Goldplat plc / Ticker: GDP / Index: AIM / Sector: Mining & Exploration
5 August 2021
Goldplat plc ('Goldplat' or 'the Company')
Quarterly Update - Update on the twelve months ended 30 June 2021
Goldplat plc, the AIM listed gold producer, with international gold recovery operations located in South Africa and Ghana, is pleased to announce an operational update for the twelve months ended 30 June 2021.
The recovery operations achieved a combined operating profit for the twelve months ended 30 June 2021 of £5,300,000 (30 June 2020: £6,350,000) and a combined operating profit in the 4th Quarter of the financial year of £1,080,000 (4th Quarter - 2020: £2,546,000).
The Ghana operations continue to perform well as a result of steady supply of material and achieved an operating profit for the 4th Quarter of £729,000 (4th Quarter - 2020: £366,000). The South African operation achieved an operating profit for the 4th Quarter of £350,000 (4th Quarter - 2020: £2,180,000).
The following events have contributed to the 4th Quarter's operating results -
- There was continued good supply of material from regular clients during the period, with supply and production from two large batches from different clients continuing;
- Our engagement with mine management and government officials on different levels has continued, with the aim of increasing our footprint to ensure ongoing and regular supply. During the quarter specific progress have been made with respect to engagement with potential suppliers and government officials in Burkina Faso and Mali.
- Excluded from profits at the end of the 4th Quarter, 30 June 2021, was GBP1,100,000 of unrealised profit in gold material produced not sold, compared with the end of the 4th Quarter of the previous year, 30 June 2020, when the equivalent number was GBP400,000. This was mainly due to higher amount of gravity concentrated gold produced during the quarter, that had not been sold by the period end;
- The Group had an extremely profitable 4th quarter at end of the previous financial period, driven by increasing gold prices and sale of material produced in the 3rd quarter;
- Gold production during the 4th quarter was above the average of the last 8 quarters, with production in our CIL circuit contributing the most to this. Although volumes and gold grades of by-product received during the 4th quarter were lower than 2 to 3 years ago, they have stabilised over the last 18 months and we expect them to remain stable on the back of a 3-year contract renewal with one of our major suppliers;
- Operating profitability, year on year, continue to be impacted by higher electricity prices and increased water usage from the local municipality due to poor water quality from one of the Group's other water sources.
- The Group has started to see benefits of equipment installed to remove carbonaceous material pre-milling towards end of the period. Based on successes in other circuits, we have decided to incur capital to the amount of GBP75,000 to install gravity circuits in our largest milling circuits, to increase gold recoveries from the carbonaceous material. This will be commission during September 2021.
- The authorities requested us to submit additional supporting information for, should it be required, an adjusted design for our tailing's facility. We estimate the resubmission and evaluation to take a further 3 months. We continue to manage and extend the deposit of material within the Group's current facility with the help of consulting engineers.
- As indicated, we have identified what we believe to be the best available options for both the processing facility and the deposition site and we are in discussions to start the approval process with the relevant parties.
The cash and cash equivalents on hand on 30 June 2021 in the Group was £3,110,000 (30 June 2020- £3,100,000) and loan outstanding to Scipion was £33,000 (30 June 2020 - £1,000,000). The Scipion loan has subsequently been settled in full in accordance with Nedbank's requirements with regard to the financing of the Goldplat Recovery (Pty) Limited share repurchase as announced on 20 July 2021.
Werner Klingenberg, CEO of Goldplat commented: "I am pleased to report continued profitability in the Group and expect returns in the first quarter of the current financial year in South Africa to benefit from the sale of the stockpile of gravity concentrates at the year end. The regular supply into Ghana remains encouraging, but even more so the increased engagement in neighbouring countries creating the potential of future supply. With the sale of Kilimapesa, the Group will focus on growth and diversification within its recovery operations, whilst remaining cognisant of its goal of distributing value to shareholders."