TIDMGDP
RNS Number : 2226B
Goldplat plc
10 February 2022
G ol dp lat plc / Ti cker: GDP / Index: AIM / Secto r: M in i ng
& E x p l o rati on
10 February 2022
Goldplat plc
( 'Goldplat', t he 'Group' or 'the Company ')
2(nd) quarter and half year operating results update
for the period ended 31 December 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 2nd quarter of the current financial year ("Q2") ended 31
December 2021.
The two recovery operations achieved a strong combined operating
profit for the quarter of GBP2,356,000 (Q2, 31 December 2020:
GBP1,554,000), a 52% increase from the comparative period ended 31
December 2020. The Ghana operations continued to perform well with
a steady supply of material and achieved an operating profit for Q2
of GBP1,012,000 (Q2, 31 December 2020: GBP569,000). The South
African operations achieved an operating profit for Q2 of
GBP1,344,000 (Q2, 31 December 2020: GBP985,000).
The combined operating profit for the 6 months ending 31
December 2021 increased by 27%, to GBP3,759,000 (6 months ended 31
December 2020, GBP2,957,000) as a result of the strong Q2
performance.
The following events have contributed to the excellent Q2
operating results:
Ghana
-- The continued supply from current clients in West African and
South America ensured lower cost of production during Q2 and strong
sales, driving operating profits for the 6 months to GBP1,851,000
(6 months ended 31 December 2020, GBP849,000).
-- Our engagement with mine management and government officials
on different levels has continued, with the aim of increasing our
footprint to ensure regular supply. We foresee that the various
coup d'états in West Africa countries might impact deliveries in
the short-term. We do however have different sources of supply to
ensure continued production.
-- As indicated in the previous operational update, a decision
was made to expand the opportunities in South America by
establishing a processing and storage site in Brazil, at an initial
cost of USD300,000. This gives us the ability to capture
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 are currently ensuring we secure all licenses required,
specifically environmental, and will keep the market updated on
progress.
-- We continue to evaluate our options for the processing of
artisanal tailings material in Ghana, including the possibility of
finding a partner in country.
South Africa
-- The operational profits for South Africa were increased as a
result of improvement in the cost of production as well as 7%
increase in gold price, in ZAR terms, from Q1 to Q2. We are also
seeing profits being supported by services in and production of
platinum group metals ("PGM's"). This resulted in operating profit
of GBP1,908,000 for 6 months ended 31 December 2021 (6 months ended
31 December 2020, GBP2,108,000).
-- As indicated in the Q1 operational update, we have built our
strategic 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 and
should be completed by April 2022.
-- Our application for the water use license was submitted in
October 2021 and we are still expecting feedback by the end of Q3.
We continue to manage and extend the deposit of material within the
Group's current tailings storage facility with the help of
consulting engineers. A further GBP270,000 of capital expenditure
was incurred during the 6 months, mainly on our tailing's
deposition.
-- Towards the end of October 2021, an application was made for
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 a JORC resource of circa 82,000 ounces of gold. The
approval process should be completed by the end of this calendar
year.
Our cash balances remained strong at GBP1,452,000 at the end of
Q2, with a significant balance invested in inventory and debtors at
the end of the period. At the date of this announcement, the cash
balance in the operating entities was GBP3,850,000.
Werner Klingenberg, CEO of Goldplat commented: "I am pleased
with the continued strong operating results from both recovery
operations. Apart from our continuing focus on sourcing material
for our operations and maximising recoveries from material
received, management continues to focus on ways to leverage our
unique skillsets and infrastructure, to diversify the materials and
elements we can process economically, specifically PGM's".
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 / Samuel Littler (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
The information contained within this announcement is deemed to
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.
Mineral Resource Estimate of the Tailings Storage Facility,
South Africa
Total Resource
Domain Class Tonnes Density Au (g/t) Au (Oz) U(3) O(8) U(3) O(8) Ag (g/t) Ag (Oz)
(Mil) (g/t) (lbs)
----------- ------------ -------- --------- -------- ----------- ----------- --------- --------
TOTAL
RESOURCE Measured 0.87 1.32 1.82 50,907 61.41 117,754 4.85 135,573
----------- ------------ -------- --------- -------- ----------- ----------- --------- --------
Indicated 0.49 1.37 1.77 27,897 59.73 64,506 4.71 74,165
------------------------- ------------ -------- --------- -------- ----------- ----------- --------- --------
Inferred 0.07 1.30 1.4 3,154 71.40 11,016 2.82 6,356
------------------------- ------------ -------- --------- -------- ----------- ----------- --------- --------
Grand Total 1.43 1.34 1.78 81,959 61.32 193,276 4.70 216,094
------------ -------- --------- -------- ----------- ----------- --------- --------
The Tailings Mineral Resource Estimate was announced in
accordance with the JORC Code (2012) in a press release on 29
January 2016. Mark Austin of Applied Geology & Mining (Pty)
Ltd. was the Competent Person responsible for that announcement.
The Company confirms that all material assumption and technical
parameters underpinning the Resource Estimate continue to apply and
have not materially changed.
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END
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