Goldplat Share Discussion Threads

[dangersimpson2] 26/2/2018 13:08

Gross Profit was slightly higher than I expected, but so were admin expenses. However as Kimboy points out most of the increase in Admin expenses is non-recurring.

Given the various currencies involved finance costs always cause big swings in reported EPS but I ignore these - they tend to net out over time.

Slightly disappointed with cash levels but then these are down to working capital and the material they have bought in to support future production so not of concern.

With more security of supply of diesel & grid electricity to come in Kili H2 will almost certainly be better than H1 too.

[kimboy2] 26/2/2018 11:57

I think that there is good reason for expecting every subsidiary to have a better second half than first half.

[shill10] 26/2/2018 10:59

excluding one -offs , obviously.

[shill10] 26/2/2018 10:58

so with Kili's improved 2nd half and outlook comments for 2nd half, that would equate to a full year attributable profit of c £3.5-£4 million, Kimboy ?

[kimboy2] 26/2/2018 10:44

The numbers actually look pretty good to me. Ebitda is £2.125m, which is about where was expected.

The admin costs have increased from £1.113m to £1.575m. However within those admin costs is the Rand write off and costs associated with the Scipion loan.

If we ignored these one offs then Ebitda will be over £2.5m.

If we then work back and add D&A, minority interests and interest paid we will be a bit over £1.5m attributable.

[1rodson] 26/2/2018 10:00

ah well, no need for comments as the market is telling you all that a dead duck share this really is.

just think of all the years that Silly 7 and KB2 have been ramping only for it to fall on results.

the tip earlier this year was right on ..if it ever gets to 11p...SELL ..IF IT EVER!!

GOOD TO SEE Kili DOING WELL IF ONLY MORITZ HAD WORKED IT FROM THE BEGINNING MAY HAVE BEEN A DIFFERENT GDP TODAY, AS HIGHLY PROFITABLWITH A 50P share price

[shill10] 26/2/2018 09:51

doesn't give a representative picture of the company- stripping out all the one off items (FX unrealised losses) operating profit increased by 56% - if that can be sustained and built on (as the outlook comments suggest it will), then that is a better guide to the company's future in my opinion.

[russman] 26/2/2018 09:22

481k bad debt provision.0.11p eps after minorities.I was expecting more.

[shill10] 26/2/2018 09:05

ignore that, got my numbers muddled up

[shill10] 26/2/2018 08:24

if you strip out the one off unrealised exchange rate losses of £832,000 then the half yearly profit is over £2.3 million. If this loss doesn't occur again (no reason to think that right now),that points to full year profits of around £4 million from my calculations, unless I'm missing something anyone ?

[kimboy2] 26/2/2018 07:36

It looks as though they have got at least some of the vat back from Kenyans as paid off half the Kili loan.

[kimboy2] 26/2/2018 07:24

Quite a few moving parts with foreign exchange and write offs but the bottom line is Ebitda is up from £1.448m to £2.125m which is getting on for a 50% increase.

[pog1234] 26/2/2018 07:23

Cash flow not bad, however I do wonder what has caused the Trade and other payables and Inventories to differ so much from previous periods?

[kimboy2] 23/2/2018 15:31

That's because it isn't Monday

[russman] 23/2/2018 15:08

Still no interims.

[sea7] 23/2/2018 07:52

Yep sure is and it would seem that, this would be why rand have chosen to agreee to an out of court settlement. We will get an idea from the finals, when it has been forgotten about by most others.

[kimboy2] 22/2/2018 15:28

That's interesting.

Seems as though GDP had the assays to back their case but RR were saying it was difficult to assay and therefore couldn't be relied on. Begs the question as to how they came to an assessment that they got less than they should.

Anyway it is all water under the bridge now.

[sea7] 22/2/2018 14:43

From rand refinery's integrated annual report 2017 covering sept 2016 to august 2017..



Goldplat Recovery (Pty) Limited (Goldplat)

On 1 July 2016 Rand Refinery received a letter of demand from Goldplat claiming payment of an amount of R13 million pursuant to the toll treatment of material, which amount Goldplat alleges is due and payable to it and remains unpaid. Goldplat indicated it will institute legal proceedings against Rand Refinery without further notice ,unless it receives payment of the amount on or before 8 July 2016. The parties agreed for CM Solutions (Pty) Limited to perform an independent metallurgical review, which was completed during March 2017. The costs for the review were shared between the parties. Rand Refinery’s interpretation of this review can be summarised as follows:
̈
The material sent to Goldplat was highly heterogeneous, difficult to evaluate and hard to process.
̈
Considering the highly variable nature of the material, the sampled and assayed content may not have been 100% accurate and some allowance for variability should be acknowledged.
̈
After adjusting for the nature of the material, the independent review identified some under performance by Goldplat.
̈
After consultation with Tabacks Attorneys, the recommended way forward is to seek a settlement agreement with Goldplat Recovery in terms of which Goldplat Recovery settles the underperformance value. On 13 September 2017, Goldplat lodged an application for the settlement of R13.4 million, plus interest at the high court. This is the amount by which they believe they have been underpaid. Rand Refinery disputes this indebtedness, even before considering its claim for damages. As such, Rand Refinery has lodged its intention to oppose the application.

Rand Refinery has lodged a summons for damages resulting from a) Goldplats breach of warranty and b) Goldplat’s misrepresentations as to their skills, equipment and knowledge leading to Rand Refinery’s contracting. Their numerous breaches of contract will be dealt with at the evidence stage.

Our claim will not be less than R41 million.

[dangersimpson2] 22/2/2018 13:03

I'm surprised that they didn't have to take a provision for the Rand amount in the previous set of accounts - if they had we would have been able to calculate the amount paid as they wrote back the provision to P&L. I guess management were very confident of their legal case and they have been proved right!

That they didn't take provision through the P&L means I think that they will have to take any shortfall in settlement through the P&L as an exceptional cost. We can probably work out the payment although it will have been confused by FX changes.

Any interest payments will probably just be finance income.

If there is no exceptional cost they will have effectively been paid in full.

We won't see this in the interim set of accounts due to being post-period although maybe receiving the settlement is key to not having to declare a provision in the interims.

Of course the real benefit is to cashflow not profit. Having RR onboard again should help that beyond just the cash payment because it should reduce the pipeline length vs more distant refiners. Again probably won't show up in the interims but could be significant in the FY accounts.

[michaelfenton] 22/2/2018 12:11

Well I hope RR have had to pay Goldplat costs too as part of the settlement?

[kimboy2] 22/2/2018 11:16

Well i thought they would get it out the way before the interims but expected a number. It looks as though one or other, or both, didn't want a number disclosed. I suppose it would invite comment as to who had won or lost which wouldn't help an ongoing relationship.

We will no doubt find a number in the small print of the AR next September, when it will all be water under the bridge.

It would be interesting to know exactly what are the benefits, and consequent finances, of the RR relationship are.

[russman] 22/2/2018 10:55

There is RR resolution.Should have been resolved sooner.Arbitration usually goes "lets split 50:50".It will be in the notes to the accounts - sooner or later.

[kimboy2] 22/2/2018 09:04

On Ramaphosa I thought his speech was a rather softer line than previously, not that agricultural land refers to GDP. I think the view is that he is going to be more business orientated than the previous.

On selling I think it is just drifting till results.

[michaelfenton] 22/2/2018 08:39

There seems to be a steady flow of selling? Any idea why anyone?

[sea7] 22/2/2018 08:26

Goldplat is unlikely to be affected by such policies, as its land is not agricultural and is unlikely to be. Taking that land and then attempting to give it to dispossesed africans will simply render the land useless.

You are more likely to see the south african entity that is goldplat recovery maintain its land, yet be subject to slightly more BEE ownership and more black africans sitting on the BOD.

Ramaphosa knows exactly what happened in zimbabwe and is desparate to avoid that.

The south african policy of land redistribution has been slow to date and whilst there are some successes, there are a large number of examples, where the commercial scale farms have simply ceased to exist, the white farmer has left and the land has not been farmed to the same degree as before, as it is now controlled by potentially 100 families who do not work on a commercial scale and do things differently.

Ramaphosa and co. will be mindful of the impact to the food supply, whilst trying to redistribute land without destroying the remaining support of international investors.

There will be a lot of fast talking and slow implementation as has been the case since the 1990's