TIDMGDP
RNS Number : 1678S
Goldplat plc
12 March 2021
Goldplat plc / Ticker: GDP / Index: AIM / Sector: Mining &
Exploration
12 March 2021
Goldplat plc ('Goldplat' or 'the Company')
The following amendments have been made to the Interim Results
for the six months ended 31 December 2020 announcement released at
07.00 on 5 March 2021 under RNS Number 2568R
The earnings per share numbers shown on the Condensed
Consolidated Statement of Comprehensive Income for the interim
periods ended 31 December 2020 and 31 December 2019 and in the
overview and Chairman's Statement have been amended to show the
earnings for the six month periods, rather than annualised
amounts.
All other details remain unchanged.
The full amended text is shown below.
Interim results for the six months ended 31 December 2020
Goldplat plc, the AIM listed gold producer, with international
gold recovery operations located in South Africa and Ghana,
announces its unaudited interim results for the six months ended 31
December 2020.
Overview
Group
-- Goldplat achieved an operating profit for the six months
ended 31 December 2020 of GBP2,600,000 (31 December 2019:
GBP2,566,000). Within this, the South African operation achieved an
operating profit of GBP2,108,000 (31 December 2019: GBP2,659,000)
and the Ghana operation increased operating profitability by more
than 5-fold to GBP849,000 (31 December 2019: GBP151,000);
-- The fully diluted earnings per share for the period from
continuing operations increased to 0.73 pence (31 December 2019:
0.32 pence) as a result of increased performance in Ghana,
increasing net profit from continuing operations attributable to
owners of the company to GBP1,256,000 (31 December 2019:
GBP536,000).
South Africa
-- Revenues in South Africa decreased by 13% to GBP8,243,000 (six months ended 31 December 2019: GBP9,486,000);
-- In pursuance of the objective to ensure profitability of our
production lines, from material available in the market, on a
sustainable basis, we have invested substantial time and resources
on gathering data to optimise the production lines and
investigating the best processing routes to obtain maximum recovery
during re-processing of the gold contained in our tailings storage
facility ("TSF"). This expenditure contributed to higher operating
cost but this research should inform our future decision
making;
-- The total capital expenditure during the period in South
Africa amounted to GBP394,000 focussed on the optimisation of the
largest milling and Carbon-in Leach Circuit by adding additional
equipment, and the installation of a pilot plant to bulk test
material from the TSF, as described above, and the further
extension of the deposition area on the current TSF;
-- Normal operating costs increased, specifically as a result of
electricity price increases, more water used from the Rand Water
Board and rental of yellow machinery for material handling purposes
in addition to higher security and engineering costs. Further
electricity increases are expected but measures have been taken to
mitigate and reduce other cost.
Ghana
-- We experienced a good supply from our regular clients during
the period which was supported with supply from a new client in
South America, driving the 92% increase in revenue year on year to
GBP4,359,000 (six months ended 31 December 2019: GBP2,273,000).
-- Our marketing efforts in Mali, Burkina Faso and Ivory Coast
to secure additional sources of supply continue, with engagements
at mine and Government level. We have received a low-grade trial
batch from another mine in Mali for evaluation purposes and initial
results are encouraging. By achieving a larger geographical spread
with more clients, our objective is to have a steady supply to our
plant in Tema from current production rather than ad hoc supplies
from stockpiles.
-- We are still engaging with relevant authorities in Ghana on
re-entering the processing and tolling of tailings material.
Kilimapesa Update
-- We are encouraged with the progress made during the last
month on the sale of Kilimapesa to Mayflower. The formal legal
documentation has been signed and transaction has been approved by
a majority of Papillon shareholders, Papillon creditors deeds have
been executed and we are in a position to complete the transaction
by 31 March.
Chairman's Statement
I am pleased to report good progress in delivering sustainable
and strong results from our gold recovery operations, with profit
for the half year from continuing operations of GBP1,500,000 (2019:
GBP1,000,000) and an all-in, fully diluted EPS for the half year of
0.73 pence (Restated 31 December 2019: 0.32 pence). As recently
announced, progress also includes simplifying the group structure
to reduce group costs and ensure more of the strong operational
performance may flow to our shareholders.
Our portfolio of core assets consists of two gold recovery
operations, in South Africa and Ghana, which recover gold from
by-products of the mining process, thereby providing mines with an
environmentally-friendly and cost-efficient way of removing waste
material.
We are also in the process of selling our Kilimapesa gold
exploration and mining operation in Kenya and this is progressing
well.
The Revenues for continuing operations for the six months ended
31 December 2020 increased by 7% to GBP12,602,000 (restated six
months ended 31 December 2019: GBP11,759,000), with the growth
achieved in Ghana, where revenues increased by 92%, from
GBP2,273,000 for the six months ended 31 December 2019 to
GBP4,359,000. The growth in Ghana was set-off by lower gold
production in South Africa resulting in a decrease in Revenues in
South Africa by 13% to GBP8,243,000 (six months ended 31 December
2019: GBP9,486,000).
The Group achieved an operating profit from continuing
operations for the six months ended 31 December 2020 of
GBP2,600,000 (restated for the six months ended 31 December 2019:
GBP2,566,000). The overall increase was impacted by lower gold
production in South Africa where material processed during this
period was lower in grade and the volume of fine carbon was less
than in previous periods. The measures being taken by the Company
and the continuous research of better processing methods should
ameliorate this effect as mines become more efficient and during
the consolidation process of the industry.
The net financing cost can be split into intergroup foreign
exchange movements, third party foreign exchange movements and net
interest paid. This has been broken down in the below table:
Six Months Ended 31 Restated Six Months
December 2020 Ended 31 December
2019
Intergroup foreign exchange
movements (357,000) (400,000)
-------------------- --------------------
Third party foreign exchange
movements (72,000) (121,000)
-------------------- --------------------
Net interest paid (149,000) (127,000)
-------------------- --------------------
Total (578,000) (648,000)
-------------------- --------------------
The net interest paid includes GBP66,000 (31 December 2019:
GBP41,000) paid on the Scipion loan. The remainder relates to lease
interest of GBP36,000 (31 December 2019: GBP44,000) and
pre-financing of proceeds of GBP36,000 (31 December 2019:
GBP132,000).
The profit after taxation of GBP1,500,000 (restated 31 December
2019: GBP1,000,000) was negatively impacted by unrealised
intragroup foreign exchange losses on intercompany loans balances
for the six months ended of GBP357,000
(31 December 2019: GBP400,000). The group has intercompany loans
denominated in USD which differ from its reporting currencies. The
strengthening of the ZAR against the USD contributed the most to
the unrealised intragroup foreign exchange loss for the six
months.
The taxation expense decreased to GBP560,000 (31 December 2019:
GBP918,000) as a result of more of the Group profits being
attributable to Ghana which are subject to a favourable tax rate of
15%. Furthermore, the withholding tax expense year-on-year was
lower due to less dividends declared by Goldplat Recovery (Pty) Ltd
('GPL')during the period, reducing dividend taxation paid for the
six months ended 31 December 2020 to GBP80,000 (31 December 2019:
GBP190,000). With Kilimapesa no longer requiring funding from the
group we expect to maintain lower dividend declarations to fund
working capital requirements. By restructuring GPL as a subsidiary
of Goldplat Plc, as recently announced, there will not only be a
saving of General and Administrative expenses but also a reduction
in the withholding tax rate on dividends declared to Goldplat
Plc
Cash and cash equivalents at the end of the period (net of bank
overdrafts) decreased to GBP910,000 (31 December 2019:
GBP1,981,000). This decrease in cash is attributable to increases
in inventories and accounts receivable.
Precious metals on hand and in process doubled to GBP7,591,000
during the period, directly related to the larger batches of
material received in Ghana and gold produced in South Africa not
sold. Sales from this material will be accounted for during the
third quarter.
We further increased our strategic raw material stockpiles by
investing GBP1,400,000 in material. This is a defined strategy of
the company to ensure sustainable production and afford the company
the opportunities to blend and schedule production to maximise
returns.
During the period trade and other receivable balances increased
by GBP1,470,000.
The precious metals on hand and in process and trade receivable
balance fluctuate based on when material is received and sold. The
cash balance at date of the report increased to GBP1,990,000.
Goldplat Recovery (Pty) Ltd ('GPL')
Revenues in South Africa decreased by 13% to GBP8,243,000 (six
months ended 31 December 2019: GBP9,486,000). Fluctuations of this
nature are not uncommon and are dependent on the nature of material
purchased, the grade of the material and the stage of processing.
Margins on high value material are normally lower than lower value
material received and changes in revenues do not necessarily result
in lower margins. During the comparative period ending 31 December
2019, South Africa achieved record sales numbers as a result of
good quality, high grade material available to be processed through
all circuits. The production during the six months ended 31
December 2020, was in line with production during the six months
ended 30 June 2020. In comparison with the six months ended 31
December 2019 the current period production was impacted by a
milling circuit being offline for 3 months, whilst the pilot plant
was constructed, and lower volumes of by-products received from
clients.
The reduction in turnover and increased operating costs, did
offset the benefit derived from increases in gold prices and
resulted in the operating profit in South Africa for the period
decreasing year-on-year from GBP2,659,000 for the six months ended
31 December 2019 to GBP2,108,000.
Increases in operating costs included GBP51,000 in water
consumption from Rand Water Board due to poorer quality of other
water sources we used in the past being contaminated by sewage from
pipe failures in surrounding areas. The rental and repair of plant
machinery during the period increased by GBP38,000 , due to
additional material handling requirements and breakdown of yellow
machinery requiring lengthy repair. The additional plant
infrastructure, together with increased electricity prices resulted
in an increase in electricity cost compared to the previous period
of GBP67,000 . During the period we changed the security service
provider in South Africa, resulting in an extra month of security
cost being incurred. The additional cost amounted to GBP32,000 but
in changing service providers will result in future saving of
GBP11,000 per month.
Arrangements made to transport our staff in a hygienic and safe
manner and other operating requirements under Covid-19
restrictions, cost the South African subsidiary an additional
GBP75,000.
During the period we also evaluated an alternate PGM resource at
some cost. We achieved mixed results but will continue our
endeavours to penetrate and pursue this market.
The approval of our new TSF in South Africa remains critical to
our ability to continue operating at current levels. The approval
for the application is due in July 2021 but we will start
pre-construction work during the June quarter to ensure we are in a
position to move our deposition to the new facility when approval
is received. The construction cost of the new TSF is estimated at
GBP700,000.
The test work on re-processing the existing TSF has advanced to
the point where we have established what we believe to be the
optimal processing routes in terms of gold recovery, processing
volumes and operating costs. These options will now be evaluated by
accredited technical facilities to obtain the data on which the
final processing plan can be designed.
Gold Recovery Ghana ('GRG')
We experienced a good supply from our regular clients during the
period which was supported with supply from a new client in South
America, driving the 92% increase in revenue year on year to
GBP4,359,000 (six months ended 31 December 2019: GBP2,273,000). The
increase in volume of material processed, together with the higher
gold price resulted in operating profit margins increasing from
6.6% during the 6 months ended 31 December 2019 to 19.5% for the 6
months ended 31 December 2020. Operating profit of GBP849,000 for
the 6 months ended 31 December 2020 represents a more than
five-fold increase from Operating profit reported for the 6 months
ended 31 December 2019 of GBP151,000.
Our efforts in Mali, Burkina Faso and Ivory Coast to secure
additional sources of supply continue, with engagements at mine and
Government level, has yielded positive outcomes and the company
continues its marketing in the region. We have received a low-grade
trial batch from another mine in Mali for evaluation purposes and
initial results are encouraging. By achieving a larger geographical
spread with more clients, our objective is to have a steady supply
from the mines current production, rather than ad hoc supplies from
stockpiles.
We are still engaging with relevant authorities in Ghana on
re-entering the processing and tolling of tailings material.
Kilimapesa Gold ('KPG')
KPG is currently classified as an asset in disposal groups
classified as held for sale and has been disclosed separately in
the statement of financial position at fair value less the cost of
sale. During the period the Group supported KPG with a balance of
GBP243,000 which has been impaired and recognised under
discontinued operations during the period.
The formal legal documentation relating to the acquisition of
total issued share capital of Kilimapesa by Mayflower Gold
Investments Limited ("Mayflower Gold") a wholly owned subsidiary of
Mayflower Capital Investments Pty Limited (the "Transaction") has
been signed by all parties. The formal documentation includes a
Share Purchase Agreement ("SPA") entered into by Gold Mineral
Resources Limited ("GMR") (a wholly owned subsidiary of Goldplat)
with Mayflower Gold. The SPA sets out the terms of the Transaction
under which Mayflower Gold will acquire 100% of the entire issued
share capital of Kilimapesa which holds the licences and assets of
producing Kilimapesa Gold Mine and processing operations located in
Narok County, Kenya. The completion date for the Transaction has
been changed from 28 February 2021 to 31 March 2021.
A deed of novation and royalty agreement has also been entered
into by GMR and Mayflower Gold. The deed of novation relates to the
transfer of all rights and obligation of GMR in the loan agreement
between GMR and Kilimapesa to Mayflower Gold as described in the
Company's announcement of 31 July 2020. Under the royalty
agreement, GMR has the right to receive a 1% gross net smelter
return royalty subject to a maximum of US$1,500,000 on future gold
produced and sold by Kilimapesa.
Completion of the Transaction remains subject to a number of
conditions being satisfied including, amongst other things:
o Receipt of various regulatory approvals in Kenya;
o Approval of Kilimapesa's prospecting license;
o The completion by Mayflower Gold of the Reverse takeover of
Papillon Holdings plc including a fundraising of at least US$4
million; and
o initial consideration to be satisfied by the issue of shares
to that value of US$1,750,000 in Papillon Holdings Plc or
US$1,500,000 in cash payment to GMR;
As at 31 July 2020 GMR had lent US$10 784 765 to Kilimapesa
which will be subject to the novation agreement and during the
interim period a further US$150 000 was advanced to facilitate the
conclusion of the transaction.
Post-Period End
Progress can be reported subsequent to 31 December 2020 on the
following:
-- The installation of density separation unit at our largest
milling circuit has been completed and we are currently in the
process of commissioning the unit. The purpose of the unit is to
increase gold recovery and margins achieved from the processing of
lower grade material, containing significant amount of carbon. If
successful material that previously was not commercially viable may
become payable and add additional sources of material.
-- Engagement with authorities is continuing on our water use
license application required for future deposition of tailings;
Outlook
We remain committed to our strategy of increasing long term
visibility of earnings in the recovery businesses through key
initiatives. These key initiatives include:
-- improving our gold recoveries from lower grade contaminated
material, effectively reducing the grade of the material we will be
able to source economically. Reserves of lower grade materials are
more readily available and help to alleviate the sourcing risk;
-- Building strategic partnerships within the mining industry;
-- Evaluating the investment into larger t ailings storage
facility and additional mill and leaching capacity to enable us to
reprocess our current TSF; and
-- Increased investment into sourcing initiatives and test work
on a wider range of materials, including PGM discards.
The company's production has remained satisfactory, to date,
during the second half. The profitability for remainder of the
period will however remain dependent on sourcing of quality
material and the gold price.
Matthew Robinson
Chairman
5 March 2021
For further i n fo rmat i on v i s it www .g o ld p lat.com, f o
l l ow on Twitter @GoldPlatPlc or contact:
Werner Klingenberg Goldplat plc Tel: +27 (0) 82 051 1071
(CEO)
Colin Aaronson / Harrison Grant Thornton UK LLP Tel: +44 (0) 20 7383
Clarke/Seamus Fricker (Nominated Adviser) 5100
James Joyce / Jessica WH Ireland Limited Tel: +44 (0) 207 220
Cave (Broker) 1666
Tim Thompson / Mark Edwards Flagstaff Strategic and Tel: +44 (0) 207 129
/ Fergus Mellon Investor Communications 1474
goldplat@flagstaffcomms.com
Th e i n formati on co ntai ned w ith in t h is ann oun cement
is deemed to const itute in s ide i nf o rma t i on as st ipu lated
under the Market Abu se Regulati on (EU No. 596/2014) which is part
of UK law by virtue of the European Union (withdrawal) Act 2018. Up
on the pub l ication of this ann o u ncement, this in s i de i n fo
rmati on is now c o n s i dered to be in the pub l ic domain.
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHESED 31 DECEMBER 2020
6 months 6 months 12 months
Notes 31-Dec-20 31-Dec-19 30-Jun-20
(unaudited) (unaudited (audited)
and restated)
GBP'000
GBP'000 GBP'000
Continuing
operations
Revenue 12,602 11,759 24,809
Cost of sales (9,323) (8,540) (17,497)
------------- --------------- -----------
Gross profit 3,279 3,219 7,312
Administrative expenses (679) (653) (1,682)
Impairment loss - - (295)
-------------
Profit from operating activities 2,600 2,566 5,335
------------- --------------- -----------
Net finance cost (578) (648) 331
Sundry income 38 - -
------------- --------------- -----------
Profit from operating
activities
after finance (cost)/income 2,060 1,918 5,666
Taxation 6 (560) (918) (2,361)
------------- --------------- -----------
Profit for the period from continuing
operations 1,500 1,000 3,305
Discontinued operations
Loss for the year from discontinued
operations (243) (282) (5,270)
------------- --------------- -----------
Profit/(Loss) for the period 1,257 718 (1,965)
------------- --------------- -----------
Other comprehensive income/(expense)
Items that may be subsequently reclassified
to profit/loss:
Foreign exchange cost on translation
of subsidiaries
Exchange translation 1,031 (213) (1,882)
-------------
Other comprehensive expense for the
period, net of tax 1,031 (213) (1,882)
------------- --------------- -----------
Total comprehensive income/(expense)
for the period 2,288 505 (3,847)
Profit from continuing operations
attributable to:
Owners of the Company 1,256 536 2,133
Non-controlling interests 244 464 1,172
------------- --------------- -----------
Profit for the period from
continuing operations 1,500 1,000 3,305
Profit/(Loss) attributable
to:
Owners of the Company 1,013 254 (3,137)
Non-controlling interests 244 464 1,172
------------- --------------- -----------
Profit/(Loss) for the period 1,257 718 (1,965)
Total comprehensive income/(expense)
attributable to:
Owners of the Company 1,826 125 (4,531)
Non-controlling interests 462 380 684
------------- --------------- -----------
Total comprehensive income/(expense)
for the period 2,288 505 (3,847)
============= =============== ===========
Earnings per share from continuing
operations attributable to the ordinary
equity holders of the parent operations
Basic earnings per share(pence) 13 0.74 0.32 1.27
Diluted earnings per share
(pence) 13 0.73 0.32 1.25
------------- --------------- -----------
Earnings per share from operations
attributable to the ordinary
equity holders of the parent
operations
Basic earnings/(loss) per
share (pence) 13 0.60 0.15 (1.87)
Diluted earnings per share
(pence) 13 0.59 0.15 (1.87)
------------- --------------- -----------
The notes below are an integral part of this condensed
consolidated interim financial report.
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2020
31-Dec-20 31-Dec-19 30-Jun-20
(unaudited) (unaudited) (audited)
Notes GBP'000 GBP'000 GBP'000
Assets
Property, plant and
equipment 7 4,132 7,401 3,900
Intangible assets 8 4,664 7,410 4,664
Right of use assets 14 375 151 356
Loan receivable 750 786 661
Investment in joint venture 1 595 1
Non-current assets 9,922 16,343 9,582
------------- ------------- ----------------------------
Inventories 9 11,568 7,926 6,432
Trade and other
receivables 10 6,580 7,344 4,476
Cash at bank and on
hand 11 1,394 2,070 3,141
------------- ------------- ----------------------------
Current assets 19,542 17,340 14,049
------------- ------------- ----------------------------
Assets in disposal
groups
classified as held
for
sale 3,380 - 3,380
------------- ------------- ----------------------------
Total assets 32,844 33,683 27,011
============= ============= ============================
Equity
Share capital 12 1,698 1,675 1,675
Share premium 11,491 11,441 11,441
Exchange reserve (5,406) (4,959) (6,224)
Retained earnings 6,180 8,536 5,167
------------- ------------- ----------------------------
Equity attributable to owners of
the Company 13,963 16,693 12,059
Non-controlling
interests 3,379 2,781 3,057
------------- ------------- ----------------------------
Total equity 17,342 19,474 15,116
------------- ------------- ----------------------------
Liabilities
Lease liabilities 14 77 183 145
Provisions 16 586 613 549
Deferred tax
liabilities 727 549 919
-------------
Non-current
liabilities 1,390 1,345 1,613
------------- ------------- ----------------------------
Bank overdraft 11 484 89 1
Interest bearing
borrowings 15 723 1,388 1,004
Lease liabilities 14 200 266 206
Taxation 532 75 157
Trade and other
payables 17 10,724 11,046 7,465
------------- ------------- ----------------------------
Current liabilities 12,663 12,864 8,833
------------- ------------- ----------------------------
Liabilities in
disposal
groups classified as
held for sale 1,449 - 1,449
------------- ------------- ----------------------------
Total liabilities 15,502 14,209 11,895
------------- ------------- ----------------------------
Total equity and
liabilities 32,844 33,683 27,011
============= ============= ============================
The notes below are an integral part of this condensed
consolidated interim financial report.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHSED 31 DECEMBER 2019
Attributable to owners of the Company
Non-controlling
Share Share Exchange Retained interests Total
capital premium reserve earnings Total GBP'000 equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP '000 GBP'000
Balance at 1 July 2019, as
previously
reported 1,675 11,441 (4,830) 8,282 16,568 2,717 19,285
Total comprehensive
(expense)/income
for the period
Profit
for the
period - - - 254 254 464 718
Total other
comprehensive
expense - - (129) - (129) (84) (213)
--------- --------- ---------- -------------- ----------- ---------------- ---------
Total comprehensive
(expense)/income
for the period - - (129) 254 125 380 505
--------- --------- ---------- -------------- ----------- ---------------- ---------
Transactions with owners of the Company,
recognised
directly in equity
Changes in ownership interests
in subsidiaries
Non-controlling interests in
subsidiary
dividend - - - - - (316) (316)
--------- --------- ---------- ---------- ------- ---------------- -----------
Total transactions with owners
of the
Company - - - - - (316) (316)
--------- --------- ---------- ---------- ------- ---------------- -----------
Balance at 31 December
2019 (unaudited) 1,675 11,441 (4,959) 8,536 16,693 2,781 19,474
========= ========= ========== ========== ======= ================ ===========
The notes below are an integral part of this condensed
consolidated interim financial report.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEARED 30 JUNE 2020
Attributable to owners of the Company
Non-controlling
Share Share Exchange Retained interests Total
capital premium reserve earnings Total GBP'000 equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP GBP'000
'000
Balance at 1
July 2019 1,675 11,441 (4,830) 8,282 16,568 2,717 19,285
Total comprehensive
(expense)/income
for the period
Profit/(loss)
for the
period - - - (3,137) (3,137) 1,172 (1,965)
Total other comprehensive expense - - (1,394) - (1,394) (488) (1,882)
--------- --------- ---------- ---------- -------- ---------------- ---------
Total comprehensive
(expense)/income
for the period - - (1,394) (3,137) (4,531) 684 (3,847)
--------- --------- ---------- ---------- -------- ---------------- ---------
Transactions with owners of the Company
recognised
directly in equity
Share based payment
transactions - - - 22 22 - 22
Changes in ownership
interests in subsidiaries
Non-controlling interests
in subsidiary
dividend - - - - - (344) (344)
--------- --------- ---------- ---------- -------- ---------------- -----------
Total transactions with
owners of the
Company - - - 22 22 (344) (322)
--------- --------- ---------- ---------- -------- ---------------- -----------
Balance at 30 June 2020
(audited) 1,675 11,441 (6,224) 5,167 12,059 3,057 15,116
========= ========= ========== ========== ======== ================ ===========
The notes below are an integral part of this condensed
consolidated interim financial report.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHSED 31 DECEMBER 2020
Attributable to owners of the Company
Non-controlling
Share Share Exchange Retained interests Total
capital premium reserve earnings Total GBP'000 equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP '000 GBP'000
Balance at 1 July
2020 1,675 11,441 (6,224) 5,167 12,059 3,057 15,116
Total
comprehensive
income for
the period
Profit for the
period - - - 1,013 1,013 244 1,257
Total other
comprehensive
expense - - 818 - 818 213 1,031
--------- --------- ---------- ---------- ----------- ---------------- ---------
Total
comprehensive
income for
the period - - 818 1,013 1,831 457 2,288
--------- --------- ---------- ---------- ----------- ---------------- ---------
Transactions with owners of the
Company recognised
directly in equity
Additional shares
from options
exercised 23 50 - - 73 - 73
Changes in ownership
interests in
subsidiaries
Non-controlling
interests in
subsidiary
dividend - - - - - (135) (135)
--------- --------- ---------- ---------- ----------- ---------------- ---------
Total transactions
with owners of the
Company 23 50 - - 73 (135) (62)
--------- --------- ---------- ---------- ----------- ---------------- ---------
Balance at 31
December 2020
(unaudited) 1,698 11,491 (5,406) 6,180 13,963 3,379 17,342
========= ========= ========== ========== =========== ================ =========
The notes below are an integral part of this condensed
consolidated interim financial report.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHSED 31 DECEMBER 2020
6 months 6 months 12 months
31-Dec-20 31-Dec-19 30-Jun-20
(unaudited)
Notes (unaudited) GBP'000 (audited)
GBP'000 GBP'000
Cash flows from operating
activities
Profit/(Loss) for the year 1,257 718 (1,965)
Adjusted for:
- Depreciation 278 437 874
- Amortisation of
right-of-use
assets - 85
- Amortisation 35 - 232
- Provisions 37 (20) (84)
- Finance income (46) (139) (1,237)
- Finance costs 623 787 906
- Loss on sale of property, plant
and equipment - 13 6
- Impairment of property plant and
equipment - - 151
- Impairment of intangible assets - - 1,112
- Impairment in JV - - 594
- Loss on sale of discontinued
operations - - 2,218
- Foreign exchange net (gain)/loss 751 (471) (767)
- Share-based payment expense - - 22
- Income tax expense 342 918 2,361
3,277 2,243 4,508
Changes in:
- inventories (5,136) (2,084) (1,226)
- trade and other
receivables (2,104) 574 2,598
- trade and other payables 3,259 (229) (1,106)
Cash generated from operating activities (704) 504 4,774
Finance income 46 51 1,067
Finance cost (623) (231) (736)
Taxes paid (159) (488) (1,725)
Net cash (used in)/from operating
activities (1,440) (164) 3,380
------------- ----------------- ------------
Cash flows from investing
activities
Proceeds from sale of
property,
plant and equipment 2 9
Acquisition of property, plant and
equipment (458) (216) (356)
Payments/(receipts) from long term
receivable (89) 134 156
Net cash used in investing
activities (545) (82) (191)
------------- ----------------- ------------
Cash flows from financing
activities
Proceeds from drawdown of interest bearing
borrowings - 916 973
Proceeds from share options exercised 73 -
Net (repayment) from debt factoring (included
under trade and other payables) - - (1,490)
Repayment of interest bearing borrowings (142) (77) (394)
Interest paid on interest-bearing
borrowings (66) - (127)
Principal paid on lease liabilities (88) (50) (151)
Interest paid on lease liabilities (36) (8) (40)
Payment of dividend by subsidiary
to non-controlling interest (135) (302) (344)
Net cash from/ (used in) financing
activities (394) 479 (1,573)
------------- ----------------- ------------
Net increase in cash and cash equivalents (2,379) 233 1,616
Cash and cash equivalents at beginning
of period 3,140 1,808 1,807
Foreign exchange movement on opening
balance 149 (60) (277)
Cash and cash equivalents at end
of period 11 910 1,981 3,146
------------- ----------------- ------------
Cash flows from discontinued operations 113 11 5
============= ================= ============
The notes below are an integral part of this condensed
consolidated interim financial report.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL REPORT
FOR THE SIX MONTHSED 31 DECEMBER 2020
1. General information
This condensed consolidated interim financial information does
not comprise statutory accounts within the meaning of section 434
of the Companies Act 2006. Statutory accounts for the year ended 30
June 2020 were approved by the Board of Directors and have been
delivered to the Registrar of Companies. The audit report on those
accounts: their report was unqualified, did not draw attention to
any matters by way of emphasis and did not contain a statement
under section 498(2) or (3) of the Companies Act 2006.
2. Basis of preparation
(a) Statement of compliance
The annual financial statements of Goldplat plc (the 'Company')
are prepared in accordance with IFRSs as adopted by the European
Union.
(b) Going concern
The directors assessed that the group is able to continue in
business for the foreseeable future with neither the intention nor
the necessity of liquidation, ceasing trading or seeking protection
from creditors pursuant to laws or regulations and thus adopted the
going concern basis in preparing these financial statements.
The assessment of the going concern assumption involves
judgement, at a particular point in time, about the future outcome
of events or conditions which are inherently uncertain. The
judgement made by the directors included the availability of and
the ability to secure material for processing at its plants in
South Africa and Ghana, the impact of loss of key management,
outlook of commodity prices and exchange rates in the short to
medium term and changes to regulatory and licensing conditions.
In reaching this conclusion, the Group also assessed the impact
of the current Covid-19 pandemic might be on the business. Similar
to other businesses, we have no background experience on how to
manage the Covid-19 pandemic's impact on the business. Although we
are seeing the rollout of vaccines across the globe the uncertainty
remains over the outlook, and revisions to trade projections are
likely. The sector the Group is involved in has been judged by the
various governments as an essential service which ensures that
material it sources could still be generated by the mining sector,
supplied to its premises and processed. It further also maintained
the ability to export and sell the products it produced during the
Covid-19 pandemic. The Covid-19 pandemic however brought on new
challenges to operating our facilities in South Africa and Ghana in
a safe way for all our employees and local communities. With the
assistance of relevant regulatory authorities, the Directors
believe sufficient procedures have been implemented to assist in
safeguarding our employees and local communities. We are, however,
comfortable that these various impacts of the Covid-19 impact will
not change our ability to continue in business for the foreseeable
future.
3. Significant accounting policies
The accounting policies applied in this condensed consolidated
interim financial report are the same as those applied in the
Group's consolidated financial statements as at and for the year
ended 30 June 2020. Three restatements were accounted for in the 30
June 2020 annual financial statements and therefore the 31 December
2019 comparative figures were also restated as part of these
interim financial statements.
4. Operating segments
Information about reportable segments
For the six months ended 31 December 2020 (unaudited)
South West Mining and Adminis-tration Reconciliation
Africa Africa exploration to Group Group
Recovery Recovery GBP'000 figures
operations GBP'000 GBP'000
GBP'000 GBP'000 GBP'000
------------ ------------ ------------- ----------------- ---------------- ----------
External
revenues 8,243 4,359 - - - 12,602
Finance expense
from
continuing
operations (876) (68) - (132) (1,077)
Finance income
from
continuing
operations 65 - - 389 46 499
Depreciation and
amortisation (210) (68) - - - (278)
Operating
Reportable
segment
profit/(loss)
before tax 2,108 849 - (357) - 2,600
Taxation (358) (122) - (80) - (560)
Reportable Segment
assets 19,772 8,436 3,380 20,797 (19,541) 32,844
Capital
expenditure 362 96 - - - 458
Reportable Segment
liabilities 6,480 7,533 1,449 9,660 (9,620) 15,502
Loss for period
from discontinued
operations - - (243) - - (243)
For the six months ended 31 December 2019 (unaudited)
South West Mining and Adminis-tration Reconciliation Group
Africa Africa exploration to Group
Recovery Recovery GBP'000 figures
operations GBP'000 GBP'000
GBP'000 GBP'000 GBP'000
------------ ------------ ------------- ----------------- ---------------- ----------
External
revenues 9,486 2,273 - - - 11,759
Finance expense
from
continuing
operations (169) (165) - (365) - (699)
Finance income
from
continuing
operations 10 - - 41 - 51
Depreciation and
amortisation (238) (72) - - - (309)
Discontinued
operations - - - - - -
Operating
Reportable
segment
profit/(loss)
before tax 2,639 151 - (286) - (2,505)
Taxation (728) - - (190) - (918)
Reportable Segment
assets 17,288 6,765 6,745 32,057 (29,172) 33,683
Capital
expenditure 356 - - - - 356
Reportable Segment
liabilities 7,038 6,612 10,946 6,017 (16,407) 14,206
For the twelve months ended 30 June 2020 (audited)
South West Mining and Adminis-tration Reconciliation Group
Africa Africa exploration to Group
Recovery Recovery GBP'000 figures
operations GBP'000 GBP'000
GBP'000 GBP'000 GBP'000
------------ ------------ ------------- ----------------- ---------------- ----------
External
revenues 15,900 8,909 - - - 24,809
Finance expense
from
continuing
operations (189) (480) - (313) 246 (736)
Finance income
from
continuing
operations 1,092 12 - 56 (93) 1,067
Depreciation and
amortisation (430) (150) - - - (580)
Discontinued
operations - - (4,303) (967) - (5,270)
Operating
Reportable
segment
profit/(loss)
before tax 6,526 (39) - (952) 131 5,666
Taxation (2,018) (117) - (226) - (2,361)
Reportable Segment
assets 17,262 5,790 3,380 36,168 (35,589) 27,011
Reportable Segment
liabilities 5,513 5,478 1,449 10,285 (10,830) 11,895
5. Seasonality of operations
The Group is not considered to be subject to seasonal
fluctuations but revenue and cost of sales does fluctuate based on
the material received from suppliers and this is variable
6. Income tax expense
Income tax expense is recognised based on management's best
estimate of the weighted average annual income tax rate expected
for the full financial year applied to the pre-tax income of the
interim period. The tax charges for the period arises in South
Africa and on declaration of dividends from South Africa. The
effective income tax rate in GPL was 26% (six months ended 31
December 2019: 29%) and the withholding tax rate on dividends
declared was 20% (six months ended 31 December 2019: 20%).
7. Property, plant and equipment
During the six months ended 31 December 2020, the Group acquired
assets with a cost, excluding capitalised borrowing costs of
GBP458,000 (six months ended 31 December 2019: GBP356,000; twelve
months ended 30 June 2020: GBP356,000).
8. Intangible assets and goodwill
Intangible assets at the end of the period relate only to
goodwill which relate to the investment held in Gold Minerals
Resources Limited. The balance is supported by the combined ongoing
gold recovery operations in South Africa and Ghana. During the six
months ended 31 December 2020 the goodwill balance has not been
impaired (six months ended 31 December 2019: GBPnil; twelve months
ended 30 June 2020: GBP967,000).
During the 12 months ended 30 June 2020, the Groups mining
rights and pre-production expenditure was impaired with GBP145,000
(six months ended 31 December 2019: GBPnil) and the GBP2,382,000
(six months ended 31 December 2019: GBPnil) of cost and
GBP1,676,000 (six months ended 31 December 2019: GBPnil) of
accumulated amortisation reclassified under disposal group
classified as held for sale or other disposals. As a result the
opening balance of the six months ended 31 December 2020 for mining
rights and pre-production expenditure was GBPnil and no other
changes were made during the period.
During the 12 months ended 30 June 2020, GBP1,464,000 (six
months ended 31 December 2019: GBPnil) of cost relating to
exploration and development assets and GBP726,000 (six months ended
31 December 2019: GBPnil) of accumulated amortisation relating to
exploration and development assets were reclassified under Assets
in disposal groups classified as held for sale. As a result the
opening balance of the six months ended 31 December 2020 for
exploration and development assets was GBPnil and no other changes
were made during the period.
The carrying value at the end of the period was:
Goodwill Mining rights Exploration Total
GBP'000 and pre-production and development GBP'000
expenditure GBP'000
GBP'000
Carrying Amounts
--------- -------------------- ----------------- ---------
Balance at
31 December
2019 5,631 1,002 777 7,410
--------- -------------------- ----------------- ---------
Balance at
30 June 2020 4,664 - - 4,664
--------- -------------------- ----------------- ---------
Balance at
31 December
2020 4,664 - - 4,664
--------- -------------------- ----------------- ---------
9. Inventories
6 months 6 months 12 months
31-Dec-20 31-Dec-19 30-Jun-20
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
Consumable stores 538 1,059 643
Raw materials 3,439 2,037 1,990
Precious metal on hand and in process 7,591 4,819 3,799
Broken ore - 11 -
------------- ------------- -----------
11,568 7,926 6,432
============= ============= ===========
10. Trade and other receivables
6 months 6 months 12 months
31-Dec-20 31-Dec-19 30-Jun-20
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
Trade receivables 5,808 5,765 3,850
Other receivables 772 1,579 626
------------- ------------- -----------
6,580 7,344 4,476
============= ============= ===========
11. Cash and cash equivalents
6 months 6 months 12 months
31-Dec-20 31-Dec-19 30-Jun-20
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
Bank balances 1,394 2,070 3,141
------------- ------------- -----------
1,394 2,070 3,141
Bank overdrafts used for cash management
purposes (484) (89) (1)
------------- ------------- -----------
Cash and cash equivalents in the statement
of cash flows 910 1,981 3,140
------------- ------------- -----------
12. Capital and reserves
Issue of ordinary shares
6 months 6 months 12 months
31-Dec-20 31-Dec-19 30-Jun-20
(unaudited) (unaudited) (audited)
No. of shares No. of shares No. of shares
On issue at beginning of period/year 167,441,000 167,441,000 167,441,000
Issued during the period/year 2,333,333 - -
On issue at end of period/year 169,774,333 167,441,000 167,441,000
=============== =============== ===============
Authorised - par value GBP0.01 1,000,000,000 1,000,000,000 1,000,000,000
=============== =============== ===============
Issue of ordinary shares
6 months 6 months 12 months
31-Dec-20 31-Dec-19 30-Jun-20
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
On issue at beginning of period/year 1,675 1,675 1,675
Issued during the period/year 23 - -
On issue at end of period/year 1,698 1,675 1,675
============= ============= ===========
Dividends
No dividends were declared or paid by the Company during the
periods.
13. Earnings per share
Basic earnings per share
The calculation of basic earnings per share at 31 December 2020
was based on the profit from continuing operations attributable to
owners of the Company of GBP1,256,000 (31 December 2019: restated
profit GBP536,000; 30 June 2020: Profit GBP2,133,000), and weighted
average number of ordinary shares outstanding of 169,774,333 (31
December 2019: 167,441,000; 30 June 2020: 167,441,000)
Diluted earnings per share
The calculation of diluted earnings per share at 31 December
2020 was based on the profit from continuing operations
attributable ordinary shareholders of GBP1,256,000 and weighted
average number of ordinary shares outstanding after adjustment for
the effect of all dilutive potential ordinary shares of 173,312,428
(31 December 2019: 168,548,000 ; 30 June 2020: 171,561,000)
14. Leases
During the six months ended 31 December 2020, the Group acquired
right-of-use assets with a cost of GBP32,000 (six months ended 31
December 2019: GBP143,000; twelve months ended 30 June 2020:
GBP362,000). During the six months ended 31 December 2020, the
Group made lease payments to the amount of GBP138,000 (six months
ended 31 December 2019: GBP135,000; twelve months ended 30 June
2020: GBP191,000)
15. Interest bearing borrowings
Six months ended 31 December 2020 (unaudited)
Interest Year of Face value Carrying
rate maturity GBP'000 amount
Currency nominal GBP'000
Interest bearing 12% plus
borrowings USD 1 yr LIBOR 2021 723 723
Total
Interest-bearing
liabilities 723 723
Six months ended 31 December 2019 (unaudited)
Interest Year of Face value Carrying
rate maturity GBP'000 amount
Currency nominal GBP'000
9.75%
Interest bearing plus 1
borrowings USD yr LIBOR 2020 1,388 1,388
Total
Interest-bearing
liabilities 1,388 1,388
Twelve months ended 30 June 2020 (audited)
Interest Year of Face value Carrying
rate maturity GBP'000 amount
Currency nominal GBP'000
Interest bearing 12% plus
borrowings USD 1 yr LIBOR 2021 1,004 1,004
Total
Interest-bearing
liabilities
16. Provisions
6 months 6 months 12 months
31-Dec-20 31-Dec-19 30-Jun-20
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
Environmental obligation
Balance at beginning of period/year 549 633 633
Increase in provision 55 - 19
Effect of foreign exchange movements (18) (20) (103)
Balance at end of period/year 586 613 549
============= ============= ===========
In terms of section 54 of the regulations of the Minerals
Resource and Petroleum Act of 2002, in South Africa, a Quantum of
Financial Provisioning is required for activities performed under
mining lease. Quantum of Financial Provisioning requires a detailed
itemization of actual costs relating to the premature closure,
decommissioning and final closure and post closure management. The
Company makes use of an independent consultant to calculate the
detailed itemized actual current costs for rehabilitation and to
evaluate any critical estimates and assumptions. The Quantum of
Financial Provisioning has been approved by Department of Minerals
Resources in South Africa. The Company has insured the obligation
and has ceded the proceeds from the policy to the Department of
Minerals Resources.
17. Trade and other payables
6 months 6 months 12 months
31-Dec-20 31-Dec-19 30-Jun-20
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
Trade payables 4,055 2,734 1,573
Amounts received in advance 1,004 2,516 1,388
Accrued expenses 5,664 5,796 4,504
------------- ------------- -----------
10,724 11,046 7,465
============= ============= ===========
18. Share options
Reconciliation of outstanding share options
6 months 6 months 12 months
31-Dec-20 31-Dec-19 30-Jun-20
(unaudited) (unaudited) (audited)
Number of Number of Number of
Options Options Options
Outstanding at beginning of period/year 8,666,667 5,666,667 5,666,667
Exercised during the period/year (2,333,333) - -
Granted during the period/year - 3,000,000 3,000,000
------------- ------------- -----------
Outstanding at end of period/year 6,333,334 8,666,667 8,666,667
------------- ------------- -----------
The weighted average exercise price of the exercisable options
is GBP0.03089 (31 December 2019: GBP0.0313; 30 June 2020:
GBP0.0310). The weighted average remaining contractual life of the
options outstanding as at 31 December 2019 is 2 years 114 days (31
December 2019: 2 years 191 days; 30 June 2019: 1 year 271
days).
19. Fair values
The fair values of financial instruments such as
interest-bearing loans and borrowings, finance lease liabilities,
trade and other receivables/payables are substantially identical to
carrying amounts reflected in the statement of financial
position.
20. Restatement
-- Allocation of foreign exchange reserve to non-controlling interest
As per the Group accounting policy under note 4(b)(ii) Foreign
Operations, if the foreign operation is a non-wholly owned
subsidiary, the relevant proportion of the translation difference
is allocated to the non-controlling interest. The 26% share of the
minorities of Goldplat Recovery (Pty) Limited's translation
difference that arose in prior periods on translation to GBP had
not been allocated to non-controlling interest in prior
periods.
-- Recognition of environmental asset in the prior year
In terms of section 54 of the regulations of the Minerals
Resource and Petroleum Act of 2002, in South Africa, a Quantum of
Financial Provisioning is required for activities performed under
mining lease. During the prior year, an assessment was made that
the increase of the rehabilitation provision relates to benefits
derived from historical operations. On re-assessment, it has been
determined that management will get future benefit from the
rehabilitation cost to be incurred, and its environmental asset
have been increased to reflect the required accounting treatment.
Management has assessed the useful life of the environmental asset
to be 10 years and the asset is being depreciated over that
term.
-- Recognition of exploration and evaluation asset in the prior year
During FY 2016, Goldplat entered into an earn-in option
agreement with Ashanti Gold Corp ("Ashanti') in regards with the
Anumso Gold Project. On 5 November 2018, Ashanti Gold Corp
("Ashanti') provided notice to Goldplat that it intended to
exercise its 51% option on Anumso Gold Project. On 27 December
2018, Ashanti informed Goldplat that it will not elect to take up
the subsequent option for an additional 24% of Anumso Project.
After analysis of the amount and nature of the earn-in expenditure,
Goldplat has concurred that the US$1,500,000 spend by Ashanti met
the requirement for the exercise of the 51% option. As the
agreement has not been finalized and the additional shares have not
been issued, the issue of additional shares and the consideration
for the shares of an exploration asset to the value of US$1,500,000
were not recognized in the prior year annual report. We have
subsequently evaluated the IFRS 10 indicators of control and
concluded that control of the Anumso Project did pass to Ashanti on
5 November 2018 and therefore a portion of the Anumso Project
should have been recognised as a disposal in the prior year.
Such figures have been restated accordingly as set out below
Statement of Financial Position
31 December 2019
31 Dec 2019 Restatement Restated
As originally Impact Unaudited
Presented 31 Dec 2019
GBP'000 GBP'000 GBP'000
------------------------------- ---------------------- -------------------- --------------------
Assets
Property, plant and equipment 7,135 266 7,401
Intangible assets 8,086 (676) 7,410
Right of use asset - 151 151
Investment in JV - 595 595
Equity
Exchange reserve (6,313) 1,354 (4,959)
Retained earnings 9,077 (541) 8,536
Non-controlling interest 3,139 (358) 2,781
Liabilities
Deferred tax 445 104 549
Tax payable 154 (79) 75
Trade and other payables 11,190 (144) 11,046
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