TIDMGDP
RNS Number : 8035Y
Goldplat plc
17 May 2021
G ol dp lat plc / Ti cker: GDP / Index: AIM / Secto r: M in i ng
& E x p l o rati on
17 May 2021
Goldplat plc
( 'Goldplat', t he 'Group' or 'the Company ')
Quarterly Update - Update on the nine months ended 31 March
2021
G ol dp lat pl c, the AIM li sted g o ld p r o ducer, w ith
internati onal g o ld reco very o perati ons l o cated in South Afr
i ca and Ghana, is p leased to announce an operational update for
the nine months ended 31 March 2021.
The recovery operations achieved a combined operating profit for
the nine months ended 31 March 2021 of GBP4,220,000 (31 March 2020:
GBP3,802,000) and a combined operating profit in the 3(rd) Quarter
of GBP1,165,000 (3(rd) Quarter - 2020: GBP1,053,000).
The Ghana operations continue to perform well as a result of
steady supply of material and achieved an operating profit for the
3(rd) Quarter of GBP687,000 (3(rd) Quarter - 2020: GBP210,000 ).
The South African operation achieved an operating profit for the
3(rd) Quarter of GBP575,000 (3(rd) Quarter - 2020: GBP843,000).
The following events have contributed to the 3(rd) Quarter's
operating results -
Ghana
-- There was continued good supply of material from regular
clients during the period, which included two large batches from
different clients.
-- 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. Historically Ghana
has benefitted from one-off stockpiled material on an ad-hoc basis,
and although such opportunities still exist, our objective is to
have a steady supply to our plant in Tema from the by-products
produced by clients from a larger geographical area.
-- We are still engaging with the relevant authorities in Ghana
on re-commencing the processing and tolling of tailings
material.
South Africa
-- The decrease in operating profit against the prior 3(rd)
quarter was due to increases in the cost per ton of material
acquired for our low-grade circuit. Although initial gold
recoveries from some of this material was high, the overall
recoveries were lower than expected which impacted negatively on
our overall profitability.
-- During the 3rd quarter we increased the available tonnage of
low-grade material by a further 4 months to 34 months, of which 10
months have been secured offsite. A decision has been made
subsequent to quarter end to focus the sourcing team's efforts on
higher margin material, if and where available.
-- The volume and the gold grade of the by-products received
from our clients during the quarter was lower resulting in an 18%
reduction in gold produced from by-products against same period of
the previous year.
-- 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
our other water sources.
-- Our margins were further impacted by a 10% decrease in the
gold price in South African Rand from the start of the 3(rd)
quarter.
-- The commissioning phase of the equipment installed to remove
carbonaceous material pre-milling took longer than anticipated and
the equipment has only been fully operational since May 2021.
-- Engagement with the authorities with regard to the new
tailings storage facility (TSF) is encouraging and we still expect
to receive approval by July. Some of the pre-construction work has
commenced and the new TSF should be completed at a cost of
GBP700,000 before the end of the current calendar year.
-- The completion of the construction of the new TSF is a
prerequisite for the reprocessing of the current TSF, the others
being a decision on the processing facility and the final
deposition site.
-- 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 15 May 2021 in the
Group was GBP2,900,000 and the loan balance outstanding was
GBP740,000.
With the sale of Kilimapesa during the 3(rd) quarter, we are
continuing to review the current group structure and evaluating the
options available to us to distribute future value created in the
recovery operations back to shareholders.
Mayflower Capital Investments Pty Limited ("Mayflower"),
Papillon Holdings plc (LSE: PPHP) ("Papillon") and its advisors
continue to engage with the FCA with respect to obtaining the final
approval for the Prospectus and with its brokers in the UK and
Germany to finalise the financing commitments from investors. As
announced on 26 April 2021, in the event that Papillon is not
re-admitted to trading on the LSE by 16 July 2021, the full initial
consideration of USD1,500,000 will become payable in cash and will
attract interest of 4% with effect from 1 January 2021.
Werner Klingenberg, CEO of Goldplat commented: "I am pleased to
report that with our two profitable recovery operations, in South
Africa and Ghana, we are getting closer to our strategic
initiatives of building long term visibility of earnings and being
in a position to return value to shareholders through
dividends."
For further i n fo rmat i on v i s it www .g o ld p lat.com, f o
l l ow on Twitter @GoldPlatPlc or contact:
Werner Klingenberg Goldplat plc Tel: +27 (0) 82 051 1071
(CEO)
Colin Aaronson / George Grant Thornton UK LLP Tel: +44 (0) 20 7383
Grainger (Nominated Adviser) 5100
James Joyce / Jessica WH Ireland Limited Tel: +44 (0) 207 220
Cave (Broker) 1666
Tim Thompson / Mark Edwards Flagstaff Strategic and Tel: +44 (0) 207 129
/ Fergus Mellon Investor Communications 1474
goldplat@flagstaffcomms.com
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