Goldplat plc / Ticker: GDP / Index: AIM / Sector: Mining & Exploration
21 May 2018
Goldplat plc ('Goldplat' or 'the Company')
Kilimapesa Processing Plant Update
Goldplat plc, the AIM listed gold producer with international gold recovery operations based in South Africa and Ghana and a gold mine in Kenya, is pleased to announce that following the successful installation and subsequent "Stage 2" expansion of a new processing plant at the Company's Kilimapesa Gold Mine in Kenya, the new plant is now processing at a rate of circa 5,000 tonnes per month and as a result, and in line with previously announced plans, the incumbent plant, Plant 1, will be closed. This major step forward will reduce overall production costs, allow gold recovery to be optimised, and increase the life of the mine.
Without the economies of scale provided by Plant 2, the higher cost of production at Plant 1 requires a comparatively higher feed grade to make a contribution to the overall operation. The fine material currently being processed through Plant 1 will be sent to Plant 2, where it will be processed directly through the classifier and the cyclone, bypassing the milling process, and increasing throughput with an overall improvement in the margin per ounce recovered.
Further cost savings will also be achieved through the restructuring of labour, although the closure of Plant 1 will not result in a significant reduction in labour numbers as employees will be re-assigned to other positions at Plant 2 and at the mine where possible.
The previously reported planned Stage 3 expansion at Plant 2 will be undertaken on a modular basis, as and when finances allow. The planned Stage 3 expansion will include:
The closure of Plant 1 will initially result in a reduction in production during the last quarter with gold production for the year expected to be slightly below 5,000 ounces. Management however believes that the changes in production will positively impact profitability at Kilimapesa that will be reflected in the results for the quarter, due to the lower production costs per ounce at Plant 2.
These changes in Kilimapesa's production profile are not expected to have a material impact on market forecasts for the Company's profitability for the financial year to 30 June 2018.
Gerard Kisbey-Green, CEO of Goldplat plc, said: "Our commitment and focus at Kilimapesa and indeed our operations as a whole, is to build production output and profitability. Having successfully executed a phased development plan to improve operational efficiencies at the mine by installing a new processing plant, we are delighted that Plant 2 is now established enough that we can continue running this plant as our sole processing facility. This will have a positive effect on profitability and help ensure we operate a more robust operation moving forward."
Gerard Kisbey-Green CEO Goldplat plc Tel: +27 (71) 8915775
Colin Aaronson / Daniel Bush 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
Charlotte Page / Susie Geliher St Brides Partners Ltd (Financial PR) Tel: +44 (0) 20 7236 1177