REG - Goldplat plc - Audited Results for the year ended 30 June 2024
20/12/2024 13:00
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RNS Number : 9775Q Goldplat plc 20 December 2024
Goldplat plc / Ticker: GDP / Index: AIM / Sector: Mining & Exploration
20 December 2024
Goldplat plc
('Goldplat', the 'Group' or 'the Company')
Audited Results for the year 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 its audited results for the year ended 30 June 2024.
Goldplat continued to achieve excellent trading results during the year ended
30 June 2024:
· Revenue increased by 73.6% to £72.7m (2023: £41.9m)
· Operating profit increased by 127.0% to £9.8m (2023: £4.3m)
· Profit for the year increased by 40.9% to £4.3m (2023: £3.1m)
· Robust cash generation with net cash flows from operating
activities of £3.9m (2023: £3.3m)
· Cash and cash equivalents increased to £3.9m (2023: £2.8m)
· EPS increased by 50.3% to 2.51p (2023:1.67p)
Werner Klingenberg, CEO of Goldplat commented: "I am pleased with the
excellent trading results achieved by the Group this year. These results come
despite a number of significant operational challenges in the period. The
Board and I are greatly encouraged by the results for the year, and the manner
in which the Group has performed, despite these operational challenges.
Looking to the current financial year, I believe Goldplat has a good pathway
to follow up with further positive operational performances, and we look
forward to reporting on our progress throughout 2025."
The Company's annual report and accounts are available on the Company's
website at http://www.goldplat.com/downloads
(https://protect-za.mimecast.com/s/-fo7CxGjMnf1053s8AJgf?domain=goldplat.com)
and hard copies will be posted by 23 December 2024 to shareholders that
have elected to receive printed copies.
As announced on 5 December 2024, Resolution 1 to be put to shareholders at the
Annual General Meeting of the Company being held on 30 December 2024, to
receive the report of the Directors of the Company and the audited financial
statements of the Company for the year ended 30 June 2024, will be adjourned
in order to give shareholders the requisite notice. The date of the adjourned
meeting will be confirmed in due course.
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 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
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.
Chairman's Statement
Goldplat PLC's precious metals processing facilities combined continued to
achieve excellent trading results during the year ended 30 June 2024.
Our portfolio of core assets consists of two gold recovery operations, in
South Africa and Ghana, with plans to extend recovery operations to Brazil,
servicing the African and South American markets. These operations recover
gold and platinum group metals ('PGM') from by-products of current and
historical mining processing, thereby providing mines with an environmentally
friendly and cost-efficient way of removing waste material.
Looking at the trading results of Goldplat PLC ("the Company" or "Goldplat")
and its subsidiaries, together referred to as "the Group", profit for the year
remained strong at GBP4,322,000 (2023 - GBP3,068,000). The increase was driven
by strong supply to operations in Ghana, improved gold price and reduction in
electricity supply cuts in South Africa. This resulted in a return on invested
capital (Profit after Taxation divided by Total Equity) of 21.1% (2023 -
17.8%). Cash generation across the Group continued to be robust with net cash
flows from operating activities of GBP3,872,000 (2023 - GBP3,343,000) and net
year end cash of GBP3,886,000 (2023 - GBP2,781,000).
The results achieved continue to indicate the resilience of our operations and
team as well as the diversity in our markets and products with a reduction in
supply in South Africa being offset by strong supply in West Africa and South
America to the operations in Ghana.
We remain focused on long term visibility of earnings in the recovery
businesses by increasing visibility of resources through the strengthening of
partnership relationships and improved processing methods. At the same time we
are positioning ourselves as a service group focused on key elements of
primary producers' Environmental, Social and Governance (ESG) initiatives. Our
key focus will remain on extracting value from gold bearing by-products whilst
we investigate broadening the commodity spaces in which we operate and add
value.
As indicated in the prior year, the Company will continue to return cash in
excess of operating and development requirements to shareholders. Due to the
capital invested into a new tailings storage facility ("TSF") in South Africa
and future capital requirements to maintain operations as well as processing
of the old TSF, the Company did not distribute any cash to shareholders during
the year. We will continue to evaluate this position and, when appropriate,
will distribute cash through either share repurchases or dividends, whichever
the Board believes will add the most value, to our shareholders.
Goldplat has a pivotal role to play in the circular economy that extends from
the extraction of minerals to re-processing of what would typically be dumped
as waste materials, and to responsible mining and business practices that
underpin Goldplat as a sustainable partner for large mining groups.
As referred to in the Strategic Report, the business has adopted certain
sustainability reporting principles in the current year including profiling
material matters through the application of double materiality and linking
these material issues to strategic responses and performance metrics.
As a starting point, we have conducted materiality assessments to identify
where our highest level of sustainability impact could be and in turn, linking
these matters to our strategic response, policies and performance management.
We are committed to creating measurable value for all our stakeholders towards
a just and sustainable socio-economically future.
Goldplat will continue developing its integrated sustainability strategy and
reporting practices. This process is ongoing, and the Board will continue to
monitor our obligations and make sure that we meet or exceed expectations as
we continue to create and preserve value for all our stakeholders.
We look forward to continuing to build on the successes of the past few years
and increasingly realising and growing the intrinsic value of Goldplat. I wish
to thank all Goldplat employees, as well as my fellow directors, our advisors,
our shareholders, as well as all of our other stakeholders for their efforts
as we look forward to the coming years with enthusiasm.
Gerard Kisbey-Green
Chairman
20 December 2024
CEO Report
Overview of operations
Goldplat is a mining services company, specialising in the recovery of gold
and other precious metals, from by-products, contaminated soil and other
precious metal bearing material from mining and other industries. Goldplat has
a pivotal role to play in the circular economy that extends from the
extraction of minerals to re-processing of what would typically be dumped as
waste materials. Goldplat has two market leading operations in South Africa
and Ghana focused on providing an economic method for mines to dispose of
waste materials while at the same time adhering to their environmental
obligations.
Goldplat has been providing these services for more than 20 years, mainly to
the mining industry in Africa, but more recently also in South America.
Goldplat's extraction processes and multiple process lines enable it to keep
materials separate, which provides a high degree of flexibility when proposing
a solution for a particular type of material. The processes which are employed
include roasting in a rotary kiln, crushing, milling, thickening, flotation,
gravity concentration, leaching, CIL, elution and smelting of bullion.
Goldplat's recovery operations recover circa 2,000 ounces (of gold and other
metals) monthly through various circuits and under different contracts. The
number of ounces is dependent on the type and volume of material supplied and
the grade, recovery, margins and terms of contracts and can differ
significantly based on the nature of the material supplied and processed. At a
minimum, 70% of material produced is exposed to the fluctuation in gold price,
with the remainder of the production being offset by corresponding changes in
raw materials costs. Due the factors mentioned above, margins tend to
fluctuate month to month.
The strategy of the Company, which also drives the key performance indicators
of management, is to return value to the shareholders by creating sustainable
cash flow and profitability through:
· growing its customer base in Southern Africa, West Africa, South
America and further afield;
· strengthening its license to operate in the jurisdictions in which it
operates;
· forming strategic partnerships with other industry participants;
· leveraging its role in the circular economy including by diversifying
into processing of platinum group metals ("PGM") and other commodities
contaminated material;
· ensuring the sustainability of its operations from an environmental,
social and governance perspective; and
· optimising the value to be extracted from the processing of its
2.2-million-tonne TSF.
Goldplat's highly experienced and successful management team has a proven
track record in creating value from contaminated gold and other precious
metals-bearing material.
The Group follows the responsible gold guidelines as set-out by the London
Bullion Mark Association ("LBMA") and our processes are audited on a bi-annual
basis, to provide further comfort to its suppliers, partners and customers.
Goldplat has a JORC defined resource (see the announcement dated 29 January
2016 for further information) over part of its active TSF at its operation in
South Africa of 1.43 million tonnes at 1.78g/t for 81,959 ounces of gold.
Since the resource estimate was completed, more than 800,000 tonnes of
material have been deposited on the TSF, at grades of circa 1.45g/t.
Operating results
The recovery operations had exceptional strong results with profit after tax
attributable to owners of the Company of GBP4,208,000 (2023 - GBP2,798,000),
an increase of 50.4% from the previous financial year.
The increase was driven by strong supply to operations in Ghana, improved gold
price and reduction in electricity supply cuts in South Africa.
The Group has been focused on the recovery operations to increase visibility
of earnings through:
· Growing its customer base and its raw material supply on site;
· Securing its license to operate through maintaining licenses and
contained conditions;
· Getting necessary approvals for the processing of our old TSF in
South Africa;
· Securing and extending our role in the circular economy by expanding
our business into other commodities.
Growing the customer base
During the year the Group secured additional supplies of material in Ghana and
South America, whilst retaining all major woodchips and byproduct suppliers.
The increase performance in Ghana is directly attributable to the strong
growth in suppliers of by‑products. A major supplier is defined as a
supplier that supplied a material amount of raw material to the operations
during the last financial year.
We received low-grade surface sources for processing through our CIL circuits
in South Africa from mainly one supplier during the period. Through the
agreement with the supplier in previous years we have been able to create a
greater visibility of supply of future material as well as reducing the amount
of low-grade surface sources on site and the attendant cash requirement. The
nature of the materials to be removed will vary in terms of the gold grade
contained and the recoverability of the gold contained through our circuits.
The analysis and processing of these materials to date has indicated that it
will be viable to remove and process at current costs and price parameters.
However, the potential supply from this one supplier which is for more than
three years, remains dependent on grade of gold contained, recoverability of
the gold contained, costs and price parameters. We are also engaging other
suppliers to increase visibility of supply.
Securing pipeline and developing alternative reclamation resources Units 2024 2023
Product type South Africa Ghana South Africa Ghana
Low-grade surface sources Number 4 0 1 0
Woodchips Number 8 0 6 0
By-products Number 11 24 5 12
The percentage contribution from different feed products to operating margins
in South Africa does fluctuate from month to month and contribution from each
has been changing. In the past, on average each product type contributed a
third of the margins for Goldplat Recovery SA ("GPL"), highlighting each
product's significance to the operations. Although the contribution always
fluctuates, we have seen a decline in value of by-products, specifically
woodchips received from industry which has resulted in a reduction in turnover
& margins in South Africa. In Ghana, Gold Recovery Ghana ("GRG") margin is
derived only from the different types of by-products generated by current
mining activities.
Although GPL has retained all contracts during the year, consolidation
continues in the South African gold industry: mines are closing or are
becoming more efficient in their processing, resulting in reduced volumes and
grade of woodchips and by‑products received.
As a result, GPL's focus is to increase its share of the market in South
Africa, securing the business of those major mining groups in South Africa it
is not servicing currently and looking to neighbouring countries to supplement
current feedstock (although production in these countries is limited).
Ghana's focus remains on opening up the West African market, although the
environment has become more challenging with the export of gold concentrate
being stopped by the authorities of a few African countries.
The Group continues to investigate and research different types of discard and
waste sources from industry to increase the flexibility in the types of
material it processes.
License to operate
Due to the nature of the recovery services the Group provides and the
commodities we recover, we require various licenses to operate and need to
comply with the conditions of these licenses.
During the year the group continued to invest the necessary funds to maintain
these licenses and to ensure our operations comply with these licenses.
During the year GRG renewed the Minerals Commission - License to Purchase and
Deal in Gold and the Environmental Protection Authority License. The delay in
the renewal of the License to Purchase and Deal in Gold in Ghana had a
significant impact on GRG's ability to export material towards the end of the
prior year.
The Department of Water and Sanitation of the Republic of South Africa
authorised the water use license of GPL during June 2022 which includes the
extraction and use of water in its recovery processes and the impact of its
disposal of tailings on a new TSF, according to the conditions set out in the
license, which is valid for 12 years. This has enabled GPL to construct a new
TSF that will provide an additional five years of deposition capacity.
Towards the end of the period, it has become clear that the focus and
preference of the authorities in Ghana is on local beneficiation of
concentrate. This has necessitated our business in Ghana to start recovering
gold in concentrates locally in the form of dore bars, which can then be sold
to international refiners. To increase capacity and processes to do this will
require investment of circa GBP900,000 and approval of processes and plant by
Environmental and Mining Departments. We have made the relevant submission and
are working with authorities to improve our processes for local beneficiation.
Set out below is a summary of some of the major licenses required by
operations to operate in current jurisdictions:
License to operate Valid until 2024 2023
South Africa Ghana South Africa Ghana
Current licenses November 2040 Precious Metals Precious Metals Refining License*
Refining License*
January 2029 Air Emissions License Air Emissions License
Expired Mining Right (expired* May 2023) Mining Right (expired* May 2023)
Annual Radio-active License Radio-active License
2034 Water Use License Water Use License
Annual Precious Metals Import Permit Precious Metals Import Permit
Annual Precious Metals Export Permit Precious Metals Export Permit
Annual Ghana Freezone Authority Ghana Freezone Authority
May 2026 Minerals Commission - License to Purchase and Deal in Gold Minerals Commission - License to Purchase and Deal in Gold
18 December Environmental Protection Authority License Environmental Protection Authority License
2025
New application Waste License Waste License
* GPL does not require a mining right in South Africa to continue its
operation and is conducting its operations under a Precious Metals Refining
License which only expires in November 2040. As GPL does not have an
identified mineral deposit and does not extract any ore from a mineral
deposit, it could not renew its mining right per the Department of Mineral
Resources and Energy ('DMRE'). We have applied to the relevant Government
authorities to convert the existing environmental management plan in place to
an integrated environmental authorization and waste management license. We
have received a response that no change is required from us at this point,
however for clarity, we are still pursuing the change to an integrated
environmental authorization and waste management license.
Circular economy
Goldplat has a pivotal role to play in the circular economy that extends the
extraction of minerals to re-processing of what would typically be dumped as
waste materials. It also extends to responsible mining and business practices
that underpin Goldplat as a sustainability partner for large mining groups.
During the year all of our operating profit was derived from the processing of
discards or waste materials from historic or current mining activities.
Goldplat believes that it can extend this pivotal role it is participating in
the circular economy to the gold industry in South America and into other
commodities.
We still hold a strategic 15% shareholding in a fine coal recovery technology
company. Goldplat has an option to invest an additional GBP1.5m, which will
increase our shareholding in that business to above 50%. This investment would
be used to operationalise the technology through the construction of a fine
coal washing plant in Mpumalanga, South Africa. This option would provide us
diversification in our recovery operations into a different commodity, namely
coal, of which significant resources are available in South Africa, with
opportunities not just for processing but also for environmental
rehabilitation. Based on management's evaluation, although the project remains
feasible, we do not believe the timing is correct to make this investment
given our current focus on increasing cash availability and shareholder
return.
The Group's acquisition of land in South America at a value of circa
GBP120,000 has taken longer than expected due to the timing of regional
approvals that were required. The decision to acquire land was driven by the
need to establish an address in South America from which we can service our
clients. In time we plan to establish operational plant capacity in Brazil to
provide solutions for lower grade material not processable at our other plants
due to the cost of transport to those facilities.
Tailings Facility
The new TSF at GPL was constructed adjacent to the current TSF and was
completed in August 2023 and commissioned during the year. The new TSF has
sufficient capacity to store the tailings we will produce in our current
operations for a further five years.
The new TSF has been constructed by using regulated synthetic liner and design
drainage which should enable a greater quantity of process water to be re-used
in the plant and reduce seepage and contamination of ground water.
The new TSF allows us to divert all deposition from the current facility,
which will provide us with the ability to use the current facility to recover
the JORC resource through DRDGOLD. The processing of our old TSF remains
dependent on land owner consent and the approval of the water use license over
certain areas for the installation of a pipeline to the DRDGOLD process
facility. We aim to have the final application submitted before the end of
January 2025, subject to land owner consent. The approval process normally
takes 365 days from submission.
DRDGOLD and Goldplat Plc are currently in the process of evaluating different
variables that will impact on the processing of the TSF, as well as the
commercials of doing so; this process will be completed alongside the water
use license. To enable us to process the current TSF through a DRDGOLD
facility, we will require landowner consent, approval to install a pipeline to
this DRDGOLD processing facility (as indicated in paragraph above) and will
need to finalise commercial agreements with DRDGOLD.
Electricity Supply
During the year, the South African operation lost circa 11% of its production
hours due to electricity supply outages, which has had a significant impact on
our lower grade circuits. However, since April 2024, no electricity supply
outages have been experienced or are expected in the near future.
During the period, as a result of uncertainty of electricity supply in the
medium term, we invested in the diesel generators which will be able to
sustain operations in South Africa during electricity cuts. The capital cost
of this investment was GBP812,000 and was financed over 36 months with one of
our local banks.
Anumso Gold Project - Ghana ('AG')
The gold mining license under the Anumso Gold ('AG') project expired during
March 2021 and was not renewed as was the intention of the Company and the
joint venture partner, Desert Gold Ventures Inc. The investment in AG was
disclosed as a discontinued operation during the 2021 year. In that year we
were informed that mineral right fees since 2013 were outstanding, which is
still being disputed. None of the joint venture partners intend to capitalise
the AG project to settle the claim and current AG liabilities exceed its
assets by the minerals right fees outstanding. The Company's share of
outstanding minerals right fees is GBP369,000 and this has been accrued in
prior years.
Outlook
Our focus during the year has been, and will continue to be:
· to open up and expand our market share in West Africa and into the
rest of Africa;
· to acquire land in Brazil, and expand our service delivery,
specifically on lower grade material in Brazil and elsewhere in South America;
· expand local beneficiation in Ghana;
· increase our market share in South Africa and increase our client
base in neighbouring countries;
· to reduce the cost of production, specifically on our CIL circuits in
South Africa;
· to agree commercial terms on the reprocessing of the TSF with DRDGOLD
and finalise the regulatory requirements to allow us to pump material through
a pipeline to the DRDGOLD facility;
· leveraging our strength and capabilities through the processing of
other precious metals and commodities.
The recovery operations have nearly always been cashflow generative and during
the year we have utilised some of this cashflow to build the new TSF in South
Africa, repay the share repurchase loan in South Africa and support working
capital levels in Ghana. The Company will remain focused on sharing future
cashflows with shareholders, specifically distributing any cash surplus (above
Group's operational requirements and growth plans) to shareholders. After the
end of the period, most cash has been used to sustain inventory levels in
Ghana, whilst we increase our local beneficiation capacity.
The South African operations will continue to serve the South African gold
industry and will focus on sustaining profitability from old mining clean-ups
and as part of its diversification strategy will continue investing capital
into processing PGM's.
We are working with DRDGOLD to find the most economic methods to reprocess TSF
(which has a JORC Compliant Resource of 81,959 ounces) and receiving
environmental approval for a pipeline which will be required to transport
material to a facility for processing.
Goldplat recognises the cyclical nature of the recovery operations as well as
the risks inherent in relying on short-term contracts for the supply of
materials for processing, particularly in South Africa where the gold industry
is in slow longer term decline. These risks can be mitigated by improving our
operational capacities and efficiencies to enable us to treat a wider range of
lower grade materials and leveraging on our strategic partnerships in industry
to increase security of supply. We will continue to seek materials in wider
geographic areas. We shall also keep looking beyond our current recovery
operations for further opportunities to apply our skillsets and resources.
Short-term Medium-term Long-term
(2025 - 2026)
(2027 - 2029)
(2030 and beyond)
· Invest and improve local beneficiation solutions of gold concentrates · Expand our service delivery in South America. · Diversifying into other commodities
in Ghana.
· Approval of landowners and authorities for construction of pipeline
required for processing of old TSF through DRDGOLD.
· To reduce the of cost of production, specifically on our CIL circuits
in South Africa.
Conclusion
The last few years have seen a lot of changes in Goldplat's business as we
have set out to increase sustainability and growth of our recovery operations.
I would like to compliment Goldplat's employees, its advisors, my fellow
directors and the Company's shareholders not just for their efforts and
support, but for their resilience and how they have embraced the changes and
remained focused on the opportunities they bring. This year we have seen the
benefit of these changes and the Board is looking forward to building on this
year's successes, creating opportunities from the ever changing environment
and returning value to shareholders.
Werner Klingenberg
Chief Executive Officer
20 December 2024
CFO Report
Financial Highlights
· Revenue increased by 73.6% to GBP72.7m (2023 - GBP41.9m)
· Operating profit increased by 127.0% to GBP9.8m (2023 - GBP4.3m)
· Cash and cash equivalents increased to GBP3.9m (2023 - GBP2.8m)
Overview
Goldplat delivered another year of solid financial results despite increased
electricity supply cuts in South Africa, a reduction in by‑product material
supply, gravity shortfalls in the first half of the financial year and
inflationary pressures.
Revenue increased by 73.6% to GBP72,691,000, due to more gold sold as a result
of an increase in high-grade low-margin batches processed in Ghana and an
increase in the average gold price during the year to USD2,076/oz (2023 -
USD1,829/oz).
The margins of the Group depend upon the volume, quality and type of material
received, the metals contained in such material, processing methods required
to recover the metals, the final recovery of metals from such material, the
contract terms, metals prices and foreign currency movements. During the year,
the gross profit margin remained 17.7%, with the high volume of high-grade
low-margin batches processed in Ghana offset by lower gold production in South
Africa which was due to a reduction in by-product material supply and the
impact of electricity supply cuts. This was exacerbated by foreign exchange
losses, which increased by GBP1,819,000.
The table below on the operating performance of Goldplat (excluding foreign
exchange gains & losses, finance cost and taxes) reflects the ability of
the recovery operations in South Africa and Ghana to produce profitably at
various gold prices and production levels for the last 5 years.
2024 2023 2022 2021 2020
Average Gold Price per oz in US$ for the year 2,076 1,829 1,833 1,846 1,560
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Revenue 72,691 41,881 43,222 35,400 24,809
Gross Profit 12,843 7,422 9,994 6,199 7,312
Other (Loss)/Income 38 (96) 53 56 0
Administrative Costs 3,110 3,021 2,332 1,694 1,977
Operating Profit Before Finance Costs 9,771 4,305 7,715 4,561 5,335
Financial review
The major functional currencies for the Group subsidiaries are the South
African Rand (ZAR) and the Ghana Cedi (GHS) whilst the presentation currency
of the group is Pounds Sterling (GBP). The average exchange rates for the year
are used to convert the Statement of Profit or Loss and Other Comprehensive
Income for each subsidiary to Sterling.
As set out in the table below, the average ZAR and GHS weakened against the
Pound Sterling by 9.9% and 15.0% respectively. The exchange rates as at the
end of the year are used to convert the balance in the Statement of Financial
Position. As set out in the table below, the ZAR closing rate appreciated and
GHS closing rate depreciated by -3.6% and 32.3% respectively, which resulted
in the GBP1,939,000 loss on exchange differences on translation during the
year.
2024 2023 Variance
GBP GBP %
South African Rand (ZAR) Average 23.57 21.43 10.0%
Ghanaian Cedi (GHS) Average 15.76 13.7 15.0%
South African Rand (ZAR) Closing 30 June 2024 23.02 23.87 -3.6%
Ghanaian Cedi (GHS) Closing 30 June 2024 19.32 14.60 32.3%
Apart from the gold price, the Group's performance is impacted by the
fluctuation of its functional currencies against the USD in which a majority
of our sales are recognised. The average exchange rates for the year used in
the conversion of operating currencies against the USD during the year under
review are set out in the table below:
2024 2023 Variance
USD USD %
South African Rand (ZAR) Average 18.72 17.78 5.3%
Ghanaian Cedi (GHS) Average 12.51 11.37 10.0%
Personnel
Personnel expenses increased by 1.4% to GBP5,289,000 (2023 - GBP5,214,000)
during the year mainly due to an increase in the number of production
personnel from 415 to 423 and the annual salary increases in South Africa and
Ghana. We spent a total of GBP87,000 on various training programmes for our
personnel.
Net finance costs
The net finance loss for the year can be broken down into the following:
2024 2023
Interest component GBP GBP
Interest receivable 102,000 69,000
Interest payable (218,000) (283,000)
Interest on pre-financing of sales (1,604,000) (956,000)
Intercompany foreign exchange income/loss (18,000) 510,000
Operating foreign exchange losses (2,040,000) (221,000)
Net Finance Costs (3,778,000) (881,000)
Net finance costs increased to GBP3,778,000 (2023 - GBP881,000) during the
year as a result of:
Increase in foreign exchange losses in operations from GBP221,000 to
GBP2,040,000. During the current year we had a large foreign exchange loss in
Ghana due to the depreciation of the GHS against the USD during that year. As
we pre-finance a portion of our sales to the smelters, the exchange rate on
the day we receive most of our funds was lower than the exchange rate on the
day we recognise the sale in our records.
The interest payable on borrowings relates to the buy-back of the minority
share in GPL during the previous years.
Taxation
During the year the income tax expense increased by 369%. This has resulted in
an increase in the effective tax rate from 10.4% to 28%, which was driven by
the following:
Ghana:
· Increase in GRG profits before taxation from GBP1,965,000 to
GBP5,234,000.
· GRG is registered as a Free Zone company in Ghana and was taxed at
15% (2023: 15%) during the year.
South Africa:
· Decrease in the mining taxation rate from 9.84% for GPL, to 0%, due
to a change in the mining tax rate formula and a decrease in taxable mining
profits;
· GPL did incur non-mining taxable income relating to interest on the
GMR intercompany loan which was charged at the South African Company Tax rate
of 27%;
During the year, the dividend from GPL to the Company incurred a withholding
dividend taxation charge of 5%. The withholding dividend tax for the year was
GBP58,000 (2023 - GBP69,000).
Other comprehensive income
During the year the Group experienced a loss in foreign exchange translation
reserve of GBP1,081,000 and was primarily made up of:
· Foreign exchange translation loss in GRG of GBP1,642,000 as a result
of devaluation of the GHS during the year against the GBP by 15.0%; and
· Foreign exchange translation profit in GPL of GBP403,000 as a result
of devaluation of the ZAR during the year against the GBP by 9.9%.
Property, plant & equipment
During the year we spent GBP939,000 on the acquisition and construction of
plant and equipment, mainly at GPL in South Africa.
We incurred GBP492,000 in GPL, with the main contributors to the capital
expenditure in the current year being capital incurred on the new generator
project of GBP424,000.
We incurred GBP447,000 in GRG, of which GBP440,000 related to the new milling,
gravity and flotation circuit to increase recoveries from material received.
This plant started operating in Q3 of the 2024 financial year.
Intangible Assets
The intangible assets relate to the goodwill on the investment held in Gold
Mineral Resources Limited ("GMR") and GPL. The balance has been assessed for
impairment by establishing the recoverable amount through a value-in-use
calculation, the detail of which has been disclosed in the financial
statements.
Right-of-use asset
The right-of-use assets increased during the year by GBP652,000. The primary
reason for the increase is due to the generator project financed with a value
of GBP812,000 in GPL.
The Group acquired plant and machinery and vehicles on finance leases for
GBP920,000.
The remainder of the changes relate to amortisation for the year and foreign
exchange movements.
Receivable on Kilimapesa sale
GMR is entitled to receive a further 1% net smelter royalty on all production
from Kilimapesa up to a maximum of $1,500,000, on any future production from
Kilimapesa. As at the end of the year, based on estimated future production at
Kilimapesa, GBP714,000 is receivable. Refer to note 7 of the financial
statements.
Loan receivable
As part of the repurchase of the minority's share of GPL in the 2022 year,
shares were also issued to a new minority in South Africa, Aurelian, a portion
of which is payable from dividend proceeds. The balance outstanding is
GBP164,000.
Inventories
The decrease of GBP8,050,000 in the inventory balance, relates mainly to a
decrease of GBP6,181,000 in inventory at GRG.
2024 2023
GBP GBP
Precious Metals on Hand and in Process 9,039,000 16,618,000
Raw Materials 1,874,000 2,462,000
Consumable Stores 1,172,000 1,054,000
12,084,000 20,134,000
The decrease in GRG inventory relates mainly to precious metals on hand and in
process sold in the current financial year as the inventory held by the
refiners was finalised and sold.
The raw material stock is only held in South Africa, and relates to the
low-grade material processed through our Carbon-In-Leach ('CIL') circuits.
With the agreement reached with DRDGOLD, by which we can remove and process
materials on DRDGOLD premises, we have not just increased the availability of
raw material for processing, but also put GPL in a position to operate with
lower levels of raw materials at our premises.
Trade and other receivables
The Group's trade and other receivables fluctuates based on grade and volume
of batches and material processed during different periods of the year in the
two operating entities.
Apart from the gold bullion produced in South Africa, on which payment is
received within 14 days, for the remainder of the concentrates we produce, the
payment terms on average are between 4 to 6 months.
During the year, the trade and other receivables decreased by GBP7,501,000, of
which GBP1,245,000 relates to a decrease in GRG and GBP6,547,000 to a decrease
in GPL.
The decrease in GRG and GPL was mainly due to the finalisation of exports at
the smelters that built up in the previous financial year.
Deferred tax liabilities
The deferred tax liabilities increased during the year from GBP531,000 to
GBP616,000. The tax rate remained the same as the previous year but deferred
tax, specifically relating to property, plant and equipment, increased during
the year.
Interest bearing borrowings
In 2022, GPL entered into a ZAR denominated bank facility of ZAR 60 million
(approximately GBP3.02 million) with Nedbank, to finance the repurchase of
shares from minorities in South Africa. The full ZAR 60 million was drawn
during the first half of the prior year and the principal on the bank facility
is repayable monthly over 36 months. The interest payable on the facility is
the South African Prime Rate plus 1.75%.
GPL provided security over its debtors as well as a negative pledge over its
moveable and any immovable property, with a general notarial bond registered
over all movable assets. The Group entered into a limited suretyship for ZAR
60 million, in favour of Nedbank.
The balance outstanding on the reporting date was GBP296,000 of which
GBP296,000 is repayable in the next 12 months.
Trade and other payables
The decrease in trade and other payables of GBP17,252,000, was mainly driven
by the finalisation of export batches at the smelter in Europe.
In general, we pay our suppliers before we recover the value from material
processed and delivered to smelters or refiners. Suppliers are either paid in
full or a percentage of the balance is paid with the balance retained until we
receive our final results from refiners or smelters. We receive external
funding for material delivered to smelters to finance this gap between
receipts and payments. During the year the balance funded decreased as batches
from the prior year were finalised and settled.
Conclusion
Looking forward, we expect inventory, trade and other payables and trade and
other receivables to increase in the first two quarters, specifically in
Ghana, as the Ghanaian operation is going through a business model change with
the requirement to beneficiate all concentrates to doré gold bars
in‑country.
Goldplat will continue to critically review and assess its cost structures and
remain focused on generating cash to fund our capital spend on compliance
projects as well as creating value for our shareholders.
Brent Doster
Chief Financial Officer
20 December 2024
Statements of Financial Position - Group
Group Group
Figures in £'000 2024 2023
Assets
Non-current assets
Property, plant and equipment 5,481 5,265
Right-of-use assets 1,004 352
Intangible assets 4,664 4,664
Investment in subsidiary or associate 1 1
Unlisted investments 1 63
Receivable on Kilimapesa sale 610 571
Other loans and receivables 159 145
Total non-current assets 11,920 11,061
Current assets
Inventories 12,084 20,134
Trade and other receivables 21,704 29,205
Current tax assets - 58
Receivable on Kilimapesa sale 104 30
Other loans and receivables 21 19
Cash and cash equivalents 4,108 2,977
Total current assets 38,021 52,423
Total assets 49,941 63,484
Equity and liabilities
Equity
Share capital 1,678 1,678
Share premium 11,562 11,562
Capital Redemption Reserve 53 53
Retained income 16,530 12,328
Foreign exchange reserve (10,436) (9,401)
Total equity attributable to owners of the parent 19,387 16,220
Non-controlling interests 1,080 1,033
Total equity 20,467 17,253
Liabilities
Non-current liabilities
Provisions 742 743
Deferred tax liabilities 616 531
Interest bearing borrowings - 285
Lease liabilities 518 37
Loan from group company - -
Total non-current liabilities 1,876 1,596
Current liabilities
Provisions 329 207
Trade and other payables 25,944 43,196
Current tax liabilities 394 -
Interest bearing borrowings 296 898
Lease liabilities 413 139
Bank overdraft 222 195
Total current liabilities 27,598 44,635
Total liabilities 29,474 46,231
Total equity and liabilities 49,941 63,484
Statements of Profit or Loss and Other Comprehensive Income - Group
Group Group
Figures in £'000 2024 2023
Revenue 72,691 41,881
Cost of sales (59,848) (34,459)
Gross profit / (loss) 12,843 7,422
Other income / (loss) 38 (96)
Administrative expenses (3,110) (3,021)
Profit from operating activities 9,771 4,305
Finance income 102 69
Finance costs (3,880) (950)
Profit before tax 5,993 3,424
Income tax expense (1,671) (356)
Profit for the year 4,322 3,068
Profit for the year attributable to:
Owners of Parent 4,208 2,798
Non-controlling interest 114 270
4,322 3,068
Other comprehensive loss net of tax
Exchange differences on translation relating to the parent
Losses on exchange differences on translation (1,081) (3,231)
Total Exchange differences on translation (1,081) (3,231)
Exchange differences relating to the non-controlling interest
Losses on exchange differences on translation 38 (203)
Total other comprehensive income that will be reclassified to profit or loss (1,043) (3,434)
Total other comprehensive loss net of tax (1,043) (3,434)
Total comprehensive income / (loss) 3,279 (366)
Comprehensive (loss) / income attributable to:
Comprehensive income / (loss), attributable to owners of parent 3,128 (432)
Comprehensive income, attributable to non-controlling interests 151 66
3,279 (366)
Earnings per share attributable to owners of the parent during the year
Basic earnings per share
Basic earnings per share 2.51 1.67
Diluted earnings per share
Diluted earnings per share 2.49 1.65
Statements of Changes in Equity - Group
Figures in £'000 Share Share Capital Retained Attributable Non- Total
Capital premium Redemption Foreign income to owners of controlling
Reserve exchange the parent interests
reserve
Balance at 1 July 2022 1,678 11,562 53 (6,170) 9,530 16,653 1,150 17,803
Changes in equity
Profit for the year - - - - 2,798 2,798 270 3,068
Other comprehensive loss - - - (3,231) - (3,231) (203) (3,434)
Total comprehensive income for the year - - - (3,231) 2,798 (433) 67 (366)
Non-controlling interests in
subsidiary dividend - - - - - - (184) (184)
Balance at 30 June 2023 1,678 11,562 53 (9,401) 12,328 16,220 1,033 17,253
Balance at 1 July 2023 1,678 11,562 53 (9,401) 12,328 16,220 1,033 17,253
Changes in equity
Profit for the year - - - - 4,208 4,208 114 4,322
Other comprehensive loss - - - (1,081) - (1,081) 38 (1,043)
Increase (decrease) due to adjustments - - - 46 (6) 40 - 40
Total comprehensive - - - (1,035) 4,202 3,167 152 3,319
income for the year
Non-controlling interests in subsidiary dividend - - - - - - (105) (105)
Balance at 30 June 2024 1,678 11,562 53 (10,436) 16,530 19,387 1,080 20,467
Statements of Cash Flows - Group
Group Group
Figures in £'000 2024 2023
Net cash flows from operations 4,629 4,511
Finance cost paid (128) (521)
Finance income received 21 -
Income taxes paid (650) (647)
Net cash flows from operating activities 3,872 3,343
Cash flows used in investing activities
Proceeds from sale of Caracal - 727
Other cash payments to acquire equity or debt - (126)
instruments of other entities
Loan issued to Green Coal Technologies (16) -
Proceeds from sale of property, plant and equipment 4 30
Acquisition of property, plant and equipment (923) (1,911)
Cash flows used in investing activities (935) (1,280)
Cash flows used in financing activities
Payment of interest-bearing borrowings (909) (1,620)
Repayments of other financial liabilities - -
Repayment of leases (259) (287)
Payment of dividend by subsidiary to non- controlling interest (105) (185)
Cash flows used in financing activities (1,273) (2,092)
Net increase / (decrease) in cash and cash equivalents 1,664 (29)
Cash and cash equivalents at beginning of the year 2,781 3,895
Foreign exchange movement on opening balance (559) (1,085)
Cash and cash equivalents at end of the year 3,886 2,781
Accounting Policies
1. General information
Goldplat plc is a public company limited by shares domiciled and registered in
England and Wales.
The address of the Company's registered office is Salisbury House, London
Wall, London, the United Kingdom EC2M 5PS. The Group primarily operates as a
producer of precious metals on the African continent.
2. Basis of preparation and summary of significant accounting policies
Statement of compliance
The consolidated and separate financial statements have been prepared in
accordance with UK - adopted International Accounting Standards ("IAS") and
the Companies Act 2006 as applicable to entities reporting in accordance with
IAS; as applicable to entities reporting in accordance with IFRS.
Basis of measurement
The consolidated financial statements have been prepared on the historical
cost basis, except for derivative financial instruments that have been
measured at fair value.
Functional and presentation currency
These consolidated financial statements are presented in Pounds Sterling,
which is considered by the directors to be the most appropriate presentation
currency to assist the users of the financial statements. All financial
information presented in GBP has been rounded to the nearest thousand, except
when otherwise indicated.
The Group's subsidiaries' functional currency is considered to be the South
African Rand (ZAR), Ghana Cedi (GHS) and the Company's functional currency is
Pounds Sterling (GBP) as these currencies mainly influences sales prices and
expenses.
Use of estimates and judgements
The preparation of the consolidated and separate financial statements in
conformity with UK - adopted IAS requires management to make judgements,
estimates and assumptions that affect the application of accounting policies
and the reported amounts of assets, liabilities, income and expenses. The
estimates and associated assumptions are based on historical experience and
various other factors that are believed to be reasonable under the
circumstances, the results of which form the basis of making judgements about
carrying values of assets and liabilities that are not readily apparent from
other sources. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognised in the period in which the
estimates are revised if the revision affects only that period, or in the
period of revision and future periods of the revision if it affects both
current and future periods.
Critical estimates and assumptions that have the most significant effect on
the amounts recognised in the consolidated financial statements and/or have a
significant risk of resulting in a material adjustment within the next
financial year are as follows:
· Carrying value of goodwill GBP4,664,000 (2022: GBP4,664,000)
· Inventory - precious metals on hand and in process to the value of
GBP9,039,000 (2023: GBP16,618,000)
· Rehabilitation provision GBP742,000 (2023: GBP743,000)
· Useful economic lives
· Estimated revenue to the value of GBP17,660,000 (2023: GBP27,531,000)
3. Share capital, premium and redemption reserve
3.1 Authorised and issued share capital
Group Group
Figures in £'000 2024 2023
Issued
Ordinary shares 1,678 1,678
1,678 1,678
Share premium 11,562 11,562
13,240 13,240
3.2 Reserves
Ordinary shares
All shares rank equally with regard to the Company's residual assets. The
holders of ordinary shares are entitled to receive dividends as declared from
time to time and are entitled to one vote per share at meetings of the
Company.
Share premium
Represents excess paid above nominal value on historical shares issued.
Exchange reserve
The exchange reserve comprises all foreign currency differences arising from
the translation of the financial statements of foreign operations.
Non-controlling interest
Relates to the portion of equity owned by minority shareholders.
Capital Redemption Reserve
Portion of share capital repurchased by the Company.
4. Employee benefits expense
Group Group
Figures in £'000 2024 2023
Wages and salaries 4,708 4,416
Performance based payments 245 522
National insurance and unemployment fund 75 64
Skills development levy 41 43
Medical aid contributions 85 36
Group life contributions 66 64
Provident funds 69 69
Total 5,289 5,214
The average number of employees (including directors) during the year was:
Directors 7 5
Administrative personnel 44 38
Production personnel 423 415
474 458
Directors emoluments Executive Non-executive Total
2024
Wages and salaries 253 - 253
Fees - 135 135
Other benefits 3 - 3
Total 256 135 391
2023
Wages and salaries 178 - 178
Fees - 141 141
Other benefits 62 - 62
Total 240 141 381
Emoluments disclosed above include the following amounts paid to the highest
director:
2024 2023
Emoluments for qualifying services 190 240
Key management apart from the Directors, the emoluments paid to key management
personnel amounted to 2024: GBP735,000 (2023: GBP793,000).
5. Earnings per share
5.1 Basic earnings per share
The earnings and weighted average number of ordinary shares used in the
calculation of basic earnings per share are as follows:
Group Group
Figures in £'000 2024 2023
Earnings used in the calculation of basic earnings per share 4,208 2,798
Weighted average number of ordinary shares used in the calculation of basic 167,783 167,783
earnings per share
5.2 Diluted earnings per share
The earnings used in the calculation of diluted earnings per share are as
follows:
Group Group
Figures in £'000 2024 2023
Earnings used in the calculation of basic earnings per share 4,208 2,798
The weighted average number of ordinary shares for the purpose of diluted
earnings per share reconciles to the weighted average number of ordinary
shares used in the calculation of basic earnings per share as follows:
Weighted average number of ordinary shares used in the calculation of basic 167,783 167,783
earnings per share
Adjusted for - Dilutive effect of share options 1,452 1,899
Weighted average number of ordinary shares used in the calculation of diluted 169,235 169,682
earnings per share
6. Related parties
6.1 Other related parties
Entity name 2024 Holding 2023 Holding
Gold Mineral Resources Limited 100% Direct 100% Direct
Goldplat Recovery (Pty) Ltd 91% Direct 91% Direct
Gold Recovery Ghana Limited 100% Indirect 100% Indirect
Anumso Gold Limited 49% Indirect 49% Indirect
Nyieme Gold SARL 100% Indirect 100% Indirect
Midas Gold SARL 100% Indirect 100% Indirect
Gold Recovery Brasil Recuperacao 100% Direct 100% Direct
Gold Recovery Peru SAC 100% Indirect 100% Indirect
GRG Tolling Ltd 100% Indirect 100% Indirect
Major inter-company transactions
Nature of transaction 2024 2023
Goldplat Recovery to Gold Recovery Ghana Goods, equipment and services supplied 412 679
Goldplat Recovery to Gold Mineral Resources Goods, equipment and services supplied - 91
Goldplat Recovery to Gold Mineral Resources Interest received (125) (149)
Goldplat Recovery to Gold Recovery Ghana Sale of precious metals 203 -
Goldplat Recovery to Gold Recovery Ghana Management fees 85 -
Goldplat Plc to Gold Mineral Resources Management fees 272 25
Goldplat Recovery to Aurelian Capital Trade and other payables 1 1
Goldplat Recovery to Aurelian Capital Dividends Receivable - Aurelian 164 150
Goldplat Recovery to Aurelian Capital Management fees 15 17
Goldplat Plc Directors 135 141
7. Subsequent events
Goldplat plc was involved in a process of arbitration dispute resolution
("ADR") in Kenya with respect to a claim that was brought forward against
Kilimapesa Gold (Pty) Limited, a subsidiary of Caracal Gold Plc, as agent of
Gold Minerals Resources Limited (subsidiary of Goldplat Plc), regarding the
sale of Kilimapesa by Gold Minerals Resources Limited to Caracal Gold in 2022.
Per the ADR, the Company has agreed to settle USD320,000 and has provided for
the amount in full as at 30 June 2024. As of November 2024, the amount owing
by Gold Mineral Resources Limited had been settled in full.
GPL terminated the engagement of a number of employees in 2017, after which
the company won The Commision for Conciliation, Mediation and Arbitration
("CCMA") case. The employees took the matter for review to the Labour Court
where the Labour Court ruled in favour of the employees in July 2024. The
Company has subsequently appealed the ruling and awaits the final outcome. As
at 30 June 2024, GPL has provided for the possible cash outflow of GBP21,000
post year-end.
Goldplat plc awarded 200,000 restricted shares to each of Brent Doster, Chief
Financial Officer and to Douglas Davidson, Chief Operating Officer on 2 July
2024. The restricted share awards will vest at nil cost to the employee after
1 July 2025 if the individual is still employed by the Company on that date.
There are no other events subsequent to 30 June 2024 that will have a material
effect on the consolidated financial statements.
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