Goldplat plc, the AIM listed African gold producer, announces a positive operations update for the three months ending 30 September 2015 ('the quarter') for its two market leading gold recovery businesses in South Africa and Ghana, and its Kilimapesa Gold Project in Kenya, reporting a total gold production of 9,581 ounces, a return to profitability and further progress on capital projects.
Goldplat Recovery Pty Limited ('GPL') - South Africa
- During the quarter GPL produced 6,141 ounces of gold, a total of 4,983 ounces was sold and 1,608 ounces was transferred to clients by way of metal transfers
- Operating profit for the quarter was £415,000 (unaudited)
- Further to the previously announced completion of the Woodchip Wash Plant and Low Grade Mill, the new 4 tonne elution column with its associated ancillary equipment has been installed and is scheduled to be commissioned during November 2015 - daily elution throughput capacity is planned to increase from 5 to 8 tonnes allowing for a reduction in by-product stock levels and the elimination of backlog stock by end of December 2015. The project is in line with Goldplat's strategy to capture more of the gold recovery value chain in-house
- A consultant has been appointed to undertake a resource estimation of the stock dam - results are expected by the end of December 2015
- Good progress is being made on the installation of a weigh bridge on the property to result in additional cost savings
Gold Recovery Ghana ("GRG")
- During the quarter 2,797 ounces of gold was produced at GRG with 3,086 ounces being sold during the period
- This resulted in a return to profitability with an operating profit of £156,000 (unaudited) for the quarter
- With the increased elution capacity at GPL, and the Aurubis (third party refiner) pipeline being filled, GRG has returned to positive cashflow
- The installation of four new filter presses (from GPL) has been completed and has improved the efficiency of the spiral circuits
- The new shot blast facility has been constructed at GPL and will be transported to GRG, for installation and commissioning during the current quarter
- Constructive discussions have begun with a view to sourcing by-product material from South American sources - this forms part of Goldplat's stated diversification and growth strategy for GRG
Kilimapesa Gold ("KPG")
- Kilimapesa produced 643 ounces of gold during the quarter of which 611 ounces were sold during the period
- This resulted in an operating loss for the period of £115,000 (unaudited)
- The intersection of the new adit with the old cross-cut at 'Adit D' has been equipped and on-reef development on the previously intersected first vein has been started
- The new adit and cross-cut will ultimately provide access to six additional reef drives which will be used to delineate a new mining block to increase production and flexibility
- Processing of artisinal tailings has ceased - the plant is now fed only from the Kilimapesa underground mine; this decision was taken to preserve the life of the existing tailings facility
- Progress at Teng Teng was delayed during the quarter pending the installation of an underground pump which is now in full operation - limited production of high grade ore from on-reef exploration at Teng Teng is expected to commence during the current quarter
Gerard Kisbey-Green, CEO of Goldplat plc commented: "We are delighted to announce robust gold production for the first quarter of our financial year of 9,581 ounces of gold from our recovery operations and mining operations in Africa. We are also pleased to report on the completion of the installation of the 4 tonne elution column at GPL. Once commissioned this will not only increase elution throughput capacity but will provide additional flexibility, reduce costs and of course, capture more of the value chain in-house. I am also particularly encouraged by the feedback from the recent Goldplat team trip undertaken to South America during the quarter, to explore opportunities to expand our gold recovery business, and hope to be able to announce progress in this regard during the current quarter. The return to positive cashflow is welcome and I would like to thank the management and operational teams for their hard work in achieving this turnaround. Whereas the financial results reflect the operational performances only, it is pleasing to report that, including all Head Office costs and costs associated with non-operating subsidiaries, the group was profitable during the quarter."
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For further information visit www.goldplat.com or contact:
|Gerard Kisbey-Green, CEO||Goldplat plc||Tel: +27 (71) 8915775|
|Ewan Leggat/Jeff Keating||SP Angel Corporate Finance LLP||Tel: +44 (0) 20 3470 0470|
|Andrew Raca/Justin McKeegan||VSA Capital||Tel: + 44 (0)20 3005 5000|
|Felicity Winkles/Charlotte Heap||St Brides Media Partners Ltd||Tel: +44 (0) 20 7236 1177|
Goldplat plc, is an AIM-listed gold recovery services company with two market leading operations in South Africa and Ghana. The Company's strategy is focussed on utilising its cash flow generated from flagship gold recovery operations in Africa to self-fund sustainable growth and expansion of niche gold recovery business model. The Company also has a small gold mining and exploration portfolio in Kenya, Burkina Faso and Ghana and is evaluating various opportunities to create value or monetise these assets.
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