Member Info for ChameleonMan

Finance cost of ~£800k is offset by finance income of £429k and are explained in the accounts as currency fluctuations. Goldplat is indeed debt-free! "Net finance costs of £419,000 (2013: £59,000) comprise primarily exchange differences due to the weakening of the South African Rand. They are non-cash items. The loss before tax is therefore £248,000 (2013: profit £207,000) and the loss for the year is £356,000 (2013: £399,000)."

There are a lot of new initiatives here which need further explanation to fully understand but it sounds like they are thinking creatively. What I would like to see is some projected numbers to understand project costs and likely returns.

In detail not much news from the last date to make me change my SWOT analysis. What is clear from the numbers is the substantial reduction (17.3%) in equity from £24.18m in June 2013 to £19.989m in June 2014. Good news, which was rather low-profile in the release, is the proposed change in Chairman which should bring more investor confidence going forward.

I'm not an accountant either but believe it becomes a cash item when you draw up the accounts in £sterling? This is only a nominal conversion as I imagine the cash is still sitting in a Rand-denominated bank account?

Several people are asking what the prospects for Goldplat are and I have asked myself this as a long-term holder who has averaged down to the present 4p, a level I have previously argued we would never get to. However rather than recover from some of the issues that were bogging us down i.e. Kilimapesa, we appear to have been plagued by more issues on top of this in Ghana. The last update was so rich with problems it was easy to believe that things will never improve. To try to balance issues I drew out the issues into a SWOT analysis which you will find below. Make your own conclusions but I remain fairly positive that while short-term issues may prevail longer than expected, there is more upside long term and there is unlikely to be a better entry point than this into a cash generative, gold recovery business that can remain profitable at these low gold prices. Goldplat SWOT Strengths: Experienced management team, recently expanded Operating profitably (before tax) Debt-free Proven process – South African plant operates profitably Tema in Ghana: Operations at the spiral and incinerator sections continue to generate profit Tax free status until 2016 Midas Gold initiative in Burkina Faso. Midas Gold SARL holds an operating license Weaknesses: Management diverted by recent problems that have arisen CIL process at Tema ceased operations -fails to comply with Environmental Regulations. It is not intended that GRG will seek to recommence CIL operations at Tema. Process equipment in Ghana needs resiting Low milling capacity in Kilimapesa Opportunities South Africa recovery: Record production of gold being achieved Unhedged gold production provides upside revenue opportunity New contracts signed driving increased revenue Technical innovation improves process yield and revenue Ghana recovery A relocation of the engineered tailings facility and CIL section may reduce transport costs and improve profitability. Kilimapesa Gold Project in Kenya Plant improvements increase recovery and gold production to break even Midas Gold initiative in Burkina Faso. Midas Gold SARL has an operating license and offers expansion potential Threats South Africa recovery Gold price continues to fall reducing revenue Possible questions over environmental impacts of Benoni operation? Ghana recovery operations Temporary suspension of toll treatment activity continues indefinitely New Environmental Management Plan requires significant additional expenditure (water treatment, facility decommissioning, removing tailings) Spiral plant is found by EPA to have negative environmental impacts leading to decommissioning and relocation Toll treatment permits are not obtained quickly jeopardising the Endeavour revenue stream Operational issues at the refining customer in S.Africa continue leading to a further delay in sales of fine carbon Kilimapesa Gold Project in Kenya joint venture partner can’t be fou

...in the context of recent disappointments it needed to be all good and it wasn't. The last thing we needed was new problems. Earlier this year GDP was boasting its environmental credentials as a means of attracting new business. Now they have been fined for breaking environmental laws which suggests that processes and procedures were not properly managed. The overall effect on the bottom line may be marginal but it highlights a failure in management focus on a critical issue for a precious metal recovery operation. Where does the buck stop?

Well, there's the drop as predicted, as wishful thinking is extinguished by bitter experience. No amount of Happy Talk or touching wood can spin over the dilution. I hope the current management can prove themselves more than self-serving but I have my doubts.

I assumed it would be other institutional investors? If I hear that any Directors have bought in I will start taking their prospects a bit more seriously!

So it's a 5% dilution but AVM management can keep drawing their salaries and eating doughnuts at their corporate HQ. Would have expected a drop in SP but not so far it seems? I expect the reality may sink in later and we will see a 5% drop?

undermined by the foolish optimism repeated again and again over the legal case with Diamond Wood. Niaive on behalf of management to imagine that anyone other than lawyers would gain. Lesson to us all to avoid resorting to legal proceedings if humanly possible. A recurring theme in dealings with China is the need for eternal patience. Things just dont happen in the timescale you hope for and trying to force the pace just doesn't work.

Good to see we are getting some firm committment from Solvay to build an Accoya production plant. and develop the market outside Europe. Should engender confidence on every level.

A continuous loss of value followed by a delisting and now running out of cash! How difficult can it be to put together a portfolio of timber assets and at least preserve capital value? Do the management of this fund have any credibility left? A deposit account at a bank in Cyprus would have retained more value! Will selling off timber assets return value to shareholders or simply fund management fees? This performance is disgraceful.

...that just over a year ago I was buying these for £1.06!

After today's rout you seem to have your chance to top-up at 20p. Appears to be mostly automatic sells, perhaps triggered by stop-losses as it declines. As you say no operational reason for fall so chance to get in cheap again is in view.

Have a look on the Goldplat website under the "useful links" table on the bottom RHS of the home page. Click on "2014 Investor Presentation" (it was updated july 14) after the investor conference call on 2nd July. If you want to avoid missing further statements, suggest you "subscribe" under the investor relations tab and you will get email alerts. Hope that helps?

You must have missed it. It was on 2nd July. Check the website?

Seems to be a run of automatic sells today - maybe an opportunity to top-up coming soon?

I dont have a subscription. Any chance of a cut and paste?

More of a slide than a smack down at the moment but AVM is sliding too suggesting it is tracking gold? Does this suggest that a 1% increase in gold equates to a ~10% increase in AVM? If so that's what I call a leveraged play!

Having talked to a timber specialist recently I believe that the challenge for Accsys continues to be the high price of its Accoya product which has to compete with similarly-priced tropical hardwoods like Teak that have been used for a long time. Some timber markets tend to be very conservative and resistant to new products. Also the feedstock wood species is Radiata Pine which needs coating as it is otherwise an unappealing colour and may stain without coating. Some of its modified wood competitors are durable without coating. Having said that, although uncoated cladding is widely used, in some markets coating is very popular and Accoya takes the coating well. Accsys have a single plant in Holland at the moment so production is currently limited. Will that change in the near term? Will they have the capacity to support the newly opened US market recently vacated by Eastman due to "the challenging economics of the product market"? I am happy to hold the shares I have which are showing a nice profit but I won't be adding until some of these basic market acceptance issues are clarified.