Goldplat Share Discussion Threads

[1rodson] 03/1/2018 18:09

SEE THE OLD DEAD HORSE JUST CANT PROGRESS ITS GAINS AND HAS FALLEN BACK YET AGAIN.

DONT FORGET THE TIP THAT SAID SELL BEFORE 11p IF IT EVER GETS THERE.

FUNNY THOUGH THATS THE PRICE I SOLD AT A FEW YEARS BACK.

[kimboy2] 03/1/2018 08:15

The organic self financed growth was the original attractor for me. When combined with zero debt and high return projects then it is an almost ideal situation, if all goes to plan which it seems to be at present.

As for a fundraise my view is that if it is for a project on a p/e of 1, which is possible, then it would be very difficult to argue with.

My hope is that the rating improves as time goes by. We are presently on a prospective p/e of about 4 and if 7 is the long term average then we have a bit of catching up to do.

IMV a p/e of 10 is relatively modest. If we get a ratings boost as well as profits increasing then the share price will soon be moving.

[michaelfenton] 02/1/2018 08:25

Agreed kimboy - I personally like the idea of organic and self financing growth. 10p is not enough for me for dilution? As you say we will see what Gerard comes up with and I have faith in him.

[kimboy2] 02/1/2018 07:51

We shall see if we need more finance. It will depend on what project they pick up.

At present they are comfortably net debt free with cash flow this year of something like £3m and more to come.

[kimboy2] 02/1/2018 07:49

We shall no doubt see if we close in on the present broker target price of 17p. I see that Shareprophets were quoting the figures from the broker.

As those who know the company are aware thses are reidiculously conservative numbers and don't take into account the recent benefits of investment in Kili, nor the elution column which should now have been completed in Ghana.

I am certain if we had more realistic broker numbers which kept up with developments the share price would be doing a lot better.

[michaelfenton] 02/1/2018 07:43

Well kimboy I personally would be more than happy with the 10p and 15p estimates. Gerard also mentioned more finance required but at not less than 10p which will be the first step and then hopefully onwards and upwards. 2018 looks very exciting.

[1rodson] 01/1/2018 18:46

in reply to the post below I would estimate an share price in the range of 5p to 7p
Assuming of course that the Rand case, or further mismanagement does not finish them off!






camerongd531 Jan '18 - 17:49 - 4820 of 4821
0 1 0
Bit of fun as it is the New Year and best wishes to all

Goldplat announce their results in mid late February (interims) and September (Finals). The September results may be delayed for the result of the arbitration which is to be held late June.

Can you guess what the share price for GDP will be at the end of March and end of October (or 1 month after the final results announcement). This will give the share price time to settle down after the announcements. The current price is 7.75 pence

There are major risks etc. including currency, price of gold, execution of ongoing projects, political and of course the RR case so there are plenty of things that can adversely affect the share price On the other hand completion of outstanding projects could boost the price as could news of developments in Ghana, Kenya, South America
as well as SA.

My prediction is 10p for March and 15p for October.

It will be interesting what the bears on this share guess especially as they are predicting complete loss of credibility and collapse when they say GDP will lose the case with RR

I said this will be a just a bit of fun, although I declare I have a reasonable holding in GDP because I am bullish on the company and have been a shareholder since shares were 16p.

Warning - I remember attending a dinner where James Prior, a senior cabinet minister, was speaking. Not exact figures but the jist of point he made was that there had been a furious row in cabinet for economic planning purposes as to when the price of oil would rise from US$15 to $25. The row was whether it would be 5 or 10 years. It actually shot up to $40 within 6 weeks!!! Predictions can be honestly believed but should be taken with an appropriately sized spoonful of salt.

[kimboy2] 01/1/2018 18:34

Well I suppose I had better be a bit more optimistic and go for 11p in March and 16p in October.

The results should be well ahead of the forecasts and there is still the Ghana elution column to come as well as stage 3 Kili, PGMs and the stock dam.

The uncertainty to me is whther we get a contract from the Ghana governement, or at least the size of it as I think we are pretty certain to get one. It could possibly double the size of the company overnight.

Then there is the probability they are going to pick up a cheap mining resource somewhere. Gerard was talking about $2-5/oz purchase price.

I suspect that if we got a decent Ghana contract or a cheap mining venture that not only would forecast profits increase substantially but the rating would improve from the present derisory level.

That would be a nice development for shareholders, but who knows?.

[camerongd53] 01/1/2018 17:49

Bit of fun as it is the New Year and best wishes to all

Goldplat announce their results in mid late February (interims) and September (Finals). The September results may be delayed for the result of the arbitration which is to be held late June.

Can you guess what the share price for GDP will be at the end of March and end of October (or 1 month after the final results announcement). This will give the share price time to settle down after the announcements. The current price is 7.75 pence

There are major risks etc. including currency, price of gold, execution of ongoing projects, political and of course the RR case so there are plenty of things that can adversely affect the share price On the other hand completion of outstanding projects could boost the price as could news of developments in Ghana, Kenya, South America
as well as SA.

My prediction is 10p for March and 15p for October.

It will be interesting what the bears on this share guess especially as they are predicting complete loss of credibility and collapse when they say GDP will lose the case with RR

I said this will be a just a bit of fun, although I declare I have a reasonable holding in GDP because I am bullish on the company and have been a shareholder since shares were 16p.

Warning - I remember attending a dinner where James Prior, a senior cabinet minister, was speaking. Not exact figures but the jist of point he made was that there had been a furious row in cabinet for economic planning purposes as to when the price of oil would rise from US$15 to $25. The row was whether it would be 5 or 10 years. It actually shot up to $40 within 6 weeks!!! Predictions can be honestly believed but should be taken with an appropriately sized spoonful of salt.

[kimboy2] 01/1/2018 17:25

One good thing is that they managed to mention cryptocurrency in an article about GDP.

I had thought if GDP had changed their name to Bitgoldplat Cryptocurrency we would all be able to retire from the funds supplied by the AIM swarm.

The company is clearly dirt cheap so we shall see what effect it has on the market tomorrow.

[sea7] 01/1/2018 15:58

Tks kb - nice to see share prophets a bit more positive on goldplat, than they were a while back.

[kimboy2] 01/1/2018 15:45

A free share tip fell in my inbox from shareprophets;

If the rise of cryptocurrency, not necessarily as recent speculative mania has taken hold but over recent years, somewhat reflects a lack of confidence in fiat money, 2018 could be a good year for gold. Goldplat (GDP) has recovery operations for gold (though also silver and platinum group metals) from by-products of mining near Johannesburg in South Africa and in the free port of Tema in Ghana. It also has mining and exploration assets – particularly producing from Kilimapesa in Kenya and seeing exploration progress in Ghana where Ashanti Gold is earning-in.

September-announced results saw it emphasised that now “Goldplat is executing the strategy of growth and diversification and expects continued improvements in production and profitability”. This was reflected in operational results for the quarter ended 30th September 2017 – which showed gold equivalent production 12% higher than in the corresponding 2016 quarter at 10,227 ounces. Within this there were strong increases from South Africa and Kilimapesa, with Ghana weaker.

A December update then though emphasised “good progress is being made on all areas of strategic focus”. In Ghana this included “the elution plant construction is progressing according to plan, and commissioning is expected to begin before the end of December” and a team is on the ground to commission the tailings project pilot plant, with surveys of target material for the pilot testing ongoing.

In South Africa, in an important initiative to de-risk the most profitable production stream, “a strategic stockpile of in excess of a year of planned production through the carbon in leach circuits has been procured and metallurgical testwork is currently being undertaken to optimise metal recoveries from and profitability of this material” and at Kilimapesa,“production remains on target for 5,800 ounces of gold in FY2018 and profitability is being achieved on an operational level. This has been achieved despite a number of days of lost production, caused by the election process which affected diesel supplies”. Overall, this saw CEO Gerard Kisbey-Green consider it “positions us strongly for the remainder of the 2018 financial year, and I look forward to providing further detail on this in the new year with the release of our quarterly operational updates and interim results” – and this recent news flow has helped the shares up to a recent 8p to buy.

However, house broker VSA Capital is looking for a pre-tax profit of £3.8 million on revenue of £37 million for the company’s current year to 30th June feeding through to solid cash generation – last results already showing decent balance sheet support, including cash of £2.65 million. It bases a valuation on a 50/50 blend of NAV and 12 month forward EV/EBITDA multiple – and derives a 17p fair share price. Of course, particular caution needs to be applied to a house broker view and there are the usual risks in this space including operational, commodity price and political. However, at a current market cap of £13.4 million, and with there also looking good gold price potential from here, this is my second tip of the year for 2018.

[1rodson] 30/12/2017 10:33

But Mr Fenton are you not getting the recognition that you deserve NOW?

sea729 Dec '17 - 16:43 - 4814 of 4816 (Filtered)

michaelfenton29 Dec '17 - 18:42 - 4815 of 4816
0 0 0
sea7 yes you are right up to a point. GDP dropped 35% but things had already started to go wrong and we all know where that got us. Things are very much in order now and the future looks rosy. While agreeing that we might take some sort of a hit (a buying opportunity?)it will then gwet the recognition it now deserves. Of cours that all depends on a market crash. Either way i am in and will continue to drip feed in more funds at the present low valuation. Fingers crossed?
Kimboy229 Dec '17 - 19:04 - 4816 of 4816 (Filtered)

[kimboy2] 29/12/2017 19:04

I think general rules can be a trap. It would seem likely that the gold price is more important for GDP than the level of the FTSE.

It may be, for example, that the FTSE and gold price are inversely related as people try to find a place of so called safety, but who knows.

It may also be in a year's time, if stage 3 gets the go ahead, that Kili is producing 10kozs pa. If that is the case a couple of hundred dollars on the gold price will have a significant effect.

[michaelfenton] 29/12/2017 18:42

sea7 yes you are right up to a point. GDP dropped 35% but things had already started to go wrong and we all know where that got us. Things are very much in order now and the future looks rosy. While agreeing that we might take some sort of a hit (a buying opportunity?)it will then gwet the recognition it now deserves. Of cours that all depends on a market crash. Either way i am in and will continue to drip feed in more funds at the present low valuation. Fingers crossed?

[sea7] 29/12/2017 16:43

During the global financial crisis when markets tanked, Goldplat dropped over 35% at its worst point, then recovered along with other gold stocks, before pushing beyond the previous highs.

Any sizeable fall in the stock market next year, would see goldplat and other goldies hit along with everything else, as a "throw everything out" mentality would be evident.

In feb of 2008 goldplat was trading at 14.85p, by July 2008 it was at 9.6p. Goldplat held its own and four years later it was at new highs of 16.5p.

Had Goldplat not suffered its catalogue of errors, beginning with Demetri having a boardroom bust up and leaving, followed by the kenyan authorities gazetting their 35% local ownership rules, then the company would have fared better, when gold dropped in 2013. This drop simply exposed even more errors and compounded matters.

Gerard and the team have worked through these issues and have put them all right. They have their own issues to deal with, however, they are much less of a worry than before.

The view of the future for goldplat is a lot brighter than it was a few years ago.

[michaelfenton] 29/12/2017 15:49

My main reason for buying in to GDP was it's value. As kimboy says all the strings are looking good and then there is the POG? Stock market in 2018 looks set for a mighty fall in my opinion and may result in a nice increase in POG. Everyone should have some gold plays in the portfolio and GDP is mine.

[kimboy2] 29/12/2017 15:21

The end of another investing year, one more one less. It has been a very good year for GDP with progress on all fronts and a clear vision of where we are going.

The share price has improved though IMV not recognised the achievements yet;

End of year SP

2012 - 12.25p2013 - 6.5p (-47%)2014 - 3.25p (-50%)2015 - 2.87p (- 12%)2016 - 5.37p (+87%)2017 - 8p (+49%)




The operating profit figures for the y/e tell the story;

2012...£4.54m2013...£2.58m2014...£0.153m2015...-£0.711m2016...£1.21m2017...£2.91m




The nadir was reached in July 2015 when the share price sunk to 1.75p. GDP was hit on several fronts simultaneously ;

1. Rand Refinery weren't processing concentrate so cash ceased from this and a build up of inventory.

2. Ghanese governement removed 85% of the business in Ghana. The CIL was ruled to be outside environmental permit, and more damagingly the tolling operation was stopped. Tolling was producing over $2m pa at its peak.

3. Kilimapesa was continuing to lose significant money.

4. The fall in the gold price. This impacted their contracts to some extent and much was made on these boards of that. The most significant impact though was on the profitability of the inventories it held.

The fall in the gold price of some $400/oz or so came straight off the bottom line of its own holdings of gold material. They held about 28kozs of wood chip at one time, so that in effect works out at a lost profit of some $10m+ over the following years.

Originally I invested because I thought that the recovery businesses would keep producing cash which could be invested in different projects incrementally improving profitability. However, under Manolis, the cash cow stopped producing and the investments were pretty much wasted.

I continued to invest around the lows because I thought that the basic operation was sound esp South Africa, the problems were resolvable and that it had no debt and some cash and inventories as a cushion.

As we know they have resolved all the problems which threatened the company. Rand Refinery has been binned, the Ghana operation has been rebuilt, Kili is profitable due to additional investment and the old inventory has been used and a lower inventory at lower prices obtained. A considerable achievement for the present management.

My original raison d'etre for investing in GDP - incremental improvements in profitability every year -, has IMV now changed.

The recovery operations will, hopefully, incrementally improve esp Ghana. There are already incremental improvements coming through which are not reflected in the share price However there is now a much greater liklihood of a step change in developments as opposed to something incremental IMV.

Gerard has said that the company is looking for a 50kozs mining operation. Once up and running the operation will likely yield a profit of $2-300/oz, the same as Kili will be.

If this is successful then it would represent a step change in GDP's operations and the recovery operations would eventually become secondary.

As yet a deal still has to be announced though they are clearly running the slide rule over a number of deals. The success of such a deal will be down, as always, to the price, t&c's and the execution of the project.

The other possible step change is the potantial clean up contract in Ghana. We have heard little other than it is major, long term and they are doing 'extensive sampling'. I am hoping for a contract in H2/18.

This could be a large, profitable and low risk project if it comes to fruition.

The question may arise whether they can do both projects simultaneously, both in terms of depth of management and financially. I suppose people can be hired and the program can be sequenced. We shall see.

I am expecting cash flow of over £3m this year and £4m next so they should have some firepower.

Anyway that is where I see GDP at the y/e. Interesting times for GDP shareholders. Best of luck to all holders and a properous New Year.

[sea7] 27/12/2017 16:49

nothing we do not already, know, however, coverage nonetheless,

[kimboy2] 26/12/2017 11:01

Yes I think that there is plenty to go at in Ghana. I would only hope that the identification of a site(s) and subsequent contract doesn't get bogged down and take ages. We have after all been waiting more than two years for the stock dam in SA to come into production, and we are probably still a year out.

In this case though there is a pressure to get on with it. The Ghana government have the Minamata Convention to abide by, not to mention that people are dying every day or at best lives are being damaged by the presence of mercury.

On numbers I would expect the resource to be perhaps 3g/t and recovery of 90%. At an AISC of $1000/oz and royalty of 5% we are going to have a profit of something like $200/oz - roughly equivalent to Kili.

That works out at a profit of around $20/t of tailings.

Now this potential contract could be for 1mt, which would be nice and roughly the equivalent of the stock dam.

On the other hand it could be 50mt, which would be transformational.

Capex finance would be the next issue. I would expect a 1mt operation to be easily fundable from present resources. If we were to get a 50mt resource then it won't be a problem because the share price will be a long way north of where we are and we could have a placing.

Anyway hopefully we will find out soon.

[sea7] 25/12/2017 15:16

Above re konongo...

in order to develop the Project into production, significant funding would be required to build a treatment plant able to process the sulphide ore, continue with exploration and drilling work to complete the life of mine study and a scoping study, and to commence construction of the underground mine to access the sulphide orebodies. The Company has concluded that it will be unable to continue to solely fund advancement and development of the Project. Since January 2015, SML has had difficulties supporting the expenditure of OML, despite reducing operating costs to a minimum. Total care and maintenance expenses for the Project for the nine (9) months and three (3) months financial periods ended 31 December 2015 amounted to approximately S$3.6 million and S$1.1 million, respectively.

[1rodson] 24/12/2017 21:18

sea724 Dec '17 - 12:09 - 3783 of 3783 (Filtered)