Goldplat Share Discussion Threads

[kimboy2] 24/4/2017 19:12

Yes I got the impression that there were 2 or 3 competing for shares of which only one has issued an RNS. I presume if they keep buying we will find out who else is active.

ATM I reckon GDP is as cheap as it has ever been. The running eps, with stage 2 of Kili producing, is about 2.2p. That puts us on a p/e of about 3.5.

By the end of the year, with the Ghana elution operational, the p/e will be about 2.6

I don't expect the share price to shoot up because of forecasts or even because of production. It will be once the reward is seen in terms of numbers that we will begin to get the real benefit of the progress that is being made.

Hopefully we will get news on stage 3 of Kili, the stock dam and the third elution column in South Africa.

The real beauty of GDP is that all this can be financed from cash flow in the relative short term.

[sea7] 24/4/2017 17:32

150k buy shown up after the bell. Trade time of 1609. Looks like the buyer we had before may have decided to mop up some more.

[sea7] 24/4/2017 07:31

This is a quite a capital intensive time for goldplat. There has been continual upgrading of the plant and equipment for some years now. When I first invested in Goldplat back in april 2007, most of the equipment in the south Africa plant was nearly 30 years old. A significant amount of capital was spent just keeping some of this kit going.

Demetri only paid the plant lip service once it was operating at a level he was comfortable with and then concentrated on mining, delegating day to day running to bob smith. Most free cash was being spent elsewhere.

Since Hansie and then Gerard have shown up, they have practically replaced nearly every bit of kit at the south Africa plant, over the last c.4 years. There is still another two years at least to run on the current capex programme. Once the third elution column is installed, then that part of the capex programme will be complete and there will no doubt be something else in play.

[kimboy2] 24/4/2017 07:14

In the long run I suppose the important news from the update is the increase in capacity in Ghana, with however much extra profit that will yield, and the fact that they are doing 120tpd at kili.

That will turn Kili into something like a £0.7m annual profit from a £0.7m loss in the interims.

[sea7] 23/4/2017 09:52

Yep, they will rotate the grade to maintain the 20% margin or thereabouts.

[kimboy2] 23/4/2017 09:32

Yes that's all true. Also the grade they decide to put through determines the eventual output.

[sea7] 23/4/2017 09:27

In Context KB.

SA Q3 2017 - 4979 OZ produced
SA Q3 2016 - 4864 OZ produced

Ghana Q3 2017 - 803 OZ produced
Ghana Q3 2016 - 1885 OZ produced.

Kili Q3 2017 - 964 OZ produced
Kili Q3 2016 - 503 OZ produced.

Q3 2017 total - 6746 ozs
Q3 2016 total - 7252 ozs.

We are about 506 ozs off Q3 2016 overall.

[sea7] 23/4/2017 09:12

Kb,

Do not forget, in south Africa, one of the rotary kilns was offline for a while, whilst cyclone sections and kiln seals were replaced. They also installed a new mill in the high grade section.

As the high grade section was also off line for a while as well, this will have impacted production. At south Africa, it will be sustaining capex only for remainder of the FY.

[kimboy2] 23/4/2017 09:05

The production numbers for Q3/17 were disappointing, obviously at Ghana but also in South Africa which reduced from 7,121ozs to 4,979ozs in quarter to quarter.

It was surprising because they had £9.6m in gold in process at 31/12/17 as well as £12.6m in accrued expenses under payables.

IMV that adds up to well over 20kozs in process, so the question is how long does the process take. However in the interims they said;

However, based on the amount of consignment material on site and the production schedule the produced ounces for the FY 2017 is expected to exceed that of FY 2016.

That would mean they had to do about 9kozs in the last quarter which is clearly feasible. I would hope it would be well in excess.

The news I found the most interesting was the extra investment in capacity in Ghana. I had suggested a while ago they would need to. Not only does it increase capacity and profitability but obviously indicates a confidence that any supply problems are short lived.

This follows the announcement in Feb on stage 1 of Kili which was well above expectations, well my expectations anyway.

The Ghana elution column should be up and going before Christmas, and I wouldn't be surprised in stage 3 of Kili is as well.

It would be interesting to see a report of the presentation somewhere.

[wigwammer] 21/4/2017 20:04

Stating the obvious.Ignore Russman.He told us not to buy GDP at 2p.It is now 8p.

[sea7] 21/4/2017 15:06

interview on stocktube...


www.stocktube.com/video/7319/-a-good-quarter-on-all-fronts-goldplat-s-gerard-kisbey-green-7319.html

[sea7] 21/4/2017 14:07

tks kb will take a look.

I notice that the sourcing team had a look into north America as well.

[kimboy2] 21/4/2017 13:57

Interview with our leader on Directors Talk;



It seems the supply of material to Ghana has been solved and was the result of a couple of late shipments.

The implication is that they don't have a large stock of material at Ghana. That would imply that the large increase in payable accrued expenses is essentially all in South Africa.

Although the Ghana numbers were disappointing I thought it quite a good update. Kili is now producing at name plate, there is to be an expansion of production at Ghana and these South American contracts have at last started bearing fruit.

[russman] 21/4/2017 12:50

Stating the obvious.GDP are struggling to find supplies for their recovery operations.Dont think the RR issue will help.

[michaelfenton] 21/4/2017 09:51

Well at least they are sidelining RR in case things go totally pearshaped?

[kimboy2] 21/4/2017 09:32

Obviously some bits from the presentation last night in the proactive write up.

Not sure why the delay in material to Ghana. It may be related to the stockpile of material prior to the granting of the license, or it may be some other delay.

The fact that they are expanding capacity in Ghana would suggest they expect it to be short lived. Indeed it seems that Gerard must have suggested 100kozs as a potential target, so must be plenty of material about.

It also suggests that GDP is still working with RR on a day to day basis. Not sure whether Gerard has confirmed that or whether proactive has inferred that from the RNS.

[kimboy2] 21/4/2017 09:05

Report on proactive;
Goldplat plc (LON:GDP) overcame difficulties at its Ghanaian operations to post another set of solid quarterly production figures, compounding what has been a strong year of trading so far for the gold producer.

In its South African gold recovery business – Goldplat’s largest operation – the company produced 4,979 ounces (oz) of gold in the three months to end March.

That takes the division’s total to over 17,500oz for the nine months so far, almost 1,000oz more than at this stage last year.

The company continues to produce more from its Kilimapesa gold mine in Kenya too, with production in the last quarter edging ever nearer to the 1,000oz mark at 964oz.

The mine – which Goldplat recently raised US$2mln for to fund plant expansion – has now produced more in the first nine months of this year (2,154oz) than it did it in the whole of last year (2,005oz).

Phase two of the expansion is largely on target for completion later this month, the firm added, although the crusher circuit has been delayed slightly due to steel availability in Kenya but that shouldn’t impact production too much.

Goldplat’s other recovery operation – in Ghana – produced 803oz in the first three months of 2017, taking its total for its financial year to 8,391oz.

The drop-off in production was largely down to delay in the business receiving processing material.

In total, Goldplat produced 6,746oz in the third quarter, taking its total for the nine months of its year so far to just over 28,000oz and keeping it on course to meet the full-year target of 45,000oz.

The firm managed to sell 9,260oz in the period though, mainly due to it offloading a large chunk – almost 5,500oz – of gold concentrate as a result of an outstanding licence which was received towards the end of the second quarter.
South America could take Goldplat to the next level

Although those figures represent a decent year-on-year improvement, they’re still relatively small fry in the lucrative world of gold mining and recovery.

To try and take itself to the next level, Goldplat has been working on securing more gold-containing material from producers in South America.

In fact, Goldplat Recovery Ghana has signed its first agreement with a South American miner and expects to take delivery of some 240 tonnes of material in the coming quarter.

With a few more similar agreements from producers dotted around South America, it isn’t crazy to think that overall gold production could edge towards 100,000oz – typically the entry point into the mid-tier ranks.
‘Goldplat on track to hit full-year targets,’ says CEO Kisbey-Green

“I am particularly pleased with progress made on the plant expansion and achievement of targets at Kilimapesa, as well as the positive developments being made with respect to the sourcing of material from South America,” said chief executive Gerard Kisbey-Green.

“Alongside this we have identified new sourcing opportunities within West Africa and are also exploring opportunities in North America. I believe Goldplat is on track to meet planned targets for FY 2017.”
Rand Refinery dispute

Goldplat announced back last July that it had issued a demand letter to Rand Refinery – its primary South African refinery – for around £600,000.

The specific details are a little vague given that legal proceedings are now in process.

The two continue to work with each other on a day-to-day basis and Goldplat delivered concentrates to Rand throughout the last quarter.

The issue has given the company chance to build relations with other refinery firms so that it’s not too reliant on Rand.

To protect itself from this ‘single refiner risk’, Goldplat has been shipping concentrate to another refinery in Germany as well, while it has also identified another refiner with which it is finalising a new contract.

Shares closed at 8p on Thursday.

[kimboy2] 20/4/2017 20:30

It also looks as though they are closing down the areas of uncertainty regarding the stock dam pit.

The prospecting rights holder would appear to be the last obstacle. Mineral rights can be held privately and are treated like any other property right.

However these are mostly held by whites and there seems to be emerging thinking about these rights;



Government's long-term objective is for all mineral rights to vest in the State.
Government will promote minerals development by applying the "use it or lose it" principle.

Just a question of what they will sell for IMV.

[sea7] 20/4/2017 19:42

They might be able to backfill it and use it for part of the expansion programme, even if it is to store feedstock.

[kimboy2] 20/4/2017 19:34

It isn't a very big area at Tema. Is it about 2.5ha?

[sea7] 20/4/2017 19:29

They have cleared 80% of the material at the Ghana tailings site to a landfill site.
So what will they do with that area. Backfill?

[kimboy2] 20/4/2017 19:02

On the Ghana production they currently have 2 fluid bed incinerators, a static incinerator and a shot blast facility.

VSA are suggesting an out put of 11kozs from Ghana. I would expect a breakdown to be something like (perhaps);

2 fluid bed - 8kozs
Static incinerator - 2.5kozs
Shot blast - 500ozs

If they get another fluid bed and another static incinerator, assuming the same size, that will increase production to 16.25ozs.

VSA also said that the elution column will increase production by 3kozs pa, making 19-20kozs total production from Ghana.

The profit per oz at SA seems to be about $180/oz. If this was repeated at Ghana, with the new elution column, that would give a pre tax profit of about £2.8m.

I think it is a good idea to get these new bits of kit in while they have a crew there putting up the elution column.

[sea7] 20/4/2017 18:51

The crusher section is behind schedule by about a month or so and is now expected end may.

[sea7] 20/4/2017 18:24

The rns regarding the rand dispute was issued on the 4th April, so I would say that whilst material was sent to rand during the quarter, it isn't anymore.

The drop in Ghana may not be any problem per se. It is possible that it is the effect of installing a drier for the FBI's and the installation of a static incinerator, which necessitated down time on the processes there.

Good news about migori and south America and the realisation of revenue on the delayed ounces from Ghana.

Good progress made, bit of a drag with the tailings pit in benoni, however, they will get there. Shame there wasn't any numbers.

[kimboy2] 20/4/2017 18:16

The negatives are that there are no operational profit numbers and output is down a bit, mainly because of Ghana.

Whatever the problem with Ghana should be solved with the 240t, and more to come. The grade will be about 200g/t+. The processing capacity is about 3tpd with the two fluidised bed incinerators, so should be enough for a quarter.

They are increasing capacity by 50% with another FBI. Also a static incinerator, though I don't know the capacity.

It looks to me as though, once everything installed and operating at capacity, that Ghana could be doing 20kozs pa.

Kili looks good news. The grade of the material (lower grade) is about 2.5g/t and seems as though they will be doing 120tpd in the next week or so.

The material from Migori is good news. I would expect that production will be above touted numbers as they were based on a grade on 2.5g/t.

Over 4kozs more sold than produced so got some cash in.

They say continued to supply RR during the quarter, though not if still are.

Progress continues to be made IMV.