Member Info for SEA7

This rns outlines that arrangement when it was agreed back in 2007, which is still in force today. Rand refinery gives preferential status to suppliers which pass their "know your customer policy" and responsible gold policy, which goldplat does. http://www.goldplat.com/news/signs-agreements-with-anglogold-ashanti-and-rand-refinery

Rand refinery identified a couple of years ago, a significant amount of material that had built up over 5 to 7 years that it could not economically process itself. This is processed by goldplat, who have first refusal on all this material under the ongoing agreement with rand. In return rand has the rights to all of goldplats product in south africa and first refusal on all goldplats ghana product. There should still be in place the open ended agreement with anglo gold ashanti for all their waste, who in turn are the largest share holder at rand refinery. As you say mysooi, none of the current situation is fatal, goldplats position and status, despite its small size is important to rand and ashanti as it takes care of an area of their business that they can not from an economical standpoint not a technical one.

Thanks msyooi, with regards to management, there have been significant changes to the board in recent times, along with departures and arrivals in middle management. Ian who has been involved since goldplats inception, has always been in the background and diligently looked after the finances, however, with his move to CEO, he has to bring his persona to the foreground, as this role requires it. CEO's are in the spotlight all the time and are expected to act a bit like salesmen, whereas CFO's are generally not. I think ian should be ok in the role of CEO, as he has the knowledge of goldplat to call on when needed. His style of communication is very matter of fact and as and when needed, no flare or dressing up, which is what you usually get from a CFO not a CEO. Some of the more colourful CEO's around would have made a huge fanfare over the whole accreditation process for the responsible gold award and dressed the shutdown up in metaphors. As a CFO, I am quite sure ian would have simply said it as it was, a shutdown, however, maybe he couldn't word it correctly and felt saying nothing until after the event would be easier. Brian has always been involved with goldplat as well, however is better at the promo side of things, he loves doing what he does and at 83 is still busy. I suspect his role is becoming less and less in goldplat and he may, if he hasn't already, reduce his role to merely chairing meetings. As to how much influence he still has remains to be seen. From what I can see of the rest of the management, who are new in the roles, they seem to come with good crudentials, however, time will be needed to see if they can deliver at goldplat. An egm may be good to put names to faces, however, I do think quite a lot of the answers that may be given to questions will be along the lines of ...before my time...under old management...actions of my predecessor and so forth. Which would be followed up with... this is what we are doing to right the ship and steer a more profitable course. Maybe, now that the information is out in the open, Ian might care to elaborate in the interims as to why no message was conveyed to the market regarding the temporary shutdown in south africa, or not. I have emailed him recently and received a reply through felicity at st brides. The last time I emailed, he wrote back directly, however, he was CFO then and not in a closed period. I am inclined to give them time to see if their initiatives start to bear fruit and that will most probably be the best part of this calender year. The company has the dominant place in its market, I have a good margin of safety in my purchases and the company has cash and no debt. If the management deliver on their plans then that will be another tick in the box.

the metric that goldplat should be judged by are the historical operating profits which are as follows:- 2007 £769,000 2008 £1,739,000 2009 £1,824,000 2010 £2,059,000 2011 £3,054,000 2012 £4,527,000 2013 £2,639,000 - This figure being £1,888,000 lower than 2012 is mainly covered by the loss at kilimapesa of £1,307,000 and £586,000 of one off charges under ifrs 2 for duplication of managements and grant of options. SP angel give the operating profit estimate for 2014 as £516,000 which is in line with the materially below last years figure, quote in the recent trading update. This is quite a drop off from the steady climb over previous years. The work in progress to streamline the organisation won't start to bear fruit until later in this calender year, by which time the exposure to the gold price volatility will have been reduced somewhat and the stable 20% margins can be maintained again. We hope!!!

The company has always adopted a policy of taking all waste as it becomes available at the mines to ensure a timely service for environmental purposes and to keep barriers to entry high, for any potential competitor.

correction.. When I say.. buying waste at a price and returning all gold to the supplier... this should also say minus costs and 20%

The company usually negotiates with a mine for its waste. The deals have been structured in many ways. The deal with endeavour is a 50/50 split after costs, others are simply a case of buying waste at a price and returning all gold to the supplier and some are no cost up front, however, once the waste is processed, goldplat takes its costs out, plus 20% and returns the gold to the supplier or cash, whichever they prefer. Some will want all of their gold from their waste back and expect an invoice for the service provided. That is the basics of it, as far as I understand it. The service the company provides is essential as it ensures that the mines comply with their environmental obligations by removing waste that would be too costly for the mine to dispose of on its own. By using goldplats service, not only do they get their waste removed, they get a profit out of it.

I think someone has an order in as the market will happily take in excess of 175k shares from me at 4.81p, when the bid is 4.75p, however, I could not see much available to buy under 5.25p. Picked up just under 20k shares though.

picked up a few more at 5.05 today.

I honestly expected the price to tick down when the 250k sell went through. So someone is mopping up.

My view on russel leaving was simply that he was brought in to carry out the review and implement it. As he is still a NED at ferrex with brian moritz, I do not think there was to much animosity between them. That meant that anyone taking over, namely ian, would not be seen in a bad light by those still involved with the different group companies. As for getting goldplat ready for a sale, I would say that having the focus on streamlining and efficiencies may get the attention of someone who would be interested in the company that wasn't before.

http://www.myvirtualpaper.com/doc/brookepattrick/mining_mirror_august_2013/2013080201/20.html#24 in the article above, russell lamming was interviewed just before he stepped down a month later. When it comes to cost per oz, russel stated the following:- Extracted from article.. "We often get asked what our dollar per oz, cost of production is, but we don't have one. At the end of the day, you could divvy up our operating costs across the group, divided by the total ounces we produce and I expect you would end up with an operating cost in excess of the gold price because we often don't keep the gold" says lamming.

The new senior metallurgist that was taken on last year, is proving difficult to find much info on, except that someone with the same name as him works at anglo gold ashanti as a business improvement manager having moved on from his role as metallurgucal engineer at ashanti. Could it be the same person, seeing as hansie came from ashanti.

I see that the new group financial manager (taken on in sept 2013) was an analyst in 2010 at a company called "to the point growth specialists" which looked at acquiring operations and turn them around or increase their profitability and sell them on. He also has a fairly recent history of being involved in restructuring, dealing with unions and streamlining organisations. His linked in profile covers all of this in brief. http://za.linkedin.com/pub/karel-potgieter/78/a03/609

This article was from august last year, containing views from russel lamming just before he stepped down. It starts on page 20 and ends on page 25 of the online magazine. http://www.myvirtualpaper.com/doc/brookepattrick/mining_mirror_august_2013/2013080201/20.html#25

http://www.goldplat.com/media/BAhbBlsHOgZmIkQyMDE0LzAyLzE4LzEyXzIxXzU4Xzk5Ml9mb2N1c19vbl9jb3JlX2J1c2luZXNzX2ZlYnVhcnlfMjAxNC5wZGY

short of selling it or getting it up and running again, I don't see what other options they have. I guess we will find out soon enough though.

true, the company will emerge leaner and more efficient and it will not go unnoticed, in the mean time, some people are picking up all this stock at just over 5pps. I got some at 5.7p on monday and may have a bit more later on.

care and maintenance is the management of open and underground pits, maintenance of machinery and management of tailings and hazardous substances. Public health and safety considerations and emergency response plans continue. closing the mine could open up the mine reclamation phase, which means restoring the site back to as near to its original condition as possible. Very costly and harder to restart if desired

I have always been a fan of the recovery operations as their nature is that they are capable of indefinite operation. Well, as long as gold mining takes place there will be waste. It is good to see that contracts are being renegotiated so that suppliers of feedstock will receive the gold price at the time of sale, not at an agreed price beforehand. This protects goldplat from drops in the gold price and gives the supplier a benefit should the gold price be higher at the point of sale. Having the flexibility in the contracts should enable the company to maintain a 20% margin. Which to me, means that the company will get the price that the gold could fetch in the market on that day, subtract costs and a 20% margin and return the remainder to the supplier. Taking all available feedstock and sorting out the amount due when it is processed is a much more stable and safer way for the company to operate and removes a lot of the risk associated with the gold price volatility. I think the fact that it is classed as a miner under south african law and sits in the mining sector means, goldplat suffers from the same fate as traditional miners, whereas the company is a support services company first and foremost and should, as long as the contracts are restructured correctly, maintain a steady profit stream. I would expect further pressure on the shareprice, as the impending iterims aren't going to be great and will no doubt be greeted with awful headlines. However looking further out we should see some of the benefit of the initiatives being put in place.