Goldplat Share Discussion Threads

[kimboy2] 03/3/2018 04:54

I don't really understand the WHI numbers. The gross profit for 2018 if forecast for 2018 is given as £2m. However the H1/18 number is £3.1m so obviously they are defining it differently.

They give an eps of 0.8p for 2018. That implies a post tax attributable of £1.15m. I reckon that is short as the H1/18 number, post write off and exchange rates, was about £1.5m.

The EV/Ebitda number for 2018 is given as 1.9. This implies an Ebitda of about £5.8m which may be about right. They did about £2.1m in H1/18.

The EV/Ebitda for 2019 implies an Ebitda of £10m and for 2020 of £36m.

The only way they can do that is if they get a mining venture soon and start production in about a year's time. The presentation says;

Assessing a number of producing/near production projects

and

Underleveraged with a capacity to raise non dilutory capital for growth projects

They also refer to mines so it may be that they are planning more than one.

Anyway I think we are going to hear before too long.

[sea7] 02/3/2018 21:13

I must admit, that 0.3 figure literally jumped off the page at me.

They are estimating another 20k oz pa by 2020.

Seems a bit out to me, unless there is something they know and we do not.

[kimboy2] 02/3/2018 20:41

It will be interesting to see the WHI report. They have EV/Ebitda as 0.3 in 2020. I make that an Ebitda of something over £30m.

Have I made a mistake?

[sea7] 02/3/2018 20:28

www.directorstalk.net/interview-goldplat-ceo-pleased-results/

[sea7] 02/3/2018 20:17

Price target of 15.3p as at 26/2/18 by WH Ireland.

[sea7] 02/3/2018 18:42

Yep, bit more sensible than trying to high grade it like that.

[kimboy2] 02/3/2018 17:27

That isn't the plan these days as they are using ore at 2.5g/t, which is rather more responsible and will maximise mine life.

Gerard said in the interview that the target was 50kozs from recovery and the same from mining. My favourite is a project in Zambia.

[kimboy2] 02/3/2018 17:27

That isn't the plan these days as they are using ore at 2.5g/t, which is rather more responsible and will maximise mine life.

Gerard said in the interview that the target was 50kozs from recovery and the same from mining. My favourite is a project in Zambia.

[sea7] 02/3/2018 16:59

from that share price angel note a few years ago on kili...

The target is now to produce 5,000 oz for 15 years instead of the original target of 10,000 oz. Production will be from the higher grade ore of 5g/t – there is 50-60,000 oz of high grade ore with the majority of the resource being of a lower grade of around 1g/t.

[sea7] 02/3/2018 16:56

The fluidized bed incinerators were 30t a month units. A few years ago they were £250k-£300k a piece. Material ranges from 100g/t-400g/t.

[kimboy2] 02/3/2018 16:46

In the pipeline I imagine, hopefully not a 5 month one.

Talking of pipelines the capex pipeline seems to be coming to an end. The elution column has finished and they don't seem much inclined to start stage 3 at Kili till it is making a profit.

The only thing remaining is the fluidised bed at Tema, which won't take long. Should be positive for cash flow, along with the agreement with RR and the elution column.

Hopefully a bite your hand off mining venture will be found to spend some of this cash pile on.

[russman] 02/3/2018 09:46

Maybe it all comes from Latin America.
VSA last note fcast 1p eps.
I await WHI update.

[kimboy2] 01/3/2018 16:38

Has anyone seen anything of a WH Ireland research note?

[sea7] 01/3/2018 09:01

decent profit in it, seeing as gold is about $40 a gramme and we will see a few grammes a tonne, probably!

[kimboy2] 01/3/2018 08:37

Well we know that GDP paid £800k for this batch of material to supply the underground line for a year. That works out at about 100kt of material.

That works out at about £8/t which would seem little more than haulage cost.

I also notice that they spent about £1.5m on inventory during the period so presumably quite a bit of material is being secured.

If that is speculation then I am happy with that.

[sea7] 01/3/2018 07:52

Not really russman. Goldplat need to maintain stockpiles of material to enable them to rotate grades when gold prices change. The nature of the business is that they do not receive a steady stream of material from contracted suppliers. It is usually received every time the supplier reaches the point of having enough to send to golplat, which can be a few times a year.

Goldplat will buy material when it becomes availalbe, at good prices, to ensure a strategic reserve of material to work with. Not only do they rotate grades, they also blend them.

The stock piles they have, should never, ever be depleted completely, as it would affect the ability of the business to maintain continuity of supply to the circuits.

It is therefore, not a speculative position, they are not playing the gold price and it is not a pipedream. This type of play, has been standard practice and a feature of the business model since before the company listed in 2006. It just hasn't been mentioned in the way that Gerard has done recently.

[russman] 28/2/2018 12:45

Another pipeline dream.GDP have bought a large batch of tailings.Playing the gold spot now.Speculative position.

[sea7] 28/2/2018 10:01

yes, I thought that at £800k for a years worth of feedstock is money well spent and as it has been purchased outright, it can be processed at the company's discretion. By that I mean, when they get a contract in, they can push this material to one side, process the contract and then in absence of another contract, continue processing this stockpile. This will ensure continuity for more than a year.

[sea7] 28/2/2018 09:43

Back in 2015 - VSA note shows the underground line doing 7,5k tonnes per month.

-they quote at 1500 tpm for each low and high grade circuits.

Low grade recovery around 50-60% and high grade 60-70%

[kimboy2] 28/2/2018 09:30

Interesting what Gerard said about the stockpile that had been acquired. He said that the underground line and CIL had enough stock for a year and had cost £800k.

The underground line does 6kt a month so the material is costing about £12/t.

If we assumed that the increase in stocks from the conference call of 16kozs is due to this that works out at a grade of about 7g/t and a cost of £50/oz.

The underground line is said to achieve a recovery rate of 50% typically so the cost is perhaps £100/oz.

They say they are working on recoverability. If they improved it to 60% then that would improve profits of GPL by about £1m, so worth doing.

[sea7] 27/2/2018 15:59

Yeh, I noticed that - do not normally see goldplat price that way.

[shill10] 27/2/2018 15:50

whats with the non .25p moves in the bid price today ? New market maker ??

[sea7] 27/2/2018 15:28

In my view the other receivables, contains the amount received in advance from auramet, which is £6,985,000

Taking this figure off the £8,289,000 brings it back into line with historical levels.

In the payables, it shows amount received in advance as £6,985,000.

as other receivables are considered money received from entities or people other than customers, then it would make sense that it is from auramet, as they are not a customer, they are a supplier of a service.

This nets itself out.

At least that is how I see it.

[dangersimpson2] 27/2/2018 12:08

Yeah they won't generate 50koz from Kili in it's current form so to hit that target they will need a new near-term production asset.

Working capital should improve going forward because they can now put material through rand refinery again and in Ghana they will be producing gold bar not concentrate that needs to be shipped to SA. So maybe some kind of cash deal/loan secured on assets may be doable. Gerard did say that they appear undervalued on all metrics so don't think he wants to dilute anywhere near these levels. He did mention 10p+ a year or so ago but since then they have performed very strongly.

Will be interested to hear what price target the new house broker puts on it.

Re: other receivables I am not certain about that but I think it is the best explanation. We know they have intercompany loans since the finance costs include the fx impact of these. This doesn't impact cash levels in the consolidated accounts but since at the end of the day they are still amounts owed to the group by customers just that the debt may be transferred between subsiduaries. Anyway open to explanation if anyone has better ideas?