Goldplat Share Discussion Threads

[sea7] 04/11/2018 12:18

DD - I wasn't far out with my y/e estimates and I knew they were having sourcing issues in ghana some time ago. I had expected this to have been worked through, however, it hasn't, however, the work continues and supplies are picking up - at least that is what I feel is implied.

I do not get worried about mcaps or shareprices, neither do I worry about quarterly figures or any other short period - it is long term trends that matter. I only watch the share price to see if it is presenting a buying or selling opportunity - not much more.

I am interested in sustainability, continuity of business and ensuring that the cost curve is always pressured down so that it remains below the revenue line at all times and good cash generation is key to continuity, so I like to keep an eye here as well.

I am interested in balance sheet headroom and stock pile levels and what processes and plans are in place that demonstrate the work in progress to ensure the above.

I am interested in what and how they are expanding and what process they follow to deliver on that and how the story unfolds in a sensible manner.

My investment horizon is never fixed and can move at any time.

[shareholder7] 04/11/2018 11:50

The reason why the company should be sold is they are incapable of making this work, it been too long.A market cap of 5million is pathetic I bet if there was a bid of 8p all the shareholders ( and directors ) would grab it and we can all move on

[sea7] 04/11/2018 11:43

no shareholder - you are talking just like the sales guy you say you are.

your in the hole and are demanding they sell the company - you clearly see more value in the company, because if you didn't then you would simply dump your stock on the market and move on.

DD - they have built the ghana plant as it will be able to handle the volumes that it hasn't had before - you do know that obuasi is starting up again and this was one of gold recovery ghanas big suppliers before. They will be receiving material from here as well as south america and the company has just completed a trip to burkina faso to set up arrangements to source there as well for ghana.

can you not see the work being done for the future?

[sea7] 04/11/2018 11:36

dd

I am finding it really strange that people who claim to have invested in this stock simply do not understand it

yes goldplat have contracts with the majors in SA and get material as and when it becomes available, however, they also toll elute for others as they purposely built
more capacity than they needed and this was back in 2006 before they increased it substantially, they have contracts in place
with much smaller miners as well and they buy up material outright and have it onsite from other players and they are now looking further afield.

[shareholder7] 04/11/2018 11:35

Yes DD, luckily I have other investments that make up for this but feel very stupid going back in.I relied on what GKG was saying about Kili and after the RR issue was solved GKG statement that KIli was breaking even and it had turned a corner pushed the share price upAlso I did listen to sea and his positive updates and thought might be worth a punt So been averaging down and end up with too big a holding The Kili statement was false and we are on the back foot and any party can screw us now as we are desperate for a deal I think most shareholders think this way and Sea must have a hidden agenda as he either has worked for the company or is GKG brother Shareholders need to push for a change of management but it can't be another miner or techie, we need a commercial CEO with the aim to sell the company now and to get some value back for shareholders

[sea7] 04/11/2018 11:27

dd

morkel was successfully sourcing in ghana and whilst he was doing it, we had plenty of feedstock. He agreed to move to brazil to begin building the new market there, build the relationships and we are seeing regular shipments arriving from south america, albeit small to begin with.

you are not seriously expecting these relationships to be cultivated overnight are you.

Time is what is required here, to build the trust that goldplat will deliver the money/gold that they say they will to the suppliers.Once that trust has been established, then larger contracts will be in place.

surely you know all this

[sea7] 04/11/2018 11:15

no DD it isn't GDP's strategy. They know who delivers and when and how much and what it is.

Goldplat has contracts in place with all majors in south africa except harmony and received material as and when it becomes available -those majors do not produce enough to process it themselves economically and simply ship to goldplat.

[sea7] 04/11/2018 11:06

shareholder - you invested £65k into this business and you don't know how it is run.

I am surprised to say the least.

[shareholder7] 04/11/2018 11:03

By the way my paper lose todate is £32k and total exposure is £65k to this company so I am not pumping the stock I really want this company to do well but can't see it happening, without some major changes in management

[sea7] 04/11/2018 11:03

DD,

morning.

I have just posted the name of the person that is the senior sourcing officer in south africa who has been in the job since 2003. You cannot tell me that after 15 years service, he doesn't know his markets.

This isn't a football team that sacks its manager because it loses a game.
The company narrative must be viewed from the perspective of today, tomorrow and the future, not just one quarter - unless of course you are a stock trader only, then you are in the wrong stock.

Gerard isn't the one doing the sourcing, he isn't the one at the various mines looking over what they have, that is what francois, morkel and the rest are there for.

Morkel is living in belo horizonte and is goldplats sourcing manager in south america. He relocated there to begin sourcing for goldplat and building the relationships, primarily leveraged off the existing relationships with the likes of anglo gold who goldplat work with in South Africa.

[sea7] 04/11/2018 10:33

anyway the senior strategic sourcing officer at goldplat south africa is
francois Classen, he has been in the job since 2003.

linked in page if you like...

[sea7] 04/11/2018 10:19

morning pennis - see you are up early after a heavy night on the cider.

[sea7] 04/11/2018 10:13

shareholder -

it doesn't matter what bit of software they are using - it is knowledge on the ground and understanding of the nature of the business that matters.

the use of excel or any other tool is complimentary and does not decide the fate of a business - if you are totally reliant on a bit of software to tell you what to do, then you are just a drone that does what the computer says.

the mines have environmental obligations to continue in business and the waste taken by goldplat ensures compliance with these obligations. If goldplat turn away from a supplier because they want to much, then the supplier has issues with its EIA permit.

The company has been closing deals with varying companies since 1979 and has continued in business to varying degrees of profitability and success ever since.

Isn't going bust.

[sea7] 04/11/2018 10:06

yes - they are 6% ahead on processing, however, as you say, lower than expected grades are impacting the results.

I think it is worth remembering that in 2003 prior to listing - revenue was £120k pa
and they made a profit after tax of £31k. By 2004 they had increased revenue to £2.9m
and a profit after tax of £1.1m

in 2003 they were only processing platinum, however, they began processing gold in 2004, hence the big step up in revenue. over years 2004/2005/2006 they produced an average 8.5k oz per year.

It took four years until 2010 to get to a steady 6k oz for the first six months of 2010.

Goldplats base case is about 29k oz per year as things stand today, without kili or should be. This is just over 7k per quarter, if they do not get at least one large, one off contract per year.

Whilst this quarters results aren't any good in comparison to recent years, we have become used to these numbers and aren't taking into consideration, that they are only about 3k ozs shy of the base case per quarter at the moment, excluding kili.

There is plenty going on that much I am sure of and we will see further improvements going forward.

[shareholder7] 04/11/2018 09:58

I am afraid to say that this might not recover and we need a shake up in the management These are the key questions 1.What software do you use for production scheduling and planning ? As per DD there should be total visibility in GDP on what is going on and what needs to be brought forward. My guess is they use Excel2. What ERP solution do they use in general ? Again bet they use Excel3. Why should the mines give GDP a good deal now. They can see we are desperate for materials so I would screw GDP on price 4. How are they going to close these two big deals in Africa if they don't have any commercial people on board. They can't close deals as there is no incentive for the people doing this to close ( no commission structure )5. Could GDP go bust ? This is a shambles and it's down to the management Maybe 3p could end up being a good price I used to think well it's just another year but maybe not