Goldplat Share Discussion Threads

[shareholder7] 28/9/2018 10:33

MichaelI think you will now see a change here as GKG was given his head and has failed. The gamble did not pay off he has mislead us saying all saying all is good and Kili is breaking even That's when I brought in, plus the RR issue solved, but it was false and it's no good blaming this and that. That's the risk of gold mining and we should not be there. GDP is a recovery company not a mining company.Surely, now the shareholders need to say, enough is enough and GKG should be getting this messageAlso the RR was a complete screw up and took management time and we ended up writing off this debt Another naive decision from GKG taking on RR only to end up writing down this debtBetter management would have negotiated this early and in return for some more material to processFrom my understand there is a load just sitting next door in RR yardSuch a shame as the reason we are all in here is that it looks like a great investment

[kimboy2] 28/9/2018 10:06

On Kili the problem is the same as it was which is that the camel is half way across the desert - it is as far to go on as to go back.

A care and maintenance isn't cost free as we found out when it was on this.

On sourcing part of the problem is that they have increased capacity, and in Ghana's case completely rebuilt the business.

They are clearly getting 30kozs to the recovery operations. They could do with something like 38kozs. I suppose like everything the result is determined at the margin.

[russman] 28/9/2018 09:30

In my book it reads that GDP lost to RR.
That is what their figures state.
This dispute has damaged GDPs "ability" to source material in Africa.

[ironstorm] 28/9/2018 09:30

KB2 I hear what you are saying on Kili, but they are talking and not doing the things you say, they are holding off in the hope of a bailout - either get on with it or shut it down - care and maintenance is fine by me.

I don't have an answer on getting sufficient material but I see they have built capacity and cannot fill it. The point I am making is that sourcing should be a core skill and they are failing on it.

I like the company - I like what it does it SA. More of that less of the rest - sourcing might not be an issue then - then can just go for maximum efficiency and send any spare back to us (maybe 30% of the current share price at a guess???)

[russman] 28/9/2018 09:27

Where do these announced EPS figures come from in the GDP presentation.
Filings give different figures.

[michaelfenton] 28/9/2018 09:19

I am simply appalled by the Kili situation. Poring good money after bad. The losses have been huge and we are always being told it is now breaking even but that never seems to happen. Will GDP ever deliver? I slowly drifting towards being a doubter from being very positive generally on the word of GKG.

[kimboy2] 28/9/2018 09:00

Hi IronStorm You have identified the two main current issues. Kili and getting sufficient material in.

On Kili the losses over the years are probably greater than the market cap of GDP so it may well have been better just to close it years ago.

That is not saying it is worth nothing now. Clearly last year was a bad year, but isn't I believe representative of a steady state which I think is close to break even.

A valuation will be based on perhaps spending £2m and getting a profit of £1m pa at present prices. Then there is scope for increasing the resource, and possibly production. Then there is of course leverage to an increase in gold price.

What is the value of that? I don't know. WHI have it valued at zero. Perhaps we will find out its real worth if they can get a punter in.

On the sales force and buying in material I am afraid I don't see the argument. They have people dedicated to acquiring material and no doubt they are probably mining engineers who understand what they are buying as opposed to salesmen.

What they need is not just sufficient material to feed the plants but also sufficient to build a stock pile.

This has been achieved with the CIL at GPL, which is the most profitable part, with a 24 month heap. This is up from 12 months at the interims.

They haven't achieved this in Ghana and didn't keep the plant fed last year. The plan is to increase production to 20kozs from the capacity of around 10kozs.

They have just installed a new bit of tackle which will increase capacity to 13kozs, so presumably they are confident of getting the stuff.

If they can get Kili to break even and 13kozs into Ghana then that will be bettering last years profit by £2.5m. What are the odds? I presume we will get a clue in a month when they produce the quarter's numbers.

[shareholder7] 28/9/2018 08:44

Thank you iron at last someone else has seen the issue.GDP don't have the management to drive business. GKG comfort zone is mining where you don't need an aggressive sales force.I brought back in because I gave GKG the benefit of the doubt as he said Kili had turned a corner, but this has not happened.We have all been saying Kili should go and now GKG has to give up on this and get out of dodge ASAPI have come to the conclusion that this management team can't take this company forward and the best approach would be to see if they can get an exit

[1rodson] 28/9/2018 08:04

But just a few short years back they told us that Kili was at breakeven and was going to prove to be profitable .... So now it's not.

Go back a read my comments on the back ground of the GREEN GILBERT..Made when news broke he was gong to be appointed CEO.
I think failed opportunist come to mind.

Good old sayin: If you all knew your lion ion you would have a good idea of how the soul will turn out!

dangersimpson228 Sep '18 - 00:13 - 5779 of 5780
0 0 0
September Presentation:



WH Ireland EPS forecasts have been cut, but frankly I think their note is not worth bothering with - the actual EPS for FY16 & FY17 has changed between the March Presentation & this one! And they are both wrong as they have failed to do the correction for minority interest - at least VSA got that bit right.
IronStorm28 Sep '18 - 07:58 - 5780 of 5780
0 0 0
Kili should have been sold for £1 way back.

Where we are now, we should still get rid and I for one am not convinced we should be mining. If it just for feed for the plant find a partner but FFS don't go it all me.

Big problem is no one wants its and there is no clear plan to fix - just a pipe dream at the moment. It's hanging over us like a bad smell.

[ironstorm] 28/9/2018 08:03

Oh and sorry to revisit the "professional" sales force argument - I sincerely think this would propel the business forward. They can all be ex. Miners or processors or whatever. But they need to get out and win contracts.

That would be a good aim for this company not chasing gold mining vanity projects.

I understand the comments saying we should not go down the professional route but they can be heavier or lighter in technical knowledge as required.

Seems a bit lazy waiting for the deals to come along. And they cannot afford it.

[ironstorm] 28/9/2018 07:58

Kili should have been sold for £1 way back.

Where we are now, we should still get rid and I for one am not convinced we should be mining. If it just for feed for the plant find a partner but FFS don't go it all alone.

Big problem is no one wants its and there is no clear plan to fix - just a pipe dream at the moment. It's hanging over us like a bad smell.

[1rodson] 28/9/2018 07:14

INTERESTING ARTICLE as last year, Randgold's Bristow delivered a blistering commentary on Barrick's history in Tanzania, saying Acacia's troubles were caused by Barrick's failure, over decades, to deliver value to the country. While the comments ruffled Barrick executives at the time, Barrick's Thornton recently praised Randgold's performance in an interview with Canada's Globe and Mail. Thornton also said that Acacia mines have never paid income tax to the Tanzanian government."

Barrick Gold, Randgold in Advanced Talks on Merger but the don't want to touch GDP

Barrick Gold Corp. is said to be in advanced negotiations to merge its operations with Africa-focused rival Randgold Resources Ltd., protecting the Toronto-based miner's crown as the world's largest producer of the metal.

Is acdeal is imminent, yes according to one of the three people familiar with the negotiations. They declined to provide more details. Talks could still fall apart should the parties fail to agree on the terms. Executives from Barrick and Randgold are in Colorado Springs for the Denver Gold Forum.

IKN, a blog specializing in mining news earlier reported that an announcement may come as early as Sunday or before the opening bell Monday, adding, "multiple sources have told the desk the deal is on."
Andy Lloyd, a spokesman for Barrick, and Kathy du Plessis, a spokeswoman for Randgold declined to comment.

[dangersimpson2] 28/9/2018 00:13

September Presentation:



WH Ireland EPS forecasts have been cut, but frankly I think their note is not worth bothering with - the actual EPS for FY16 & FY17 has changed between the March Presentation & this one! And they are both wrong as they have failed to do the correction for minority interest - at least VSA got that bit right.

[dangersimpson2] 27/9/2018 23:18

That's why I think the priority has to be to get the TSF processed. That is their biggest source of near term capital. If they can get Kili to at least break even then £4-6m operating profit is possible next year without any TSF contribution but after finance, tax & minority interest this will probably be probably more like £2-3m net profit. Capex should be down to c.£1m assuming they don't internally fund Kili Stage 3 then FCF should be similar at £2-3m. Enough to buyback some shares, maybe fund Kili Stage 3 if they wanted to but not to buy near term production and invest in it.

[kimboy2] 27/9/2018 15:53

It is an interesting question as to why they are willing to invest in a new mine but reluctant to invest further in Kili.

In Kili I think that stage 3 involves 3 new cil tanks, the construction of an existing mill and a new electricity supply. In addition I think that they need to delineate the ore body better so will need to spend something on drilling, as well as invest in ore production.

If they got production up to 10kozs I think with an AISC of around $1050/oz there would be a profit of about $1.5m at present prices.

I suspect the cost of everything that needed doing in stage 3 would be about £2m so we are looking at a p/e of about 2 perhaps.

The point is though that I think a producing mine, with a reasonable resource and scope to increase the resource from cash flow produced will go at a premium.

It will certainly go for far more than a bare resource with no financing, which is perhaps what they are looking at.

The question then is if they are to spend a couple of million would it add greater value being spent on Kili or on a bare resource.

I think the decision to extract cash from Kili to invest in something with a p/e of perhaps 2 is clear cut. However in financial terms the decison on stage 3 is less clear cut.

The problem may be that if they go ahead with stage 3 it would delay any mine acquisition. Given the potential numbers on an acquisition, particularly in relation to the market cap, then it would be a mistake to delay if a deal can be done relatively soon.

[kimboy2] 27/9/2018 14:59

There is plenty of news if you look
Most material is bought in Africa
They didn't lose to RR

[russman] 27/9/2018 14:11

I read the FY results: no news.
Why cannot GDP buy any material in Africa.
Because GDP took on Rand Refinery and lost.
How much capital has been sunk into Kili.
Rip the overheads out; sell to a bigger fish.

[shareholder7] 27/9/2018 13:42

Good points DD GDP has always been jobs for the boys and the poor old shareholders get stuffed.To be honest why are we listed on the aim at all,with all the costs etc of aim and such small capital value.Was a good idea at the time and if we were growing but not now. We are going nowhere. We can never process the stock dam as there is nowhere to put the tailings.I think it's time to look for a buyer of GDP and put us all out of our misery If we got 8p I would take it

[dangersimpson2] 27/9/2018 11:53

I agree wigwammer. It would have to be a fairly stand out deal to make it worth investing in a new producing asset rather than bite the bullet and fund Kili Stage 3 themselves so it can finally start to pay.

Given where the rating is on the rest of the company I would have thought they would have put this on the back-burner - but they keep bringing it up so maybe they know more than me. The question I would be asking though is what is their competitive advantage - if they can clearly articulate that and why a new producing asset capitalises on that whereas Kili stage 3 doesn't, that would be a good sign. If their thinking on this isn't clear then that would be a worry for me.