Goldplat Share Discussion Threads

[kimboy2] 09/10/2017 11:19

Russman
Cash went down last year; you have to knock the 6m Auramet advance off.

You can do if you wish except it has just replaced a payable, so I presume you would reduce the payables by a similar amount.

DD4
How are they going to fund litigation and pay RR?

Thanks, but completely disagree, all you post is based on what GDP have alluded to, no facts as we are not privy to the facts.

Lack of facts doesn't prevent you making unsubstantiated assertions.

Sea
...they have had to put in place these facilities, as rand moved to a 90day payment schedule and the aurubis pipeline is five months and not four, like rands is.

I think there is not a great deal subject to the 90 day rand payment or the 5 month pipeline, and certainly very little once the Ghana elution is completed. The payment schedule for dore is much quicker (about a fortnight IIRC)

[discodave4] 09/10/2017 11:00

sea7Thanks, but completely disagree, all you post is based on what GDP have alluded to, no facts as we are not privy to the facts. Would also contend that we do not have sight of the relevant contracts so once again it's all speculation on you're part and clearly you're favouring GDP. However, RR are saying the complete opposite!.Will still maintain that if GDP had solid contracts that were managed effectively and competently then this would not even have been contended by RR in the first place.DD

[1rodson] 09/10/2017 10:46

GOLDPLAT has always been murky.

On the point of owning shares I don't enough about it, but I do know that Dan had a number of chats with Demetri. I understand that any external company continues to exist subject to the laws of its country of incorporation in this case GOLDPLAT, it would be the UK. However it must appoint and register a South African resident as its public officer with the Companies and Intellectual Property Commission (CIPC).

Logically this person is responsible for compliance in South Africa, which includes the filing of annual returns and director and officer details with the CIPC and therefore could be statute barred from own stock in the company that person is responsible for the administration thereof. I really don't know as its of no interest to me to look further. Dan is probably right, he has been all along on this dead horse.

But I am sure a weasel like KB2 can ferret out this information for the benefit of all.

[sea7] 09/10/2017 10:41

no problem Shareholder,

Gerard has expressed interest in raising at 10p, the stock isn't there. He has put the scipion facility in, to begin the balance sheet restructuring process, as he cannot raise in the market.

As he cannot raise capital to fund his growth phase and restructure the balance sheet, we are seeing more debt creeping in. The first phase of this was the auramet facility to advance payments on material at aurubis. Whilst this is more of a rolling facility which is re-paid quite quickly, then re-accessed, it is still a short term debt nonetheless.

Now we see the scipion facility as well, which is also a revolving facility and even though it will be repaid in a year, it can be re-accessed within that year and extended or expanded, so even though the kili aspect of this facility will be paid off in a year, there is every chance, goldplat will still be paying to this facility after a year, due to re-accessing it.

I would not be surprised to see a debt funded acquisition of a mine show up in short order. Goldplats completely debt free status is in the past for now.

[sea7] 09/10/2017 10:30

Hi DD,

The assessor only concerned himself with the processes involved in the handling of the contract, not the contract structure itself.

When goldplat takes on contracts such as this, they take a sample of the material, rand takes a sample and an independent party takes a sample. All three are assayed and each keeps a sample, should it be needed in cases such as this.

The assessor found that goldplat carried out the contract with due care and diligence and that all metallurgical processes were competently and accurately completed. They found no fault in goldplats case.

The nature of the wording on the contract, whilst it will be have been looked at, in conjunction with the assessment, it will have been the legal team that look at this side, in conjunction with the assessors findings. They clearly feel that goldplats contractual obligation was fulfilled.

As rand do not hold any gold in their name, they have contracted goldplat to process this material on behalf of someone else. Someone, somewhere has, in my opinion inflated some figures, which is either rand to their third party client, or rand internally, or goldplat to rand, which means rands client isn't happy, so rand is then disputing goldplats invoices, to pass the buck so to speak.

It is all rather murky, however, goldplat, from the point of view of the case so far, is in the stronger position, as they have been vindicated at each step up to this point.

[discodave4] 09/10/2017 10:23

Morning sea7You are assuming a lot IMO, the assessor knows diddly squat about contract law, he is a metallurgist!......only the two parties are in a position of knowing all the facts and what a gamble GKG is making.DD

[shareholder7] 09/10/2017 10:15

Thanks for the work on the Balance Sheet Sea, confirms my feelings

[shareholder7] 09/10/2017 10:15

If they lose DD they won't have the money to pay RR, good point.Looks like they are all in on this one, win and they can go forward lose and it's all over Can see why Gerard is not buying any stock

[sea7] 09/10/2017 10:12

Paying rand is not an expectation of the company at this time, based on the advice received and the outcome of the independent assessors report.

Paying legal fees, will be funded from existing cash flow and with the expectation that kili will be generating significantly more going forward, it should easily be covered.

I do not see a problem with that at this stage, however, they have had to put in place these facilities, as rand moved to a 90day payment schedule and the aurubis pipeline is five months and not four, like rands is.

Goldplat have had to restructure the concentrate side of things, however, they are moving to a position whereby they will be producing dore, more than anything else, which is a few days turnaround from despatch, to refining, to sale/return, to receipt of proceeds.

[discodave4] 09/10/2017 10:05

How are they going to fund litigation and pay RR?

[sea7] 09/10/2017 10:02

payments on interest bearing borrowings increased from £105k to £421k last year, along with lease liabilities which increased from £114k to £203k. This is another £405k in costs that weren't there last year.

So we can account for £879k in taxes/finance costs, plus £405k in interest bearing borrowing payments and lease liabilities, add this to the additional £500k over last year on purchases of PPE, then we see a reduction in available cash by nearly £1.8m, against last year.

[sea7] 09/10/2017 09:56

one other area of impact is in finance costs.

2016 they spent £342k on tax and £39k on finance costs. This year they spent £805k on tax and £96k on finance costs. This is an increase in costs of £520k for the year.

Finance income was down from 2016's figure of £809k to £22k.

This means the overall position in 2016 was a positive of £428k against a negative of £879k last year.

We can therefore see a negative impact on the balance sheet of £879k in taxes and finance costs, that wasn't there last year as well. That is a £1.3m swing to an £879k cost against the previous years gain.

[russman] 09/10/2017 09:32

Cash went down last year; you have to knock the 6m Auramet advance off.
Any share issue at a price less than net asset value would be dilutive to other shareholders.

[1rodson] 09/10/2017 09:01

I remember Green boasting about not needing to go to the market as GOLDPLAT was now completely self funding with good future prospects. I wondered at the to why he did not buy a traunch of shares then. More fish in GOLDPLAT than in the sea.

[sea7] 09/10/2017 08:06

iirc kb,

they do not hold it as cash, as it gives them options that cash does not give, however, there is one risk that cash does not give.

They do run the risk of gold going lower and they lose out on the sale price by holding it, however, they get a potential upside on the sale, which could generate a better return than cash and in addition to being there as a support to the business, they can use it to pay suppliers of feedstock, earlier than they were expecting, in order to get a better deal for goldplat.

As some of these orders are in the five month pipeline, they may be front running the gold to the supplier of the waste, by offering the gold sooner than a competitor might from their own in house stock to secure the work. Closing the deal isn't going to be just about price.

Whilst it is easier to hold as cash, cash does not have as many uses as the gold does from Goldplats point of view.

[kimboy2] 09/10/2017 07:54

I would have preferred them to have bought.

[shareholder7] 09/10/2017 07:46

Thanks Kimboy You are silent on directors purchases so you have a view ?

[kimboy2] 09/10/2017 07:36

Well yes they did only add £594k of cash last year.

What you prefer to omit is that they also spent £1.849m on investment in equipment and working capital increased by £1.667m.

[shareholder7] 09/10/2017 07:27

Thanks SeaI do think it is double standards that Gerard goes around saying how great GDP is and what a future it has, whilst not putting a penny of his money at riskOne of my criteria for buying shares is on the back of directors purchases So he expects everyone else to push the share price up despite earning £186k for the year and Hansie £137k, no buys from themTo me the key report on the AR is the statement of cash flowThe old saying Turnover is vanityProfit is sanity But cash is kingFrom this you can see GDP only added 594k for the year and as sea pointed out, take the 1172 loan away and you are nearly 600k down for the yearIMV there is big pressure on cash here and I am sure Gerard was hoping for a share price of 10p by now and a cash call to bale him out I am not convinced the balance sheet reads well but happy to be proved wrong

[kimboy2] 09/10/2017 07:14

Dan would appear to have mislead this site by using inadequate and wrong research or knowledge

Barely credible

On the excess gold this is something I had noticed. I had not believed it to be a strategic reserve, after all why not hold it as cash.

I had thought it to be simply a function of increasing production from 30kozs to 42kozs. In particular they have had some very productive Q4s which may have meant they were carrying stock at year end.

[sea7] 08/10/2017 22:59

Cameron - I wouldn't expect too much from rodson/miller, as he will just talk in his usual nonsensical and insincere way.

The blokes a deranged fool.

[sea7] 08/10/2017 22:55

shareholder

I am not referring to the waste piles.

I am referring to 7.5k ounces of actual gold and gold equivalent ounces that have been produced and not yet been sold and will not be transferred to client accounts.

When you look at the tables shown in the recent AR's of the number of ounces produced/sold/transferred, you will see that there is currently a balance of just over 7.5k ozs still being held.

This has nothing to do with the piles of material waiting to be processed.

I have spoken with Gerard regarding this balance of ounces held before.

When the company was having real issues getting material processed externally, I mentioned about selling down some of the gold held, to cover the ongoing costs whilst they worked through the issues. I received a confirmation that my perception was spot on.

[camerongd53] 08/10/2017 21:58

Thanks Kimboy

I have had a quick search using Google and it appears that it is legal for SA residents to buy shares in non-SA companies

Dan would appear to have mislead this site by using inadequate and wrong research or knowledge

Perhaps 1Rodson would like to comment on his mentor's errors seeing he is always saying it is right to follow his advice.

I would like to see the Directors holding shares in the company. It is alright having options but actually putting money would show commitment to the company. The previous chairman did have confidence in the company and held a substantial holding. It is strange that they do not, as many other shareholders have an expectation that the earnings and hopefully the share price will be much higher in the next 1 or 2 years. The board should be able to know how probable this will be and it is concerning that the board shareholding is so small.

[kimboy2] 08/10/2017 21:23

Yes Dan/rodson have said it numerous times. I have found nothing to confirm that it is correct.

I would note that Manolis held shares through his children's trusts and of course various South Africans have options to purchase shares in the company. That would suggest it is not illegal.