TIDMGDP
RNS Number : 4805Y
Goldplat plc
05 May 2023
Goldplat plc / Ticker: GDP / Index: AIM / Sector: Mining &
Exploration
5 May 2023
Goldplat plc
('Goldplat' or the 'Company')
3(rd) Quarter Operating Results update for period ended 31 March
2023
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 2023 ("Q3"), of the current financial
year.
The two recovery operations achieved a combined operating profit
for the quarter of GBP1,470,000 which represents a 36% decrease
against Q3 in the previous period (Q3 2022 - GBP2,286,000)
(excluding listing and head office costs and foreign exchange
losses).
The combined operating profit for the operating entities for 9
months ending 31 March 2023 decreased by 20% to GBP4,840,000 (Q3
2022 - GBP6,045,000).
This quarter's results were a consequence of reduced operating
performances in South Africa of GBP1,175,000 (Q3 2022 -
GBP1,627,000) and in Ghana of GBP295,000 (Q3 2022 -
GBP659,000).
Despite the reduced operating performance in Q3, the Company
still expects to meet current market expectations for the current
financial year.
The following events have contributed to the reduced Q3
operating results:
Gold Recovery Ghana ("GRG")
-- During Q3, GRG production remained in line with previous
quarters, however, we have experienced delays to the export of
product as a result of the finalisation of the renewal of our Gold
Licence, which is required for export. Although the licence has
been approved by the Minerals Commission of Ghana, the final
signature from the regulated authorities has taken longer than
expected. As a result, production is currently locked up in
inventory on site since the previous licence expired at the end of
January 2023. This situation has not been resolved as of the date
of this announcement. Once the new license is signed, accumulated
inventory will be sold which is expected to lead to non-recurring
higher sales volumes in Q4.
-- The supply of material from South America and Ghana has
remained steady and we continue to have positive engagements with
clients in South America and West Africa.
Goldplat Recovery (Pty) Ltd
-- The operating profit for the period did improve from the
previous quarter by GBP356,000 to GBP1,175,000 as a result of good
supply from by-products towards the end of Q2 and during Q3.
However, production in our lower grade circuits was impacted by
electricity cuts from the electricity provider in South Africa. The
South African operation lost a total of 19 operating days, 20% of
the total days available in the quarter, due to electricity cuts
and infrastructure related issues during Q3. We expect that the
current electricity situation will continue during the next 12
months. We continue to explore mitigating actions and viable power
generation solutions to minimize the impact on the business. The
most viable solutions involve additional connections to the local
Municipality Grid or a new direct connection to Eskom (South Africa
Electricity Generator and Supplier), however the timelines of these
options is uncertain and unclear. As a result, we are re-evaluating
options of securing diesel generators to run all or part of the
operations in South Africa, whilst we continue to explore options
mentioned above. We will update the market on the cost and impact
of the solution once a decision has been made.
-- The construction of the new tailings storage facility ('TSF')
continued in Q3. The capital spent during Q3 on the TSF was
GBP250,000 and we estimate we will need to spend a further
GBP250,000 to completion. This is GBP200,000 higher than we
expected and is the result of the Company gaining clarity on the
requirement to install specific monitoring equipment. We continue
to discuss and confirm certain detail with the regulator on this
requirement.
-- Apart from the capital incurred on the TSF, we incurred an
additional GBP100,000 capital expenditure during Q3, of which
GBP80,000 was spent on the refurbishment of one of our
circuits.
-- We estimate that we will require a further GBP1,150,000
(including GBP250,000 for TSF) during the next 9 to 15 months to be
spent on repairing and maintaining current operations, on
completing the TSF and improving the environmental impacts of our
current operations.
-- We do not have any further update on the processing of our
TSF which has a JORC Resource of 81,959 ounces (Table 1) at a DRD
Gold process facility.
We continue to assess the economic and environmental feasibility
of the fine coal recovery technology company we invested in, which
is in line with our strategy to diversify our recovery operations
into other commodities.
Our cash balances in the group remained strong at GBP2,750,000
at the end of Q3, with significant balances invested in inventory
and debtors with our main exposures to smelters in Europe and South
Africa. We have been experiencing longer than expected delays at
one of the smelters but remain comfortable of the outturn. We are
dealing with delays on a daily basis and expect the situation to
improve in the last quarter of the current financial year.
Werner Klingenberg, CEO of Goldplat commented: "I am pleased
with the operating results achieved by the group, considering some
of the difficult circumstances we've experienced during the third
quarter in South Africa and delays of the gold licence in Ghana.
The impact of the gold licence should be in a position to be
reversed out once we can export the material produced on site,
however the electricity supply issues in South Africa will continue
to have a significant impact into the fourth quarter."
For further information visit www.goldplat.com, follow on
Twitter @GoldplatGDP or contact:
Werner Klingenberg Goldplat plc Tel: +27 (0) 82 051 1071
(CEO)
Colin Aaronson / George Grant Thornton UK LLP Tel: +44 (0) 20 7383
M Grainger (Nominated Adviser) 5100
James Bavister / Andrew WH Ireland Limited Tel: +44 (0) 207 220
de Andrade (Broker) 1666
Tim Thompson / Mark Flagstaff Strategic Tel: +44 (0) 207 129
Edwards / Fergus Mellon and Investor Communications 1474
goldplat@flagstaffcomms.com
Table 1
Mineral Resource Estimate of the TSF, South Africa
Total Resource
Domain Class Tonnes Density Au (g/t) Au (Oz) U (3) O U (3) O Ag (g/t) Ag (Oz)
(Mil) (8) (g/t) (8) (lbs)
----------- ------------ -------- --------- -------- ----------- ----------- --------- --------
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 assumptions and technical
parameters underpinning the Resource Estimate continue to apply and
have not materially changed.
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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