Goldplat Share Discussion Threads

[1rodson] 10/6/2018 08:30

Unfortunately for investors here the proof of the pudding is in the eating.

GOLDPLATT has an inherent psychological defect which they just can't shake and it's a tragedy as they just don't seem to be able to find the inovation to get things right, bumbling on as they do from one mess to another.

You would have thought that a company who made the monumental error of declaring a company dividend followed almost immediately by a profit warning making themSelves look totally rediculous.......WOULD HAVE BEEN DOUBLY SURE IN GETTING THINGS RIGHT!

Make no bones about this Both S7 and KM2 over the year have taken a great delight in posting DERAMPING rubbish on LION.

LION IS NOW SUSPENDED AND PROBABLY UNTIL SEPTEMBER SO THERE IS NOT ENOUGH DERAMPERING IN THE WORLD TO BE ABLE TO HURT IT, LET SEE HOW WELL BOTH KB2 and S7 CAN STOMACH A WELL THOUGHOUT OUT DERAMP OF GDP.

BUT AND ITS A BIG BUT. UNLIKE THEIR VILE DIATRIBE OF MISINFOMATION ON THE LION......ALL POSTS ON THE NEDATIVITY OF GDP WILL BE BASED ON IRREFUTABLE FACT.

[1rodson] 09/6/2018 16:12

this share looks more like what my dogs do in the dog park and just as smelly.

Wise would be getting out fast.

[1rodson] 07/6/2018 07:36

Shareholder is going to dell when he breaks even or so he says! This means of course that all is not lost as his great great grandchildren way see some benefit from his disasterous gamble in this dud.

I see that both S7 and KB2 are still the dominant posters, although it's obvious that they have nothing better to do........aren't you all ever so glad that you have been listening to them for all these years.

Funny how suckers seem to stick with suckers

[sea7] 06/6/2018 21:07

EXTRACT..

The government said in February it had begun talks to revive a law mandating the Precious Minerals Marketing Company (PMMC) to certify all exports by mining firms.

AND

The government has yet to lift a ban on small-scale mining as part of a general clamp-down on illegal miners last year.

[sea7] 06/6/2018 13:58

anglogolds plans for obuasi in ghana..

Mine production for the first 10 years will be focused on the upper ore bodies and is expected to average 350,000oz to 400,000oz at an average head grade of 8.1g/t. Total cash costs are expected to average between $590/oz to $680/oz, while all-in sustaining cost is expected to be between $795/oz to $850/oz. Mine production for the second 10 years increases to 400,000oz to 450,000oz per annum, as the mine deepens into higher grade ore. All-in sustaining cost is then expected to improve to between $750/oz to $800/oz. The project delivers internal real rates of return of between 16% and 23% at real gold prices of between $1,100/oz and $1,240/oz, and is highly leveraged to the gold price. Initial project capital expenditure anticipated over the first 2.5 years is expected to be between $450m to $500m, excluding pre-production capital of $64m.

The redevelopment will establish Obuasi as a long-life, modern, highly mechanised underground mining operation, replacing the labour-intensive, hand-held operating systems previously used at the mine. The redevelopment will deliver a mine that makes use of automation and controls for better safety, improved operational efficiencies and consistent performance. It envisages a smaller, but more skilled workforce that can operate in a mechanised/automated environment with a strong sense of accountability.

[kimboy2] 06/6/2018 13:20

Yes I had noticed that. They were owed £800k of vat with about £500k over 3 years old IIRC. Presumably they received some of this.

[sea7] 06/6/2018 12:58

I did notice in the interims that the balance of interest bearing borrowings was £1.172m at end June 2017 and is now £667k as at end December 2017 - they paid back £505k in six months.

[1rodson] 05/6/2018 18:52

SO ARE SECOND HAND BALLOONS

[neiljoepeg] 05/6/2018 18:38

There was a tip in the papers for Avesoro resources at the weekend.Pure miner I know but when you compare annual production, turnover, profit and market cap with GDP it does make GDP seem cheap.

[kimboy2] 05/6/2018 09:09

GDP should be linked to the POG. For example if there is a $100/oz increase in POG then;
1. The 32kozs inventory will yield an increased profit of $3.2m when used
2. The stock dam, at 50% recovery, will yield an increased profit of $4.1m over its life
3. A prodution level at Kili of 6kozs will yield an increased profit of $600k pa

All of this is significant in the context of a £10m company. However there are more geared gold stocks if you wish to gamble on the gold price.

The main point about GDP and POG is that it is better protected if the POG falls.

[1rodson] 04/6/2018 22:49

With the present corporate set up this co,pansy is going nowhere fast been telling you mugs this for nearly ten years.... But then S7 and KB2 Have you under their spell.

[sea7] 04/6/2018 21:53

A good summary DS.

[dangersimpson2] 04/6/2018 16:48

I don't believe the share price reflects the underlying value of the business on a DCF basis but I have a pretty long investment horizon so am fairly happy to wait for those cash flows to become so self evident that no one can miss them. If the price remains below what I consider a conservative NPV of future cash flows I will continue to recycle capital into the company as other investments mature. (Within portfolio limits & assuming this is where I find the biggest risk-adjusted discount of course.)

Where I (and it seems most others on this board) disagree with you is that a different board structure and sales team would accelerate either the size of those cash flows or their profile. I guess we will never know because unless you are willing to take a stake of 20% or more in the company you are not going to be able to push the changes you propose so it is probably academic us even discussing them. There are things I would like to see the company do more of - changing sales teams simply isn't one of them.

Again letting your personal buy price dictate your future investment decisions rarely ends well in my experience. I track my day to day investments without any figures showing my P&L at all. I simply track does an investment meet my criteria and does it vary from my ideal position size for that type of investment. It is a good cure for 'get-even-itis'!

[shareholder7] 04/6/2018 16:19

No Danger I was investing thinking that GDP could actually generate value by getting more materials and good management Gold price was a bonus But after a long dialog with sea he has convinced me that management can do very little and business will just drift in as there is no commercial drive Seems to me that shareholders are happy with this as there is no commercial person on the board, they are all engineers and accountants Very strange that shareholders don't push GDP on this Contracts are negotiate by non commercial people, hence the RR issueSo it is my conclusion now that this share is a POG share as this must be the only company world wide that does not see the need for an aggressive sourcing team or commercial people If you plot the share price to POG you will see a correlationHansie is not commercial. GKG is PR and a miner and is our best shot. The rest on the board are jobs worthsSea's views are 100percent in line with management and all I was pushing was the need for someone totally different to go on the board to shake this company up a bit Are you happy with the share price ?I certainly am not I will sell when brake even and move funds to a pure gold play It is disappointing that no other shareholders seem to find this strange but there you go

[dangersimpson2] 04/6/2018 14:37

shareholder,

If you are here for Gold Price exposure then yes you are in the wrong place - an ETF is cheaper, more diversified and lower risk. Goldplat has a small amount of gold price exposure via Kilimapesa but is the wrong place to trade the gold price. So you kind of have this a bit backwards. This is a play on the cash flows of management actions to operationally improve the business in the next two years far exceeding the current market cap.

A couple of other minor points to add to what has already been said:

Ghana is expanding by taking material from South America. Extra sales people won't add anything here, the hold up is getting the paperwork complete re:export taxation etc. for the sending companies. Once they have these issues sorted they should get a steady stream of material without any sales input.

Your buy price is totally irrelevant to future investment decisions. If you don't believe that management actions (of which employing a lot more sales people will definitely not be one) will generate positive investment returns you should sell now. In general waiting to get out without losing money is one of the biggest behavioural biases that leads to poor investment decisions.

[sea7] 04/6/2018 11:58

Another advantage goldplat has with its recovery operations, is the fact that it is not a geographically constrained, ever depleting ore body. They can source material from anywhere and ship it to the plants, which ensures that it can remain supplied, indefinitely, as long as mining continues in its current form.

[kimboy2] 04/6/2018 11:45

GDP has a monopoly on what they do in SA and can’t generate any more business than they have already.

GDP may well have a monopoly but that doesn't mean it can't generate any more business. There is the stock dam for a start. Then there is expansion into PGMs as well as mine clean ups and environmental work which is of course a massive market.

GDP are trying to get materials from South America but again no commercial people are needed and they hope that business will come in by using technical people to source materials.

They are getting materials from South America. These 'technical people' will know exactly how much the material costs to process and transport and what it is worth. The fact is the price they pay for the material is relatively small compared to the final output. The important thing is that it is the right material for GDP's processing.

Investing money in Kili with the hope that the gold price will rise and there are no more banana skins hitting the mine.

They are not just hoping for a rise in the gold price. The target is for an AISC of about $1,000/oz with a production of about 10kozs. That will lead to cash flow of around $4m. There is a series of incremental improvements which need to be made, which they are progressing with.

I think this share is totally dependent on the POG and not on anything GDP can do as business to push this share up.

GDP is less prone to the POG than any other gold company as it can adjust its imput price. However to suggest that it is totally dedpendent on POG is wrong.

The main drivers of growth will be;
1. Expansion in Ghana
2. Ghana clean up
3. Expansion at Kili
4. Stock dam
5. A potential mining venture

[shareholder7] 04/6/2018 08:59

Thanks SeaI think many shareholders probably don't understand the business model DRD is a very interesting company and defiantly could buy GDP and apparently are not competition. So this is how I see it * GDP has a monopoly on what they do in SA and can't generate any more business than they have already.* Contracts are negotiated, but no commercial people are needed as customer know the value in the waste * GDP are trying to get materials from South America but again no commercial people are needed and they hope that business will come in by using technical people to source materials.* Investing money in Kili with the hope that the gold price will rise and there are no more banana skins hitting the mine.I think this share is totally dependent on the POG and not on anything GDP can do as business to push this share up.I am in the wrong share and will look to exit as soon as I can brake even (Again!)Then invest in a Gold ETF with far less risk.Taken me some time Sea Cheers

[sea7] 04/6/2018 07:33

Shareholder - this is not that type of set up, nor will it ever be.

The sourcing team, with their knowledge of metallurgy and mining seek out the sources of feedstock, which began by leveraging existing contacts, at existing players, international operations. For example the arrangement with anglogold, is built on by accessing their operations in south america - they derived 23% of their Q1 production from South america and goldplat are able to access these operations, through contacts at anglo - Hansie, Goldplats COO, is ex anglo and knows the guys there.

The relationships that goldplat has with players such as anglo, enables them to engage at a local level, get put in contact with people in the different locations and then material is sourced from their operations.

The mining houses, do not have sales people and they only deal with sales people, from the point of procurement of machinery and consumables. Those involved in the metallurgical side of business at the mines are not interested in speaking with sales guys, they like to speak with people on their own level, that being other people with mining and metallurgy knowledge and background.



Employing people like the type you describe are a waste of salary as the whole sector, not just in SA is not set up that way.

A significant amount is relationship based, informal and does not sit well with a double glazing sales culture.

Any sales type guy turning up in this sector will not get the best deal. The miners who have inside knowledge of what is contained in their own mine waste, will take advantage of a graduate or sales guy, who is not a miner, or of a metallurgical background, by selling the waste at a much higher price to them, due to their lack of knowledge.