TIDMGDP
RNS Number : 6303H
Goldplat plc
05 August 2021
G ol dp lat plc / Ti cker: GDP / Index: AIM / Secto r: M in i ng
& E x p l o rati on
5 August 2021
Goldplat plc
( 'Goldplat', t he 'Group' or 'the Company ')
Quarterly Update - Update on the twelve months ended 30 June
2021
G ol dp lat pl c, the AIM li sted g o ld p r o ducer, w ith
internati onal g o ld reco very o perati ons l o cated in South Afr
i ca and Ghana, is p leased to announce an operational update for
the twelve months ended 30 June 2021.
The recovery operations achieved a combined operating profit for
the twelve months ended 30 June 2021 of GBP5,300,000 (30 June 2020:
GBP6,350,000) and a combined operating profit in the 4(th) Quarter
of the
financial year of GBP1,080,000 (4(th) Quarter - 2020: GBP2,546,000).
The Ghana operations continue to perform well as a result of
steady supply of material and achieved an operating profit for the
4(th) Quarter of GBP729,000 (4(th) Quarter - 2020: GBP366,000 ).
The South African operation achieved an operating profit for the
4(th) Quarter of GBP350,000 (4(th) Quarter - 2020:
GBP2,180,000).
The following events have contributed to the 4(th) Quarter's
operating results -
Ghana
-- There was continued good supply of material from regular
clients during the period, with supply and production from two
large batches from different clients continuing;
-- Our engagement with mine management and government officials
on different levels has continued, with the aim of increasing our
footprint to ensure ongoing and regular supply. During the quarter
specific progress have been made with respect to engagement with
potential suppliers and government officials in Burkina Faso and
Mali.
South Africa
-- Excluded from profits at the end of the 4(th) Quarter, 30
June 2021, was GBP1,100,000 of unrealised profit in gold material
produced not sold, compared with the end of the 4(th) Quarter of
the previous year, 30 June 2020, when the equivalent number was
GBP400,000. This was mainly due to higher amount of gravity
concentrated gold produced during the quarter, that had not been
sold by the period end;
-- The Group had an extremely profitable 4(th) quarter at end of
the previous financial period, driven by increasing gold prices and
sale of material produced in the 3(rd) quarter;
-- Gold production during the 4(th) quarter was above the
average of the last 8 quarters, with production in our CIL circuit
contributing the most to this. Although volumes and gold grades of
by-product received during the 4(th) quarter were lower than 2 to 3
years ago, they have stabilised over the last 18 months and we
expect them to remain stable on the back of a 3-year contract
renewal with one of our major suppliers;
-- Operating profitability, year on year, continue to be
impacted by higher electricity prices and increased water usage
from the local municipality due to poor water quality from one of
the Group's other water sources.
-- The Group has started to see benefits of equipment installed
to remove carbonaceous material pre-milling towards end of the
period. Based on successes in other circuits, we have decided to
incur capital to the amount of GBP75,000 to install gravity
circuits in our largest milling circuits, to increase gold
recoveries from the carbonaceous material. This will be commission
during September 2021.
-- The authorities requested us to submit additional supporting
information for, should it be required, an adjusted design for our
tailing's facility. We estimate the resubmission and evaluation to
take a further 3 months. We continue to manage and extend the
deposit of material within the Group's current facility with the
help of consulting engineers.
-- As indicated, we have identified what we believe to be the
best available options for both the processing facility and the
deposition site and we are in discussions to start the approval
process with the relevant parties.
The cash and cash equivalents on hand on 30 June 2021 in the
Group was GBP3,110,000 (30 June 2020- GBP3,100,000) and loan
outstanding to Scipion was GBP33,000 (30 June 2020 - GBP1,000,000).
The Scipion loan has subsequently been settled in full in
accordance with Nedbank's requirements with regard to the financing
of the Goldplat Recovery (Pty) Limited share repurchase as
announced on 20 July 2021.
Werner Klingenberg, CEO of Goldplat commented: "I am pleased to
report continued profitability in the Group and expect returns in
the first quarter of the current financial year in South Africa to
benefit from the sale of the stockpile of gravity concentrates at
the year end. The regular supply into Ghana remains encouraging,
but even more so the increased engagement in neighbouring countries
creating the potential of future supply. With the sale of
Kilimapesa, the Group will focus on growth and diversification
within its recovery operations, whilst remaining cognisant of its
goal of distributing value to shareholders."
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 / George Grant Thornton UK LLP Tel: +44 (0) 20 7383
Grainger (Nominated Adviser) 5100
Jessica Cave / Lydia WH Ireland Limited Tel: +44 (0) 207 220
Zychowska (Broker) 1666
Tim Thompson / Mark Edwards Flagstaff Strategic and Tel: +44 (0) 207 129
/ Investor Communications 1474
Fergus Mellon goldplat@flagstaffcomms.com
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on the pub l ication of this ann o u ncement, this in s i de i n fo
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END
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