Oh dear, Surely not any more scandal on the world's most successful growth market that is the 100% rigged AIM Casino. Oh yes...I fear that is the case. Step forward the St Brides PR agency and Goldplat (GDP).
John Meyer of SP Angel this morning comments on Goldplat (GDP), Lonmin (LMI), Kaz Minerals (KAZ), North River Resources (NRRP) and Petra Diamonds (PDL) as well as offering a detailed macro view on the news that is shaping global mining and the AIM mining pond
John Meyer of SP Angel this morning comments on BHP Billiton (BLT), Goldplat (GDP) and Minera IRL (MIRL) as well as offering a detailed macro view on the news that is shaping global mining and the AIM mining pond.
Loss-making Goldplat (GDP), the AIM-quoted outfit which specialises in recovering gold from other companies’ mine waste in South Africa, Ghana and elsewhere, is celebrating a pre-payment deal with New Jersey-based metal trader Auramet. This has enabled the company, whose losses rose threefold to £796,000 in the year to June on turnover down by a third to £16.6 million, to receive $1.4 million (£920,000) for a backlog of material sold to Aurubis AG of Hamburg, the world’s largest recycler of copper, which also handles gold and other materials.
Gerard Kisbey-Green, chief executive officer of Africa-focused gold recovery and mining specialist Goldplat (GDP), says the company is looking for ‘mining and other assets’ in what he declares to be ‘an ideal market for mergers and acquisitions’ in the wake of a more than threefold increase in annual losses to £796,000 on turnover down 33% to £16.6 million. Having taken over the top job in February, Kisbey-Green, a South African mining engineer and financier, insists the AIM-quoted company, still chaired by entrepreneurial sector veteran Brian Moritz, is on the way back to profitability, having beefed up its operations, spanning South Africa, Ghana and Kenya, and hopes eventually to derive half its revenues from mining, currently very much a minority contributor.
Featuring shares of Churchill Mining (CHL), Goldplat (GDP), Motif Bio (MTFB), Solo Oil (SOLO), Tern (TERN), Vast Resources (VAST), together with some share price targets.
A month ago I wrote Goldplat (GDP) was “playing with fire” with its sneaky profits warning. I suggested a fundraising was on the way. My article drew a fair amount of criticism from some long-term holders, but events since suggest that the company is gearing up to dilute its shareholders.
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.
Shares in gold recovery from by-products of the mining process-focused AIM Listed Goldplat plc (GDP) currently trade 6.5% lower, at 3.625p, on the back of an update including that “deliveries of concentrates were not made to Goldplat's third party refinery as a result of temporary industrial strike action and subsequent delays at the refinery”. The following updates on this latest disappointment from the company.
Ian Visagie, chief executive officer of gold recovery specialist Goldplat (GDP), says the company is moving fast to enhance profitability and expand and diversify its business after turning a £207,000 pre-tax profit into a £248,000 loss in the year to June on turnover down 27 per cent to £21 million. Focused chiefly on South Africa and Ghana, Goldplat, which extracts gold from mining waste, such as wood chips, mill liners, fine carbon, sludge and waste grease, suffered from a falling gold price in 2013-14, with operating profit before finance costs plunging from £2.6 million to £153,000 and its shares at 3.5p are down from a year’s high of 8.5p and a 2006 float price of 7.5p.
Goldplat (GDP) has been in decline since mid-2012, but now seems to have settled at its lowest point in more than five years and could be worth a look. The AIM-listed company is actually profitable and debt-free through its gold recovery businesses in South Africa and Ghana (although not overall). However the share price now sits at around 4p, leaving Goldplat with a market cap of under £7 million, a far cry from the highs of over 16p in 2012.
Shares in Goldplat plc (GDP) have continued to disappoint since I last updated on this site HERE – most recently not helped by a 13th June warning that the company expects its operating profit for its year ended 30th June 2014 to “be materially below market expectations”. With the shares having recovered slightly from recent lows to a current 4p, I reassess the situation.
