Goldplat plc / Ticker: GDP / Index: AIM / Sector: Mining &
Exploration
7
February 2024
Goldplat
plc
('Goldplat' or the
'Company')
2nd Quarter
Operating Results update for period ended 31 December
2023
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 2nd quarter ended 31 December
2023 ("Q2"), of the current financial year.
Ghana experienced an exceptional Q2,
achieving an operating profit of GBP1,820,000 (GBP1,026,000
Q2 2023), driven by strong supplies during the first half of
the current financial year and the sale of inventory that built up
as a result of our inability to export whilst our export license
was finalised during the 2nd half of the previous
financial period.
South Africa's Q2 performance
continues to be impacted by electricity cuts and a reduction in
by-product supply from current mining operations. As a result of
delays experienced at the smelter in Europe in the previous
financial year, South Africa's Q2 results were further materially
impacted as an unusually large quantity of material for processing
through gravity circuits was held in stock at the end of June 2023;
this material contained a lower percentage of gold than estimated.
While the percentage of contained gold varies from month to month,
the unusually large quantity of material held in inventory means
that there was a disproportionate effect on Q2 with a significantly
lower quantity of gold than expected recovered from our gravity
circuits. This resulted in an operating loss of GBP315,000 for the
quarter (GBP356,000 operating profit Q2 2023).
Even with the losses in South
Africa, the combined operating profit for both operations for Q2
was GBP1,505,000 (GBP1,382,000 Q2 2023) and for half year ("H1")
was GBP3,368,000 (excluding listing and head office costs, interest
and foreign exchange movements), compared to the combined operating
profit of GBP2,813,000 for H1 2023.
The following events have
contributed to the Q2 operating results:
Gold Recovery Ghana
· As
indicated above, Ghana received the benefit during Q2 from good
supply of material during H1, with consignments treated from Ghana,
Côte d'Ivoire and South America. Our focus remains on building on
the momentum in South America and Côte d'Ivoire and opening other
jurisdictions in West Africa.
· Towards the end of Q2 we started to commission the lower grade
milling, gravity and flotation circuit which will assist in
extracting value from large volumes of lower grade fine carbon
material received in Ghana.
Goldplat Recovery (Pty) Ltd
· The
South African operation lost a total of 7 operating days, 7% of the
total days available in the quarter, compared with the circa 23%
lost in the previous 3 quarters, due to electricity cuts and
infrastructure related issues. The reduced impact of electricity
cuts continued in the first month of Q3 ("January 2024") but the
risk of this increasing to the same levels experienced in the
previous 3 quarters remains.
· Due to
the continued uncertainty of electricity supply in the medium term
and as announced on 31 May 2023, we decided to invest in diesel
generators which will be able to sustain operations in South Africa
during electricity cuts. During January, it became apparent that
due to miscommunication between the supplier of the generators and
the manufacturer, the shipping of the generators has been delayed
and the project will only be completed in Q4 of the current financial year.
· Apart
from the circa GBP600,000 shortfalls experienced on the gravities,
we continued 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 and to gain access to neighbouring
countries.
· The
visibility of supply of low-grade soils for our milling circuits
remains strong, with more than 18 months of material for processing
on site and more under contract.
· With
lower recoveries from low grade soils (referring to gravity
concentrates) and reduction in by-products received and increases
in cost, the various cost elements in South Africa will be reviewed
and revised in the short term to conserve cash.
· With
the new TSF being commissioned, we are focussing on work required
to begin the processing of our old tailings facility which has a
JORC Resource of 81,959 ounces (Table 1), at a DRD Gold process
facility.
· The
processing of our old TSF remains dependent on:
o The
approval of the water use license over certain areas for the
installation of a pipeline to the DRD Gold process facility; The
application process was subject to completion of engineering
designs which were finalised in December 2023. However, areas were
identified where the pipeline route will require to be changed from
the current servitude. These changes have resulted in changes in
timelines, and we will keep the market updated on when we have
clarity of what the new timelines will be;
o These changes may affect the way we process the TSF and how
this affects the returns we can generate. DRD Gold and Goldplat
Recovery are currently in the process of evaluating the different
variables that will impact the processing of the TSF, as well as
their commercials impact; this process will remain subject,
inter alia, to the
finalisation of the water use license.
· We
estimate that we will require a further GBP500,000 (not including
the investment of GBP750,000 to be spent on generators over the
next 18 months), to be spent on repairing and maintaining current
operations, on completing the TSF and improving the environmental
impacts of our current operations. The company anticipates this to
be funding from internally generate cashflow.
Our cash balances in the group
increased from Q1, with increased sales in Ghana, and remains
strong at GBP1,707,000 (GBP1,350,000 Q1 2024).
Werner Klingenberg, CEO of Goldplat commented:
"This was a bitter-sweet quarter with good results
in Ghana alongside losses on estimated gold receivable in South
Africa. I'm confident that the team has implemented the necessary
controls to eliminate these losses going forward.
Ghana continues to benefit from
engagements and marketing efforts over the last 5 years and we aim
to build on the momentum into Africa and South America.
The requirements and approval of the
water use license for installation of pipeline to DRD Gold remain a
major focus for the Group, whilst we continue to strengthen our
relationships, increase market share in a declining gold market in
South Africa and leverage our strength and capabilities through
partnership into other precious metals and commodities."
For further information visit
www.goldplat.com, follow on Twitter @GoldPlatGDP or
contact:
Werner Klingenberg
|
Goldplat plc
(CEO)
|
Tel: +27 (0) 82 051 1071
|
Colin Aaronson / Samantha Harrison /
Enzo Aliaj
|
Grant Thornton UK LLP
(Nominated Adviser)
|
Tel: +44 (0) 20 7383 5100
|
James Bavister / Andrew de Andrade
|
WH Ireland Limited
(Broker)
|
Tel: +44 (0) 207 220 1666
|
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)
|
U3O8 (g/t)
|
U3O8 (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
|
100% attributable to the
Company.
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, and it
is not aware of any new information or data that materially affects
the estimates.
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.