Goldplat LON:GDP has released a trading update stating that revenues for FY 2016F are expected to be approximately £20m. GDP also states that consolidated profit before tax is expected to be around £2m compared to a loss of £796k in FY 2015F.
The strong uplift is a result of combination of gold price strength alongside Rand depreciation. The guidance is, however, subject to the contractual dispute that was previously announced between GDP and Rand Refinery.
As a consequence of the continued dispute our earnings estimates and target price remain under review.
Glencore LON:GLEN has released robust half year results for H1 2016. Revenue of US$69.4bn was down just 6% YoY in H1 2016 owing to previously announced robust production alongside GLEN’s trading activity. EBITDA of US$4.0bn was down 13% YoY reflecting the decline in the top line. GLEN has, however, reduced unit cost guidance across key commodities.
The deleveraging programme is on track with net debt down 9% since June 2015 to US$23.6bn following key asset sales. GLEN has guided to year end net debt of US$16.5-17.5bn. Capex was cut by 51% YoY to US$1.6bn.
GLEN has made significant progress stabilising earnings and strengthening its balance sheet, the revised full year target for net debt would be a very positive result, in our view.