REG - Goldplat plc - Q3 Operating Results - period ended 31 March 2025

GoldplatAnnouncement

27/05/2025 07:00

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RNS Number : 0847K  Goldplat plc  27 May 2025

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

27 May 2025

Goldplat plc

('Goldplat' or the 'Company')

3(rd) Quarter Operating Results update for period ended 31 March 2025

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 3(rd) quarter ended 31 March 2025
("Q3"), of the current financial year.

The two recovery operations achieved a combined operating profit for the
quarter of £694,000 (FY Q3 2024 - £1,618,000) (excluding listing and head
office costs, finance cost and foreign exchange gains/losses).

During Q3 the two recovery operations achieved a combined profit before tax of
£769,000 (FY Q3 2024 - £890,000) after they incurred £15,000 in net
interest costs (Q3 2024 - £430,000) and £90,000 in foreign exchange gains
(FY Q3 2024 - foreign exchange losses £350,000) which mainly related to
trading activities.

Ghana achieved an operating profit for Q3 of £684,000 (FY Q3 2024 -
£1,499,000) and a profit before tax for Q3 of £784,000 (FY Q3 2024 -
£820,000).

The South African operation achieved an operating profit for Q3 of £10,000
(FY Q3 2024 - £119,000) and a loss before tax for Q3 of £15,000 (FY Q3 2024
- profit of £70,000) and was supported by stable production, improved cost
management and the increasing gold price. South Africa's performance continues
to be impacted by a reduction in supply from current mining operations.

The following events have contributed to the Q3 operating results:

Gold Recovery Ghana ("GRG")

·      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 £200,000 over the next 6
months. This investment is required to increase plant capacity and to increase
the recovery of gold from concentrate on site.

 

·      As previously announced, the above investment has been required
to beneficiate all material to gold dore bars in country based on requirements
from the authorities in country. These requirements have effectively changed
the GRG business model, with turnover limited not just to supply of client
materials, but also production in country. As a result of certain clients not
sending ad hoc high-grade batches and material from South America being
redirected to South Africa, turnover has decreased and stabilised to align
with our production capacity.

 

·      As announced on 12 February 2025, the focus of the government
remains on artisanal activities and they implemented a new Gold Board tasked
to manage local gold production. They have started implementing new measures,
some of which require the sale of a percentage of dore in country and it will
be important for us to constantly engage and build relationships with the Gold
Board to ensure we can prepare for the changes and potential impact on our
business.

 

Goldplat Recovery (South Africa)

·      Production during Q3 remained stable, benefitting from continuous
improvement initiatives to increase recoveries. Strict cost control measures
have been implemented to conserve cash in the short term.

 

·      During Q2, a decision was made to send more material from South
America to South Africa while we reduce stock levels in Ghana through new
processing methods. Material which was received and processed in South Africa
during Q3 will be exported in Q4.

·      We continue to process trial batches of Platinum Group Metals
("PGM") to investigate the expansion of our capabilities and diversify the
supply of material we can handle in South Africa, in line with our strategy to
supplement gold recovery with PGM's.

 

·      During the period we have had encouraging engagements with gold
producers in South Africa and we are confident that we will be able to
increase our market share in South Africa during Q4 and supporting the supply
of by-products into the next financial period.

 

·      Engagements with several parties for the TSF project continued
during Q3 with the aim of getting all approvals completed by December 2025.
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 which will be
based on test work and analysis which is ongoing.

 

·      The visibility of supply of low-grade soils for our milling
circuits remains strong, with more than 12 months' supply of material for
processing on site and more under contract, although the grade in the supply
contained continued to reduce.

 

Gold Recovery Brazil

·      Project planning and placing of orders has commenced. We plan on
spending £200,000 during the next 6 to 9 months from local proceeds to
install spiral and other basic equipment to assist in cleaning and upgrading
the material we source in South America.

 

Our cash balances in the group remained strong at £3,149,000 at the end of
Q3. The cash balances will mainly be used to manage working capital
requirements in Ghana, capital expenditure in Ghana and Brazil and the
repayment of intercompany loan balances.

 

Werner Klingenberg, CEO of Goldplat commented: "I am pleased with what our
teams have achieved in the three business units during Q3.

In South Africa, we are seeing positive results on Gold and PGM sourcing
activities and continue streamlining the operations to respond to lower
visibility of supply of material.

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.

We continue to see strong supply of higher grade material out of South America
and we will continue our steady investment towards establishing operations in
Brazil.

The focus remains on further reducing inventory levels in Ghana, whilst
increasing cash on hand, progressing the approval of the TSF pipeline,
continuous cost management efforts in South Africa, increasing market share in
South Africa and expanding in Brazil. This should provide stability in working
capital requirements and ultimately enhance the ability to return cash to
shareholders"

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)
 Harry Ansell / 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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