one wanted to partner with kili so self funding has been the way forward, at the expense of the items above.

The $2m loan will take the pressure off the goldplat recovery, with regards to kili.
So, strategies are in place and as Gerard said, we are in a growth phase. Which means a lot of spare capital and debt spent on expansion.

Then there is the "other mining" side that Gerard is considering to come.
We have been here before with this and whilst history doesn't repeat, it does rhyme and we are looking at spending cash on another mining venture, I hope that Gerard doesn't waste £5m like his predecessor did.

Have a good day as well DD.

[discodave4] 10/4/2017 08:10

Thanks Sea7,Be interesting to see how it does pan out. I was not as positive as yourself on Kili, not a given that it will turn a profit IMO.Unless I'm mistaken their admin costs for FY16 was £1.8m, H1 alone was £1.1m, similarly net cash flow -£1.2m H1 and +£1.4m FY16........getting through some cash.Have a good day.DD

[kimboy2] 10/4/2017 07:56

DD4
Just like the share price couldn't go up until RR was solved, except it has. Just like RR was going to hit the rest of the business, except it hasn't.

We shall see if they can deliver on all their plans but H2/17 cash flow will be at least;

£885k at end of H1/17
£2.3m operating cash flow based on H1/17 plus £700k loss on Kili eliminated
£3m reduction in inventories from 5kozs of Ghana sockpile sold
£1.6m loan

That would make £7.8m before any changes to working capital or capex.

[sea7] 10/4/2017 07:55

DD,

Goldplat normally get through about £1.8m or so in administrative expenses per year, this figure has increased slightly from the usual c.£1.6m so I see that likely to be about the same going forward.

As long as they continue on the current trend then after this figure has been taken out, there should still be a healthy, positive figure left as the result from operating activities.

Whilst the position is that goldplat is owed £700k or so by Rand and Rand are claiming for losses, I would not be surprised to find out that they manage to make their claim about the same as the amount being claimed by goldplat, plus costs, so that the counter claim is balanced nicely. They may be playing a longer game, whereby the matter will head towards court and they then offer goldplat a lower figure out of court, we won't know their game plan until It plays out.

I do not expect goldplat to have to pay anything, however, it is worth while running the exercise over, to see what effect it would have on goldplat should that end result come to pass. If Goldplat had to pay out a similar amount, they would immediately state that they could not pay in one go and it would be staged over a period of time, we would see any payment of size spread out over a year. If this was not possible then sadly, they would be taking on more debt through this scipion facility to pay it, so as to not trash the cash position totally and not have cash in reserve to pay customers and buy feedstock as it became available.

Goldplat have been carefully selecting the order in which the capex programme is executed to ensure that smaller, quicker payback items are installed first, such as the shot blast facility. If anything were to be delayed by any issues with the rand contract it would most likely be the processing of the TSF at goldplat.

I am expecting to see a decent turnaround in the june figures, with regards to cash generated from operating activities, as matters such as the tema containers were dispatched and kili will not be showing a loss, which will have generated positive cash for at least a few months by then.

In my view this set of numbers at y/e should, by rights, be the last ones that contain the impact of all the issues over the last few years. FY2017/18 should show good cash generation, a reduction in inventory, trade payables/receivables down and
capex up.

The only matter to attend to then on the negative, which shouldn't really be much of a negative is the debt level.

They have a facility of $250k in kenya
They have overdraft facilities of about £50k
They have scipion facility currently at $2m - revolving and expandable.
They have prepayment facility with auramet to advance cash from gold processing, which last time was £1.1m - they may have accessed this again.

These should all be manageable at the same time. They have stage 3 of kili, two elution columns to put in, the TSF to get going and ongoing legal costs to pay for.

They do have this in hand, however, anyone expecting a dividend anytime soon can forget it, 2019/20 at the earliest and even that is optimistic at this stage.

[discodave4] 10/4/2017 07:46

......something will have to give IMO, they cannot afford to deliver on all their plans even with the loan. The RR issue is pivotal to their recovery plans IMO, always was more serious than just an irritant!.DD

[discodave4] 10/4/2017 07:39

Morning Sea7Your thoughts on funds for the damages if it goes against them, will cost GDP the £780k contended sum plus damages plus legal fees has to be circa £1m overall.......H1 £1.22m decrease in cash flow.DD

[sea7] 10/4/2017 07:30

Dan - scipion, not scorpion

scipion has offices in mayfair and Geneva.

They do have exposure to the USA through their activities, however, they do not have a registered office there.

[kimboy2] 10/4/2017 00:28

Scorpion Capital the real picture.......they love distressed or stressed out companies........they don't come cheap.

Those really interest in knowing whats what please read this:


Scorpion Capital Partners L.P. is a private equity firm...

I see the Loony Tunes are in full cry - £2.4m cash burn, 20% interest rate, bucket shop finance, £1m claim for damages from RR etc etc

Of course we all respect your in depth research Daniel. Unfortunately you have googled the wrong finance company. It is Scipion Capital not Scorpion Capital.

Not that the facts will make any difference to your drivel.

[danielmiller1] 09/4/2017 23:57

Scorpion Capital the real picture.......they love distressed or stressed out companies........they don't come cheap.

Those really interest in knowing whats what please read this:


Scorpion Capital Partners L.P. is a private equity firm specializing in equity and equity like investments in the lower end of middle market. It is an SBIC. It does not invest in start-up and early stage ventures. The firm makes later stage growth investments in public and private companies and invests in traditional management buyouts, private investments in public entities (PIPEs), corporate divestures of non-core businesses or subsidiaries, family-owned enterprises looking towards estate planning and management succession, recapitalization transactions distressed or stressed situations, going-private transactions of micro-cap companies not suited for public ownership, mergers and acquisitions, and arranging senior and subordinated financing. The firm prefers investments in fragmented companies with acquisition opportunities. The firm does not invest in real estate, gaming, tobacco, biotechnology, software development. It prefers to invest in energy, industrials, restaurants, medical equipment, pharmaceuticals, and financial services. It seeks to invest between $5 million and $10 million and can invest larger amounts through co-investments with limited partners and other private equity firms. It prefers to invest in companies with revenues between $10 million and $100 million, EBITDA between $4 million to $25 million, but may consider unprofitable companies that will be profitable, and enterprise value between $20 million and $100 million. The firm prefers to take a board seat in its portfolio companies. It takes both minority or control stake in its portfolio companies. Scorpion Capital Partners L.P. was founded in 1995 and is based in New York, New York.

11 East 26th Street
15th Floor
New York, NY 10010
United States
Founded in 1995
Phone:
212-213-9190
www.scorpioncap.com


Lolololololololololololololololoolololololololololoololololo

[kimboy2] 09/4/2017 22:16

It would be interesting to know what these alleged £1m damages could possibly be. RR owe GDP after all, as confirmed by the arbitration.

As for £2.4m cash burn I am afraid your conclusions are bound to be wrong because you are starting with an absurd proposition.

[discodave4] 09/4/2017 22:00

Thanks Sea7, excellent posts as usual.In your opinion how is the business going keep their capital investment and growth plans on track if they do end up with a £1m+ bill for the RR damages etc.?. IMO their cash burn, annualised could be circa £2.4m, seems to suggest to me that something will have to be knocked on the head (South America), and / or the drawdown is going to be lot more than they had initially hoped ($2m loan won't go too far now IMO).Does seem like they were struggling for cash anyway even before the claim for damages.DD

[sea7] 09/4/2017 20:44

research on scipion for you miller...

[sea7] 09/4/2017 20:39

Miller - please do a bit of research on scipion before making sweeping statements.

Firstly they get between 8% and 18% on their investments. The loan to value is always below 100% as they like borrowers to have some skin in the game.

They only recently made some decent hires...



Extract.

Advisory board members

The Right Honourable Sir Desmond de Silva QC, international lawyer with more than 45 years’ experience in providing counsel for governments, international leaders and senior military and political figures on the global stage, will be the chair of the council.

and

“It is a great honour and opportunity for this council to be able to contribute to Scipion’s ambitious plans,” said Sir Desmond de Silva. "This is an exciting time for the company, and commodity trade finance is a strategy that has captured the attention of the institutional investment community.”

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

You are making them out to be a back street, bucket shop lender, which they are not.