REG - Goldplat plc - 4th quarter operating results update

GoldplatAnnouncement

17/08/2022 07:00

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RNS Number : 2918W  Goldplat plc  17 August 2022

 

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

 

 

17 August 2022

 

Goldplat plc

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

 

4(th) quarter operating results update

for the period ended 30 June 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 4(th) quarter, ended 30 June 2022 ("Q4").

 

The two recovery operations continued a strong combined operating performance
from the previous quarter and achieved a combined operating profit for the
quarter of £1,973,000 which represents a 83% increase compared with Q4 in the
previous period (Q4, 30 June 2021 - £1,080,000).

 

The combined operating profit for the operating entities for 12 months ended
30 June 2022 increased by 51% to £7,996,000 (12 months ended 30 June 2021 -
£5,300,000).

 

This quarter's strong numbers were supported by increased operating
performance in South Africa of £1,245,000 (Q4, 30 June 2021 - £350,000),
whilst Ghana achieved steady operational results of £728,000 (Q4, 30 June
2021 - £729,000).

 

The following have contributed to the excellent Q4 operating results:

 

Ghana

·    We have remained focused on increasing our value offering to clients
in the processing of other types of by-products and have increased our client
base in Ghana as a result. This, together with good volumes from current
clients in Ghana, supported the operating results for Q4.

·    We maintain our engagement with governments and mines in the ECOWAS
("The Economic Community of West African States") to agree processes and
controls on the export of gold bearing products and remain encouraged by the
value we have identified that we can offer in these countries.

·    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
continue to be supported by good production through our circuits, specifically
gravity concentrators, and increased gross profit 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 was completed during the quarter at
cost of £300,000 and we have continued production of PGMs, whilst the
commissioning of the flotation plan has been ongoing. This will increase the
flexibility in material we can process and will enable us to further develop
our PGM recovery business.

·    As announced on the 16(th) of June, The Department of Water and
Sanitation of the Republic of South Africa ('DWS') has authorised the water
use in South Africa, which include the disposal of tailings on our new
tailings storage facility ('TSF'). We are currently engaging with the DWS on
certain conditions stipulated in the license, but on current indications, we
estimate that the TSF will cost a further £650,000, £300,000 more than
originally planned. Of the £650,000, £300,000 has been incurred during Q4.

·    Once commissioned, tailings will be deposited in the new TSF. Subject
to approvals and the installation of a pipeline, tailings held in the old TSF
will be reprocessed at a third-party facility to recover an estimated 82,000
ounces of gold (Table 1).

 

Our cash balances in the group remained strong at £3,672,000 at the end of Q4
(Q4, 30 June 2021, £3,110,000).

 

Werner Klingenberg, CEO of Goldplat commented: "I am pleased to see the
continued year-on-year strong operational numbers produced by the recovery
operations, with this being the third year it has produced, at fluctuating
gold prices, a combined operating profit above £5,000,000. We continue to
invest time into identifying different methods to process materials containing
various elements and building relationships in different jurisdictions, which
has broadened the pipeline of potential projects going forward, including the
processing of the tailings facility which should add a further 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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