Interim results six-months ended 31 December 2021

RNS Number : 2061F
Goldplat plc
18 March 2022
 

 

18 March 2022

 

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

 

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

Interim results for the six-month period ended 31 December 2021

 

 

Goldplat plc, the AIM listed gold producer, with international gold recovery operations located in South Africa and Ghana, is pleased to announce its unaudited interim results for the six months ended 31 December 2021.

 

Goldplat achieved an excellent result for the six months ended 31 December 2021 including:

 

Increasing operating profit, against the six months ended 31 December 2020, by 28% to £3,334,000 (31 December 2020:

£2,600,000);

Doubling of net profit from continued operations attributable to owners of the company to £2,071,000 (31 December 2020:

£1,013,000);

As a result of increased performance, the fully diluted earnings per share for the six-month period doubled to 1.19 pence per share (31 December 2020: 0.59 pence per share), and;

The group cash balance (net of overdraft) remained strong at £1,640,000 (30 June 2021: £3,459,000).

 

Werner Klingenberg, CEO of Goldplat commented: "I am pleased with the continued strong operating results achieved by the group, but even more so, how this is translating into increased profits and earnings for the owners of Goldplat Plc.

 

For further information visit www.goldplat.com,follow on Twitter @GoldPlatGDP or contact:

 

WernerKlingenberg

Goldplatplc(CEO)

Tel:+27(0)820511071

ColinAaronson/GeorgeGrainger/SamuelLittler

Grant Thornton UK LLP(NominatedAdviser)

Tel:+44(0)2073835100

JessicaCave/AndrewdeAndrade

WH Ireland Limited(Broker)

Tel:+44(0)2072201666

TimThompson/MarkEdwards/FergusMellon

FlagstaffStrategicand InvestorCommunications

Tel:+44(0)2071291474

goldplat@flagstaffcomms.com

 

The information contained within this announcement is deemed to constitute inside information as stipulated under the retained EU law version of the Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK law by virtue of the European Union (Withdrawal) Act 2018. The information is disclosed in accordance with the Company's obligations under Article 17 of the UK MAR. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

 

 

Chairman's Statement

 

I am pleased to share continued strong results from our gold recovery operations, with profit for the half year from continuing operations increasing to £2,217,000 (H1 2020: £1,500,000) and an all-in, fully diluted EPS for the half year of 1.19 pence (H1 2020: 0.59 pence).

 

Our portfolio of core assets consists of two gold recovery operations, in South Africa and Ghana, with plans to extend this to Brazil and these recover gold and platinum group metals ('PGM') from by-products of current and historical mining processing, thereby providing mines with an environmentally-friendly and cost-efficient way of removing waste material.

 

The Revenues from continued operations increased by 69% to £21,326,000 (H1 2020: £12,602,000), with the Ghanaian and South African recovery operations achieving revenue increases of 146% and 29%, respectively, as a result of good and steady supply of material in Ghana and result of continuous research and investments made in South Africa.

 

The increase in revenue drove the increase in operating profit from continued operations of £3,334,000 (H1 2020: £2,600,000).

 

The net financing cost tend to fluctuate from period to period due to the fluctuation in the intergroup unrealised foreign exchange losses or gains, which is driven by the movement of Ghana Cedi ('GHS'), the South African Rand ('ZAR') and Great British Pound ('GBP') against the United State Dollar ('USD') in which intergroup balances are denominated. As set out in the summary table below, the intergroup foreign exchanges losses reduced to £30,000 (H1 2020: £357,000).

 

Detail

H12021

H12020

Intergroupforeignexchangemovements

(30,000)

(357,000)

Thirdpartyforeignexchangemovements

1,000

(72,000)

Netinterestpaid

(299,000)

(149,000)

Total

(328,000)

(578,000)

 

The net finance interest increased from £149,000 to £299,000 as a result of the increase in the volume of material sourced and processed in Ghana and the delays we are starting to experience as a result of the global supply chain crisis. This increased the amount of working capital finance required and the time over which it is required. The interest on working capital finance increased from £36,000 to £225,000. With the increase in cash available, we are starting to finance more of this out of our own cash resources.

 

Interest paid on financing for the repurchase of shares at Goldplat Recovery (Pty) Ltd, secured in August 2021, as discussed below, was £41,000, whilst the remainder relates to financing on lease assets.

 

The profit after taxation before discontinued operations of £2,217,000 (H1 2020: £1,500,000) resulted in the £229,000 increase in the taxation paid. Furthermore, the withholding tax expense year-on-year was higher due to more dividends declared by both Goldplat Recovery Pty Limited ('GPL') and Goldplat Recovery Ghana Limited ('GRG') during the period. By restructuring GPL as a subsidiary of Goldplat Plc, as recently announced, there will not only be a saving of General and Administrative expenses but also a reduction in the withholding tax rate on dividends declared to Goldplat Plc.

 

Share repurchase of minority shareholding in GPL

During the period the Group increased its interest in GPL, its principal operating subsidiary, from 74% to 90.63% through the buy-back by GPL of 22.33% of GPL shares from its minority shareholders and issuing shares, amounting to 4.90% of GPL to Aurelian Capital Proprietary Limited ('The Transaction'). The net cost to Goldplat of acquiring an additional 16.63% of GPL was ZAR 66.52 million (approximately £3.55m)

 

The Transaction was financed in part through a South African Rand denominated bank facility of ZAR 60 million (approximately

£3.02 million) provided by Nedbank.

 

Additional detail with regards to the Transaction and the financing thereof are set out in note 19.

Other shareholdings

After the period end, the group sold 32,878,000 of our shares in Caracal Gold PLC ('Caracal') for 0.95 pence per share. The shares sold represent the remainder of the initial share consideration of USD450,000 that was payable in cash by Caracal in relation to the sale of Kilimapesa Gold Pty Ltd, which the Group agreed to take up in shares at the initial listing price of Caracal, as announced on 3 November 2021.

 

The Group retains 103,846,153 shares representing a 5.69% interest in Caracal.

 

Working capital

Cash and cash equivalents at the end of the period decreased to £1,640,000 (30 June 2021: £3,459,000). The decrease from

£3,459,000 at end of 30 June 2021 is as a result of investment in working capital as noted below.

 

Inventories increased from 30 June 2021, by £2,601,000 as result of an increase in precious metals on hand of £3,080,000 set- off by a decrease in raw materials of £720,000. The increase in precious metals on hand and in process was driven by high turnover volumes in Ghana as well as delays we are experiencing on some of the shipping routes, whilst the decrease in raw material was as a result of higher cost per ton material processed in South Africa during the period.

 

Trade and other receivable balances also increased from 30 June 2021 by £3,590,000 again driven by increases in turnover, specifically in Ghana.

 

During the period the long-term liabilities increased to £3,332,000 as a result of the repurchase of shares from minority shareholders in GPL on the terms indicated above.

 

Goldplat Recovery (Pty) Ltd ('GPL')

Revenues in South Africa increased by 29% to £10,616,000 (H1 2020: £8,243,000). The 29% increase in revenue is attributable to improved production in our largest milling circuit, after the construction of a JIG and gravity concentrator (at a capital cost of

£55,000), in March 2021 and October 2022 respectively. The increase in revenue resulted in a profit of £1,552,000 (H1 2020:

£940,000).

 

The production of Platinum Group Metals (PGMs) is making a contribution to results and as indicated in the Q1 operational update, we have built our strategic PGM material to a level to warrant capital expenditure of USD 300,000 on a plant to extract its value. This new plant will also enable us to further develop our PGM recovery business and should be completed by the 4th quarter.

 

We continue to experience increase in operating costs, These included the increase in refinery charges, treatment charges, electricity costs, machinery hire, and security costs.

 

Our application for the water use license was submitted in October 2021 and we are still expecting feedback by the end of Q3 2022. We continue to manage and extend the deposit of material within the Group's current tailings storage facility ('TSF') with the help of consulting engineers and have spent 203,000 of capital on establishing of new tailings facility during the period.

 

The establishment of a new tailings storage facility remains the first step towards the reprocessing of our existing TSF which contains a JORC resource of approximately 82,000 ounces of gold (see announcement of 29 January 2016 for further information). The second step being the approval of pipeline application to a third party processor, which is ongoing and we expect results towards the end of this calendar year.

Gold Recovery Ghana ('GRG')

We experienced a steady and reliable supply of materials from our regular clients during the period and this significantly contributed to the 146% increase in revenue year on year to £10,710,000 (H1 2020: £4,359,000). The increase in volume of material processed, combined with the higher gold price resulted in the operating margins increasing by 153% to £1,828,000 (H1 2020: £724,000) and a net profit of £1,217,000 (H1 2020: £139,000), a 776% improvement from that of the comparative period.

 

Our engagement with mine management and government officials on different levels has continued, with the aim of increasing our footprint to ensure regular supply. By achieving a larger geographical spread with more clients, our objective is to have a steady supply from the mines current production, rather than ad hoc supplies from stockpiles.

We continue to evaluate our options for the processing of artisanal tailings material in Ghana, including the possibility of finding a partner in country.

 

To increase our ability to capture lower-grade material market which is not feasible to export to our other operations and also to improve services we can provide in South America, we aim to establish a processing and storage site in Brazil, at an initial cost of USD300,000. We are currently ensuring we secure all licenses required, specifically environmental, and will keep the market updated on progress.

 

Post-period end

Subsequent to 31 December 2021 we sold 32,878,000 of our shares in Caracal as reported above.

 

Outlook

We remain committed to our strategy of increasing long term visibility of earnings in the recovery businesses through key initiatives. These key initiatives include:

 

improving our gold recoveries from lower grade contaminated material, effectively reducing the grade of the material we will be able to source economically. Reserves of lower grade materials are more readily available and help to alleviate the sourcing risk;

Building strategic partnerships within the mining industry;

•  Evaluating the investment into larger tailings storage facility and additional mill and leaching capacity to enable us to reprocess our current TSF; and

Increased investment into sourcing initiatives and test work on a wider range of materials, including PGM discards.

 

Whilst the Group's trading expectation for the remainder of the year is currently unchanged, it is worth noting that the impact of the Russian invasion of Ukraine is posing a significant challenge to the global supply chain industry. Whilst Goldplat has no activities directly connected with Russia or Ukraine, the long-term effect of the conflict on the Group is uncertain.

 

 

 

 

 

Matthew Robinson Chairman

18-Mar-22

 

Statements of Financial Position

 

 

 

Figuresin£`000

 

 

Notes

Group

31December

2021

 

 

Group

30June2021

 

 

Group31

December2020

 

 

Assets

Non-currentassets

Property,plantandequipment

 

 

 

4

 

 

 

4353

 

 

 

 

4568

 

 

 

 

4132

 

Right-of-useassets

 

465

 

574

 

375

 

Intangibleassets

5

4664

 

4664

 

4664

 

Investmentsinsubsidiaries,jointventuresandassociates

6

1

 

1

 

1

 

ReceivableonKilimapesasale

7

519

 

606

 

-

 

Otherloansandreceivables

8

511

 

636

 

750

 

Totalnon-currentassets

 

10513

 

11049

 

9922

 

Currentassets

Inventories

 

9

 

11034

 

 

8433

 

 

11568

 

Tradeandotherreceivables

10

16593

 

13003

 

6580

 

ReceivableonKilimapesasale

7

87

 

58

 

-

 

Cashandcashequivalents

11

1640

 

3459

 

1394

 

Totalcurrentassets

 

29354

 

24953

 

19542

 

Non-currentassetsordisposalgroupsclassifiedasheldforsale

 

-

 

-

 

3380

 

Totalcurrentassets

 

29354

 

24953

 

22922

 

Totalassets

 

39867

 

36002

 

32844

 

 

Equity and liabilitiesEquity

Sharecapital

 

 

 

12

 

 

 

1715

 

 

 

 

1698

 

 

 

 

1698

 

Sharepremium

12

11546

 

11491

 

11491

 

Retainedincome/(accumulatedloss)

 

7578

 

6846

 

6180

 

Foreignexchangereserve

 

(5806)

 

(5258)

 

(5406)

 

Totalequityattributabletoownersoftheparent

 

15033

 

14777

 

13963

 

Non-controllinginterests

 

1314

 

3637

 

3379

 

Totalequity

 

16347

 

18414

 

17342

 

Liabilities

Non-currentliabilities

Provisions

 

 

 

13

 

 

 

724

 

 

 

 

787

 

 

 

 

586

 

Deferredtaxliabilities

 

808

 

792

 

727

 

Long-termborrowings

15

1758

 

-

 

-

 

Leaseliabilities

 

42

 

110

 

77

 

Totalnon-currentliabilities

 

3332

 

1689

 

1390

 

 

 

 

 

 

Figuresin£`000

 

 

Notes

Group

31December

2021

 

 

Group

30June2021

 

 

Group31

December2020

 

 

Currentliabilities

Tradeandotherpayables

 

 

14

 

 

18754

 

 

 

15445

 

 

 

10724

 

Currenttaxliabilities

 

399

 

128

 

532

 

Currentportionoflong-termborrowings

15

866

 

33

 

723

 

Leaseliabilities

 

169

 

293

 

200

 

Bankoverdraft

11

-

 

-

 

484

 

Totalcurrentliabilities

 

20188

 

15899

 

12663

 

Liabilitiesincludedindisposalgroupsclassifiedasheldforsale

 

-

 

-

 

1449

 

Totalcurrentliabilities

 

20188

 

15899

 

14112

 

Totalliabilities

 

23520

 

17588

 

15502

 

Totalequityandliabilities

 

39867

 

36002

 

32844

 

 

 

The notes below are an integral part of this condensed consolidated interim financial report.

 

 Statements of Profit or Loss and Other Comprehensive Income

 

 

Group

6monthperiod

ended31

 

Group

12 monthperiodended

Group6month

period ended31December

Figuresin£`000

Notes

December2021

 

30June2021

2020

 

Revenue

 

 

21326

 

 

35400

 

12602

Costofsales

 

(17172)

 

(29201)

(9323)

Grossprofit

 

4154

 

6199

3279

Otherincome

 

2

 

56

-

Administrativeexpenses

 

(822)

 

(1694)

(679)

Profitfromoperatingactivities

 

3334

 

4561

2600

Financeincome

 

1

 

-

45

Financecosts

 

(329)

 

(909)

(623)

Sundryincome

 

-

 

-

38

Profitbeforetax

 

3006

 

3652

2060

Incometaxexpense-continuingoperations

16

(789)

 

(903)

(560)

Profitfromcontinuingoperations

 

2217

 

2749

1500

Lossfromdiscontinuedoperations

 

-

 

(570)

(243)

Profitfortheperiod

 

2217

 

2179

1257

 

Profitfortheperiodattributableto:

 

 

 

 

 

OwnersofParent

 

2071

 

1679

1013

Non-controllinginterest

 

146

 

500

244

 

 

2217

 

2179

1257

 

Othercomprehensiveincomenetoftax

 

 

 

 

 

Components of other comprehensive income that will bereclassified to profitor loss

 

 

 

 

 

Exchangedifferencesontranslationrelatingtotheparent

 

 

 

 

 

(Losses)/gainsonexchangedifferencesontranslation

 

(548)

 

719

818

ExchangereservereclassifiedonlossofcontrolofKilimapesa

 

-

 

247

-

TotalExchangedifferencesontranslation

 

(548)

 

966

818

Exchangedifferencesrelatingtothenon-controllinginterest

 

 

 

 

 

(Losses)/Gainsonexchangedifferencesontranslation

 

(124)

 

256

213

Total other comprehensive income that will be reclassified toprofitor loss

 

 

(672)

 

 

1222

 

1031

Totalothercomprehensive(expense)/incomenetoftax

 

(672)

 

1222

1031

Totalcomprehensiveincome

 

1545

 

3401

2288

 

Comprehensiveincomeattributableto:

 

 

 

 

 

Comprehensiveincome,attributabletoownersofparent

 

1523

 

2645

1826

Comprehensiveincome,attributabletonon-controllinginterests

 

22

 

756

462

 

 

1545

 

3401

2288

 

 

 

 

Group

6monthperiod

ended31

 

Group

12 monthperiodended

Group6month

period ended31December

Figuresin£`000

Notes

December2021

 

30June2021

2020

 

Earningspersharefromcontinuinganddiscontinuingoperationsattributabletoownersoftheparentduringtheperiod

 

 

 

 

 

Basicearningspershare

 

 

 

 

 

Basicearningspersharefromcontinuingoperations

17

1.20

 

1.32

0.74

Basiclosspersharefromdiscontinuingoperations

 

-

 

(0.34)

(0.14)

Totalbasicearningspershare

 

1.20

 

0.98

0.60

 

Dilutedearningspershare

 

 

 

 

 

Dilutedearningspersharefromcontinuingoperations

17

1.19

 

1.32

0.73

Dilutedlosspersharefromdiscontinuedoperations

 

-

 

(0.33)

(0.14)

Totaldilutedearningspershare

 

1.19

 

0.99

0.59

 

The notes below are an integral part of this condensed consolidated interim financial report.

 

GoldplatPLC

 

 

 

 

Condensedconsolidatedinterimfinancialreportforthe6monthperiodended31December2021

 

 

 

StatementsofChangesinEquity-Group

 

 

 

 

Foreign

currency

Retained

income/

 

Attributableto

 

Figuresin£`000                                                                                                             ShareCapitalSharepremium

translation

reserve

(accumulated

loss)

ownersofthe

parent

Non-controlling

interests

 

Total

Balanceat1July2020                                                                                                                  1675                11441

 

(6224)

 

5167

 

12059

 

3057

 

15116

Changesinequity

 

 

 

 

 

Profitfortheyear                                                                                                                                  -                            -

-

1679

1679

500

2179

Othercomprehensiveincome                                                                                                            -                            -

966

-

966

256

1222

Totalcomprehensiveincomefortheperiod                                                                                    -                            -

966

1679

2645

756

3401

Non-controllinginterestsin

subsidiarydividend                                                                                                                                -                            -

 

-

 

-

 

-

 

(176)

 

(176)

Sharesissuedfromoptionsexercised                                                                                             23                        50

-

-

73

-

73

Balanceat30June2021                                                                                                              1698                11491

(5258)

6846

14777

3637

18414

Balanceat1July2021                                                                                                                  1698                11491

 

(5258)

 

6846

 

14777

 

3637

 

18414

Changesinequity

 

 

 

 

 

Profitfortheperiod                                                                                                                              -                            -

-

2071

2071

146

2217

Othercomprehensiveincome                                                                                                            -                            -

(548)

-

(548)

(124)

(672)

ExchangereservereleasedthroughprofitandlossonsaleofKilimapesa                                  -                            -

 

-

-

-

-

Totalcomprehensiveincomefortheperiod                                                                                    -                            -

(548)

2071

1523

22

1545

Non-controllinginterestsin

subsidiarydividend                                                                                                                                -                            -

 

-

 

-

 

-

 

(22)

 

(22)

Sharesissuedfromoptionsexercised                                                                                             17                        55

-

-

72

-

72

Adjustmentsarisingfromchangeinnon-controllinginterest                                                        -                            -

-

(1339)

(1339)

(2323)

(3662)

Balanceat31December2021                                                                                                    1715                11546

(5806)

7578

15033

1314

16347

Notes                12                        12

 

 

 

 

 

 

The notes below are an integral part of this condensed consolidated interim financial report.

 

 

 

 

9

 

 

 

StatementsofCashFlows

 

 

 

 

Figuresin£`000

 

 

 

Notes

Group

6monthperiod

ended31

December2021

 

Group12month

period ended30June2021

 

Group 6 monthperiod ended31December

2020

 

 

Netcashflowsfrom/(usedin)operations

 

 

225

 

 

4277

 

 

(704)

 

Financecost

 

(329)

 

(909)

 

(623)

 

Financeincome

 

1

 

-

 

46

 

Incometaxespaid

 

(502)

 

(1059)

 

(159)

 

Netcashflows(usedin)/fromoperatingactivities

 

(605)

 

2309

 

(1440)

 

 

Cashflowsusedininvestingactivities

 

 

 

 

 

 

 

Proceedsfromsalesofproperty,plantandequipment

 

29

 

18

 

2

 

Purchaseofproperty,plantandequipment

 

(313)

 

(979)

 

(458)

 

Decreaseincashfromdisposalofnon-currentassetsheldforsale

 

-

 

(6)

 

-

 

(Payment)/Receiptfromlongtermreceivable

 

125

 

74

 

(89)

 

Cashflowsusedininvestingactivities

 

(159)

 

(893)

 

(545)

 

 

Cashflowsusedinfinancingactivities

 

 

 

 

 

 

 

Netproceedsfromissuingofshares/optionsexercised

 

72

 

73

 

73

 

Repaymentofcapitalportionofinterest-bearingborrowings

 

(203)

 

(872)

 

(142)

 

Interestpaidoninterest-bearingborrowings

 

(63)

 

(99)

 

(66)

 

Increaseinshareholdingofsubsidiary

 

(3787)

 

-

 

-

 

Increaseininterestbearingborrowings

 

2927

 

-

 

(88)

 

Principalpaidonleaseliabilities

 

(155)

 

(186)

 

-

 

Interestpaidonleaseliabilities

 

(37)

 

(21)

 

(36)

 

Paymentofdividendtonon-controllinginterest

 

(22)

 

(176)

 

(135)

 

Cashflowsusedinfinancingactivities

 

(1268)

 

(1281)

 

(394)

 

 

 

 

 

 

 

 

 

Net(decrease)/increaseincashandcashequivalents

 

(2032)

 

135

 

(2379)

 

Cashandcashequivalentsatbeginningoftheperiod

 

3459

 

3146

 

3140

 

Foreignexchangemovementonopeningbalance

 

213

 

178

 

149

 

Cashandcashequivalentsatendoftheperiod

11

1640

 

3459

 

910

 

Cashflowsfromdiscontinuedoperations

 

 

 

6

 

113

 

 

 

The notes below are an integral part of this condensed consolidated interim financial report.

 

 Notes to the Consolidated Financial Statements

 

            Figures in £ `000                                                                              31 December 2021        Group 30 June 2021        Group 31 December 2020                            

 

1.  General information

 

This condensed consolidated interim financial information does not comprise statutory accounts within the meaning of section 434 of the Companies Act 2006. Statutory accounts for the year ended 30 June 2021 were approved by the Board of Directors and have been delivered to the Registrar of Companies. The audit report on those accounts: their report was unqualified, did not draw attention to any matters by way of emphasis and did not contain a statement under section 498(2) or (3) of the Companies Act 2006.

 

2.  Basis of preparation

 

Statement of compliance

 

The annual financial statements of Goldplat plc (the 'Company') are prepared in accordance with IFRSs as adopted by the European Union.

 

Going concern

 

The directors assessed that the group is able to continue in business for the foreseeable future with neither the intention nor the necessity of liquidation, ceasing trading or seeking protection from creditors pursuant to laws or regulations and thus adopted the going concern basis in preparing these financial statements.

 

The assessment of the going concern assumption involves judgement, at a particular point in time, about the future outcome of events or conditions which are inherently uncertain. The judgement made by the directors included the availability of and the ability to secure material for processing at its plants in South Africa and Ghana, the impact of loss of key management, outlook of commodity prices and exchange rates in the short to medium term and changes to regulatory and licensing conditions.

 

3.  Significant accounting policies

 

The accounting policies applied in this condensed consolidated interim financial report are the same as those applied in the Group's consolidated financial statements as at and for the year ended 30 June 2021.

 

4.  Property, plant and equipment

 

During the six months ended 31 December 2021, the Group acquired assets with a cost, excluding capitalised borrowing costs of £313,000 (six months ended 31 December 2020: £458,000; twelve months ended 30 June 2021: £1,132,000).

 

5.  Intangible assets

 

Intangible assets at the end of the period relate only to goodwill which relate to the investment held in Gold Minerals Resources Limited. The balance is supported by the combined ongoing gold recovery operations in South Africa and Ghana. During the six months ended 31 December 2021 the goodwill balance has not been impaired (six months ended 31 December 2020: £nil; twelve months ended 30 June 2021: £nil).

 

6.  Investments in subsidiaries, joint ventures and associates

 

The amounts included on the statements of financial position comprise the following:

Investment in joint ventures                                                                                                            1                               1                               1

 

 

7.  Receivable on Kilimapesa sale

 

Receivable on Kilimapesa sale incorporates the following balances:

The receivable relate to the 1% net smelter royalty on production of Kilimapesa to the maximum of USD1,500,000.

 

Non-currentassets

519

 

606

 

-

Currentassets

87

 

58

 

-

 

606

 

664

 

-

 

Other financial assets are recognised initially at the fair value, including transaction costs. The asset will subsequently be measured at fair value and are grouped into levels 1 to 3 based on the significance of the inputs used in the valuation. The financial assets from the Kilimapesa sale has significant inputs and is therefore included in level 3.

 

8.Otherloansandreceivables

 

Otherloansandreceivablescomprisethefollowingbalances

 

Amabubesi(Pty)Ltd

AurelianCapitalProprietaryLimited

-511

 

636

-

 

750

-

 

511

 

636

 

750

 

The loan receivable in Goldplat Recovery (Pty) Limited, in compliance with Black Economic Empowerment legislation in South Africa, are recoverable from future dividends. They have been included at historical cost due to the uncertainty surrounding the variables required to calculate this asset at amortised cost. The directors consider that the carrying amount represents the fair value of the assets.

 

9.Inventories

 

Inventoriescomprise:

 

Rawmaterials

2704

 

3424

 

3439

Consumablestores

947

 

706

 

538

Preciousmetalsonhandandinprocess

7383

 

4303

 

7591

 

11034

 

8433

 

11568

 

Inventories are initially recognised at cost, and subsequently at the lower of cost and net realisable value. Cost comprises all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition. Weighted average cost is used to determine the cost of ordinarily interchangeable items.

 

 

10.Tradeandotherreceivables

 

Tradeandotherreceivablescomprise:

 

 

 

 

 

Tradereceivables

14377

 

11986

 

5808

Sundrydebtors

1414

 

12

 

22

Prepaidexpenses

110

 

157

 

128

Deposits

12

 

-

 

12

Otherreceivables

485

 

618

 

394

Valueaddedtax

195

 

230

 

216

 

16593

 

13003

 

6580

 

11.Cashandcashequivalents

 

 

 

 

 

11.1Cashandcashequivalentsincludedincurrentassets:

 

 

 

 

 

Cash

Balanceswithbanks

 

1640

 

 

3459

 

 

1394

 

11.2Overdrawncashandcashequivalentsincludedincurrentliabilities

 

 

 

 

 

Bankoverdrafts

-

 

-

 

(484)

 

12.Sharecapital

 

 

 

 

 

Authorisedandissuedsharecapital

 

 

 

 

 

Issued

Ordinaryshares

 

1715

 

 

1698

 

 

1698

 

1715

 

1698

 

1698

Sharepremium

11546

 

11491

 

11491

 

13261

 

13189

 

13189

 

During the current year, share options were exercised that resulted in an increased in share capital and share premium.

 

 

13.  Provisions

 

Provisions comprise:

Environmental obligation                                                                                                             724                           787                          586

 

In terms of section 54 of the regulations of the Minerals Resource and Petroleum Act of 2002, in South Africa, a Quantum of Financial Provisioning is required for activities performed under mining lease. Quantum of Financial Provisioning requires a detailed itemization of actual costs relating to the premature closure, decommissioning and final closure and post closure management. The Company makes use of an independent consultant to calculate the detail itemized actual current costs for rehabilitation and to evaluate any critical estimates and assumptions. The Quantum of Financial Provisioning has been approved by Department of Minerals Resources in South Africa. The Company has insured the obligation and has ceded the proceeds from the policy to the Department of Minerals Resources. During the prior financial year, the provision held in GPR was reassessed by using an external expert and it was concluded that due to the additional capital expenditure that has taken place over the financial period, the provision had to be increased to account for the additional capital incurred.

 

14.  Trade and other payables

 

Trade and other payables comprise:

Trade creditors                                                                                                                           1 610                       9 200                       4 055

Accrued liabilities                                                                                                                      9 306                       5 260                       5 665

Invoice financing creditor                                                                                                        7 838                           985                       1 004

Total trade and other payables                                                                                            18 754                     15 445                     10 724

 

 

15.  Long term borrowings

 

The principal on the bank facility is repayable monthly over 36 months. The interest payable on the facility will be the South African Prime Rate plus 1.75%.

 

Further to above, GPL did grant security over its debtors as well as a negative pledge over its moveable and any immovable property and a general notarial bond over all movable assets of GPL will be registered. The Group entered into a limited suretyship for ZAR 60 million (approximately GBP3.02 million), in favour of Nedbank.

 

Longtermborrowingscomprise:

 

NedbankScipion

2624

-

 

-33

 

-723

 

2624

 

33

 

723

 

Non-currentportionoflongtermborrowings

 

1758

 

 

-

 

 

-

Currentportionoflongtermborrowings

866

 

33

 

723

 

2624

 

33

 

723

 

 

16.  Income tax expense - continuing operations

 

Income tax expense is recognised based on management's best estimate of the weighted average annual income tax rate expected for the full financial year applied to the pre-tax income of the interim period. The tax charges for the period arises in South Africa, Ghana and on declaration of dividends from South Africa. The effective income tax rate in GPL was 24% (six months ended 31 December 2020: 26%), GRG was 15% (six months ended 31 December 2020: 15%) and the withholding tax

rate on dividends declared was 5% (six months ended 31 December 2020: 20%).

 

17.Earningspershare

 

Basicearningspershare

 

 

 

 

 

 

The earnings and weighted average number of ordinary shares usedinthecalculationofbasicearningspershareareasfollows:

 

 

 

 

 

 

Profitfortheperiodattributabletoownersofthecompany

2071

 

1679

 

1013

 

Lossfortheyearfromdiscontinuedoperations

-

 

570

 

243

 

Earnings used in the calculation of basic earnings per share forcontinuingoperations

 

2071

 

 

2249

 

 

1256

 

 

Weighted average number of ordinary shares used in the calculation ofbasicearnings per share('000s)

 

 

171954

 

 

 

169774

 

 

 

169774

 

Weighted average number of ordinary shares used in the calculation ofdilutedearnings pershare ('000s)

 

174201

 

 

170561

 

 

173312

 

18.Segmentinformation

 

 

 

 

 

 

18.1Segmentrevenues

 

 

 

 

 

 

 

 

 

 

 

Totalsegmentrevenue

 

Periodended31December2021

 

 

 

 

 

 

SouthAfricanRecoveryOperations

 

 

 

 

10616

 

WestAfricanRecoveryOperations

 

 

 

 

10710

 

Grouprevenue

 

 

 

 

21326

 

 

Periodended30June2021

 

 

 

 

 

 

SouthAfricanRecoveryOperations

 

 

 

 

17622

 

WestAfricanRecoveryOperations

 

 

 

 

17778

 

Grouprevenue

 

 

 

 

35400

 

 

Periodended31December2020

 

 

 

 

 

 

SouthAfricanRecoveryOperations

 

 

 

 

8243

 

WestAfricanRecoveryOperations

 

 

 

 

4359

 

 

 

 

 

 

12602

 

 

 

 

 

Segmentinformationcontinued...

 

 

 

 

 

 

 

 

18.2

Otherincomesandexpenses

 

 

 

 

 

 

 

 

 

 

 

Depreciationfor

 

 

 

Financecostfor

 

 

 

Financeincome

 

Segmentprofit/(loss)beforetaxfor

 

 

continued

operations

 

continued

operations

 

forcontinued

operations

 

continued

opeations

 

 

Taxation

 

Discontinued

operations

 

Periodended31December2021

 

 

 

 

 

 

 

 

 

 

 

 

SouthAfricanRecoveryOperations

(172)

 

(140)

 

370

 

2141

 

(589)

 

-

 

WestAfricanRecoveryOperations

(76)

 

(418)

 

-

 

1409

 

(193)

 

-

 

Administration

-

 

(152)

 

-

 

(405)

 

(7)

 

-

 

Reconciliationtogroupfigures

-

 

100

 

(88)

 

(139)

 

-

 

-

 

Totalotherincomesandexpenses

(248)

 

(610)

 

282

 

3006

 

(789)

 

-

 

 

Periodended30June2021

 

 

 

 

 

 

 

 

 

 

 

 

SouthAfricanRecoveryOperations

(379)

 

(991)

 

125

 

2358

 

(435)

 

-

 

WestAfricanRecoveryOperations

(140)

 

(223)

 

-

 

2092

 

(383)

 

-

 

MiningandExploration

-

 

-

 

-

 

-

 

-

 

(570)

 

Administration

-

 

144

 

41

 

(3957)

 

(85)

 

-

 

Reconciliationtogroupfigures

-

 

161

 

(166)

 

3159

 

-

 

-

 

Totalotherincomesandexpenses

(519)

 

(909)

 

-

 

3652

 

(903)

 

(570)

 

 

 

Segmentinformationcontinued...

 

 

 

 

Depreciationfor

 

 

 

Financecostfor

 

 

 

Financeincome

 

Segmentprofit/(loss)beforetaxfor

 

 

 

 

 

continued

operations

 

continued

operations

 

forcontinued

operations

 

continued

opeations

 

 

Taxation

 

Discontinued

operations

Periodended31December2020

 

 

 

 

 

 

 

 

 

 

 

SouthAfricanRecoveryOperations

(210)

 

(876)

 

65

 

1297

 

(357)

 

-

WestAfricanRecoveryOperations

(68)

 

(68)

 

-

 

846

 

(122)

 

-

MiningandExploration

-

 

-

 

-

 

-

 

-

 

(243)

Administration

-

 

(133)

 

389

 

(109)

 

(80)

 

-

Reconciliationtogroupfigures

-

 

-

 

45

 

44

 

-

 

-

Totalotherincomesandexpenses

(278)

 

(1077)

 

499

 

2078

 

(559)

 

(243)

 

Goldplat PLC

Condensed consolidated interim financial report for the 6 month period ended 31 December 2021

 

Notes to the Consolidated Financial Statements

 

 

Figures in £ `000

 

19. Major events

 

Share repurchase from and issue of new shares to the minority shareholders of GPL

During the period the Group increased its interest in GPL, its principal operating subsidiary, from 74% to 90.63% through the buy-back by GPL of 22.33% of GPL shares, for ZAR 89.3 million (approximately £4.5 million), from its minority shareholders and issuing shares, amounting to 4.90% of GPL to Aurelian Capital Proprietary Limited, a related party, at the same valuation as the share repurchase, for ZAR 16 million (approximately £807,000). The Transaction valued GPL at ZAR 400 million (approximately

£20.2 million) ("The Transaction"). The net cost to Goldplat of acquiring an additional 16.63% of GPL was ZAR 66.52 million (approximately £3.55 million).

 

The Transaction was financed in part through a South African Rand denominated bank facility of ZAR 60 million (approximately £3.02 million) provided by Nedbank. The remainder of the consideration was settled through a set-off against the existing Amabubesi vendor loan of ZAR 12.6 million (approximately £635,000) outstanding to the Group with the balance paid in cash. The principal on the bank facility is repayable monthly over 36 months. The interest payable on the facility will be the South African Prime Rate plus 1.75%.

 

Of the ZAR 16 million (approximately £807,000) consideration for the 4.90% worth of shares, Aurelian has paid ZAR 5 million (approximately £252,000) in cash; a further ZAR 5 million cash (approximately £252,000) is due by April 2022; and the ZAR 6 million balance (approximately £302,000) is a vendor loan and is payable from distributions to be declared by GPL. Following dividends declared to date of this report by GPL, the balance of this vendor loan is now ZAR 4.2 million (approximately

£212,000).

 

After the completion of above transactions and cancellation of the repurchased shares, the Group held 90.63% of GPL (an increase of 16.63%), Amabubesi held 4.47% and Aurelian 4.90%. Subsequent to above, Amabubesi's remaining shares were repurchased and shares to the same amount and value issued to Aurelian. Aurelian is therefore the only minority partner in South Africa and holds 9.37% of GPL.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

18

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