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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