REG - Goldplat plc - Q2 Operating Results for period ended 31 Dec 2024

GoldplatAnnouncement

12/02/2025 07:00

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RNS Number : 7516W  Goldplat plc  12 February 2025

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

12 February 2025

Goldplat plc

('Goldplat' or the 'Company')

2(nd) Quarter Operating Results update for period ended 31 December 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 an operational update for the 2(nd) quarter ended 31 December 2024
("Q2"), of the current financial year.

The two recovery operations achieved a combined operating profit for the
quarter of £1,169,000 (FY Q2 2024 - £1,505,000) and for half year ("H1") was
£2,498,000 (FY H1 2024 - £3,368,000) (excluding listing and head office
costs, finance cost and foreign exchange losses). The finance cost and foreign
exchange losses incurred in Q2 mainly related to trading activities and
resulted in a combined profit before tax excluding listing and head office
costs for Q2 of £834,000 (FY Q2 2024 - £716,000).

The Ghanaian operation achieved a profit before tax for Q2 of £555,000 (FY Q2
2024 - £1,191,000).

During December, the operations of the Precious Metals Marketing Company
("PMMC"), who by law manage the export of doré gold bars, was disrupted by an
outside mob. Subsequent to this, the PMMC delayed the export of doré bars for
certain producers of material until they felt more comfortable with their
security position. It has since been resolved. This resulted in doré bars
produced during the latter half of December in Ghana only being exported in
January which had an impact on revenue of circa £2 million in December.

The South African operation achieved a profit before tax for Q2 of £279,000
(FY Q2 2024 - loss of £476,000) and was supported by stable production,
improved cost management and increasing gold price.

The following events have contributed to the Q2 operating results:

Gold Recovery Ghana ("GRG")

·      As announced in the FY Q4 2024 update, GRG is currently the only
local gold by-product beneficiation provider in Ghana. We have invested
£900,000 so far this financial year to increase capacity in the short-term,
after approval from the authorities was obtained for the expansion. We expect
to spend a further £250,000 over the next 6 months. This investment is
required to increase plant capacity and to increase the recovery of gold from
concentrate on site.

 

·      We have received the necessary environmental permits required to
acquire and construct additional plant and processes required to recover gold
doré on site.

 

·      After Ghana's presidential elections in December 2024 a new
government was formed. The focus of the new government remains on artisanal
activities and they have started to implement a new Gold Board tasked to
manage these activities. We foresee that the new government will implement new
measures and it will be important for us to constantly engage and build
relationships with them to ensure we understand the changes and potential
impact on our business.

Goldplat Recovery (South Africa)

·      Production during Q2 remained stable due to continuous
improvement initiatives to improve recoveries. Strict cost control measures
have been implemented to conserve cash in the short term.

 

·      Our focus remains on increasing our by-product market share in
South Africa as we started experiencing reductions in by-products received
from current mining operations due to changes in their production profile.

 

·      We continue to focus on the work required to begin processing our
old TSF which has a JORC Resource (January 2016) of 81,959 ounces in 1.43m
metric tonnes (Table 1), at a DRD Gold processing facility. Since the
completion of the JORC resource, circa 800,000 metric tonnes of material have
been added to the facility at grades of circa 1.45g/t as per plant data and
are not included in the current resource statement.

 

·      The processing of the old TSF remains dependent on the approval
of the water use license by local authorities and approval from third parties
in certain areas for the installation of a pipeline to the DRD Gold processing
facility. We also still need to agree commercials terms with DRD Gold based on
test work and analysis which is ongoing. During Q2 there have been several
engagements with all parties involved and good progress has been made, with
the aim of getting all approvals completed by June 2025.

 

·      Even at the higher gold price, it is uneconomical to process the
old TSF through our current infrastructure and it cannot replace, even at
lower margins, the reduction in by-products we are experiencing.

 

·      The visibility of supply of low-grade soils for our milling
circuits remains strong, with more than 12 months of material for processing
on site and more under contract.

 

Gold Recovery Brazil

·      During Q2 all necessary approvals were received to finalize the
acquisition of the land in João Pinheiro, Brazil, to the value of £72,000.

 

·      We plan to spend £200,000 during the next 6 to 12 months from
local proceeds to install spiral and other basic equipment to assist in
cleaning and upgrading the material we source in South America.

 

·      We continue to receive material from our regular sources in South
America with material being sent to Ghana and South Africa for processing.
During Q2, a decision was made to send more material to South Africa while we
reduce stock levels in Ghana through new processing methods.

Our cash balances in the group remained strong at £2,550,000 at the end of
Q2. The cash balances will mainly be used to manage working capital
requirements in Ghana and the repayment of intercompany loan balances and
other capital requirements.

Werner Klingenberg, CEO of Goldplat commented: "I am pleased with what our
teams in the two business units have achieved during Q2. In Ghana, the team
continued its implementation and management of several new processes and
procedures to focus the business on local beneficiation and manage engagement
with authorities with regard to new changes and requirements. In South Africa,
we continue streamlining the operations to respond to lower visibility of
supply of material.

The activity in South America remains encouraging and I am excited to see the
acquisition of the land being finalised. This will increase our ability to
service local clients by enabling us to process lower grade materials that are
not economically viable to ship. It also provides flexibility in terms of
jurisdictions we can process in.

There is still significant work to be completed but all our efforts will
create a more robust business providing a niche solution to the industry it
operates in.

The focus remains to reduce inventory levels in Ghana, whilst increasing cash
on hand, improve the local beneficiation solution in Ghana to ensure
consistent margins, progress the approval of the TSF pipeline, continue cost
management efforts in South Africa and increase market share in South Africa."

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 (Broker)                                    Tel: +44 (0) 203 829 5000

 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

 

100% attributable to the Company.

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, and it is not aware of any new information or data that
materially affects the estimates.

 

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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