TIDMGDP
RNS Number : 0094T
Goldplat plc
10 November 2023
Goldplat plc / Ticker: GDP / Index: AIM / Sector: Mining &
Exploration
10 November 2023
Goldplat plc
('Goldplat' or the 'Company')
1(st) Quarter Operating Results update for period ended 30
September 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
1(st) quarter ended 30 September 2023 ("Q1"), of the current
financial year.
Operations in both South Africa and Ghana were positive in Q1,
achieving combined operating profit for the quarter of GBP1,865,000
(excluding listing and head office costs, interest and foreign
exchange movements), compared to the combined operating profit of
GBP1,942,000 for Q1 2022. The operating performance comprises
operating profit in South Africa of GBP759,000 (Q1 2022 -
GBP976,000) and in Ghana of GBP1,106,000 (Q1 2022 -
GBP966,000).
The following events have contributed to the Q1 operating
results:
Gold Recovery Ghana
-- We had a good supply of material during the first quarter,
supported by large lower grade consignment received out of Côte
d'Ivoire. This is the first consignment out of Côte d'Ivoire and is
a result of our continued engagement in various West African
countries. This opens up the potential to extract more value out of
Côte d'Ivoire and we will at the same time continue our engagement
in Mali and other jurisdictions in West Africa.
-- During the period we incurred capital expenditure of
GBP205,000 on a lower grade milling, gravity and flotation circuit.
This will increase the value we can extract from larger volumes of
lower grade fine carbon material received in Ghana. Commissioning
of part of the plant will start in Q2 and full commissioning will
be completed in Q3.
Goldplat Recovery (Pty) Ltd
-- The South African operation lost a total of 21 operating
days, 23% of the total days available in the quarter, due to
electricity cuts and infrastructure related issues. We have
continued to implement processes to maximize the production during
electricity supply hours and as a result our tonnes processed was
only 18% lower rather than 23% lower.
-- Due to the continued uncertainty of electricity supply in the
medium term and as announced on 31 May 2023, we decided to invest
in diesel generators which will be able to sustain operations in
South Africa during electricity cuts. We originally expected the
diesel generators to be operational by the end of October 2023.
However, due to delays in shipping, we now expect the generators to
be operational in January 2024.
-- We are seeing a reduction in by-products received from
current mining operations due to changes in their production
profile, although the visibility on supply of low-grade soils for
our milling circuits remains strong, with more than 18 months of
material for processing on site and more on contract. The focus
therefore remains to increase our by-product market share in South
Africa and to gain access to neighbouring countries.
-- The construction of the new tailing's storage facility
('TSF') was completed during the first week of August 2023 and
commissioning started in August 2023. It is expected that the
commissioning of the TSF will take nine months. During the
commissioning period, tailings will be deposited on both the new
and old tailings facilities. Currently most tailings are being
deposited on the new facility. A further GBP320,000 capital was
incurred on the TSF during the quarter.
-- With the new TSF being commissioned, we can turn our focus to
the work required to begin the processing of our old tailings
facility which has a JORC Resource of 81,959 ounces (Table 1), at a
DRD Gold process facility.
-- The processing of our old tailings facility remains dependent on:
o The approval of the water use license over certain areas for
the installation of a pipeline to the DRD Gold process facility;
The application process is ongoing with engineering designs being
finalised with final application to be done before end of December
2023. Approval is estimated to be received during Q4 of the 2024
financial period;
o DRD Gold and Goldplat plc are currently in the process of
evaluating different variables that will impact the processing of
the TSF, as well as the commercials of doing so; this process will
be completed alongside the water use license.
-- We estimate that we will require a further GBP1,300,000 (not
including the investment of GBP750,000 to be spent on generators
over 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 GBP1,350,000,
with significant balances invested in debtors with our main
exposure to a new smelter in Europe and South Africa. This was
driven by the delay in receiving our gold license in Ghana during
Q4 of previous period, resulting in inventory only being sold
during Q1.
Werner Klingenberg, CEO of Goldplat commented: "I am pleased
with the operating results achieved by the group during Q1 and
results we are seeing from continued efforts, specifically
consignment from Côte d'Ivoire, the improved turnaround of material
being delivered to a different smelter, securing of low-grade
carbon in leach (CIL) material in South Africa and the momentum we
are seeing on engagement around the reprocessing of our old
TSF.
Our focus will remain on strengthening relationships and
continued engagements in West Africa and South America, increasing
market share in a declining gold market in South Africa and
neighbouring countries, reprocessing of the old tailings facility
and leveraging our strength and capabilities through partnership
into other precious metals and commodities."
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 / Enzo Aliaj (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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END
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