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absolute no brainer
This will re-rate itself based on £5MM annual profit AND with underlying support of the current bullish gold price
As stated previously by the CEO:
"A major positive development has been that the Kenyan Revenue Authorities started refunding the mine’s VAT claims for the first time since incorporation. This action sends a strong message to potential investors about Kenya as an investment destination"
very well observed SEA, the forecast looking strong here
goldplats year end is 30th June 2020 - we will get the full release of the interims to end december 31st 2019 in a few weeks.
The new CEO has indicated that the company will exceed full year market expectations - that is 5 months from now.
The figures for the first 3 weeks of H2 so far, must be great and he has indicated having better visibility, so if he states that we will exceed market expectations in five months, after exceeding them at the end of december, then this indicates a very strong pipeline of revenue.
Main two flagships full steam ahead c/w increased operational efficiency, TSF updates soon, awaiting outcome of Anumso Gold mine sales i.e. additional cash, severe cost reduction on Kilimapesa, tax refund from KA government, etc.
Full year results due in a few weeks time expected "to exceed current market expectations"
Also higher gold prices on the near horizon under current market sentiments.
£5 Million annual profit...
Therefore in my opinion £8 Million market cap is an absolute steal at the moment.
goldplat are still owed another £586k if i recall, on vat from the kenyan authorities, so this is still to come.
And good to see they are currently conserverving one of their other projects Kilimapesa at minimal cost c/w permits and licenses still being supported by the Government. It shows you they are very much cost driven; looking for capital efficiency.
Also a chunky £ 523,000 VAT reclaims have been paid by the Kenyan Revenue Authorities to Goldplat, which adds up even more.
In 3-4 months time they could have another £2-3 Million cash/profit at hand based on improved operational efficiency, excluding any project sales or bullish increase in gold price. Wakey, wakey.
Indeed, good point.
Personally I suspect that news must be close around the corner ('due course").
personally i think the discussions have been completed and that they are confident of a sale - if they weren't confident, I would think that they would probably have said nothing, as talks would not have amounted to anything.
Indeed, I agree Sea.
The only thing what particularly struck me is the wording: They mention "we have had discussions" instead of "we are currently in discussions or negotiations" unless indeed they are still in a non-disclose period I guess.
its a price sensitive bit of info and they may feel that others outside the discussions will know, so they cover their backs surrounding transparency etc by declaring that they have had discussions re an asset sale.
seen it on many rns's from many companies - had discussions blah blah, no guarantee of a sale, early talks etc etc - will let you know.
This part intrigues me somewhat:
"We have agreed with our Joint Venture partner at Anumso, Desert Gold (Ashanti Gold and Desert Gold merged towards the end of September 2019), to seek a buyer for the Anumso gold project. We have had discussions with a potential buyer and will announce the outcome in due course. "
Surely if the negiotations would have lead to nothing i.e. no deal, this could have been announced much earlier straight away ?
In that case: Why would you want to wait with announcing the outcome ? Only if there are certain developments ongoing and/or deal is ongoing imo...
yep - the company has been in the doldrums for years, due to problems of one sort or another - WK has taken over and is building on the work done by the last CEO. The last CEO did great work at sorting out a lot of issues at the recovery plants, however, his strategy at the mining assets was what did it for him and he had to leave.
We have rerated from the dirt cheap, unloved status to a bargain price at 5p - still a long way to go, to see the true value reflected in the share price.
Next up an asset disposal then.
Would like to see WK do some PR explaining his strategy to grow the business over the medium term.
I'm in at 2.65 and again at 4.9 and will look to add as and when. Hard to see anything other than upside going forward.
i wondered why he was early with it. It would seem that he doesn't want it overshadowing some other good news that is due soon.
kili has had a lot spent on it and it owes goldplat quite a bit of cash in loans.
a divi would be great, so long as they do not need it to source material
Why was the update announced early? Is Werner going to follow up with Kili and / or Anumso news. I think reasonable disposal valuations for Kili are £4-5m and 49% Anumso £1-2m with gold near 1600 US. No point in relinquishing decent assets for giveaway sums.
With strong visibility of supply, the board may even look to reinstate a modest dividend at the full year results.
goldplat scours the areas and buys up quantities of gold bearing waste from much smaller mines, disused mines and those in the process of closing for cash up front.
They do this by sampling the waste, having three assays done - one by goldplat, one by the seller of the waste and one by an independent to ensure that full transparency by both parties is preserved. They strike a price based on this assay. Goldplat ships the waste to its plants and either processes immediately or stacks it into the strategic stockpiles.
This means they are buying waste cheaply and when gold moves up they really make on it.
The company rotates and blends waste in its processing circuits to achieve the optimal production rate, which is based on the price of gold.
If the price of gold moves up ..they can push through some lower grade material to maintain a margin
if the price of gold moves down - they can push through some higher grade material to maintain margin.
if a supplier wants too much money for the material, goldplat can turn it down and work through strategic stockpiles instead.
Once werner gets the underground mining assets sold or partnered then goldplat will focus purely on surface recovery ops and environmental clean ups.
The recovery operations are powerful revenue generators, this is now being seen, after the issues have been ironed out and the new focus is bearing fruit.
the company has contracts in place with the major mining houses in south africa - anglo gold, sibanye, gold fields etc. - they send goldplat a steady stream of waste. Goldplat had a large contract in place with anglo golds massive obuasi mine in ghana before it closed down.... this mine has been re-opened with the first pour last month -
obuasi is in the top 9 largest gold mines on the planet - now it is back up and running...
Mine production in the first 10 years will focus on the upper orebodies and is expected to average 350,000oz to 450,000oz annually at an average head grade of 8.1g/t. In the following 10 years, average annual production of 400,000oz to 450,000oz is forecast.
Goldplat will be taking large amounts of gold bearing mine waste again from this massive mining operation and it will be processed at both ghana and south african plants. The capacity is there to do this already.
goldplat used to only have a one tonne elution plant in south africa - they upgraded that a couple of years back to 8 tonnes and installed an elution column in the ghana plant. There is already an elution column at the processing plant in kenya, which ultimately means they primarily send bullion to the refineries rather than concentrate.
Bullion is day or two turnaround, whereas concentrate can take weeks and sometimes months to be put through the process, as refiners have other clients using the facilities also.
goldplat is classed as a miner, however, its recovery operations are the real green aspect to the business. They take waste product from the mining industry, extract the gold that has become embedded in it and dispose of the waste in an environmentally safe manner.
Gold miners are obliged to dispose of their waste in an environmentally friendly way - that is where goldplat comes in.
Goldplat still has the recommendation from the ghana govt, as the first choice for ghanaian miners to send waste to, to be processed .
The company does mine clean ups, where they send a team in, clear up everything, ship it back to goldplat sites, process and recover gold.
They are also involved in the mercury clean up in ghana, re minmata - they started a pilot project, but that got halted, as the state wanted the outcome of the steering committee to be known and implemented first on the clear up of mercury from mining sites etc.
Goldplat used to process platinum minning waste and extract platinum years ago, so they have the know how to do it again, as indicated in the update.
The tailings facility that has at least 81k oz in it, was measured during late 2015 and they are still using the same facility to put more material in - so there is another four years worth of gold bearing tailings been added to this facility since the report was published.
news on several fronts
Wow that's massive
Gold up today at 1,572 USD/oz… next bull run target predicted by some at 1,900 USD/oz