TIDMGDP
RNS Number : 2738J
Goldplat plc
15 August 2023
Goldplat plc / Ticker: GDP / Index: AIM / Sector: Mining &
Exploration
15 August 2023
Goldplat plc
('Goldplat' or the 'Company')
4(th) Quarter Operating Results update for period ended 30 June
2023
Goldplat Plc, (AIM:GDP) the AIM listed Mining Services Group,
with international gold recovery operations located in South Africa
and Ghana, servicing the African and South American Mining
Industry, is pleased to announce an operational update for the
4(th) quarter ended 30 June 2023 ("Q4"), of the financial year just
ended.
The South African operational results for the period continued
to be impacted by electricity cuts and infrastructure related
issues. In addition, the Ghana operation could not capitalise on
its continued strong production profile as it could only start
exporting material produced during Q3 and Q4 towards the end of Q4,
resulting in minimal sales during the quarter.
As a result the two recovery operations achieved combined
operating profit for the quarter of GBP1,188,000 (excluding listing
and head office costs, interest and foreign exchange losses),
comprising operating performances in South Africa of GBP750,000 (Q4
2022 - GBP1,237,000) and in Ghana of GBP438,000 (Q4 2022 -
GBP1,810,000, which included gains as a result of movements in the
GHS against the USD of circa GBP1 million, with exchange losses of
circa GBP1 million recorded below the line).
Despite the reduced operating performance in Q4, the operating
entities delivered a strong combined operating profit performance
for the year of GBP6,028,000 (FY 2022 - GBP9,070,000) and the
Company expects net profit before tax to exceed market expectations
for the 2023 financial year.
The following events have contributed to the reduced Q4
operating results:
Gold Recovery Ghana
-- Although the license was approved by Minerals Commission of
Ghana and signed by regulated authorities during Q4, it did not
provide sufficient time to sell and realise margins locked up in
inventory at the end of the year. During the period supply from
clients and production remained strong and we expect a higher than
usual sales volume during Q1 of the 2024 financial year.
-- The supply of material from South America and Ghana has
remained steady and we continue to have positive engagements with
clients in South America and West Africa.
Goldplat Recovery (Pty) Ltd
-- The South African operation lost a total of 23 operating
days, 25% of the total days available in the quarter, due to
electricity cuts and infrastructure related issues during Q4. Due
to the increased uncertainty of supply in the medium term and as
announced on 31 May 2023, we have made a decision to invest in
diesel generators which will be able to sustain operations in South
Africa during electricity cuts. We expect the diesel generators to
be operational by the end of October 2023.
-- The construction of the new tailings storage facility ('TSF')
was completed during the first week of August and commissioning has
started. It is expected that the commissioning of the new TSF will
take 9 months during which period tailings will be deposited
between the new and old tailings facility.
-- With the new TSF commissioned we can turn our focus to the
processing of our old TSF which has a JORC Resource of 81,959
ounces (Table 1) at a DRD Gold process facility. The processing of
our old TSF remains dependent on the approval of the water use
license over certain areas for the installation of a pipeline to
the DRD Gold process facility and finalising commercial agreements
with DRD Gold in this regard.
-- We estimate that we will require a further GBP1,150,000
excluding investment of GBP750,000 to be spent on generators the
next 18 months to be spent on repairing and maintaining current
operations, on completing the TSF and improving the environmental
impacts of our current operations.
We continue to assess the economic and environmental feasibility
of the fine coal recovery technology company we invested in, which
is in line with our strategy to diversify our recovery operations
into other commodities.
Our cash balances in the group remained strong at GBP2,800,000
at the end of Q4, with significant balances invested in inventory
and debtors with our main exposure to smelters in Europe and South
Africa. This was driven by delays experienced in settlement from
one of the smelters and we only started receiving settlements on
long outstanding batches of material delivered, towards the end of
Q4 and into Q1 of 2024, as well as the delay in receiving our gold
license in Ghana. As a result, we expect interest on pre-financing
of material to be higher than usual.
Werner Klingenberg, CEO of Goldplat commented: "The completion
of the new TSF in South Africa is a big milestone for the group
from a business continuity perspective, but it also opens up
opportunities for the processing of the old TSF and other potential
projects. I am pleased with the operating results achieved by the
group during Q4 and the for the year as a whole, considering some
of the difficult circumstances we faced, and we look forward
particularly to improved operating results in Ghana during Q1 of
the 2024 financial year."
For further information visit www.goldplat.com, follow on
Twitter @GoldPlatGDP or contact:
Werner Klingenberg Goldplat plc Tel: +27 (0) 82 051 1071
(CEO)
Colin Aaronson / Samantha Grant Thornton UK LLP Tel: +44 (0) 20 7383
Harrison (Nominated Adviser) 5100
James Bavister / Andrew WH Ireland Limited Tel: +44 (0) 207 220
de Andrade (Broker) 1666
Tim Thompson / Mark Flagstaff Strategic Tel: +44 (0) 207 129
Edwards / Fergus Mellon and Investor Communications 1474
goldplat@flagstaffcomms.com
Table 1
Mineral Resource Estimate of the TSF, South Africa
Total Resource
Domain Class Tonnes Density Au (g/t) Au (Oz) U (3) O U (3) O Ag (g/t) Ag (Oz)
(Mil) (8) (g/t) (8) (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 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.
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