REG - Goldplat plc - 1st Quarter Results

GoldplatAnnouncement

10/11/2023 07:00

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RNS Number : 0094T  Goldplat plc  10 November 2023

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

10 November 2023

Goldplat plc

('Goldplat' or the 'Company')

1(st) Quarter Operating Results update for period ended 30 September 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 1(st) quarter ended 30 September 2023
("Q1"), of the current financial year.

Operations in both South Africa and Ghana were positive in Q1, achieving
combined operating profit for the quarter of £1,865,000 (excluding listing
and head office costs, interest and foreign exchange movements), compared to
the combined operating profit of £1,942,000 for Q1 2022. The operating
performance comprises operating profit in South Africa of £759,000 (Q1 2022 -
£976,000) and in Ghana of £1,106,000 (Q1 2022 - £966,000).

The following events have contributed to the Q1 operating results:

Gold Recovery Ghana

·      We had a good supply of material during the first quarter,
supported by large lower grade consignment received out of Côte d'Ivoire.
This is the first consignment out of Côte d'Ivoire and is a result of our
continued engagement in various West African countries. This opens up the
potential to extract more value out of Côte d'Ivoire and we will at the same
time continue our engagement in Mali and other jurisdictions in West Africa.
 

 

·      During the period we incurred capital expenditure of £205,000 on
a lower grade milling, gravity and flotation circuit. This will increase the
value we can extract from larger volumes of lower grade fine carbon material
received in Ghana. Commissioning of part of the plant will start in Q2 and
full commissioning will be completed in Q3.

 

Goldplat Recovery (Pty) Ltd

·      The South African operation lost a total of 21 operating days,
23% of the total days available in the quarter, due to electricity cuts and
infrastructure related issues. We have continued to implement processes to
maximize the production during electricity supply hours and as a result our
tonnes processed was only 18% lower rather than 23% lower.

 

·      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. We originally expected the diesel generators to be
operational by the end of October 2023. However, due to delays in shipping, we
now expect the generators to be operational in January 2024.

 

·      We are seeing a reduction in by-products received from current
mining operations due to changes in their production profile, although the
visibility on supply of low-grade soils for our milling circuits remains
strong, with more than 18 months of material for processing on site and more
on contract. The focus therefore remains to increase our by-product market
share in South Africa and to gain access to neighbouring countries.

 

·      The construction of the new tailing's storage facility ('TSF')
was completed during the first week of August 2023 and commissioning started
in August 2023. It is expected that the commissioning of the TSF will take
nine months. During the commissioning period, tailings will be deposited on
both the new and old tailings facilities. Currently most tailings are being
deposited on the new facility. A further £320,000 capital was incurred on the
TSF during the quarter.

 

 

·      With the new TSF being commissioned, we can turn our focus to the
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 tailings facility 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 is ongoing with engineering designs being finalised with final
application to be done before end of December 2023. Approval is estimated to
be received during Q4 of the 2024 financial period;

o  DRD Gold and Goldplat plc are currently in the process of evaluating
different variables that will impact the processing of the TSF, as well as the
commercials of doing so; this process will be completed alongside the water
use license.

 

·      We estimate that we will require a further £1,300,000 (not
including the investment of £750,000 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.

We continue to assess the economic and environmental feasibility of the fine
coal recovery technology company we invested in, which is in line with our
strategy to diversify our recovery operations into other commodities.

Our cash balances in the group remained strong at £1,350,000, with
significant balances invested in debtors with our main exposure to a new
smelter in Europe and South Africa. This was driven by the delay in receiving
our gold license in Ghana during Q4 of previous period, resulting in inventory
only being sold during Q1.

Werner Klingenberg, CEO of Goldplat commented: "I am pleased with the
operating results achieved by the group during Q1 and results we are seeing
from continued efforts, specifically consignment from Côte d'Ivoire, the
improved turnaround of material being delivered to a different smelter,
securing of low-grade carbon in leach (CIL) material in South Africa and the
momentum we are seeing on engagement around the reprocessing of our old TSF.

Our focus will remain on strengthening relationships and continued engagements
in West Africa and South America, increasing market share in a declining gold
market in South Africa and neighbouring countries, reprocessing of the old
tailings facility and leveraging 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                                     Tel: +27 (0) 82 051 1071

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

                                                  (Nominated Adviser)
 James Bavister / Andrew de Andrade               WH Ireland Limited                               Tel: +44 (0) 207 220 1666

                                                  (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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