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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