Market's view on GoldPlat
Published on April 2024
- Niel Pretorius of DRD discussed achieving a processing rate of 1 tonne every 5 seconds, aiming to make 150 to 180 rand per site every 5 seconds.
- The importance of the agreement with DRD was emphasized, noting that the JORC report is almost irrelevant as the company already has a good idea of the total gold content and grades from a few samples.
- It was noted that a new JORC report might take at least 6 months to start and may not serve as a catalyst for stock movement, stressing the need for action through sorting all permissions for construction, agreement with DRD, or initiating a trucking operation.
- The high buy-sell spread in stock trading was highlighted, indicating instability and a need for volume increase and spread narrowing for price stability.
- Investment in diesel generators was discussed as an insurance policy to sustain operations during electricity cuts in South Africa, with a capital cost of GBP750,000 and an expected payback within 24 months if 25% of available hours are lost.
- The potential update on the JORC resource was mentioned as a possible future development.
- Discussions included the strategy around communicating the financial potential of the Tailings Storage Facility (TSF) without compromising commercial interests.
- Goldplat’s market position was described as a small company not well recognized, potentially undervalued given the current price of gold, with possibilities for profit if a trucking deal is secured.
- Concerns were raised about Goldplat’s stock price potentially fading without significant updates, affected by weak holders selling at low bid prices due to large spreads.