REG - Goldplat plc - Q2 and half year results ended 31 December 2021

GoldplatAnnouncement

10/02/2022 07:00

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RNS Number : 2226B  Goldplat plc  10 February 2022

 

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

 

 

10 February 2022

 

          Goldplat plc

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

 

2(nd) quarter and half year operating results update

for the period ended 31 December 2021

 

 

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 2nd
quarter of the current financial year ("Q2") ended 31 December 2021.

 

The two recovery operations achieved a strong combined operating profit for
the quarter of £2,356,000 (Q2, 31 December 2020: £1,554,000), a 52%
increase from the comparative period ended 31 December 2020. The Ghana
operations continued to perform well with a steady supply of material and
achieved an operating profit for Q2 of £1,012,000 (Q2, 31 December 2020:
£569,000). The South African operations achieved an operating profit for Q2
of £1,344,000 (Q2, 31 December 2020: £985,000).

 

The combined operating profit for the 6 months ending 31 December 2021
increased by 27%, to £3,759,000 (6 months ended 31 December 2020,
£2,957,000) as a result of the strong Q2 performance.

 

The following events have contributed to the excellent Q2 operating results:

 

Ghana

·    The continued supply from current clients in West African and South
America ensured lower cost of production during Q2 and strong sales, driving
operating profits for the 6 months to £1,851,000 (6 months ended 31 December
2020, £849,000).

·    Our engagement with mine management and government officials on
different levels has continued, with the aim of increasing our footprint to
ensure regular supply.  We foresee that the various coup d'états in West
Africa countries might impact deliveries in the short-term. We do however have
different sources of supply to ensure continued production.

·    As indicated in the previous operational update, a decision was made
to expand the opportunities in South America by establishing a processing and
storage site in Brazil, at an initial cost of USD300,000. This gives us the
ability to capture lower-grade material market which is not feasible to export
to our other operations and also to improve services we can provide in
country. We are currently ensuring we secure all licenses required,
specifically environmental, and will keep the market updated on progress.

·    We continue to evaluate our options for the processing of artisanal
tailings material in Ghana, including the possibility of finding a partner in
country.

 

South Africa

 

·    The operational profits for South Africa were increased as a result
of improvement in the cost of production as well as 7% increase in gold price,
in ZAR terms, from Q1 to Q2. We are also seeing profits being supported by
services in and production of platinum group metals ("PGM's"). This resulted
in operating profit of £1,908,000 for 6 months ended 31 December 2021 (6
months ended 31 December 2020, £2,108,000).

·    As indicated in the Q1 operational update, we have built our
strategic PGM material to a level to warrant capital expenditure of USD
300,000 on a plant to extract its value. This new plant will also enable us to
further develop our PGM recovery business and should be completed by April
2022.

·    Our application for the water use license was submitted in October
2021 and we are still expecting feedback by the end of Q3. We continue to
manage and extend the deposit of material within the Group's current tailings
storage facility with the help of consulting engineers. A further £270,000 of
capital expenditure was incurred during the 6 months, mainly on our tailing's
deposition.

·    Towards the end of October 2021, an application was made for
environmental approval for the installation of a pipeline to a process
facility in the area. This pipeline could provide us with an avenue to pump
and process our current tailings facility which contains a JORC resource of
circa 82,000 ounces of gold. The approval process should be completed by the
end of this calendar year.

 

Our cash balances remained strong at £1,452,000 at the end of Q2, with a
significant balance invested in inventory and debtors at the end of the
period. At the date of this announcement, the cash balance in the operating
entities was £3,850,000.

 

Werner Klingenberg, CEO of Goldplat commented: "I am pleased with the
continued strong operating results from both recovery operations. Apart from
our continuing focus on sourcing material for our operations and maximising
recoveries from material received, management continues to focus on ways to
leverage our unique skillsets and infrastructure, to diversify the materials
and elements we can process economically, specifically PGM's".

 

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.

 

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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