REG - Goldplat plc - 3rd quarter operating results update 31 March 2022

GoldplatAnnouncement

05/05/2022 07:00

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RNS Number : 3708K  Goldplat plc  05 May 2022

 

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

 

 

5 May 2022

 

Goldplat plc

('Goldplat', the 'Group' or 'the Company')

3(rd) quarter operating results update

for the period ended 31 March 2022

 

 

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
3(rd) quarter, ended 31 March 2022 ("Q3"), of the current financial year.

 

The two recovery operations continued a strong combined operating performance
from the previous quarter and achieved a combined operating profit for the
quarter of £2,286,000 which represented a 96% increase against Q3 in the
previous period (Q3, 31 March 2021 - £1,165,000).

 

The combined operating profit for the operating entities for 9 months ending
31 March 2022 increased by 43% to £6,045,000 (Q3, 31 March 2021,
£4,220,000).

 

This quarter's strong numbers were supported by increased operating
performance in South Africa of £1,627,000 (Q3, 31 March 2021 - £575,000),
whilst Ghana achieved steady operational results of £659,000 (Q3, 31 March
2021 - £687,000).

 

The following events have contributed to the excellent Q3 operating results:

 

Ghana

·    The results for Ghana were supported by an increasingly diverse
client base in West Africa and South America who provided a wider range of
materials, although volumes were reduced due to political unrest in some of
the jurisdictions in which we operate.

·    The reduction in volumes has given us the opportunity to focus on
other types of by-products and to increase our service offering to mines,
whilst we also increased our client base during the period.

·    We continue with our expansion into South America on a measured
basis, with limited capital allocated as yet.

 

South Africa

 

·    The strong operational profits for South Africa during the quarter
were supported by good production through our circuits, specifically gravity
concentrators, and increased gross profits realised on the sales of material
processed during the previous quarters. We are also seeing profits being
supported by services in and production of platinum group metals ("PGM's").

·    The construction of our PGM plant is going to plan and should be
completed at a capital cost of £300,000, with commissioning taking place
during May 2022. This will increase the flexibility in material we can process
and will enable us to further develop our PGM recovery business.

·    Further to the PGM plant, we have incurred £100,000 on new plant
machinery and the repair and maintenance of the current circuits and expect to
incur further £300,000 during QTR 4 in this regard.

·    The review of our water use license has been completed and we are
awaiting the drafting and issue of the license from Department of Water and
Sanitation. The license, once received, will provide us the basis on which a
new tailings storage facility (New TSF) will be developed adjacent to our
existing tailings storage facility (Existing TSF) at a cost of circa
£350,000. The intention is for our deposition to be transferred from the
Existing TSF to the New TSF, with the New TSF to be used for storage and the
Existing TSF to be used for processing. This transfer will provide us with the
ability to process the Existing TSF which contains a JORC resource of circa
82,000 ounces of gold (Table 1) at a third-party processing facility once the
approval and installation of a pipeline to this third-party processing
facility has been completed.

·    We have received the environmental approval required for the
installation of the pipeline to a nearby third-party processing facility,
although the required water use license submission is still in progress. The
nearby third-party processing facility has the potential to provide the
necessary deposition capacity to process the Existing TSF.

 

Our cash balances in the group remained strong at £2,000,000 at the end of
Q3, with over £5,000,000 locked up in product in transit or already delivered
to smelters and refiners. The turnaround of our material has been delayed due
to global supply chain and shipping delays, exacerbated by delays at our
operation's local ports.  The cash balances in the group at 31 March 2022
reflect both the £312,000 received on the sale of 32,878,000 shares in
Caracal for 0.95 pence per share and the payment on account of £200,000 for
the share buy-back programme announced on 29 March 2022.

 

Werner Klingenberg, CEO of Goldplat commented: "I am pleased to note the
geographically diversified strength in our recovery operations and the
contribution from production of PGM's. This further supports our decision to
expand in to the South American market and the investment made into leveraging
our current skillsets and infrastructure, to diversify the materials and
elements we can process economically. I am encouraged with progress on the
tailings facility which should add a further significant revenue stream to the
business in future."

 

For further information visit www.goldplat.com, follow
on Twitter @GoldPlatPlc or contact:

 

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

                                                    (CEO)

 Colin Aaronson / George Grainger / Samuel Littler  Grant Thornton UK LLP                            Tel: +44 (0) 20 7383 5100

                                                    (Nominated Adviser)
 Jessica Cave / 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

 

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.

 

Table 1

Mineral Resource Estimate of the Tailings Storage Facility, 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 assumption and technical
parameters underpinning the Resource Estimate continue to apply and have not
materially changed.

 

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