Goldplat plc / Ticker: GDP / Index: AIM / Sector: Mining & Exploration
20 April 2016
Goldplat plc ('Goldplat' or 'the Company')
Goldplat plc, the AIM listed African gold producer, announces an operations update for the three months ending 31 March 2016 ('the quarter') for its two market leading gold recovery businesses in South Africa and Ghana, and its Kilimapesa Gold Project in Kenya, reporting total gold production of 7,252 ounces, continued profitability and steady progress on priority capital projects.
Goldplat Recovery Pty Limited ('GPL') - South Africa
- During the quarter GPL produced 4,864 ounces of gold of which a total of 3,365 ounces were sold for own account and 975 ounces were returned to clients by way of metal transfers
- Operating Profit for the quarter was £845,000, bringing the 9-month year to date Operating Profit to £1,535,000 (unaudited)
- The Tailings Storage Facility ('TSF') re-processing project is progressing well with focus during the quarter on the research into metallurgical recovery optimisation. Due to the complexity of the metallurgical research work, it is expected to be completed towards the end of May 2016, following which the economic assessment, design, production and processing plans will be undertaken
- During the quarter, the Company commenced a silver toll recovery project for Rand Refinery to which the high grade circuit and approximately half of the increased elution capacity was dedicated. This project has continued into the current quarter. The project cost was front end loaded and although all revenues thus far have been recognised, the cash amounts due will be collected in the current quarter and further profits realised
- The majority of the concentrates produced during the period went to Rand Refinery in South Africa, reducing the turnaround time significantly, with the balance of the ashes and carbon sent to Aurubis in Germany
- The recently installed 4-tonne elution column continues to operate at capacity with improvements being made on a continual basis providing greater flexibility and capacity to procure and process material
- Awarded a contract with Anglogold Ashanti's Geita mine in Tanzania
- Appointments of a new General Manager and Strategic Sourcing Manager for GPL are progressing well and should be finalised in the current quarter
- Annual wage negotiations were successfully concluded
Gold Recovery Ghana ("GRG") - Ghana
- During the quarter 1,885 ounces of gold were produced at GRG with 2,391 ounces being sold
- The profitability continues with an operating profit of £156,000 for the quarter, bringing the 9-month year to date Operating Profit to £458,000 (unaudited)
- The renewal of the Gold and Environmental Protection Agency licences are in progress and are expected to be concluded during the current quarter
- With the expansion of Kilimapesa being prioritised, the timing of the new elution plant project at GRG has been pushed out and a new commissioning date is being negotiated with the Ghanaian Authorities
- Commissioning of the shotblast facility was completed and production is underway
- The CIL plant has been deconstructed and containerised, and is being loaded for transport to Kilimapesa during the current quarter
- Subsequent to the resolution of backlog stock issues, relationships with clients in Ghana have normalised and new material deliveries are expected to return to normal
- Constructive discussions relating to sourcing by-product material from potential South American clients continue - this forms part of Goldplat's stated diversification and growth strategy for GRG
- A new collective bargaining agreement was signed and annual wage negotiations concluded successfully
Kilimapesa Gold ("Kilimapesa")- Kenya
- Kilimapesa produced 503 ounces of gold during the quarter of which 442 ounces were sold
- This resulted in an operating loss for the period of £169,000 (unaudited), bringing the 9-month year to date Operating Loss to £501,000. Monthly losses relative to the previous 6 month period were reduced by improving gold yields
- In preparation for the installation of the CIL plant (from Ghana) the Environmental Impact Assessment for the new plant, office and tailings deposition sites has been approved. Civil construction is expected to begin during the current quarter
- Processing of artisanal tailings from the licence area recommenced during the quarter
- Limited production of high grade ore from on-reef exploration at Teng Teng continued during the quarter and plans are underway to prepare for a Mining Licence application
- The Knelson concentrator plant trials are underway at the Kilimapesa plant. On completion the equipment will be re-installed and commissioned at the new plant site and is expected to contribute to revenues during the current quarter
- A new collective bargaining agreement was signed and annual wage negotiations were successfully completed
Gerard Kisbey-Green, CEO of Goldplat plc commented: "This has been another good quarter for Goldplat. I am pleased to report continued profitability at the recovery operations and decreased losses at Kilimapesa. Good progress was made on major projects, including the Kilimapesa plant project and the GPL tailings storage facility. Finally I would like to congratulate all stakeholders for the successful completion of annual wage negotiations at all subsidiaries. Whereas the financial results reflect the performances of the operating subsidiaries only, it is pleasing to report that, including all holding company and non-operating subsidiary costs, the Group remained 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
Charlotte Heap St Brides 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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