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Great post. Unless you are top slicing and taking profit selling doesn't make sense. 12p is very possible now.
no problem.
Thanks Sea for your detailed response.
back in those years, I found that the p/e range became that reliable, I could sell if it went above 7 and buy if it went below 5.
The company is just starting to give out the same kind of visibility on earnings as it did back then, however, the company did have issues then, which hadn't been discovered - they have all been ironed out now and we are looking at a much stronger company now.
Plus the fact, back then, the storage facility was just considered a waste dump and no one had considered carrying out a resource assessment on it.
ogm4
historically and before goldplat had problems, which have been addressed over the last few years or so, the stock always traded on a p/e of 5 to 7 - whenever it went above or below this for any reason, it soon reverted back into this range.
Sea, what sort of p/e ratio you believe is justified for Goldplat ?
Personally I can see a p/e ratio of 4-6 not out of the ordinary.
either way, we have...
£5.2m pa operating profits..
cash of at least £2m as at last accounts
possible asset sale of anumso
option of a third party processing the tailings dump.
possible sale of kili or investment partner.
all for less than 6p per share, which is £9.6m mcap
niel pretorious, the CEO of DRD gold was asked some years ago, if he was interested in buying goldplat.. at the time, he said that he was focused on getting DRD cashflow up and processing volumes up, however, nothing was off the table.
thanks kingivor
i have kept an eye on DRD as they are one of the only operators that do this. I think pan african are also in this type of business, however, DRD is, in my view a possibility - goldplats management have spoken in rns's about the option of having the dump processed by a third party, however, never mentioned anything else, as they would prefer to monetise it themselves.
it is essentially a truck and shovel operation, not much else for goldplat - the upfront costs to process are minimal in comparsion to the possible revenue - if they get a third party to do it, they get much less overall, however, it would still be many, many multiples of the current mcap.
Excellent find that Sea7.
Maybe , just maybe they are building a stake....cos someone certainly is.
and if DRD Gold are interested in buying goldplats 82k oz gold tailings dump, how much are they willing to pay, for something
that would generate $127,100,000 in revenue, if all 82k oz gold are recovered and sold at $1550 per ounce.
I value your opinion zwartkops but this is not going to 5.2. 6p will go in the morning.
Yep now on the Twitterati's radar after Zak Mir gave it a next stop 8p target and the way it traded today was really good. The danger of trying to trade this is that you end up buying back in higher for fomo.
DRD gold is a massive surface tailings retreatment operator in south africa - the process millions tonnes per month - they buy up tailings dumps....
Their processing plant is ergo and the pump material to it, through multiple kilometre long pipelines.
from their 2019 accounts...
Ergo – look to expand Brakpan/Withok, using established pipeline and infrastructure, but expand to the Far East (Marievale/Grootvlei)
https://www.drdgold.com/assets/investors-and-media/annual-reports/2019/drdgold-integrated-report-2019.pdf
Goldplat is situated between grootvlei and the modder east mines - with a 1.2million tonne, 82k oz gold tailings dump on site.
Could DRD be considering goldplats storage facility as an acquisition?
Your transparency is admirable mate .
This will not trade below 5.5 tomorrow IMO
Will definitely hit 6.2
I rate it the same ..12p...My profs where in the region of £7k
But there is so much more to be made....Big mistake is to buy in first thing tomorrow...The MMs will sell what they bought for 5.2 and under tomorrow...I'll post when I'm buying in
I rate it the same ..12p...My profs where in the region of £7k
But there is so much more to be made....Big mistake is to buy in first thing tomorrow...The MMs will sell what they bought for 5.2 and under tomorrow...I'll post when I'm buying in
5 Million GBP annual PROFIT, not revenue... :-)
vs. less than 10 MM market cap...
5 Million GBP annual PROFIT, not revenue... :-)
Profit is good. But the way this is trading expect the uptrend to continue.....
no harm in taking profits zwartkops !
Your cool mate , as long as you sold with more than a quid profit you didn’t lose.
I think there will be further updates updates this week . But end of last week MMs took back control on nothing , however stopping the rise based on facts from previous RNS.
It’s all good here , and I rate this stock at over 12.9p so that my plan .
Wishing you well
EM
You watch there will be an RNS first thing and I'll miss the boat
At least mate ...
At least that's the plan??