Goldplat plc / Ticker: GDP / Index: AIM / Sector: Mining & Exploration
31 August 2016
Goldplat plc ('Goldplat' or 'the Company')
Goldplat plc, the AIM quoted African gold producer, is pleased to announce a positive operations update for the three months ended 30 June 2016 (the 'Quarter') for its two market-leading gold recovery businesses in South Africa and Ghana, and its Kilimapesa Gold Project in Kenya, reporting a total gold and gold equivalent production of 11,969 ounces, continued profitability and steady progress on priority capital projects.
Production for the Quarter
During the Quarter, the Rand Refinery silver toll recovery project was completed and although the contract is currently under dispute, the Directors are confident that the dispute will be resolved. Preliminary results from the project show a total of approximately 3,700kg of silver (1,593 gold equivalent ounces) and 42kg (1,350 ounces) of gold were produced for the Rand Refinery. Including this production, total gold produced during the Quarter was 11,969 ounces, total gold and gold equivalents sold was 6,584 ounces and gold and gold equivalents transferred to clients was 9,131 ounces, amounting to total gold and gold equivalents sold and transferred of 15,715 ounces. The difference between gold production and gold sales and transfers reflects the reduction of stock.
This was an excellent Quarter for Goldplat, as with the elutions for the silver project reaching completion during the Quarter, the elution circuit was once again available for producing own and client gold.
Goldplat Recovery Pty Limited ('GPL') - South Africa
Gold Recovery Ghana ("GRG")
Kilimapesa Gold ("KPG")
Anumso Gold Limited ('Anumso")
Good progress was made in finding a partner for the Anumso project. A letter of intent, to invest and earn into the project, was signed post the Quarter-end by a Canadian listed company. A binding option agreement is expected to be finalised during September 2016. Such an earn-in will provide investment into the project, with Goldplat retaining exposure without having to raise capital during the earn-in period.
Rand Refinery silver project dispute update
Further to the announcement made on 11 July 2016 regarding the dispute between GPL and Rand Refinery, the two parties have been in discussions regarding the best possible way to resolve the dispute amicably. A joint team has been appointed to manage a process of investigation, to be run by independent external industry experts, to assist the parties resolving the dispute. The investigation is expected to be completed during the final quarter of 2016, following which the two parties will seek resolution in light of the findings of the independent investigation.
During the course of this investigation Rand Refinery will deal with Goldplat in a "business as usual" manner regarding refining and payments, keeping the disputed amount separate from other accounts. The dispute is unfortunate given the original intention of the project, to enhance the relationship between the two parties, and to demonstrate the improved capability and flexibility gained by GPL with the installation of the new elution plant.
Gerard Kisbey-Green, CEO of Goldplat plc, commented:
"This has been a very strong final Quarter of FY 2016 and I am very pleased with what the various Goldplat teams have achieved. Notwithstanding the dispute with Rand Refinery, the silver project was a great technical success, and processing the first trial batch of South American material successfully in Ghana was an unexpected bonus!
These projects and a number of others are proving that the capital invested in infrastructure and new equipment during the year was well invested and will continue to deliver returns going forward.
Committing a milling circuit and a substantial portion of the elution capacity at GPL to the Rand Refinery silver project for most of the Quarter meant we had a lot of client and own material to elute in the final month of the Quarter. I am pleased to say that all client material and a significant amount of our own material was successfully processed during the month.
Lastly, I believe that both the Kilimapesa project and our strategy to procure material from South America have gained momentum during the Quarter and will continue into the new financial year. Whereas the results reflect the operational performances only, I am pleased to report that including all head office costs and costs associated with non-operating subsidiaries, the Group was profitable during the Quarter."
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For further information visit www.goldplat.com, follow on Twitter @GoldPlatPlc or contact:
Gerard Kisbey-Green CEO Goldplat plc Tel: +27 (71) 8915775
Colin Aaronson / Jen Clarke / Daniel Bush Grant Thornton UK LLP Tel: +44 (0) 20 7383 5100
Andrew Raca / Justin McKeegan VSA Capital Limited (Broker) Tel: +44 (0) 20 3005 5000
Charlotte Heap / Susie Geliher St Brides Partners Ltd Tel: +44 (0) 20 7236 1177