Goldplat plc, the AIM listed gold producer, is pleased to announce its preliminary results for year ended 30 June 2007.
- Pre-tax profits of £751,000 for the year ended 30 June 2007, and an after tax profit of £569,000
- Healthy cash position with £1,222,000 in the bank
- Expanding into gold mining initially through the joint venture to develop targets within historically producing Migori Archaean Greenstone Belt in western Kenya - focused on rapidly commencing mining
- Reviewing a number of other projects across Africa
- Stepped up production and profitability at South African plant through investment in new and the upgrading of existing machinery
- On track to bring new plant in Ghana into full production in first half 2008
I am pleased to report Goldplat's final results for the year ended 30 June 2007. Since our flotation on AIM in July 2006 the Company has made great progress, developing its recovery business and taking its first step towards becoming a junior mining company.
Our strategy has always been to create a junior mining house, focussed on gold production and underpinned by revenue secured from our recovery business, through a three-phased approach:
Firstly to increase efficiency and flexibility of South African processing plant
Secondly to develop a complementary processing plant in Ghana to meet demand primarily from West African gold mines; and
Thirdly to expand into gold mining through the acquisition of known deposits with targets of between 200,000 and two million ounces of gold contained.
To this end, with phase one completed and phase two due for completion this year, we are now focused on phase three. Led by our CEO, Demetri Manolis , who has managed various gold mining companies both public and private, our management team is particularly skilled in the gold mining sector and has the capabilities to grow this side of the business rapidly.
We continue to examine mining projects across Africa , which we believe can be brought rapidly into production. In July 2007, we signed a our first joint venture agreement with International Gold Exploration AB, a Swedish mineral exploration company quoted on the Oslo Stock Exchange, to develop the gold potential of ten targets totalling approximately 14 sq km selected by Goldplat within the Lolgorien licence area in the historically producing Migori Archaean Greenstone Belt in western Kenya. Using existing cash resources we are now focused on rapidly defining available mineral resources through an extensive confirmatory exploration programme, with a view to commencing mining in the short term.
Other projects in South Africa , Kenya , Tanzania , Ghana and Mozambique are currently under review and I look forward to updating shareholders in the near future on these.
Our recovery businesses based in South Africa and Ghana go from strength to strength. Mining operators, required to dispose of mining by products such as woodchips, fine carbon and waste grease in an environmentally-friendly manner, come to us with their raw materials. Having first tested the material, we then process it to recover the gold or PGM content.
During the year under review, we took the decision to step up production and profitability at our South African plant through investment in new and the upgrading of existing machinery. I am delighted to say that this has been very successful, as outlined in the operations review and highlighted by our results.
Significant progress has also been made towards bringing the new plant in Ghana into full production, which has enabled us to process fine carbon, steel and rubber mill liners and similar high value materials. The second phase of construction is now in progress and is anticipated that the plant will reach its full planned production capability in the first half of 2008.
Naturally, the procurement of raw material is an essential element for both recovery businesses. However, we have a steady flow of materials for processing through contracts with a growing number of major mining companies including Anglogold Ashanti , Goldfields, Harmony and Impala Platinum. In addition we have signed a cooperation agreement with Rand Refinery Limited.
I am pleased to report pre-tax profits of £751,000 for the year ended 30 June 2007, and an after tax profit of £569,000. This profit has primarily generated from our South African recovery plant, which has increased its profit after tax by a factor of seven compared to the previous year. The Ghanaian subsidiary, being in its first year of development, reported a net loss of only £32,476 of which £21,911 can be ascribed to unfavourable exchange rate fluctuations on the loan from Goldplat plc.
Our cash position remained healthy with £1,222,000 in the bank. No dividend is proposed as the profits will be retained for further expansion of the Company's operations and to accelerate our growth strategy.
When I look back at the year, I am thrilled at the progress your Company has made in such a short time frame. The team's energy and commitment has enabled Goldplat to develop at a rapid pace.
14 September 2007
This has been a very exciting year for Goldplat plc, with the performance of the Company exceeding expectations.
While we remain focused on developing our recovery businesses, we are also very excited to be moving into the gold mining arena, where the strong gold price makes our vision more attractive. This strength in the gold price has more to do with fundamentals, solid demand for the metal, its intrinsic attraction as a store of value and perceived scarcity of new resources. Therefore, the small ore bodies which we are targeting are becoming increasingly interesting and profitable.
We continue to examine mining projects across Africa , which we believe can be brought rapidly in production. South Africa , as a country with a solid history of gold mining, good infrastructure, an experienced workforce, workable legislation and an area of significant scope, remains an area of focus. Other countries of focus to expand our mining activities are Kenya , Tanzania , Ghana and Mozambique . In the above mentioned countries projects have been identified and are currently under review or in advance state of negotiations.
In July 2007, we signed our first joint venture agreement with International Gold Exploration AB ('IGE'), to develop the gold potential of ten targets within the Lolgorien Licence. A confirmatory exploration programme is currently underway at six of the targets, which were adits from previous mining activities or surface reserves. Several continuous vein quartz targets have been identified, which have returned values of up to 140 grams gold per ton. There is also considerable data available from previous exploration programmes in the 1980s and 1990s.
A geophysical programme conducted by IGE has confirmed Goldplat's choice of targets and is confirming the geological model. Goldplat has also completed an evaluation of several surface reserves in the immediate vicinity which returned values of up to 14 grams per ton. These reserves are within 5 km of the metallurgical plant.
The adit evaluation affords immediate access to continuous exposure plus they are available for mining should reserves be identified.
All surface reserves have been augured, sampled and surveyed. A total of 263 samples have been submitted to SGS Laboratories in Johannesburg . Once values have been received, the deposits will be modelled and resources calculated. At this point we expect to have measured resources for the surface reserves and have evaluated the quartz vein targets for further work.
In terms of the recovery businesses, the considerable improvements in the operations made at our plant in South Africa have given us more flexibility in the processing of new materials. On the back of this, the profitability of Goldplat Recovery has increased substantially.
As part of our strategy to penetrate the by-products market in West Africa , we established a plant in Ghana, Gold Recovery Ghana Limited. The first phase of construction of the new plant has been completed and limited production including the processing of fine carbon, rubber and steel liners has commenced. The second phase of construction is in progress, with the ball mill and gravity concentrators already installed and commissioned and a carbon in leach plant is currently being installed. The plant is expected to be in full production in the first half of 2008.
The procurement of by-products is going well having secured additional raw materials such as rubber, steel liners, fine carbon from a growing number of mining companies including Anglogold-Ashanti, Central African Gold, Redback Mining and Golden Star. We also formed a strategic alliance with Rand Refinery under which Goldplat has first right of refusal to process all Rand Refinery's by-products not suitable for its own refining process. In turn, Rand Refinery, which already refines the bullion produced by Goldplat in South Africa , has exclusive rights to refine Goldplat's Ghanaian production.
Labour - Safety
Our safety and health record remains excellent. No accident is acceptable to us and we will continue to aim to eliminate them. I have given my personal support to our safety and health programme and will hold our managers accountable for safety performance. We had another year of good relations with our labour force.
Training - Welfare - Environment
The Company has an active training programme and continued with the Adult Basic Education training of its workforce. We have also agreed to sponsor a soccer academy, the young players being from a historically disadvantaged background and will continue to sponsor the tertiary education of selected individuals.
Our Environmental Management programme has been updated and submitted to the Department of Minerals and Energy.
Chief Executive Officer
14 September 2007
The financial statements were approved by the Board of Directors and authorised for issue on 12 September 2007.
- The financial information contained in this announcement does not comprise full statutory accounts as defined by Section 240 of the Companies Act 1985.
- The financial statements have been prepared in accordance with International Financial Reporting Standards as adopted by the EU . The financial statements have been prepared on the historical cost basis.
- No dividend is proposed in respect of the year.
- The annual General Meeting will be held on Friday 12 October 2007 at 10.00am at St Brides Media and Finance Ltd, 38 Bow Lane , London , EC4M 9AY .
For further information visit www.goldplat.com or contact:
Demetri Manolis, CEO Goldplat plc, Tel: +27 11 423 1203, Mob: +27 82 454 7392
James Joyce WH Ireland Limited, Tel: +44 (0)20 7220 1666
Isabel Crossley St Brides Media & Finance Ltd, Tel: +44 (0)20 7242 4477
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