Quarterly Update - Update on the fourth quarter ended 30 June 2020
Goldplat plc / Ticker: GDP / Index: AIM / Sector: Mining & Exploration
28 July 2020
Goldplat plc ('Goldplat' or 'the Company')
Quarterly Update - Update on the fourth quarter ended 30 June 2020
Goldplat plc, the AIM listed gold producer, with international gold recovery operations located in South Africa and Ghana and an underground mining operation in Kenya, is pleased to announce an operational update for the fourth quarter ended 30 June 2020.
· With the recovery operations continuing to operate profitably and Kilimapesa reducing its losses by more than £1 million year on year, we expect that the Group will report a profit for the year which represents a substantial improvement over the results for last year.
· Our efforts to secure a buyer or funder for our mining and exploration businesses at Kilimapesa and Anumso is beginning to bear fruit with multiple parties showing interest in the properties.
· Despite the directives issued in response to the worldwide COVID-19 pandemic resulting in a loss of production of 25 days at our South African operations, the recovery operations still performed profitably during the quarter, supported by higher gold prices;
· Part of our current plant facility will be modified to test the tailings storage facility ('TSF') material on a production scale to confirm test work done. We are confident that the TSF material can be reprocessed profitability and will advise the market once this is further confirmed by pilot plant test work. The reprocessing of the current TSF still remains dependent on securing final deposition and various options are currently being considered which includes the construction of a new tailing's facility.
· Cash and cash equivalents as at 30 June 2020 for the Group was £3.2 million.
Goldplat Recovery (Pty) Limited ("GPL")
· The South African operations continued profitably, despite 25 production days being lost due to lockdown in response to COVID-19, and achieved an operating profit for the fourth quarter ended 30 June 2020 of £2,067,000, increasing operating profit for the full year ending 30 June 2020 to £5,511,000 (30 June 2019: £2,607,000).
· The volume of by-products received from the various mines during the quarter was above expectation and contributed to the overall profitability.
· We are confident that procedures implemented will continue to mitigate the risk of loss of material production due to the COVID-19 pandemic. Eight positive COVID-19 cases have been reported to date and five of those employees have since fully recovered.
· Part of our current plant facility will be modified to test the TSF material on a production scale to confirm indications that material can be reprocessed profitably.
· The application to extend our current TSF is currently with the relevant authorities and is expected to be concluded in the next 12 months. The current COVID-19 pandemic has delayed progress in this regard.
· We have initiated an extensive exploration and testing campaign to secure more long-term feed material for the carbon-in-leach circuits. This is in line with GPL's strategy to ensure long term profitability and growth.
Gold Recovery Ghana Limited ("GRG")
· The Ghanaian operation maintained its improved production levels achieved during the first three quarters of the year and achieved an operating profit for the fourth quarter of £280,000, increasing operating profit to £638,000 for the full year ending 30 June 2020 (operating loss - 30 June 2019: £536,000 ) .
· We operated the Ghanaian operations with reduced staff during April to manage staff travel requirements due to Covid-19, which was not required by the Government, but maintained normal production levels during the quarter.
· GRG continued to receive regular material supplied from mining companies in Ghana as well as additional material from Mali.
· Increasing deliveries from other mines in Mali and the Ivory Coast remain the strategic focus for GRG, however little progress was made during the quarter as a result of the restrictions around the COVID-19 pandemic.
· During the quarter improvements in processing rates, recoveries and margins were achieved.
· The application for a license to procure and toll treat tailings material in Ghana has been delayed by the COVID-19 lockdown.
Kilimapesa (Pty) Limited ("KILI")
· Our efforts to secure a buyer or funder for the business is showing some success with multiple parties showing interest in property.
· The processing of tailings at Kilimapesa gold plant was stopped from 27 March 2020 as a result of measures implemented by the Kenyan government in response to COVID-19. The mine and plant remained under care and maintenance for the fourth quarter.
· Operating losses at Kilimapesa for the fourth quarter was £96,000, increasing the loss for the full year ended 30 June 2020 to £554,000 (Operating loss 30 June 2019: £1,643,000).
· The Scipion loan balance is £1 million and the facility is in the process of being extended for a further 6 months to May 2021.
· The improvement in plant operational efficiencies and cost reduction continues. Significant focus is being placed on identifying different types of feed sources and processing methods to establish stronger growth, improved recoveries and increase overall material availability for the future.
Werner Klingenberg, CEO of Goldplat commented: "The recovery businesses performed extremely well on an operating level during the year, while we reduced operating losses by more than £1 million year on year at Kilimapesa. I am pleased with the improved visibility of earnings in the recovery businesses and multiple parties showing interest in the exploration and mining properties, enabling us to now focus on growth in the recovery business.
With COVID-19 pandemic now considered a normal business risk, we are adjusting our procedures to ensure safety of our people and continuity of the business, whilst limiting the impact that this might have on production and profitability.
** ENDS **
For further information visit www.goldplat.com, follow on Twitter @GoldPlatPlc or contact:
|Werner Klingenberg||CEO Goldplat plc (CEO)||Tel: +27 (82) 051 1071|
|Colin Aaronson / Richard Tonthat / Ben AO Roberts||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|
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