Goldplat PLC

Goldplat PLC (LSE: GDP) is an FTSE AIM All- share-listed, United Kingdom-based gold recovery services company with two operations in South Africa and Ghana. The Company is engaged in the production of gold and other precious metals, by processing by-products of the mining industry. This Report covers the Investment Highlights, Conclusion, and Recommendation on the stock.

Key Recommendation Rationale – Sell at GBX 10.49

• Material earnings downgrade and possible write-down: FY2025 adjusted PBT ~£2.6m vs £5.993m in FY2024 (≈-57% YoY), driven by Ghana model changes and late-year FX losses; year-end review of the £714k Kilimapesa royalty receivable could add an impairment risk.

• Currency hit and Ghana PBT volatility: Q4 booked £967k FX losses (vs £90k gain in Q3) largely due to a ~40% Cedi appreciation since April 2025 and large cash balances; Ghana posted Q4 PBT £164k (vs £784k in Q3) despite Q4 operating profit £1.052m.

• Supply/regulatory headwinds in Ghana under new model: Turnover has reduced and stabilised with preliminary processing/smelting; feedstock fell due to West Africa export closures, South America supply redirected to South Africa, and a Ghana client’s internal changes cutting high-grade material; additionally, agreement with the Gold Board to sell 20% of doré domestically may limit export optionality.

• Macroeconomic Risk: The market sentiments can remain weak in the short term due to the subdued consumer disposable income, geopolitical tensions, and political risks.

Valuation Methodology: Price/ Earnings Approach

Share Price Chart  

Conclusion

FY2025 adjusted PBT declined ~57% YoY to £2.6mn (FY2024: £5.99mn), impacted by Ghana’s operational shift and £967k FX losses from a 40% Cedi appreciation, which reduced Q4 PBT to £164k. Supply constraints, regulatory changes requiring 20% domestic doré sales, and lower-grade inputs curtailed turnover and margins. Meanwhile, South Africa faces declining grades, and delays in TSF and Brazil projects add execution and timeline risk. For conducting the valuation, the following peers have been considered: Serabi Gold PLC (LSE: SRB), Thor Explorations Ltd. (LSE: THX), etc.

Given its current trading levels, the recent financial performance, strategic investments and partnerships, market expansion and cost optimization strategies, relative valuation, and associated risks, it is prudent to exit the stock at the current levels. Hence, a ‘Sell’ recommendation is given on the stock at the Current Market Price of GBX 10.49 as of 14 October 2025, 10:30 AM, GMT+1. 

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 14 October 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level which the stock is expected to reach as per the relative valuation method and/or technical analysis taking into consideration both short-term and long-term scenario.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and or REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.’

Note 6: Dividend Yield may vary as per the stock price movement.