Interim results for the six months ended 31 December 2018

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

25 February 2019

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

Interim results for the six months ended 31 December 2018

Goldplat plc, the AIM listed gold producer, with international gold recovery operations located in South Africa and Ghana and a gold mine in Kenya, announces its interim results for the six months ended 31 December 2018.

Overview

  • The Group reports an operating loss for the six-month period of £653,000 (six months ended 31 December 2017: operating profit of £1,578,000).
  • Production of gold and gold equivalents for the six months’ period under review of 15,786 ounces (six months ended 31 December 2017: 20,246 ounces) is well below the year forecast.
  • All operations reported decreased production due primarily to the poor first quarter at both recovery operations and planned production decreases at Kilimapesa Gold (‘KPG’). The poor first quarter at the recovery operations reflected difficulties at Gold Recovery Ghana (‘GRG’) in sourcing sufficient material and challenges at Gold Recovery (Pty) Ltd (‘GPL’) in sourcing the required quality material during the period and highlights why sourcing remains a key strategic focus area for the Group.
  • GPL recovered well from a poor first quarter and has returned to normal levels during the second quarter with both the by-product section and the Carbon in Leach (‘CIL’) section performing well. This performance is attributable to deliveries from clients returning to normal levels and Management’s efforts to turn over gold inventory stocks that had accumulated over a period.
  • GRG performed below plan despite production improvements during the second quarter and reported a loss for the six-month period. Production increased during the second quarter as established clients in Ghana made deliveries of material and additional material was sourced from South America. The plant continued to run below capacity during the second quarter and despite the improvement the losses from the first quarter could not be recovered.
  • Substantial gold bearing material suitable for treatment at the Ghana plant has been identified at the operations of a major producer in West Africa. A trial batch of this material will be processed once export logistics and legalities has been finalised. A successful outcome of this trial will secure another stream of material for the Ghana operation.
  • KPG continues to report losses despite a significant decrease in costs at the operation. This can be seen in the mining and exploration segment loss before tax of £836,000 (six months ending 31 December 2017: £81,000) of which £292,000 (six months ending 31 December 2017: £283,000) related to depreciation and amortisation. Plans to put Kilimapesa on care and maintenance have been put on hold whilst discussions regarding financing of the operation are in progress. Since October a strategy was followed to reduce production, improve grades and decrease the overall cost of running the operation. This strategy envisaged that losses can be kept below the cost of care and maintenance whilst we are progressing a possible transaction to secure funding.
  • The net finance loss of £184,000 for the period (six months ended 31 December 2017: £746,000) relates mainly to the interest on the Scipion loans and the financing of debtors. The prior period included significant foreign exchange losses.
  • The Group has maintained a cash reserve of £1,000,000 (31 December 2017: £1,183,000) with interest bearing borrowings increasing to £838,000 (31 December 2017: £667,000).
  • Capital expenditure of £321,000 was spent during the period to maintain and optimise current plant infrastructure.

To read the full report please click here to download it.

Gerard Kisbey-Green CEO Goldplat plc Tel: +27 (71) 8915775
Colin Aaronson / Daniel Bush Grant Thornton UK LLP (Nominated Adviser) Tel: +44 (0) 20 7383 5100
James Joyce / Jessica Cave WH Ireland Limited (Broker) Tel: +44 (0) 207 220 1666
Charlotte Page / Susie Geliher St Brides Partners Ltd (Financial PR) Tel: +44 (0) 20 7236 1177