UK 13:47 Tuesday, 22 September 2026
Breaking news and expert analysis on fast-moving AIM and LSE listed shares
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
This morning Goldplat (GDP) issued a profits warning, though not that you can immediately tell this from reading the RNS. I’ve got to put my hands up here and admit I initially fell for the PR spin, when I was doing the regular cycle through the RNS roll call. Goldplat’s update strikes a very positive tone and there are no figures included in it. The company also avoids direct acknowledgement of what this announcement truly is. However, on careful inspection, it is clear that this is a warning of trouble to come.
Already a member? Sign in
• All premium articles
• Tom Winnifrith’s Bearcast
• Access to all the entire nearly 13 year archive
• ShareProphets Daily Newsletter
Cancel any time
This area of the ShareProphets.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ShareProphets.com. ShareProphets.com does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ShareProphets.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ShareProphets.com and is not intended to be relied upon by users in making (or refraining from making) any investment decisions.
Comments
Daniel Victor
Why did I buy these shares ? Let me think.Oh,yes,it’s because Tom tipped them !
Tom Winnifrith
D
and admitted he got it wrong and said cut losses a good way back. I include my winner s but also losers in my batting average. The only folks who always get it 100% right are the BB gurus
t
Daniel Victor
Okay,to be fair,when and where did you say to sell ?
Tom Winnifrith
D
Nifty Fifty – where else?
t
Daniel Victor
Beg pardon,you said ‘sell’ at 3.25p in September.
alcira16247
Ben
Very shrewd advice from Steve Moore back in November, advising selling.
I note the company blames its reliance on Rand Refinery to its current woes, once again! Wonder how Rand Refinery became the world’s largest gold refiners, considering how it allegedly provides its customers, as Goldplat, with such an unreliable service!
Steve summed it up dead right seven months ago…… “ the company had now served up ‘jam tomorrow’ once too often for our liking”
Today’s announcement is just more of the same!
sharezz
What the author misses out is this section from the rns..
Arrangements are being made to pre-finance a certain amount of the Aurubis pipeline material to alleviate the current cashflow issues if the need arises – terms are being negotiated and final agreement is expected to be concluded shortly.
He also forgot to mention that rand are processing small amounts of certain categories to assist in clearing backlog.
So, pre- finance a certain amount of aurubis pipeline, which looks like either a rolling credit facility or a short term loan, paid back as money comes in from aurubis. Therefore not much likelyhood of fundraising.
sharezz
What should also be pointed out is that rand stopped sourcing from ghana, where goldplat has a recovery plant in august 2014, it also had a strike in september 2014 and a fire around the same time. This is where the decision by rand not to accept deliveries for processing, until recently offering to accept some material, appears to have come from, causing the knock on effect for goldplat. The report is very skewed to the negative and doesn’t highlight the initiatives put in place to remedy the issues.
Ben Turney
@Sharezz – Could be fair points and am happy to follow up if the company gives an interview. However, there is no escaping it has sneaked out this profits warning in a less than candid manner
sharezz
Thanks for responding ben,
Personally, I think that by the time they release the finals in september, things will be much better. Although the finals themselves are likely to show just how much the cash position deteriorated in the second half of the financial year to june 30th. I can not disagree with you on the fact that they were likely to be running on fumes, prior to cash starting to come in from aurubis. The ongoing bullion sales would have helped, but not enough in the short run to meet all the obligations. The need for pre-finance arrangements is likely to be for unexpected situations and more of a back stop.
Ben Turney
@sharezz – Thank you as well for your reasoned contributions. I will also try to keep an open mind on this one. If it is a genuine turnaround story, it could be an interesting play. A lot will depend on what happens in the next 3 months. Let’s hope I have been too cynical.
sharezz
Ben,
with regards to a less than candid profits warning, brian moritz, the chairman did state in the interims, released at the end of march the following…
Despite the recent problems, I believe that Goldplat is now in a position to move forward once more, and the management remains confident that the changes detailed above have returned the Group to profitability, but it is uncertain whether the improvements will flow through sufficiently quickly to eliminate the first half loss within the current financial year.
To me they were indicating then, the possibility of the loss not being eliminated. Unless someone follows the story, then I guess the update yesterday would look, like a veiled warning.