TIDMGDP
RNS Number : 1237R
Goldplat plc
03 November 2021
G ol dp lat plc / Ti cker: GDP / Index: AIM / Secto r: M in i ng
& E x p l o rati on
3 November 2021
Goldplat plc
( 'Goldplat', t he 'Group' or 'the Company ')
Quarterly Update to 30 September 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 first quarter of the current financial year ("Q1") ended 30
September 2021.
The recovery operations achieved the same combined operating
profit for Q1 2021 as for Q1 2020 of GBP1,403,000 (Q1, 30 September
2020: GBP1,403,000), although the average gold price in USD
decreased 6.7% for Q1 2021.
The Ghana operations continue to perform well as a result of the
steady supply of material and achieved an operating profit for Q1
of GBP839,000 (Q1, 30 September 2020: GBP280,000). The South
African operation achieved an operating profit for Q1 of GBP564,000
(Q1, 30 September 2020: GBP1,123,000), reflecting a significantly
lower gold price in Rand terms in the period.
The following events have contributed to the Q1 operating
results:
Ghana
-- The continued supply from current clients in Ghana and Mali
was further supported by batches of material received from South
America.
-- Our engagement with mine management and government officials
on different levels has continued, with the aim of increasing our
footprint to ensure regular supply. Specific progress in this
regard has been made during the quarter in Cote d'Ivoire.
-- To build on our market strategy in South America over the
last 5 years, a decision has been made to expand the opportunities
by establishing a processing and storage site in Brazil, at an
initial cost of USD300,000, to capture part of the lower-grade
material market which is not feasible to export to our other
operations and also to improve services we can provide in
country.
-- We continue to evaluate our options for processing of
artisanal tailings material, including the possibility of finding a
partner in country.
South Africa
-- Although the gold produced and sold year-on-year was similar,
the average gold price in South African Rands ('ZAR') for Q1 was
19.3% lower year-on-year, resulting in operating profits being
lower by 50%.
-- The Carbon-in-Leach ('CIL') circuits' production improved
year-on-year by 9%, on the back of capital investment in the
previous financial period in a jigging plant and a further
GBP50,000 (less than the planned GBP75,000) incurred on a gravity
circuit during Q1 on our largest milling and CIL plant.
-- Gold produced from our by-products operations decreased by
16% as a result in variability of supply from the mines.
-- As part our strategy to build partnerships in industry and to
create longer term visibility of supply of materials and associated
earnings, we have agreed with West Wits Mining Limited (ASX: WWI),
as announced on 12 October 2021, to process material from their
early mine programme through our plant on a toll treatment basis.
The initial programme will last approximately 6 months with
material processed through our largest CIL circuit, with the option
to extend.
-- During Q1 we have built our strategic precious metals ('PGM')
material to a level to warrant capital expenditure of USD 300,000
on a plant to extract its value. This new plant will also enable us
to further develop our PGM recovery business.
-- Unrealised profits contained in material remains high at
GBP900,000 (30 June 2021 - GBP1,100,000) and is partly due to the
increase in gravity gold production and the longer sales cycle it
takes to realise the profit. We are focussed on reducing the
turnover time and the figure should return to normal levels, circa
GBP500,000 within the next two quarters.
-- Our application for the water use license was submitted in
the last week of October 2021 and we should get feedback before the
end of Q2. We continue to manage and extend the deposit of material
within the Group's current tailings storage facility with the help
of consulting engineers.
-- Towards the end of October 2021 an application was made to
get environmental approval for the installation of a pipeline to a
process facility in the area. This pipeline could provide us with
an avenue to pump and process our current tailings facility which
contains circa 82,000 ounces of gold ('See the announcement dated
29 January 2016'). The approval process will take approximately 12
months.
Our cash balances remain strong at GBP2,340,000 at end of
Q1.
The buy-back of the shares in Goldplat Recovery held by certain
minority shareholders, as announced on 18 June 2021, was completed
in October 2021, with the full lending facility of ZAR 60 million
(approximately GBP3.1 million) drawn from Nedbank and all payments
made to the respective minorities.
We have agreed with Caracal Gold to take up the remainder of the
initial share consideration on the sale of Kilimapesa at the
initial listing price of Caracal Gold and as a result, Caracal Gold
has allotted an additional circa 32 878 000 shares in lieu of a
cash payment of US$450,000, increasing the Group's shareholding in
Caracal to 9.2%.
Werner Klingenberg, CEO of Goldplat commented: "I am pleased to
see us continue to consolidate our interests in West Africa and
look forward to build on this in South America. This, together with
improvements in our production units in South Africa, is providing
us with a platform to build longer term profitable recovery
streams. I am encouraged by the progress made on the PGM front.
With initial consideration on the sale of Kilimapesa and majority
of the restructuring within the Group completed, we will evaluate
our options to return 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 / Andrew WH Ireland Limited Tel: +44 (0) 207 220
de Andrade (Broker) 1666
Tim Thompson / Mark Edwards Flagstaff Strategic and Tel: +44 (0) 207 129
/ Fergus Mellon Investor Communications 1474
goldplat@flagstaffcomms.com
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constitute inside information as stipulated under the retained EU
law version of the Market Abuse Regulation (EU) No. 596/2014 (the
"UK MAR") which is part of UK law by virtue of the European Union
(Withdrawal) Act 2018. The information is disclosed in accordance
with the Company's obligations under Article 17 of the UK MAR. Upon
the publication of this announcement, this inside information is
now considered to be in the public domain.
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