2nd quarter and half year operating results update for the period ended 31 December 2021

Goldplat plc / Ticker: GDP / Index: AIM / Sector: Mining & Exploration

10 February 2022

Goldplat plc ('Goldplat' or 'the Company')

2nd quarter and half year operating results update for the 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 an operational update for the 2nd quarter of the current financial year ("Q2") ended 31 December 2021.

The two recovery operations achieved a strong combined operating profit for the quarter of £2,356,000 (Q2, 31 December 2020: £1,554,000), a 52% increase from the comparative period ended 31 December 2020. The Ghana operations continued to perform well with a steady supply of material and achieved an operating profit for Q2 of £1,012,000 (Q2, 31 December 2020: £569,000). The South African operations achieved an operating profit for Q2 of £1,344,000 (Q2, 31 December 2020: £985,000).

The combined operating profit for the 6 months ending 31 December 2021 increased by 27%, to £3,759,000 (6 months ended 31 December 2020, £2,957,000) as a result of the strong Q2 performance.

The following events have contributed to the excellent Q2 operating results:

Ghana

  • The continued supply from current clients in West African and South America ensured lower cost of production during Q2 and strong sales, driving operating profits for the 6 months to £1,851,000 (6 months ended 31 December 2020, £849,000).
  • Our engagement with mine management and government officials on different levels has continued, with the aim of increasing our footprint to ensure regular supply. We foresee that the various coup d'états in West Africa countries might impact deliveries in the short-term. We do however have different sources of supply to ensure continued production.
  • As indicated in the previous operational update, a decision was made to expand the opportunities in South America by establishing a processing and storage site in Brazil, at an initial cost of USD300,000. This gives us the 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 country. We are currently ensuring we secure all licenses required, specifically environmental, and will keep the market updated on progress.
  • We continue to evaluate our options for the processing of artisanal tailings material in Ghana, including the possibility of finding a partner in country.

South Africa

  • The operational profits for South Africa were increased as a result of improvement in the cost of production as well as 7% increase in gold price, in ZAR terms, from Q1 to Q2. We are also seeing profits being supported by services in and production of platinum group metals ("PGM's"). This resulted in operating profit of £1,908,000 for 6 months ended 31 December 2021 (6 months ended 31 December 2020, £2,108,000).
  • 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 April 2022.
  • Our application for the water use license was submitted in October 2021 and we are still expecting feedback by the end of Q3. We continue to manage and extend the deposit of material within the Group's current tailings storage facility with the help of consulting engineers. A further £270,000 of capital expenditure was incurred during the 6 months, mainly on our tailing's deposition.
  • Towards the end of October 2021, an application was made for environmental approval for the installation of a pipeline to a process facility in the area. This pipeline could provide us with an avenue to pump and process our current tailings facility which contains a JORC resource of circa 82,000 ounces of gold. The approval process should be completed by the end of this calendar year.
  • Our cash balances remained strong at £1,452,000 at the end of Q2, with a significant balance invested in inventory and debtors at the end of the period. At the date of this announcement, the cash balance in the operating entities was £3,850,000.

    Werner Klingenberg, CEO of Goldplat commented: "I am pleased with the continued strong operating results from both recovery operations. Apart from our continuing focus on sourcing material for our operations and maximising recoveries from material received, management continues to focus on ways to leverage our unique skillsets and infrastructure, to diversify the materials and elements we can process economically, specifically PGM's".

    Mineral Resource Estimate of the Tailings Storage Facility, South Africa

    Total Resource

    Domain

    Class

    Tonnes (Mil)

    Density

    Au (g/t)

    Au (Oz)

    U3O8 (g/t)

    U3O8 (lbs)

    Ag (g/t)

    Ag (Oz)

    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

    ** ENDS **

    For further information visit www.goldplat.com, follow on Twitter @GoldPlatPlc or contact:

    Werner Klingenberg Goldplat plc (CEO) Tel: +27 (82) 051 1071
    Colin Aaronson / George M Grainger Grant Thornton UK LLP (Nominated Adviser) Tel: +44 (0) 20 7383 5100
    Jessica Cave / Andrew de Andrade WH Ireland Limited (Broker) Tel: +44 (0) 207 220 1666
    Tim Thompson / Mark Edwards / Fergus Mellon Flagstaff Strategic and Investor Communications Tel: +44 (0) 207 129 1474
    goldplat@flagstaffcomms.com