TIDMGDP
RNS Number : 2061F
Goldplat plc
18 March 2022
18 March 2022
Goldplat plc / Ticker: GDP / Index: AIM / Sector: Mining &
Exploration
Goldplat plc ('Goldplat' or 'the Company')
Interim results for the six-month period ended 31 December
2021
Goldplat plc, the AIM listed gold producer, with international
gold recovery operations located in South Africa and Ghana, is
pleased to announce its unaudited interim results for the six
months ended 31 December 2021.
Goldplat achieved an excellent result for the six months ended
31 December 2021 including:
-- Increasing operating profit, against the six months ended 31
December 2020, by 28% to GBP3,334,000 (31 December 2020:
GBP2,600,000);
-- Doubling of net profit from continued operations attributable
to owners of the company to GBP2,071,000 (31 December 2020:
GBP1,013,000);
-- As a result of increased performance, the fully diluted
earnings per share for the six-month period doubled to 1.19 pence
per share (31 December 2020: 0.59 pence per share), and;
-- The group cash balance (net of overdraft) remained strong at
GBP1,640,000 (30 June 2021: GBP3,459,000).
Werner Klingenberg, CEO of Goldplat commented: "I am pleased
with the continued strong operating results achieved by the group,
but even more so, how this is translating into increased profits
and earnings for the owners of Goldplat Plc.
For further information visit www.goldplat.com, follow on
Twitter @GoldPlatGDP or contact:
Werner Klingenberg Goldplat plc (CEO) Tel: +27 (0) 82 051
1071
Colin Aaronson / George Grainger / Grant Thornton UK Tel: +44 (0) 20 7383
Samuel Littler LLP (Nominated Adviser) 5100
---------------------------- ----------------------------
Jessica Cave / Andrew de Andrade WH Ireland Limited Tel: +44 (0) 207 220
(Broker) 1666
---------------------------- ----------------------------
Tim Thompson / Mark Edwards / Fergus Flagstaff Strategic Tel: +44 (0) 207 129
Mellon and 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.
Chairman's Statement
I am pleased to share continued strong results from our gold
recovery operations, with profit for the half year from continuing
operations increasing to GBP2,217,000 (H1 2020: GBP1,500,000) and
an all-in, fully diluted EPS for the half year of 1.19 pence (H1
2020: 0.59 pence).
Our portfolio of core assets consists of two gold recovery
operations, in South Africa and Ghana, with plans to extend this to
Brazil and these recover gold and platinum group metals ('PGM')
from by-products of current and historical mining processing,
thereby providing mines with an environmentally-friendly and
cost-efficient way of removing waste material.
The Revenues from continued operations increased by 69% to
GBP21,326,000 (H1 2020: GBP12,602,000), with the Ghanaian and South
African recovery operations achieving revenue increases of 146% and
29%, respectively, as a result of good and steady supply of
material in Ghana and result of continuous research and investments
made in South Africa.
The increase in revenue drove the increase in operating profit
from continued operations of GBP3,334,000 (H1 2020:
GBP2,600,000).
The net financing cost tend to fluctuate from period to period
due to the fluctuation in the intergroup unrealised foreign
exchange losses or gains, which is driven by the movement of Ghana
Cedi ('GHS'), the South African Rand ('ZAR') and Great British
Pound ('GBP') against the United State Dollar ('USD') in which
intergroup balances are denominated. As set out in the summary
table below, the intergroup foreign exchanges losses reduced to
GBP30,000 (H1 2020: GBP357,000).
Detail H1 2021 H1 2020
Intergroup foreign exchange movements (30,000) (357,000)
--------- ---------
Third party foreign exchange movements 1,000 (72,000)
--------- ---------
Net interest paid (299,000) (149,000)
--------- ---------
Total (328,000) (578,000)
--------- ---------
The net finance interest increased from GBP149,000 to GBP299,000
as a result of the increase in the volume of material sourced and
processed in Ghana and the delays we are starting to experience as
a result of the global supply chain crisis. This increased the
amount of working capital finance required and the time over which
it is required. The interest on working capital finance increased
from GBP36,000 to GBP225,000. With the increase in cash available,
we are starting to finance more of this out of our own cash
resources.
Interest paid on financing for the repurchase of shares at
Goldplat Recovery (Pty) Ltd, secured in August 2021, as discussed
below, was GBP41,000, whilst the remainder relates to financing on
lease assets.
The profit after taxation before discontinued operations of
GBP2,217,000 (H1 2020: GBP1,500,000) resulted in the GBP229,000
increase in the taxation paid. Furthermore, the withholding tax
expense year-on-year was higher due to more dividends declared by
both Goldplat Recovery Pty Limited ('GPL') and Goldplat Recovery
Ghana Limited ('GRG') during the period. 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.
Share repurchase of minority shareholding in GPL
During the period the Group increased its interest in GPL, its
principal operating subsidiary, from 74% to 90.63% through the
buy-back by GPL of 22.33% of GPL shares from its minority
shareholders and issuing shares, amounting to 4.90% of GPL to
Aurelian Capital Proprietary Limited ('The Transaction'). The net
cost to Goldplat of acquiring an additional 16.63% of GPL was ZAR
66.52 million (approximately GBP3.55m)
The Transaction was financed in part through a South African
Rand denominated bank facility of ZAR 60 million (approximately
GBP3.02 million) provided by Nedbank.
Additional detail with regards to the Transaction and the
financing thereof are set out in note 19.
Other shareholdings
After the period end, the group sold 32,878,000 of our shares in
Caracal Gold PLC ('Caracal') for 0.95 pence per share. The shares
sold represent the remainder of the initial share consideration of
USD450,000 that was payable in cash by Caracal in relation to the
sale of Kilimapesa Gold Pty Ltd, which the Group agreed to take up
in shares at the initial listing price of Caracal, as announced on
3 November 2021.
The Group retains 103,846,153 shares representing a 5.69%
interest in Caracal.
Working capital
Cash and cash equivalents at the end of the period decreased to
GBP1,640,000 (30 June 2021: GBP3,459,000). The decrease from
GBP3,459,000 at end of 30 June 2021 is as a result of investment
in working capital as noted below.
Inventories increased from 30 June 2021, by GBP2,601,000 as
result of an increase in precious metals on hand of GBP3,080,000
set- off by a decrease in raw materials of GBP720,000. The increase
in precious metals on hand and in process was driven by high
turnover volumes in Ghana as well as delays we are experiencing on
some of the shipping routes, whilst the decrease in raw material
was as a result of higher cost per ton material processed in South
Africa during the period.
Trade and other receivable balances also increased from 30 June
2021 by GBP3,590,000 again driven by increases in turnover,
specifically in Ghana.
During the period the long-term liabilities increased to
GBP3,332,000 as a result of the repurchase of shares from minority
shareholders in GPL on the terms indicated above.
Goldplat Recovery (Pty) Ltd ('GPL')
Revenues in South Africa increased by 29% to GBP10,616,000 (H1
2020: GBP8,243,000). The 29% increase in revenue is attributable to
improved production in our largest milling circuit, after the
construction of a JIG and gravity concentrator (at a capital cost
of
GBP55,000), in March 2021 and October 2022 respectively. The
increase in revenue resulted in a profit of GBP1,552,000 (H1
2020:
GBP940,000).
The production of Platinum Group Metals (PGMs) is making a
contribution to results and 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 the 4th
quarter.
We continue to experience increase in operating costs, These
included the increase in refinery charges, treatment charges,
electricity costs, machinery hire, and security costs.
Our application for the water use license was submitted in
October 2021 and we are still expecting feedback by the end of Q3
2022. We continue to manage and extend the deposit of material
within the Group's current tailings storage facility ('TSF') with
the help of consulting engineers and have spent 203,000 of capital
on establishing of new tailings facility during the period.
The establishment of a new tailings storage facility remains the
first step towards the reprocessing of our existing TSF which
contains a JORC resource of approximately 82,000 ounces of gold
(see announcement of 29 January 2016 for further information). The
second step being the approval of pipeline application to a third
party processor, which is ongoing and we expect results towards the
end of this calendar year.
Gold Recovery Ghana ('GRG')
We experienced a steady and reliable supply of materials from
our regular clients during the period and this significantly
contributed to the 146% increase in revenue year on year to
GBP10,710,000 (H1 2020: GBP4,359,000). The increase in volume of
material processed, combined with the higher gold price resulted in
the operating margins increasing by 153% to GBP1,828,000 (H1 2020:
GBP724,000) and a net profit of GBP1,217,000 (H1 2020: GBP139,000),
a 776% improvement from that of the comparative period.
Our engagement with mine management and government officials on
different levels has continued, with the aim of increasing our
footprint to ensure regular supply. 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 continue to evaluate our options for the processing of
artisanal tailings material in Ghana, including the possibility of
finding a partner in country.
To increase our 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 South America, we aim to
establish a processing and storage site in Brazil, at an initial
cost of USD300,000. We are currently ensuring we secure all
licenses required, specifically environmental, and will keep the
market updated on progress.
Post-period end
Subsequent to 31 December 2021 we sold 32,878,000 of our shares
in Caracal as reported above.
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 tailings 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.
Whilst the Group's trading expectation for the remainder of the
year is currently unchanged, it is worth noting that the impact of
the Russian invasion of Ukraine is posing a significant challenge
to the global supply chain industry. Whilst Goldplat has no
activities directly connected with Russia or Ukraine, the long-term
effect of the conflict on the Group is uncertain.
Matthew Robinson Chairman
18-Mar-22
Statements of Financial Position
Group
31 December Group Group 31
Figures in GBP `000 Notes 2021 30 June December
2021 2020
-------------------------------------- ---------- ------------ --------- ----------
Assets
Non-current assets
Property, plant and equipment 4 4 353 4 568 4 132
Right-of-use assets 465 574 375
Intangible assets 5 4 664 4 664 4 664
Investments in subsidiaries, joint
ventures and associates 6 1 1 1
Receivable on Kilimapesa sale 7 519 606 -
Other loans and receivables 8 511 636 750
------------ --------- ----------
Total non-current assets 10 513 11 049 9 922
Current assets
Inventories 9 11 034 8 433 11 568
Trade and other receivables 10 16 593 13 003 6 580
Receivable on Kilimapesa sale 7 87 58 -
Cash and cash equivalents 11 1 640 3 459 1 394
------------ --------- ----------
Total current assets 29 354 24 953 19 542
Non-current assets or disposal groups
classified as held for sale - - 3 380
------------ --------- ----------
Total current assets 29 354 24 953 22 922
------------ --------- ----------
Total assets 39 867 36 002 32 844
------------ --------- ----------
Equity and liabilities Equity
Share capital 12 1 715 1 698 1 698
Share premium 12 11 546 11 491 11 491
Retained income / (accumulated loss) 7 578 6 846 6 180
Foreign exchange reserve (5 806) (5 258) (5 406)
------------ --------- ----------
Total equity attributable to owners
of the parent 15 033 14 777 13 963
Non-controlling interests 1 314 3 637 3 379
------------ --------- ----------
Total equity 16 347 18 414 17 342
Liabilities
Non-current liabilities
Provisions 13 724 787 586
Deferred tax liabilities 808 792 727
Long-term borrowings 15 1 758 - -
Lease liabilities 42 110 77
------------ --------- ----------
Total non-current liabilities 3 332 1 689 1 390
Group
31 December Group Group 31
Figures in GBP `000 Notes 2021 30 June December
2021 2020
---------------------------------------- ---------- ------------ --------- ----------
Current liabilities
Trade and other payables 14 18 754 15 445 10 724
Current tax liabilities 399 128 532
Current portion of long-term borrowings 15 866 33 723
Lease liabilities 169 293 200
Bank overdraft 11 - - 484
------------ --------- ----------
Total current liabilities 20 188 15 899 12 663
Liabilities included in disposal groups
classified as held for sale - - 1 449
------------ --------- ----------
Total current liabilities 20 188 15 899 14 112
------------ --------- ----------
Total liabilities 23 520 17 588 15 502
------------ --------- ----------
Total equity and liabilities 39 867 36 002 32 844
------------ --------- ----------
The notes below are an integral part of this condensed
consolidated interim financial report.
Statements of Profit or Loss and Other Comprehensive Income
Group Group Group 6 month
6 month period 12 month period ended
ended 31 period ended 31 December
Figures in GBP `000 Notes December 2021 30 June 2020
2021
------------------------------------------- ----- ---------------- ------------- --------------
Revenue 21 326 35 400 12 602
Cost of sales (17 172) (29 201) (9 323)
-------------
Gross profit 4 154 6 199 3 279
Other income 2 56 -
Administrative expenses (822) (1 694) (679)
-------------
Profit from operating activities 3 334 4 561 2 600
Finance income 1 - 45
Finance costs (329) (909) (623)
Sundry income - - 38
-------------
Profit before tax 3 006 3 652 2 060
Income tax expense - continuing operations 16 (789) (903) (560)
-------------
Profit from continuing operations 2 217 2 749 1 500
Loss from discontinued operations - (570) (243)
-------------
Profit for the period 2 217 2 179 1 257
-------------
Profit for the period attributable to:
Owners of Parent 2 071 1 679 1 013
Non-controlling interest 146 500 244
-------------
2 217 2 179 1 257
-------------
Other comprehensive income net of tax
Components of other comprehensive income
that will be reclassified to profit
or loss
Exchange differences on translation
relating to the parent
(Losses) / gains on exchange differences
on translation (548) 719 818
Exchange reserve reclassified on loss
of control of Kilimapesa - 247 -
-------------
Total Exchange differences on translation (548) 966 818
Exchange differences relating to the
non-controlling interest
(Losses)/Gains on exchange differences
on translation (124) 256 213
-------------
Total other comprehensive income that
will be reclassified to profit or loss (672) 1 222 1 031
-------------
Total other comprehensive (expense)/income
net of tax (672) 1 222 1 031
-------------
Total comprehensive income 1 545 3 401 2 288
-------------
Comprehensive income attributable to:
Comprehensive income, attributable to
owners of parent 1 523 2 645 1 826
Comprehensive income, attributable to
non-controlling interests 22 756 462
-------------
1 545 3 401 2 288
-------------
Group Group Group 6 month
6 month period 12 month period ended
ended 31 period ended 31 December
Figures in GBP `000 Notes December 30 June 2020
2021 2021
-------------------------------------------- ----- ---------------- -------------- --------------
Earnings per share from continuing and
discontinuing operations attributable
to owners of the parent during the period
Basic earnings per share
Basic earnings per share from continuing
operations 17 1.20 1.32 0.74
Basic loss per share from discontinuing
operations - (0.34) (0.14)
--------------
Total basic earnings per share 1.20 0.98 0.60
--------------
Diluted earnings per share
Diluted earnings per share from continuing
operations 17 1.19 1.32 0.73
Diluted loss per share from discontinued
operations - (0.33) (0.14)
--------------
Total diluted earnings per share 1.19 0.99 0.59
The notes below are an integral part of this condensed
consolidated interim financial report.
Goldplat PLC
Condensed consolidated interim financial report for the 6 month
period ended 31 December 2021
Statements of Changes in Equity - Group
Foreign Retained
currency income / Attributable
to
translation (accumulated owners of Non-controlling
Figures in GBP `000 Share Capital Share premium reserve loss) the interests Total
parent
--------------------------------------------------------------------------------------------------- ------------ ------------ ------------- --------------- ---------
Balance at 1 July 2020 1 675 11 441 (6 224) 5 167 12 059 3 057 15 116
Changes in equity
Profit for the year - - - 1 679 1 679 500 2 179
Other comprehensive income - - 966 - 966 256 1 222
--------------------------------------------------------------------------------------------------- ------------ ------------ ------------- --------------- ---------
Total comprehensive income for the period - - 966 1 679 2 645 756 3 401
Non-controlling interests in
subsidiary dividend - - - - - (176) (176)
Shares issued from options exercised 23 50 - - 73 - 73
--------------------------------------------------------------------------------------------------- ------------ ------------ ------------- --------------- ---------
Balance at 30 June 2021 1 698 11 491 (5 258) 6 846 14 777 3 637 18 414
--------------------------------------------------------------------------------------------------- ------------ ------------ ------------- --------------- ---------
Balance at 1 July 2021 1 698 11 491 (5 258) 6 846 14 777 3 637 18 414
Changes in equity
Profit for the period - - - 2 071 2 071 146 2 217
Other comprehensive income - - (548) - (548) (124) (672)
Exchange reserve released through profit and loss on sale of - - - -
Kilimapesa - -
--------------------------------------------------------------------------------------------------- ------------ ------------ ------------- --------------- ---------
Total comprehensive income for the period - - (548) 2 071 1 523 22 1 545
Non-controlling interests in
subsidiary dividend - - - - - (22) (22)
Shares issued from options exercised 17 55 - - 72 - 72
Adjustments arising from change in non-controlling interest
- - - (1 339) (1 339) (2 323) (3 662)
--------------------------------------------------------------------------------------------------- ------------ ------------ ------------- --------------- ---------
Balance at 31 December 2021 1 715 11 546 (5 806) 7 578 15 033 1 314 16 347
--------------------------------------------------------------------------------------------------- ------------ ------------ ------------- --------------- ---------
Notes
12 12
The notes below are an integral part of this condensed
consolidated interim financial report.
9
Statements of Cash Flows
Group Group 12 Group 6
6 month month month period
period period ended ended 31
Figures in GBP `000 Notes ended 31 30 June December
December 2021 2020
2021
------------------------------------------------- --------- --------- -------------- -------------
Net cash flows from / (used in) operations 225 4 277 (704)
Finance cost (329) (909) (623)
Finance income 1 - 46
Income taxes paid (502) (1 059) (159)
--------- -------------- -------------
Net cash flows (used in) / from operating
activities (605) 2 309 (1 440)
--------- -------------- -------------
Cash flows used in investing activities
Proceeds from sales of property, plant
and equipment 29 18 2
Purchase of property, plant and equipment (313) (979) (458)
Decrease in cash from disposal of non-current
assets held for sale - (6) -
(Payment)/Receipt from long term receivable 125 74 (89)
--------- -------------- -------------
Cash flows used in investing activities (159) (893) (545)
--------- -------------- -------------
Cash flows used in financing activities
Net proceeds from issuing of shares/options
exercised 72 73 73
Repayment of capital portion of interest-bearing
borrowings (203) (872) (142)
Interest paid on interest-bearing borrowings (63) (99) (66)
Increase in shareholding of subsidiary (3 787) - -
Increase in interest bearing borrowings 2 927 - (88)
Principal paid on lease liabilities (155) (186) -
Interest paid on lease liabilities (37) (21) (36)
Payment of dividend to non-controlling
interest (22) (176) (135)
--------- -------------- -------------
Cash flows used in financing activities (1 268) (1 281) (394)
-------------
Net (decrease) / increase in cash and
cash equivalents (2 032) 135 (2 379)
Cash and cash equivalents at beginning
of the period 3 459 3 146 3 140
Foreign exchange movement on opening
balance 213 178 149
--------- -------------- -------------
Cash and cash equivalents at end of
the period 11 1 640 3 459 910
--------- -------------- -------------
Cashflows from discontinued operations 6 113
The notes below are an integral part of this condensed
consolidated interim financial report.
Notes to the Consolidated Financial Statements
Figures in GBP `000 31
December 2021 Group 30 June 2021 Group 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 2021 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
Statement of compliance
The annual financial statements of Goldplat plc (the 'Company')
are prepared in accordance with IFRSs as adopted by the European
Union.
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.
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 2021.
4. Property, plant and equipment
During the six months ended 31 December 2021, the Group acquired
assets with a cost, excluding capitalised borrowing costs of
GBP313,000 (six months ended 31 December 2020: GBP458,000; twelve
months ended 30 June 2021: GBP1,132,000).
5. Intangible assets
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 2021 the goodwill balance has not been
impaired (six months ended 31 December 2020: GBPnil; twelve months
ended 30 June 2021: GBPnil).
6. Investments in subsidiaries, joint ventures and
associates
The amounts included on the statements of financial position
comprise the following:
Investment in joint ventures 1 1 1
7. Receivable on Kilimapesa sale
Receivable on Kilimapesa sale incorporates the following
balances:
The receivable relate to the 1% net smelter royalty on
production of Kilimapesa to the maximum of USD1,500,000.
Non-current assets 519 606 -
Current assets 87 58 -
--- ---
606 664 -
--- ---
Other financial assets are recognised initially at the fair
value, including transaction costs. The asset will subsequently be
measured at fair value and are grouped into levels 1 to 3 based on
the significance of the inputs used in the valuation. The financial
assets from the Kilimapesa sale has significant inputs and is
therefore included in level 3.
8. Other loans and receivables
Other loans and receivables comprise the
following balances
Amabubesi (Pty) Ltd 636 750
Aurelian Capital Proprietary Limited - 511 - -
------------------------- --- ---
511 636 750
------------------------- --- ---
The loan receivable in Goldplat Recovery (Pty) Limited, in
compliance with Black Economic Empowerment legislation in South
Africa, are recoverable from future dividends. They have been
included at historical cost due to the uncertainty surrounding the
variables required to calculate this asset at amortised cost. The
directors consider that the carrying amount represents the fair
value of the assets.
9. Inventories
Inventories comprise:
Raw materials 2 704 3 424 3 439
Consumable stores 947 706 538
Precious metals on hand and in process 7 383 4 303 7 591
------ ----- ------
11 034 8 433 11 568
------ ----- ------
Inventories are initially recognised at cost, and subsequently
at the lower of cost and net realisable value. Cost comprises all
costs of purchase, costs of conversion and other costs incurred in
bringing the inventories to their present location and condition.
Weighted average cost is used to determine the cost of ordinarily
interchangeable items.
10. Trade and other receivables
Trade and other receivables comprise:
Trade receivables 14 377 11 986 5 808
Sundry debtors 1 414 12 22
Prepaid expenses 110 157 128
Deposits 12 - 12
Other receivables 485 618 394
Value added tax 195 230 216
------- ------- -------
16 593 13 003 6 580
11. Cash and cash equivalents
11.1 Cash and cash equivalents included in
current assets:
Cash
Balances with banks 1 640 3 459 1 394
------- ------- -------
11.2 Overdrawn cash and cash equivalents included
in current liabilities
Bank overdrafts - - (484)
------- ------- -------
12. Share capital
Authorised and issued share capital
Issued
Ordinary shares 1 715 1 698 1 698
------- ------- -------
1 715 1 698 1 698
Share premium 11 546 11 491 11 491
------- ------- -------
13 261 13 189 13 189
------- ------- -------
During the current year, share options were exercised that
resulted in an increased in share capital and share premium.
13. Provisions
Provisions comprise:
Environmental obligation 724 787 586
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
detail 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. During the prior financial year, the provision
held in GPR was reassessed by using an external expert and it was
concluded that due to the additional capital expenditure that has
taken place over the financial period, the provision had to be
increased to account for the additional capital incurred.
14. Trade and other payables
Trade and other payables comprise:
Trade creditors 1 610 9 200 4 055
Accrued liabilities 9 306 5 260 5 665
Invoice financing creditor 7 838 985 1 004
Total trade and other payables 18 754 15 445 10 724
15. Long term borrowings
The principal on the bank facility is repayable monthly over 36
months. The interest payable on the facility will be the South
African Prime Rate plus 1.75%.
Further to above, GPL did grant security over its debtors as
well as a negative pledge over its moveable and any immovable
property and a general notarial bond over all movable assets of GPL
will be registered. The Group entered into a limited suretyship for
ZAR 60 million (approximately GBP3.02 million), in favour of
Nedbank.
Long term borrowings comprise:
2 624
Nedbank Scipion - - 33 - 723
------- ------------------------- -------------------------
2 624 33 723
------- ------------------------- -------------------------
Non-current portion of long term borrowings 1 758 - -
Current portion of long term borrowings 866 33 723
------- ------------------------- -------------------------
2 624 33 723
------- ------------------------- -------------------------
16. Income tax expense - continuing operations
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, Ghana and on declaration of dividends from South Africa.
The effective income tax rate in GPL was 24% (six months ended 31
December 2020: 26%), GRG was 15% (six months ended 31 December
2020: 15%) and the withholding tax
rate on dividends declared was 5% (six months ended 31 December
2020: 20%).
17. Earnings per share
Basic earnings per share
The earnings and weighted average number of
ordinary shares used in the calculation of
basic earnings per share are as follows:
Profit for the period attributable to owners
of the company 2 071 1 679 1 013
Loss for the year from discontinued operations - 570 243
--------- --------- ---------------
Earnings used in the calculation of basic
earnings per share for continuing operations 2 071 2 249 1 256
--------- --------- ---------------
Weighted average number of ordinary shares
used in the calculation of basic earnings
per share ('000s) 171 954 169 774 169 774
Weighted average number of ordinary shares
used in the calculation of diluted earnings
per share ('000s) 174 201 170 561 173 312
18. Segment information
18.1 Segment revenues
Total segment
revenue
---------------
Period ended 31 December 2021
South African Recovery Operations 10 616
West African Recovery Operations 10 710
---------------
Group revenue 21 326
---------------
Period ended 30 June 2021
South African Recovery Operations 17 622
West African Recovery Operations 17 778
---------------
Group revenue 35 400
---------------
Period ended 31 December 2020
South African Recovery Operations 8 243
West African Recovery Operations 4 359
---------------
12 602
---------------
Segment
information
continued...
18.2 Other incomes
and expenses
Segment
profit/(loss)
Depreciation Finance cost Finance before tax
for for income for
continued continued for continued Discontinued
operations operations continued opeations Taxation operations
operations
Period ended 31
December 2021
South African
Recovery Operations (172) (140) 370 2 141 (589) -
West African Recovery
Operations (76) (418) - 1 409 (193) -
Administration - (152) - (405) (7) -
Reconciliation to
group figures - 100 (88) (139) - -
-------------- -------------- ------------ --------------- -------------- ----------------
Total other incomes
and expenses (248) (610) 282 3 006 (789) -
-------------- -------------- ------------ --------------- -------------- ----------------
Period ended
30 June 2021
South African
Recovery Operations (379) (991) 125 2 358 (435) -
West African Recovery
Operations (140) (223) - 2 092 (383) -
Mining and
Exploration - - - - - (570)
Administration - 144 41 (3 957) (85) -
Reconciliation to
group figures - 161 (166) 3 159 - -
-------------- -------------- ------------ --------------- -------------- ----------------
Total other incomes
and expenses (519) (909) - 3 652 (903) (570)
-------------- -------------- ------------ --------------- -------------- ----------------
Segment
information
continued...
Segment
profit/(loss)
Depreciation Finance cost Finance before tax
for for income for
continued continued for continued Discontinued
operations operations continued opeations Taxation operations
operations
Period ended 31
December 2020
South African
Recovery
Operations (210) (876) 65 1 297 (357) -
West African
Recovery
Operations (68) (68) - 846 (122) -
Mining and
Exploration - - - - - (243)
Administration - (133) 389 (109) (80) -
Reconciliation
to group
figures - - 45 44 - -
-------------- -------------- ------------ --------------- -------------- ----------------
Total other
incomes and
expenses (278) (1 077) 499 2 078 (559) (243)
-------------- -------------- ------------ --------------- -------------- ----------------
Goldplat PLC
Condensed consolidated interim financial report for the 6 month
period ended 31 December 2021
Notes to the Consolidated Financial Statements
Figures in GBP `000
19. Major events
Share repurchase from and issue of new shares to the minority
shareholders of GPL
During the period the Group increased its interest in GPL, its
principal operating subsidiary, from 74% to 90.63% through the
buy-back by GPL of 22.33% of GPL shares, for ZAR 89.3 million
(approximately GBP4.5 million), from its minority shareholders and
issuing shares, amounting to 4.90% of GPL to Aurelian Capital
Proprietary Limited, a related party, at the same valuation as the
share repurchase, for ZAR 16 million (approximately GBP807,000).
The Transaction valued GPL at ZAR 400 million (approximately
GBP20.2 million) ("The Transaction"). The net cost to Goldplat
of acquiring an additional 16.63% of GPL was ZAR 66.52 million
(approximately GBP3.55 million).
The Transaction was financed in part through a South African
Rand denominated bank facility of ZAR 60 million (approximately
GBP3.02 million) provided by Nedbank. The remainder of the
consideration was settled through a set-off against the existing
Amabubesi vendor loan of ZAR 12.6 million (approximately
GBP635,000) outstanding to the Group with the balance paid in cash.
The principal on the bank facility is repayable monthly over 36
months. The interest payable on the facility will be the South
African Prime Rate plus 1.75%.
Of the ZAR 16 million (approximately GBP807,000) consideration
for the 4.90% worth of shares, Aurelian has paid ZAR 5 million
(approximately GBP252,000) in cash; a further ZAR 5 million cash
(approximately GBP252,000) is due by April 2022; and the ZAR 6
million balance (approximately GBP302,000) is a vendor loan and is
payable from distributions to be declared by GPL. Following
dividends declared to date of this report by GPL, the balance of
this vendor loan is now ZAR 4.2 million (approximately
GBP212,000).
After the completion of above transactions and cancellation of
the repurchased shares, the Group held 90.63% of GPL (an increase
of 16.63%), Amabubesi held 4.47% and Aurelian 4.90%. Subsequent to
above, Amabubesi's remaining shares were repurchased and shares to
the same amount and value issued to Aurelian. Aurelian is therefore
the only minority partner in South Africa and holds 9.37% of
GPL.
18
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END
IR UBOWRURUOAAR
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