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Goldplat plc (GDP) – Corporate – Operational update for the half year ending December
2021
Market Cap £11.5m Share Price 6.7p
Goldplat today reports a strong half; it reports operating profit from its two plants of
£3.8m up from £3.0m in the same period last year. At the end of the period, Goldplat had
£1.5m in cash with a significant balance in inventory and debtors, with £3.8m in its
operating entities. Goldplat is a unique business generating value from the wastes
produced as a result of precious metal mining.
In South Africa, costs were down and the gold price received was up. Operating profit
for the period was £1.9m (£2.1m). A PGM stockpile was built up and a dedicated plant
for the production of PGMs was under construction and expected to be completed in April
2022 for a cost of ~£0.3m. A pipeline application was also put in in October 2021 which
will be used to pump the existing tailings to another 3rd party plant for processing.
Ghana continues to expand and become a more important part of Goldplat’s business. In
the period Ghana generated £1.9m (£0.9m) of operating profit with increased production
from materials from West Africa and South America. To maintain momentum in Ghana,
and in light of various political upheavals in some neighbouring countries which could
impact or delay supplies, Goldplat is actively seeking to invest in upgrading low-grade
waste and warehousing in Brazil to service its South American opportunities. This
opportunity in Brazil will cost up to $0.3m.View: We view today’s announcement as an endorsement of the strategy of
Goldplat management to make the most of its plant in South Africa (steady production)
and diversify and increase the supply of material into its Ghanaian plant (operating profit
growth). Cost control is an important aspect of this strategy against the volatile gold
price. We continue to see Goldplat as a growth company, but one which generates a
steady stream of cash. We see fair value at 10.6p (calculated as a simple average of
EV/EBITDA for FY 2022E of 4x and Goldplat NAV FY 2022E), especially as we expect
Goldplat to eventually re-join the ranks of dividend payers.
With the interim results due soon, & with a clear strategy on “returning value to shareholders”, and gold price now north of £2k, and factoring in that we may realistically make more profit (after tax this year, than our current market cap..we should see a significant re-rate.
It’s slightly better than that “the 6m profit is was achieved in the first 2 quarters”, so annual profit could be something like 12m(pending on average gold price!)…sorry for being pedantic!,
If you annualise the 2Q profit (since GOLD PRICE IS NOW ABOUT $200 HIGHER THAT'S an underestimate), you get £6mill profit after tax for a £12 mill company - with £4 mill+ of cash. IN A YEAR GOLDPLAT will have £10 mill of cash and still be making £6 mill a year. All this with zero value to 82,000 oz in the TSF (worth a gross of £112 mill). This is madness and cannot last - either we rocket to 20p+ asap or someone takes this thing over, you are buying pound notes for 20p here.
what nonsense - Werner has been cautious about getting his ducks in a row to ensure that a dividend is 100% sustainable - the performance since he took over has been outstanding, especially Ghana. You will eat your words come the Interims in the next week or so.
A number of posts on ADVFN have suggested that Goldplat is operating mainly for the benefit of the board of directors , 'lining their own pockets ' but not for the benefit of the shareholders. I regret that I tend to concur with this opinion.
The minority shareholding in the South African operation was acquired. Sensible but at almost three times market value, A little dubious perhaps.
The Kilimapesa mine was transferred to a company now Caracal Gold for a nominal consideration with the involvement of Gerrard who appeared to be acting for both companies - seemingly a conflict of interests. Caracal Gold whose main and indeed only asset is this mine is now valued in excess of Goldplat.
There are continued vague and unhelpful statements made by Goldplat's management particularly regarding the position and value of the South African tailings and even more unacceptable regarding future dividend policy.
I would strongly suggest that when the company issues its next trading statement that a number of outstanding issues particularly dividend policy are dealt with clearly , specifically and professionally
The current gold price is strong, Goldplat is trading profitably and has cash reserves. Their share price should be considerably higher. This must reflect mainly on current management. It is important that the BOD of smaller companies is considered not only to be efficient but also one that acts with total integrity to return value to shareholders not a stagnating share price and zero dividends.
Gold above $2,000, back of the envelope this is on a p/e of below 2 ie earnings yield of over 50%. Pus cash will now be c£5 mill and mkt cap is £13 mill. It will trade 25p this year.
Looks like with increasing volume today, we’re getting ready for a brake-out next week to new highs..
hardly a big deal - much more important is Ghana's performance, outstanding, stripping out cash we are on a p/e of 2, 1p dividend (0.5p now and same at year end) incoming, buy before the news hits.
So instead of taking $450,000 cash. GDP took shares that they later sold for $415,000. Another genius move after overpaying for the minority interest shares.
Hi
Should you want to receive relevant information directly please register with goldplat@flagstaffcomms.com
Thanks
Hi chaps, have just been trawling through the gcat board and have come across this; "To acquire the Kilimapesa gold mine, the company agreed to provide Mayflower with £3.25 million,
satisfied by issuing 325 million shares at 1p in Papillion. Plus, there is deferred consideration of up
£2.35 million, also in shares at 1p per share dependent on the stage of Kilimapesa’s development
and the level of success of the Kilimapesa gold mine. In addition, shares worth £500,000 are due on
the definition of a JORC (2012) Compliant Resource of +1Moz at Kakamoeka, which is now not being
pursued."
Does anybody know if it can be assumed GDP will be getting another big tranch of shares in caracal gold later this year? I can't find anywhere whether the shares are to be payed for as a form of warrants or will be issued by gcat later on in the year either as I don't know how to interperit this.
Does anyone have any ideas?
Hold over 1.5m..gla holders
A lot of good action/news from this company has not translated into share price improvement. It is likely that is because the management are not communicating how the value being created by the company will be used to benefit shareholders. So prepare and disclose what policy will be…regular dividend policy, special dividends, share buybacks, retention policy linked to investment policy etc, etc. The company is generating profits currently at a rate that, over one year, would equal its market value……get value to shareholders clarified and this could see shares rise by a multiple of at least 5.
A dividend
Took a position here last week, looks very undervalued. Would be nice to see them do a deal with some higher grade material, just feels like there scrapping the barrel with lower grade material.
Nice to see management holding a good chunk of shares.
Our CEO must wonder “why he bothers”. Does a interview discussing the quarterly results, and all for 6 trades the day after!
This share is infuriating, what’s it gonna take to brake out of a near decade trading range?
I bought a few this morning. My buy is recorded as a sell
My take was. We have been Undervalued, we are Undervalued, & we continue to be incredibly Undervalued.
Hold/Buy/add., our day is coming.
Dear all, it was a pleasure to talk to Werner Klinginberg, CEO at Golplat, the AIM-listed gold recovery business. Werner was pleased with progress and happy at the Group's ability to consistently deliver results at this level. H1 net profits were £3.8M and those profits are being reinvested in the core business now that the Kilimenpesa gold mine has been disposed of. Here is the full interview with Werner: https://youtu.be/vEemAXVqcco
Me too!
We better get a bloody dividend, no point in making all this dough, if we ain’t ever going to see any of it.
lol, well done Driving but i still have my doubts about the CEO.
A dividend totalling 0.5p would be doable and reasonable. That would be a 6.25% yield at 8p. My target is a realistic 10p, which could be done at a PER of 8. The nature of the business here will never allow a premium rating, but we have a profitable company, hopefully well able to pay shareholders something.
its obvious from the Q2 update that a dividend will be announced with the Interim results in a couple of weeks. No way are these buybacks, looks like a couple of large buyers competing to get as much as possible before the dividend shines the spotlight on Goldplat. 0.5p now and the same at the end of the year is easily affordable and gives a yield of 12.5% at 8p - not many place you can get that, especially when its covered over three times by earnings .