TIDMGDP
RNS Number : 6528F
Goldplat plc
08 November 2022
G ol dp lat plc / Ti cker: GDP / Index: AIM / Secto r: M in i ng
& E x p l o rati on
8 November 2022
Goldplat plc
( 'Goldplat', t he 'Group' or 'the Company ')
1st Quarter operating results update
for the period ended 30 September 2022 ("Q1")
G ol dp lat, the AIM li sted Mining Services Group, w ith
internati onal g o ld reco very o perati ons l o cated in South Afr
i ca and Ghana, servicing the African and South American Mining
Industry, is p leased to announce an operational update for Q1.
The two recovery operations continued the strong combined
operating performance of the previous quarter and achieved a
combined operating profit for the quarter of GBP1,942,000
(excluding listing and head office costs and foreign exchange
losses) which represents a 38% increase against Q1 in the previous
period (Q1 2021: GBP1,403,000).
The Ghanaian operation continues to perform well as a result of
the steady supply of material and achieved an operating profit for
Q1 of GBP966,000 (Q1 2021: GBP839,000).
The South African operations continued to produce steady returns
from the assortment of material processed through a variety of
plants. During the quarter the operations have been impacted due to
intermittent electricity cuts by the electricity provider in the
country to reduce the load on the network. Notwithstanding the
electricity cuts, the South African operation achieved an operating
profit for Q1 of GBP976,000 (Q1, 30 September 2021:
GBP564,000).
Goldplat's returns are impacted by changes in reporting
currencies for each subsidiary and United States Dollar ("USD"), as
well as the gold price.
During Q1, the Group operating entities' operational results
benefited from the weakening of the reporting currencies Ghanaian
Cedi and the South African Rand, which increased operating results
by circa GBP500,000. As the Company receives payment for the
majority of its revenue on pre-financing contracts, foreign
exchange losses in the order of GBP500,000 have been incurred
during the period have not been reflected in the operational
results above. Taking account of these exchange losses, operating
profit for the recovery operations for the quarter was
GBP1,442,000.
Although Goldplat processes an assortment of material throughout
the Group from different clients and on different contracts making
use of a wide range of plant and equipment, the Group has been
delivering profitable albeit fluctuating operations returns, for
the last 11 quarters, which is in line with management's focus on
ensuring sustainable cashflow and profitability.
The Group is further pleased to announce that:
- DRD Gold Limited ("DRD Gold") has agreed for Goldplat Recovery
(Pty) Ltd ("GPR") to remove low-grade carbon contaminated soils
from their premises, on a cost per ton basis, which should provide
circa 5 years of additional feed for our larger CIL circuit. The
CIL circuit currently contributes between 20% to 30% of the South
African operation's production. This increases the availability of
material for this circuit to more than 7 years and will form a good
base for the business going forward.
- The nature of these materials to be removed from DRD Gold,
will be variable, in terms of the gold grade contained and the
recoverability of the gold contained through our circuits. The
analysis and processing of these materials to date has indicated
that it will be viable to remove and process at current cost and
price parameters.
- DRD Gold is also assisting GPR to get approval for the
construction of a pipeline to one of their plants. The pipeline
will provide GPR with the ability to process the existing Tailings
Storage Facility ("TSF") which contains a JORC resource of circa
82,000 ounces of gold (Table 1) at a DRD Gold processing
facility.
- The negotiations of the terms and conditions of processing our
existing TSF at a DRD Gold processing facility still need to be
finalised.
- The approval of the pipeline by authorities is taking longer
than originally expected, but we believe this will be received, at
the latest, by June 2023.
Goldplat has identified and to an extent secured material in
ECOWAS ("The Economic Community of West African States"); however
the export and processing of these materials remain dependent on
approval from governments' officials. We continue our engagement
with the governments and mines in the ECOWAS to agree processes and
controls on the export of gold bearing products and remain
encouraged by the value we have identified that we can offer in
these countries.
The majority of material processed in Ghana during Q1 was from
clients inside the country.
We continue with our expansion into South America on a measured
basis, with limited capital allocated as yet.
Despite numerous issues experienced during the commissioning of
the PGM flotation plant in South Africa, which has resulted in us
not being able to run the plant optimally to date, we are
encouraged with the progress made and with the increased
flexibility the flotation plant will provide us in the type of
material we can process.
The construction of the new TSF will start in Q2 (to 31 December
2022) and we aim to have this completed by the end of Q4 (to 30
June 2023)
During Q1 the Group incurred capital cost of GBP 630,000 and we
are estimating that we will require a further GBP1,500,000 during
the next 12 to 18 months to be spent, on repairing and maintaining
current operations, and on improved lining of the new TSF and
improving the environmental impacts of our current processes.
We are currently estimating to announce the Group's audited
annual results towards the beginning of December 2022.
Cash balances in the group remained strong at GBP2,920,000 at
the end of Q1 ( Q1 2021: GBP2,340,000), (Q4 2022:
GBP3,672,000).
Werner Klingenberg, CEO of Goldplat commented: "I am pleased to
announce the progress we have made in achieving our key strategic
deliverables, generating continued profitability from the
processing of previously mined gold and PGM materials, increased
visibility of future earnings through increasing our resources and
forming strategic relationships with other key industry
participants, finding a final deposition site and processing plant
for our existing TSF and getting approval for the construction of a
new TSF.
We continue to invest time into identifying different methods of
processing materials containing various elements in environmentally
friendlier methods to become a key service provider to the mining
industry to beneficiate, process and dispose of their by-products
and waste.
For further information visit www.g o ld p l at.com, f o l l ow
on Twitter @GoldPlatPlc or contact:
Werner Klingenberg Goldplat plc Tel: +27 (0) 82 051 1071
(CEO)
Colin Aaronson / George Grant Thornton UK LLP Tel: +44 (0) 20 7383
Grainger / Samuel Littler (Nominated Adviser) 5100
James Bavister / Andrew WH Ireland Limited Tel: +44 (0) 207 220
de Andrade (Broker) 1666
Tim Thompson / Mark Edwards Flagstaff Strategic and Tel: +44 (0) 207 129
/ Fergus Mellon Investor Communications 1474
goldplat@flagstaffcomms.com
The information contained within this announcement is deemed to
constitute inside information as stipulated under the retained EU
law version of the Market Abuse Regulation (EU) No. 596/2014 (the
"UK MAR") which is part of UK law by virtue of the European Union
(Withdrawal) Act 2018. The information is disclosed in accordance
with the Company's obligations under Article 17 of the UK MAR. Upon
the publication of this announcement, this inside information is
now considered to be in the public domain.
Table 1
Mineral Resource Estimate of the TSF, South Africa
Total Resource
Domain Class Tonnes Density Au (g/t) Au (Oz) U(3) O(8) U(3) O(8) Ag (g/t) Ag (Oz)
(Mil) (g/t) (lbs)
----------- ------------ -------- --------- -------- ----------- ----------- --------- --------
TOTAL
RESOURCE Measured 0.87 1.32 1.82 50,907 61.41 117,754 4.85 135,573
----------- ------------ -------- --------- -------- ----------- ----------- --------- --------
Indicated 0.49 1.37 1.77 27,897 59.73 64,506 4.71 74,165
------------------------- ------------ -------- --------- -------- ----------- ----------- --------- --------
Inferred 0.07 1.30 1.4 3,154 71.40 11,016 2.82 6,356
------------------------- ------------ -------- --------- -------- ----------- ----------- --------- --------
Grand Total 1.43 1.34 1.78 81,959 61.32 193,276 4.70 216,094
------------ -------- --------- -------- ----------- ----------- --------- --------
The Tailings Mineral Resource Estimate was announced in
accordance with the JORC Code (2012) in a press release on 29
January 2016. Mark Austin of Applied Geology & Mining (Pty) Ltd
was the Competent Person responsible for that announcement. The
Company confirms that all material assumptions and technical
parameters underpinning the Resource Estimate continue to apply and
have not materially changed.
, the news service of the London Stock Exchange. RNS is approved by
the Financial Conduct Authority to act as a Primary Information
Provider in the United Kingdom. Terms and conditions relating to
the use and distribution of this information may apply. For further
information, please contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
QRFUWVNRUAUARRA
(END) Dow Jones Newswires
November 08, 2022 02:00 ET (07:00 GMT)
Goldplat (LSE:GDP)
Historical Stock Chart
From Nov 2023 to Dec 2023
Goldplat (LSE:GDP)
Historical Stock Chart
From Dec 2022 to Dec 2023
