Member Info for SEA7

BTM member since today and first ever post made on this board - attempting to sound like the seasoned professional.

hmm?

The CPR does mention that the west rustavi field is a strong water driver - so I expect a high water cut. The only thing they do not mention, is that in some cases a water cut of around 80% can double lifting costs, due to water disposal, however, they reckon it is low cost water disposal, so the jury is out on the costs for water.

no problem.

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.

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.

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.

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?

no harm in taking profits zwartkops !

yep and you.

ticked back up into the close, ready for the morning. 6p wants to go.

yep - good to see no spikes and POG pushed past 1583 an ounce.

6p on the offer again.

up to 6th on the highest riser board - getting noticed again.

goldplat has entered a tight market state due to a good positive change in the company fundamentals, which will be long lasting.

operating profits were £2.6m at the interim, which is £5.2m annualised - just trading on 3 x that figure is 10p per share
and that doesn't include cash in hand, plus gold ounces on site.

spread narrowing - 5.75/5.8

the market legend/myth is that a code 1 is that an RNS has been logged and is imminent!!!

goldplat moving back into the top ten risers again - should be about number 7 now.

starting to see media reports of investors heading to safe haven of gold and also yen in light of chinese situation.