Operational Update

Goldplat plc / Ticker: GDP / Index: AIM / Sector: Mining & Exploration
31 May 2019
Goldplat plc ('Goldplat' or 'the Company')
Operational 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, announces that Kilimapesa Gold (“KPG”) operations have been put on care and maintenance.

Goldplat will continue to engage with the stakeholders of KPG, including large creditors and employees, whilst seeking the external funding required to develop the operations. The Company has received substantial support from a number of engaged stakeholders, who committed to not demand payment from KPG in the next six months.

The Company has engaged with the Kenyan Revenue Authority to discuss the payment of Goldplat’s Value Added Tax claims, with a cumulative value in excess of GBP1 million. Although the Kenyan Revenue Authority acknowledges the validity of a material part of the claim no repayments have been made to date.

In addition, the Company continues to hold talks with a number of parties interested in investing in KPG and will update the market once enough progress has been made in the discussions.

It is expected that KPG will be re-classified as an asset held for sale in the consolidated results for the year ended 30 June 2019 and that goodwill in investments held in Gold Minerals Resources Limited, the Group’s intermediate holding company will be reassessed in line with these developments.

The performance of the Company’s gold recovery operations at Goldplat Recovery (Pty) Limited remains strong. With losses at KPG and the current activity levels at Gold Recovery Ghana Ltd (“GRG”), the Company currently anticipates a loss from operating activities for the full year, approximately in line with the loss incurred for the half-year ended 31 December 2018.

Werner Klingenberg, CEO of Goldplat plc, commented: “I believe that putting Kilimapesa on care and maintenance, until the required external funding can be raised, is best for all stakeholders involved. We will be focussing on expanding our profitable recovery operations whilst maintaining our commitment to secure the relevant external funding for the KPG. I look forward to updating the market and stakeholders as soon as enough progress has been made.”

Werner Klingenberg CEO Goldplat plc (Interim CEO) Tel: +27 (82) 051 1071
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
Priit Piip St Brides Partners Ltd (Financial PR) Tel: +44 (0) 20 7236 1177

Back to Articles