The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
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Results look good to me and the market seems to agree - working out this year's numbers with higher majority share and hopefully higher gold price we will be on a p/e of 2ish
Gold plated need to start taking action to enhance shareholder value. They have been slow horses for too long. What is the strategy to be pursued? What investment is needed? What regular and special dividends will be paid? No reason not to communicate these answers to shareholders.
Just been flicking through the RNSs. I see Martin Ooi now holds 28% and The Kilo Trust, who were very long term holders, have sold up. It looks like Martin took their tranche. I believe Mr Ooi is/was a metals trader based in Hong Kong. I assume he knows what he is at!!
These changes occurred before the November update which seemed positive to me. Although there have been two promotional events this year, the AGM is on New Year's Eve, and will probably not be accompanied by a statement. Also the company Twitter account has been inactive for more than two years. Communications seem not to be a priority! Moreover the gold price has not increased as many predicted or hoped. The price here is thus languishing. However Kilimapesa is now off the books, there has been some rationalisation, and we remain profitable. I think there are worse places to be in this area. Patience will hopefully be rewarded with a price nearer to 10 than 5 in due course.
So a falling share price and no sign of a dividend, need to ditch this CEO IMO and I will be voting accordingly come the AGM !
Stalling to get mates in ?
Agreed, the quarterly update 2 months ago said “ we will evaluate our options to return value to shareholders”.
Surely two months is long enough to have decided? They should be paying a dividend!
God this share is boring !
Hi
Please find a link to a CEO snapshot interview post the investor Webinar
- https://youtu.be/eJr6Byhr9JY
Should you wish to receive information directly please register goldplat@flgastaffcomms.com
Did anyone listen yesterday afternoon. Any views?
Some interesting questions about shareholder value.
The Caracal portion is now worth c£1.8m! Bizarre really!
SA is indeed a drag, but the centre of gravity is luckily moving away from here. The company are managing this well.
Re the price of gold: it seems strange to me that there is so much material uncertainty, but gold has remained so sluggish. I am happy to continuing holding here, looking for nearer to 10p.
Yes looks OK but SA continues to drag it's heals and be a slight thorn in the side. Ghana and The South American areas look promising and seem to be the areas of profit growth. Not sure what i think about Caracal? Future increase in POG will of course be a God send?
Operating profit unchanged at £1.403m.
Cash balance £2.34m (down c25%), due to share buy back.
Holding in Caracal Gold (GCAT) up to 9.2% in lieu of cash payment.
Ends with "With initial consideration on the sale of Kilimapesa and majority of the restructuring within the Group completed, we will evaluate our options to return value to shareholders."
All seems promising, with a possible dividend on the horizon.
Good CEO, Bad promoter. I feel someone in the background knows they will not give a divy or not a very good one and sells on any rise.
That's my thoughts.
Market cap around £13 million
Less cash in bank which was £3million as at 30/6/21
Less cash from mine sale £330,000
Less value of 7% ownership of mine £1.5 mil (and climbing)
Less mine smelting royalty up to £1.1 million
Leaves around £7million value in the ongoing business which made a profit for the year to 30/6/21 of over £5 million!
Could someone more knowledgeable and intelligent (virtually anyone) explain the lowly share price please.
"With the sale of Kilimapesa, the Group will focus on growth and diversification within its recovery operations, whilst remaining cognisant of its goal of distributing value to shareholders."
Guys,
Good afternoon to you all....
I am looking at Goldplat and considering the company ..now that Kili is dealt with....
if I could ask you knowledgeable posters a question, if I may ....
what "diversification" is being referred to .......and..if they indeed go down the dividend route...at this stage......does this clash with the "focus on growth " ??...or is growth and dividends achievable side by side ....
many thanks for any comment/views
good points - I agree that Dr Ooi on the board is v bullish, trying to buy more only 25k shares on the offer and having to pay 8p for any size - Gold pushing $1800 augurs well for the 4th quarter for sure.
Here are some suggestions for Dr Ooi in his role to improve intrinsic share value.
1. Declare a maiden dividend and state dividend policy e.g to beat inflation or to remain a set proportion of annual profit available for dividend.
2. Investigate the possibility of using extraction assets more intensively e.g can an extra shift be added? Can they be used 24/7?
3. Can the extraction process be enhanced to improve the yield?
4. Can growth be enhanced by having a third (or more) locations for extraction? In Africa? Or in South America where material is currently accessed?
5. Can customers be contracted and the market made aware of progress e.g. 60% of sales come from contracted customers. The aim should be to grow this percentage.
6. How is the stock of tailings to be exploited? In house extraction (see point 2)? Sub contract? Use to smooth performance? Etc.
Goldplat has the potential to raise its share price substantially….doubling to 15p would be an achievable short term goal and doubling again in the medium term another. Staff should be motivated to pursue the interests of shareholders and a bonus system based on these share price rises should be instituted.
Thanks for the link. very interesting!
Goldplat plc, the AIM quoted gold producer, with international gold recovery operations located in South Africa and Ghana, is pleased to note an announcement made by West Wits Mining Limited (ASX: WWI) (“West Wits”) on the ASX today, 12 October 2021, regarding the Group partnering with West Wits as toll treatment partner to initially process approximately 8,500t of ore extracted during the West Wits Early Mine programme at the Qala Shallows area, located on the Kimberly Reef package in the Witwatersrand Basin, South Africa. First ore is estimated to be delivered to Goldplat in Q1 2022.
Werner Klingenberg, CEO of Goldplat commented: “I am pleased to partner with West Wits on the early mining programme and we are looking forward to finding ways to grow this mutually beneficial relationship.
Might be wrong but I believe Kilimapesa was fully discounted from GDP's market value long ago, it was under care and maintenance for a while. It's now Caracal's primary asset and near term production through capital intensive expansion in the short term is driving sentiment. The capital raise aside, the market is looking at the 25,000 oz and 50,000 oz figures announced by the company in my humble opinion.
I don't think we would have unlocked value nearly as quick if management here had announced their intentions to raise £5.5 million capital at the expense of existing shareholders. Our 7.17% retained in Caracal is now worth about £2 million and comes on top of the payments already made to Goldplat.
We look very cheap right now. The stock should be up nearer 9-10p and I expect it will be once they announce their next quarterly update next month.
GOLDPLAT (GDP) MARKET CAP: £11.5m SHARE PRICE: 6.8p
Robust, profitable, cash-generative business with a prospective dividend
Goldplat produces gold (plus minor silver and Platinum Group Metals – PGMs) from by-products of mining and plant clean-up. It has two operating recovery plants – one in South Africa and a growing operation in Ghana. The company is cash-generative with an effective management team, focused on growing the business. We reintroduce our estimate of fair value at 10.6p, based on a simple average of Goldplat’s NAV and a 4x multiplier of current year EV/EBITDA (which is set at a slight discount to peer companies) and the value of investments.
Afraid we cant say who - compliance etc !!
Caracal now over 2x GDP market cap. LOL