REG - Goldplat plc - 4th Quarter Operating Results Update

GoldplatAnnouncement

27/08/2024 07:00

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RNS Number : 6868B  Goldplat plc  27 August 2024

Goldplat plc / Ticker: GDP / Index: AIM / Sector: Mining & Exploration

27 August 2024

Goldplat plc

('Goldplat' or the 'Company')

4(th) Quarter Operating Results update for period ended 30 June 2024

Goldplat plc, (AIM:GDP) the AIM listed Mining Services Group, with
international gold recovery operations located in South Africa and Ghana,
servicing the African and South American Mining Industry, is pleased to
announce an operational update for the 4(th) quarter ended 30 June 2024
("Q4"), of the financial year just ended.

The two recovery operations achieved a combined operating profit for the
quarter of £4,360,000 (excluding listing and head office costs and foreign
exchange losses) which represents a 267% increase against Q4 in the previous
period (Q4 2023 - £1,188,000).

During Q4 the two recovery operations achieved a combined profit before tax of
£2,960,000 (Q4 2023 loss before tax - £589,000) after they incurred
£410,000 in interest costs (Q4 2024 - £799,000) and £1,045,000 in foreign
exchange losses (Q4 2024 - £764,000) which mainly related to trading
activities.

Ghana experienced a strong Q4, achieving an operating profit of £3,740,000
(Q4 2023 - £438,000), driven by strong supplies in Ghana and South America.

South Africa's Q4 performance continue to be impacted by a reduction in supply
from current mining operations. South Africa achieved an operating profit of
£620,000 (Q4 2023 - £750,000).

As part of the year end process, we are reviewing the royalty's receivable on
the sale of Kilimapesa for potential impairment. A tax accrual of GBP321,000
will also be raised relating to the tax liability in Kenya.

The following events have contributed to the reduced Q4 operating results:

Gold Recovery Ghana

·      In Q4, the combined gravity and flotation circuit continued to
perform well and will assist in extracting value from large volumes of lower
grade fine carbon material received in Ghana.

 

·      The supply of material from South America and Ghana has remained
steady and we continue to have positive engagements with clients in South
America and West Africa.

 

·      As per the announcement dated 17 June 2024, the focus and
preference of the authorities in Ghana is on local beneficiation of
concentrate. The transition in process for GRG will result in a reduction in
debtors, increase of inventory value on site and additional working capital
requirements until all processes are fully operational.

 

·      The recovery of gold dore bars from some of the concentrate
received during the transition period is going slower than expected and we are
in the process of reviewing and improving our recovery processes. We plan to
invest in the order of GBP900,000 to upgrade our facilities in Tema based on
proposal submitted to authorities. We are awaiting the final review and
approval of the proposed investment from authorities.

 

Goldplat Recovery (Pty) Ltd

·      We continue to see a reduction in by-products received from
current mining operations due to changes in their production profile. The
focus therefore remains to increase our by-product market share in South
Africa.

 

·      Continuous improvement initiatives to improve recoveries and
strict cost control have been implemented to conserve cash in the short term.

 

·      During the quarter, total capital of £800,000 was spent on the
generators which were financed through a local South African bank.

 

·      We estimate that we will require a further £500,000 to be spent
on repairing and maintaining current operations and improving the
environmental impacts of our current operations over the next 12 months. The
Company anticipates that this will be funded from internally generated
cashflow.

 

·      We continue to focus on the work required to begin the processing
of our old TSF which has a JORC Resource (January 2016) of 81,959 ounces in
1.43m metric tonnes (Table 1), at a DRD Gold processing facility. Since the
completion of the JORC resource, circa 800,000 metric tonnes of material have
been added to the facility at grades of circa 1.45g/t (subject to
confirmation).

 

·      The processing of the old TSF remains dependent on the approval
of the water use license and third parties over certain areas for the
installation of a pipeline to the DRD Gold processing facility.

 

Our cash balances in the group remained strong at £3,800,000 at the end of
Q4. The cash balances will mainly be used to reduce the requirement for trade
finance in the medium-term, repayment of intercompany loan balances, repayment
of debt and increased working capital requirements in Ghana and capital
requirements.

Werner Klingenberg, CEO of Goldplat commented: "I am very pleased with the
strong operating results achieved by the group during Q4, specifically in
Ghana. The major focus for the Group is on local beneficiation of material in
Ghana, processing of our TSF, review of various cost elements and re-aligning
our business in a declining gold market in South Africa."

 

For further information visit www.goldplat.com, follow on X @GoldPlatGDP or
contact:

 Werner Klingenberg                                   Goldplat plc                                     Tel: +27 (0) 82 051 1071

                                                      (CEO)
 Colin Aaronson / Samantha Harrison / Ciara Donnelly  Grant Thornton UK LLP                            Tel: +44 (0) 20 7383 5100

                                                      (Nominated Adviser)
 James Bavister / Andrew de Andrade                   Zeus Capital Limited                             Tel: +44 (0) 203 829 5000

                                                      (Broker)
 Tim Thompson / Mark Edwards / Fergus Mellon          Flagstaff Strategic and Investor Communications  Tel: +44 (0) 207 129 1474

                                                                                                       goldplat@flagstaffcomms.com

 

 

Table 1

Mineral Resource Estimate of the TSF, South Africa

 Total Resource
 Domain          Class      Tonnes (Mil)  Density  Au (g/t)  Au (Oz)  U(3)O(8) (g/t)   U(3)O(8) (lbs)   Ag (g/t)  Ag (Oz)
 TOTAL RESOURCE  Measured   0.87          1.32     1.82      50,907   61.41            117,754          4.85      135,573
                 Indicated  0.49          1.37     1.77      27,897   59.73            64,506           4.71      74,165
                 Inferred   0.07          1.30     1.4       3,154    71.40            11,016           2.82      6,356
 Grand Total                1.43          1.34     1.78      81,959   61.32            193,276          4.70      216,094

 

The Tailings Mineral Resource Estimate was announced in accordance with the
JORC Code (2012) in a press release on 29 January 2016. Mark Austin of Applied
Geology & Mining (Pty) Ltd was the Competent Person responsible for that
announcement. The Company confirms that all material assumptions and technical
parameters underpinning the Resource Estimate continue to apply and have not
materially changed.

 

The information contained within this announcement is deemed to constitute
inside information as stipulated under the retained EU law version of the
Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK
law by virtue of the European Union (Withdrawal) Act 2018. The information is
disclosed in accordance with the Company's obligations under Article 17 of the
UK MAR. Upon the publication of this announcement, this inside information is
now considered to be in the public domain.

 

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