Goldplat Share Discussion Threads

[1rodson] 20/9/2018 09:14

All I can say is this company is always cash strapped yet for years it claims to have million locked away in stockpiles.

Somehow 2+2 is not making 4.......you work it out.

Processing what they claim to have would appear to be a much better option than chancing the arm in South America assuming of course they have what they claim to have.

[kimboy2] 20/9/2018 08:46

It was first mentioned under Manolis years ago so we have been waiting a long time. However given the profitability that I believe will now be achieved it looks as though it may well have been worth the wait.

Hopefully they will announce the economics of the stock dam along with a buy back facility.

[sea7] 20/9/2018 08:17

yes - we have been waiting for this asset to come in to play for over two years.

[kimboy2] 20/9/2018 07:15

I would hope that they are going to announce the financial details of the stock dam processing in the prelims next week.

If they costs are anything less than $700/oz then the attributable taxed profit will be greater than the present market cap.

It looks as though once it is set up the processing will be pretty rapid as well.

[kimboy2] 19/9/2018 14:42

No doubt you would but you don't have any shares.

[sea7] 19/9/2018 13:41

Yep - they have dragged that on for years and lost a lot of opportunity

[russman] 19/9/2018 13:10

Makes sense.
Sell GDP to DRD.
If the offer was 10p cash: I would take it.

[sea7] 18/9/2018 19:18

West pit 3 was subject to a court case and has been part of a protracted dispute since 2010 involving the owners aurora empowerment systems.

There has finally been some developments,300 of the workforce of 5300 people that worked there are starting to be paid monies owed, as at 6th August 2018.

Not expecting that pit to be available in the short term, although the courts may decide to let goldplat have it for a cash payment to continuing paying those workers that are owed.

2010 Article involving killings in west pit 3



2018 Article detailing progress at last.

[snakesbelly] 18/9/2018 12:51

DELISTING lol you've been tucked up good and proper there by CP ;)

[dangersimpson2] 18/9/2018 12:22

These things always take longer than we would like but it feels like if the company really do want to ever trade at a higher rating than a fwd P/E of 3 or at a significant premium to TBV then it is this sort of deal they need to bring in - surprising to the upside, and building confidence that they can deliver. At the moment the market places no value on any potential future events until they have happened and show up in the financial results. This makes sense on some levels since a lot of their future big projects are in the hands of various governments and who knows when they will actually occur. It's just a case of engaging with the government and waiting.

It's been the same case with the TSF so far waiting for government action on westpit 3, but with this alternative processing option it should be a purely commercial agreement with a logistical implementation. They need to show they can deliver this sort of thing in a reasonable time frame to be taken seriously on the rest of their potential projects.

[kimboy2] 18/9/2018 12:03

I would hope they are sufficiently far along the road with DRD to announce the financial details as I suspect it will be a game changer.

[dangersimpson2] 18/9/2018 11:55

Yes that matches my memory too. The time value of money is so high here (both in terms of their current wacc, and opportunities for re-investment into additional primary mining) that costs and even recovery don't matter too much if they can find a much faster processing option. I am hopeful that there is a good win-win option out there with an external processor with scale.

[russman] 18/9/2018 09:48

If your financials are correct; DRD would takeover GDP.

[kimboy2] 18/9/2018 08:28

The pit was a lot cheaper than any of the alternatives that were then available and the rate of processing was going to be 100 - 150 kt pa. This would work out at an attributable post tax profit of £1m pa or so to GDP IMV.

There is no chance of them doing it in 1-2 years internally. If they wanted the cash they could always get a loan against the stream of income which is virtually guaranteed from the stock dam.

We don't know the relative figures with DRD (if it is them) but I think that they are attractive enough to be the preferred route now.

[dangersimpson2] 17/9/2018 23:09

I don't see why the processing cost of DRD processing Goldplat's tailings would differ significantly from that of their own tailings through the same circuits. Maybe if longer residence times enhanced recovery for the higher grade then the cost would increase but this would be offset by the higher recovery. It is relatively easy maths to economically optimise the processing times, trading off costs vs recovery factor. Other external processors will have their own cost per ton. Although the win-win of external processing is only achieved for external processors who are currently processing much lower grade tailings like DRD.

But regardless of what the actual costs would be the point remains - the positive economic benefit of more rapid processing (if possible) via an external processor would appear to easily out-weigh any cost benefit or recovery benefit of doing this internally over a longer period of time even when you include the need to share the economic benefits.

Of course if getting westpit 3 enables them to process it all internally in 1-2 years, at similar capex, opex and recovery factor to external processors that would be preferable since all the benefit would accrue to the company. My understanding is that an external option would give more rapid processing than would make sense internally, and that here lies the benefit.

[sea7] 17/9/2018 19:51

By products: uranium DRD from an old fact sheet of theirs dated 2012

An investigation is also under way into the feasibility of applying resinin-pulp
technology to the flotation/fine-grind circuit in order to extract
uranium from the Ergo feed, at substantially lower cost (R150 – R200
million) than conventional extraction technology. Although results are
awaited, production is estimated at 11.5tpm of uranium oxide. The added
benefit would be the softening of gold production costs by 5 to 8%.

[sea7] 17/9/2018 19:13

DRD surface mineral resource is 0.23g/t.
DRD proved reserves are 0.33g/t

Goldplat, as you know has a resource of 1.78g/t and is 8.5 ha in extent and varies in depth between 5m and 11.5m.

[kimboy2] 17/9/2018 17:37

I have no idea whether the material at GDP is the same type of material at DRD. We have no real idea on costs.

During the Q&A Gerard answered a question of mine which asked if the stock dam could be processed where it was. He gave a one word answer which was yes.

It could just have been a tedious question but he could easily have chatted about the stock dam but has been very tight lipped about what the economics could be. This would seem to be the result of ongoing negotiations with rights owners of the pit.

Bound to be a major bump in the share price once it is announced and it actually looks as though it may be getting near, at last.

[1rodson] 17/9/2018 14:48

Yep Dangersimpson I like your post as follows but you will need a proper management to impliment it and that's exact what GDP HAS NOT GOT.

dangersimpson217 Sep '18 - 12:58 - 5680 of 5680
0 0 0
100R/t is what DRDGold did for their own tailings in 2018H2 in their last published results:

DRD 2018H2 Results
Volume 12,028,000 tons
COS 1208.1 mR
COS/t 100.44 R/t


If we are using them for the sort of benchmark for what an external processor can do at scale then this would seem to be a reasonable starting point. I don't expect GDP can do it for 50R/t but the point is that even if they could at a higher recovery than an external processor it would still be worth pursuing the external option if the time to process was significantly reduced.

[1rodson] 17/9/2018 14:05

Lionsgold not long to wait now!

Lolololololololololo