Correction: Interim Results
THIS ANNOUNCEMENT REPLACES THE ANNOUNCEMENT RELEASED AT 7.00A.M. ON 5 MARCH 2012 WITH HUGIN NUMBER HUG#1591090.
THE TABLE IN NOTE 5 'SEGMENT INFORMATION' UNDER THE HEADING '6 MONTHS TO 31 DECEMBER 2010 (UNAUDITED)' HAS BEEN REPLACED AS THIS TABLE PREVIOUSLY INCLUDED SOME ERRORS.
Goldplat plc / Ticker: GDP / Index: AIM / Sector: Mining & Exploration
5 March 2012
Goldplat plc ('Goldplat' or 'the Company')
Interim Results
Goldplat plc, the AIM listed gold producer, is pleased to announce its interim results for the six months ended 31 December 2011.
Overview
74% increase in profit before tax to £2.37 million for the six months to 31 December 2011 (2010: £1.36 million)
40% increase in operating profit to £2 million for the six months to 31 December 2011 (2010: £1.44 million)
Net cash position of £4.6 million as at 31 December 2011
Gold mining and development portfolio in Kenya, Ghana and Burkina Faso advancing - aim to have delineated in excess of 1 million ounces of gold resources in 2012
Kilimapesa Gold in Kenya poured its first gold in January 2012 - target of increasing gold production to a rate of 10,000 ounces per annum within the mine's first year of operation
Anumso Gold Project in Ghana - 4,800 metre drilling programme underway aimed at converting and increasing the historic non-JORC gold resource of 262,107 ounces of gold to a JORC compliant status
Nyieme Gold Project in Burkina Faso - planning work programme to target additional areas of economic potential following completion of resource drilling programme in 2011
Gold recovery operations in South Africa and Ghana production up 10.74% for six months ended 31 December 2011 to 15,404 ounces of gold (2011: 13,910 ounces)
South Africa:
Increased milling capacity and installing a fluidised bed incinerator to increase ability to bid for fine carbon contracts
Agreement signed with Central Rand Gold aimed at recommencing gold mining of two historic gold sites in return for a 5% net smelter royalty
Ghana:
Marked increase in by-products received for processing through existing contracts with Goldfield, AngloGold and Golden Star Resources
Toll processing operation with Adamus Resources performing well
Advanced negotiations with other mining companies regarding acquiring further processing by-products for gold recovery from Burkina Faso and Mali - if completed would positively impact profitability
Goldplat CEO Demetri Manolis said, "I am delighted to report a 74% increase in our profit before tax for H1 2012 which saw gold production from our two gold recovery businesses in South Africa and Ghana at a record high for six months of 15,404 ounces of gold. We expect to see this trend continue for the second half of the financial year and to significantly exceed FY 2011 gold production of 28,285 ounces with the commencement of gold production in January 2012 at our first gold mining operation, Kilimapesa Gold in Kenya contributing to this. In turn, we have two gold mining development projects in Ghana and Burkina Faso which are undergoing resource drilling expansion programmes with a view to moving into gold production in the future.
"With three successful gold producing operations, resource upgrade programmes underway to delineate in excess of 1 million ounces of resources this year across our portfolio, and a strong treasury to support future opportunistic project acquisitions, we look forward to a highly exciting second half of the year and beyond."
Chairman's Statement
It gives me great pleasure to report on the excellent progress Goldplat has made, continuing to build itself as a cash generative, profitable, debt free gold producer and mine development company focussed in Africa. With a solid portfolio consisting of a newly producing gold mine in Kenya, brownfield gold exploration and development projects in Ghana and Burkina Faso with near term resource upgrade and production potential, as well as two gold recovery operations in South Africa and Ghana, we are well placed to enjoy steady growth throughout the remainder of the financial year and beyond.
Post period end, in January 2012 we poured our first gold at our Kilimapesa mining project in Kenya. We anticipate gold production at Kilimapesa to increase, which, in tandem with strong performances from our gold recovery businesses, should see the Company easily exceed last years total production of 28,185 ounces gold for the full year to end June 2012.
Whilst building profits and revenues remain a key objective for the Company, the exploration, resource delineation and development of brownfield projects, typically high grade vein systems, is equally important as we strive to create a mid tier, African gold producer. With this in mind, resource drilling is underway at Kilimapesa and at our two mining development projects in Burkina Faso and Ghana, with the aim of delineating in excess of 1 million ounces of resources this year and moving the latter two projects towards production.
Financials
The profit before tax for the six months to 31 December 2011 increased by 74% £2.37 million (2011: £1.36 million) as a result of increasing efficiency at our gold recovery operations in South Africa and Ghana as well as the favourable gold price environment. This is also partly due to currency changes reflected in Finance Income and Costs. Nevertheless, operating profits increased by 40% to £2 million (2010: £1.44 million), and for the first time the profits earned in Ghana exceeded those earned in South Africa.
The tax charge increased as a percentage of profits, due to the secondary tax charge on dividends paid from South Africa, but despite this the Profit for the Period, stated after tax, increased by 69% to £1.93 million (2010: £1.14 million).
The Group has a strong cash balance, which, at 31 December 2011, stood at £4.6 million, an increase of almost £1.5 million during the half year. With Kilimapesa Gold now producing and selling gold we expect a further improvement in the cash position in the second half year, despite the capital expenditure on our exploration assets and the expansion of the Kilimapesa mine.
It is not our intention to seek additional equity capital to advance existing operations.
Mining and Development
Kilimapesa Gold - Kenya
Kilimapesa is a wholly owned, high grade vein mine, located in the historically productive Migori Archaean Greenstone Belt in western Kenya. Having received a 21 year Mining Lease in November 2011, notably the first gold project to be given a mining licence in the country since its independence in 1963, we quickly completed the construction and commissioning of the elution plant to enable Kilimapesa to smelt and produce gold bullion on site on an ongoing basis. Production of gold bullion commenced in January 2012 and continues on a regular basis. The bullion is sold to Rand Refinery Limited in South Africa.
Planning has started on a self-financing expansion programme in preparation for scaled up mining and processing operations at Kilimapesa, with a target of increasing gold production to a rate of 10,000 ounces per annum within the mine's first year of operation. To aid this programme, a 500 Kva generator has been purchased to act as a power supply back-up in the case of grid power outages.
Kilimapesa currently has a JORC-compliant resource of 1.65Mt at 2.44 g/t gold for 129,000 ounces of gold at a cut-off grade of 1 g/t of gold for all categories; however Goldplat aims to increase this towards the 500,000 ounce mark through further exploration of other targets within the licence area.
At the Vim/Rutha and Red Ray target areas, which are 2 km south of Kilimapesa Hill where the maiden resource was defined, 21 holes for a total of 921 metres and 13 holes drilled for a total of 650 metres have been drilled at each target respectively. Assay results to date have been very encouraging highlighting the economic potential of these new areas. A full listing of the results is expected to be announced soon.
We have also started an additional five-hole drilling programme at the Kilimapesa Hill target with 890 metres drilled at the time of this announcement. This programme is designed to expand the Kilimapesa Hill ore resource beyond the current underground development both along strike and at depth.
Underground development has continued to progress well with an exposed and sampled combined strike length over the two main auriferous quartz veins of 425 metres. Selected rock chip sampling stretch values include 13.55 g/t over an average width of 1.27 metres across 54 metres of strike and 8.65 g/t over an average width of 1.50 metres over a strike of 57 metres. This database is currently being updated for a further ore resource statement to be released in Q2 2012.
Work has also commenced on the new Adit D, which lies 60 metres vertically below Adit B, with the portal now under construction. The ensuing development will contribute significantly to the expansion of the ore resource at Kilimapesa Hill as well as allow for much increased mining tonnages.
Anumso Gold Exploration (previously the Banka Gold Project) - Ghana - 90% interest
The 29 sq km Anumso Gold Exploration licence is located in the highly prospective Amansie East and Asante Akim South Districts of the Ashanti Region of the Republic of Ghana, 10 km southwest of Newmont's 14 million oz Akyem gold deposit. It has a current initial non-JORC compliant resource of 262,107 ounces of gold to a depth of 100 metres but there is significant potential to upgrade this and increase the resource with infill drilling and increase the depth of drilling to 250 metres.
A drilling exploration programme commenced on 22 November 2011 aimed at converting and raising the existing gold resource to a JORC compliant status, and developing the project in the mid-term into a profitable mining operation. At the time of this announcement, 31 holes have been completed for a total of 5,100 metres. The continuation of mineralised Tarkwaian conglomerates has been confirmed, underlining the prospectivity of the project.
We see this project as likely to provide our next mine and our aim is to complete a Bankable Feasibility Study.
Nyieme Licence - Burkina Faso
The 246 sq km Nyieme project is located in the prospective Birimian Greenstone Belt in southern Burkina Faso, West Africa. A 3,100 metre drilling programme was undertaken in 2011, which defined a resource of 1,395,000 tonnes at 2.06g/t gold for 92,589 ounces. This focussed on the Nyieme Village high grade zone, which was extended at depth and to the north. Multiple additional anomalous zones were identified up to 15m thick. Additionally, four newly discovered mineralised zones were identified in the A1 zone, 1.5 km south of the Nyieme Village Zone.
Goldplat is now constructing a work programme to target additional areas of economic potential. This will include drill testing the northerly extension of the Nyieme Village Zone, the gap between the Nyieme Village Zone and the A1 Zone, and the four zones at the A1 Zone, which remain open to the north and south. It also aims to drill test the depth extensions of the zones at A1 Zone, investigate the D Zone for a possible new zone and drill artisanal workings located 3 km to the south of the A1 Zone. Further exploration work will be conducted on the extension of considerable artisanal workings immediately south of the Nyieme Licence as well as other targets that were highlighted after the initial early 2011 soil sampling programme.
We are also in discussions with other licence holders within the Nyieme project vicinity regarding joint venture and consolidation opportunities to increase our geographic footprint in the country.
Gold Recovery Operations
South Africa and Ghana
Our gold recovery operations in South Africa and Ghana have performed well, and during the period we produced a total of 15,404 ounces of gold (2011: 13,910 ounces), with 7,040 ounces of gold attributed from our South Africa recovery operations and 8,364 ounces of gold from our Ghanaian recovery operations, resulting in a 40% increase in operating profit to £2 million (2011: £1.44 million). These businesses, which should run for as long as gold is mined in South Africa and Ghana, have played a key role in the development of the Company, providing the capital to advance our other mining projects without turning to other funding options.
Maintaining each plant's operational efficiency and profitability remains a key focus. To this end, in South Africa, we commissioned a high grade mill to increase milling capacity, which has been performing solidly, and we are currently installing a fluidised bed incinerator to increase our ability to bid for fine carbon contracts from other mining companies and assist in reducing some of our stocks of gold bearing material.
The procurement of new gold bearing materials from gold mining companies is on-going and our stocks of raw material remain stable.
Post period end, we are pleased to have signed an agreement with Central Rand Gold, aimed at recommencing gold mining at the Crown East and CMR Bird Reef mines in the West Rand area near Johannesburg. Subject to due diligence, Goldplat will have the rights to arrange mining of the two sites in return for a 5% net smelter royalty. It is envisaged that the ore from the two sites will be processed at our South African gold recovery operations.
In Ghana, we have seen a marked increase in by-products received for processing through existing contracts with Goldfield Limited, AngloGold Ashanti Limited and Golden Star Resources Limited and we are in advanced negotiations with other mining companies regarding acquiring gold bearing by-products from Burkina Faso and Mali. Additionally, our toll processing operation with Adamus Resources is performing well.
Goldplat is also accessing a longer term project to reprocess tailings from our recovery operation in South Africa. The Group has significant reserves of coarse material that has been screened out of purchased material prior to processing. We are investigating the crushing and screening of this material to provide a viable grade fine fraction that can be processed for gold recovery and the coarse fraction for sale. A feasibility study is in progress with samples having been submitted to mining consultants SGS for evaluation. If the project is commissioned the Company believes it would have a significant impact on the profitability of Goldplat Recovery.
Following the success of these operations, we are investigating the feasibility of setting up a processing unit in Burkina Faso and potentially Mali and are therefore reviewing potential plant designs and equipment.
Outlook
In the short term, profitability of the Group is being enhanced by the commencement of gold sales from Kilimapesa in Kenya, and the results for the second half of the current financial year will include a contribution from Kilimapesa for the first time.
In the longer term the Company's solid portfolio of production and development projects within Africa provide excellent opportunities for organic expansion and its continued strong financial position means it is well placed to progress with all of these opportunities. Market fundamentals also remain positive with gold seen as a safe haven in times of economic crisis and geopolitical turmoil.
On behalf of the Board I would like thank our management and employees for their hard work and our shareholders for their continued support.
The Directors will continue to work diligently to create value to the Company.
I look forward to updating you on our developments as we progress during the year.
Brian Moritz
Chairman
For further information visit www.goldplat.com or contact:
| Demetri Manolis, CEO | Goldplat plc | Tel: +27 (0) 11 423 1203 |
| Ewan Leggat/Katy Birkin | Fairfax I.S. PLC | Tel: +44 (0) 20 7598 5368 |
| Felicity Edwards | St Brides Media & Finance Ltd | Tel: +44 (0)20 7236 1177 |
CONDENSED CONSOLIDATED STATEMENT
OF COMPREHENSIVE INCOME
| Notes | 6 months 31 Dec 11 (unaudited) £'000 | 6 months 31 Dec 10 (unaudited) £'000 | 12 months 30 Jun 11 (audited) £'000 | |||||||||
| Revenue | 5 | 11,183 | 9,652 | 19,620 | ||||||||
| Cost of sales | (8,559) | (7,726) | (15,239) | |||||||||
| Gross profit | 2,624 | 1,926 | 4,381 | |||||||||
| Administrative expenses | (621) | (491) | (1,327) | |||||||||
| Operating profit | 2,003 | 1,435 | 3,054 | |||||||||
| Exceptional gain | - | - | 425 | |||||||||
| Finance income | 605 | 65 | 68 | |||||||||
| Finance costs | (242) | (142) | (119) | |||||||||
| Profit before tax | 2,366 | 1,358 | 3,428 | |||||||||
| Taxation | 6 | (436) | (215) | (472) | ||||||||
| Profit for the period | 1,930 | 1,143 | 2,956 | |||||||||
| Exchange translation | (701) | 375 | (128) | |||||||||
| Total comprehensive income | 1,229 | 1,518 | 2,828 | |||||||||
| Attributable to: | ||||||||||||
| Shareholders of Goldplat plc | 1,127 | 1,400 | 2,600 | |||||||||
| Non-controlling interests | 102 | 118 | 228 | |||||||||
| 1,229 | 1,518 | 2,828 | ||||||||||
| Earnings per share | ||||||||||||
| Basic (pence) | 7 | 1.15p | 1.02p | 2.12p | ||||||||
| Diluted (pence) | 7 | 1.06p | 0.90p | 1.90p | ||||||||
CONDENSED CONSOLIDATED STATEMENT
OF FINANCIAL POSITION
| Notes | 31 Dec 11 (unaudited) £'000 | 31 Dec 10 (unaudited) £'000 | 30 Jun 11 (audited) £'000 | |||||||||
| Assets | ||||||||||||
| Non-current assets | ||||||||||||
| Property, plant and equipment | 8 | 4,763 | 3,927 | 3,903 | ||||||||
| Pre-production expenditure | 9 | 3,677 | 1,856 | 2,748 | ||||||||
| Intangible assets | 10 | 6,859 | 5,745 | 6,920 | ||||||||
| Proceeds from sale of shares in subsidiary | 11 | 225 | 408 | 383 | ||||||||
| 15,524 | 11,936 | 13,954 | ||||||||||
| Current assets | ||||||||||||
| Inventories | 12 | 3,832 | 3,208 | 3,367 | ||||||||
| Trade and other receivables | 13 | 4,018 | 3,776 | 6,584 | ||||||||
| Cash and cash equivalents | 4,620 | 6,464 | 3,127 | |||||||||
| 12,470 | 13,448 | 13,078 | ||||||||||
| Total assets | 27,994 | 25,384 | 27,032 | |||||||||
| Equity and liabilities | ||||||||||||
| Equity attributable to equity holders of the Company | ||||||||||||
| Share capital | 14 | 1,671 | 1,671 | 1,671 | ||||||||
| Share premium | 14 | 11,401 | 11,401 | 11,401 | ||||||||
| Retained earnings | 9,396 | 5,814 | 7,568 | |||||||||
| Exchange reserves | (518) | 686 | 183 | |||||||||
| Shareholders' equity | 21,950 | 19,572 | 20,823 | |||||||||
| Non-controlling interests | 665 | 566 | 676 | |||||||||
| Total equity | 22,615 | 20,138 | 21,499 | |||||||||
| Non-current liabilities | ||||||||||
| Provisions | 15 | 186 | 202 | 220 | ||||||
| Obligations under finance leases | 16 | 65 | 57 | 62 | ||||||
| Deferred taxation | 457 | 442 | 457 | |||||||
| 708 | 701 | 739 | ||||||||
| Current liabilities | ||||||||||
| Trade and other payables | 17 | 4,396 | 4,157 | 4,477 | ||||||
| Obligations under finance leases | 16 | 136 | 116 | 157 | ||||||
| Taxation | 90 | 272 | 43 | |||||||
| Loans and borrowings | 18 | 49 | - | 117 | ||||||
| 4,671 | 4,545 | 4,794 | ||||||||
| Total equity and liabilities | 27,994 | 25,384 | 27,032 |
CONDENSED CONSOLIDATED STATEMENT
OF CHANGES IN EQUITY
| Share capital £'000 | Share premium £'000 | Retained earnings £'000 | Exchange reserves £'000 | Total attributable to equity holders of the Company £'000 | Non-controlling interests £'000 | Total equity £'000 | |||
| Balance at 1 July 2010 | |||||||||
| (audited) | 1,121 | 6,772 | 4,738 | 311 | 12,942 | 475 | 13,417 | ||
| Comprehensive income for | |||||||||
| the period | - | - | 1,025 | 375 | 1,400 | 118 | 1,518 | ||
| Non-controlling interests in | |||||||||
| subsidiary dividend | - | - | - | - | - | (27) | (27) | ||
| Issue of shares | 550 | 4,950 | - | - | 5,500 | - | 5,500 | ||
| Costs of share issue | - | (321) | - | - | (321) | - | (321) | ||
| Share incentive scheme | |||||||||
| reserve | - | - | 51 | - | 51 | - | 51 | ||
| Balance at 1 January 2010 | |||||||||
| (unaudited) | 1,671 | 11,401 | 7,568 | 183 | 20,823 | 676 | 21,499 | ||
| Comprehensive income for | |||||||||
| the period | - | - | 1,703 | (503) | 1,200 | 110 | 1,310 | ||
| Issue of shares | |||||||||
| Costs of share issue | - | (49) | - | - | (49) | - | (49) | ||
| Settled by issue of warrants | - | 49 | - | - | 49 | - | 49 | ||
| Share incentive scheme | |||||||||
| reserve | - | - | 51 | - | 51 | - | 51 | ||
| Balance at 1 July 2011 | |||||||||
| (audited) | 1,671 | 11,401 | 7,568 | 183 | 20,823 | 676 | 21,499 | ||
| Comprehensive income for | |||||||||
| the period | - | - | 18,28 | (701) | 1,127 | 102 | 1,229 | ||
| Non-controlling interests in | |||||||||
| subsidiary dividend | - | - | - | - | - | (113) | (113) | ||
| Share incentive scheme | |||||||||
| reserve | - | - | - | - | - | - | - | ||
| Balance at 31 December | |||||||||
| 2011 (unaudited) | 1,671 | 11,401 | 9,396 | (518) | 21,950 | 665 | 22,615 | ||
CONDENSED CONSOLIDATED STATEMENT
OF CASH FLOWS
| Notes | 6 months 31 Dec 11 (unaudited) £'000 | 6 months 31 Dec 10 (unaudited) £'000 | 12 months 30 Jun 11 (audited) £'000 | |||||||||
| Cash flows from operating activities | ||||||||||||
| Cash generated from operations | 20.1 | 4,194 | 1,025 | 777 | ||||||||
| Financing income | 605 | 65 | 68 | |||||||||
| Financing expense | 20.2 | (234) | (142) | (105) | ||||||||
| Taxation paid | (646) | (311) | (7240 | |||||||||
| Net cash from operating activities | 3,919 | 637 | 16 | |||||||||
| Cash flows from investing activities | ||||||||||||
| Proceeds from sale of property, plant and equipment | 6 | - | 16 | |||||||||
| Acquisition of mining rights | - | - | (1,140) | |||||||||
| Acquisition of property, plant and equipment | 20.3 | (1,001) | (281) | (680) | ||||||||
| Pre-production expenditure | (780) | (309) | (1,391) | |||||||||
| Net cash from investing activities | (1,775) | (590) | (3,195) | |||||||||
| Cash flows from financing activities | ||||||||||||
| Proceeds from issue of shares | - | 5,500 | 5,179 | |||||||||
| Proceeds from sale of interest in subsidiary undertaking | 112 | 27 | 27 | |||||||||
| Finance leases raised | 78 | - | 119 | |||||||||
| Finance lease payments | (69) | (54) | (107) | |||||||||
| Net cash flows from financing activities | 121 | 5,473 | 5,218 | |||||||||
| Net increase in cash and cash equivalents | 2,265 | 5,520 | 2,039 | |||||||||
| Cash and cash equivalents at beginning of period | 3,010 | 1,018 | 1,018 | |||||||||
| Effect of foreign exchange rate changes | (704) | (74) | (47) | |||||||||
| Cash and cash equivalents at end of period | 20.4 | 4,571 | 6,464 | 3,010 | ||||||||
Reporting entity
Goldplat PLC (the "Company") is a company domiciled in the United Kingdom. The condensed consolidated interim financial statements of the Company as at and for the six months ended 31 December 2011 comprise the Company and its subsidiaries (together referred to as the "Group") and the Group's interests in associates and jointly controlled entities. The Group primarily is involved in the production of precious metals on the African continent.
Basis of preparation
(a) Statement of compliance
These condensed consolidated interim financial statements have been prepared in accordance with IAS 34 'Interim Financial Reporting' and do not include all of the information required for full annual financial statements.
The interim financial information for the six months ended 31 December 2011 and 31 December 2010 is unaudited and does not constitute statutory accounts as defined in section 434 of the Companies Act 2006.
The information for the year ended 30 June 2011 does not constitute statutory accounts as defined in section 434 of the Companies Act 2006, but has been derived from those accounts. A copy of the statutory accounts for that year has been delivered to the Registrar of Companies. The Auditor's Report on those financial statements was not qualified, and did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.
These condensed consolidated interim financial statements were approved by the Board of Directors on 2 March 2012.
(b) Estimates
The preparation of interim financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.
In preparing these condensed consolidated interim financial statements, the significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those applied to the consolidated financial statements as at and for the year ended 30 June 2011.
Significant accounting policies
The accounting policies applied by the Group in these condensed consolidated interim financial statements are the same as those applied by the Group in its consolidated financial statements as at and for the year ended 30 June 2011.
Financial risk management
Aspects of the Group's financial risk management objectives and policies are consistent with those disclosed in the consolidated financial statements as at and for the year ended 30 June 2011.
Segment information
Up until 30 June 2011 the Group considered its segments to be most accurately reflected by geographical analysis. Subsequently the segments have been amended as the Group's activities have become more clearly defined and the activities of the Group are now broken down into the operating segments Recovery Operations, Mining and Exploration and Administration. The balances for the 6 months to 31 December 2010 and the 12 months to 30 June 2011 have been restated in accordance with the Group's new operating segments.
Segment information by operating segment is as follows:
6 months to 31 December 2011 (unaudited)
| Recovery Operations £'000 | Mining and exploration £'000 | Adminis-tration £'000 | Reconcil-iation to Group figures £'000 | Group £'000 | |||
| External revenues | 11,183 | - | - | - | 11,183 | ||
| Inter-segment revenues | 80 | - | - | (80) | - | ||
| Total revenues | 11,263 | - | - | (80) | 11,183 | ||
| Segment result (profit before tax) | 2,420 | 70 | (124) | - | 2,366 | ||
| Capital expenditure on non- | |||||||
| current assets | 352 | 941 | - | - | 1,293 | ||
| Depreciation and amortisation | |||||||
| on non-current assets | 156 | - | - | - | 156 | ||
| Segment assets | 13,078 | 7,473 | 7,443 | - | 27,994 |
6 months to 31 December 2010 (unaudited)
| Recovery Operations £'000 | Mining and exploration £'000 | Adminis-tration £'000 | Reconcil-iation to Group figures £'000 | Group £'000 | |||
| External revenues | 9,652 | - | - | - | 9,652 | ||
| Inter-segment revenues | 130 | - | - | (130) | - | ||
| Total revenues | 9,782 | - | - | (130) | 9,652 | ||
| Segment result (profit before tax) | 1,568 | - | (210) | - | 1,358 | ||
| Capital expenditure on non- | |||||||
| current assets | 131 | 459 | - | - | 590 | ||
| Depreciation and amortisation | |||||||
| on non-current assets | 137 | - | - | - | 137 | ||
| Segment assets | 10,521 | 3,098 | 11,756 | - | 25,384 |
12 months to 30 June 2011 (audited - restated)
| Recovery Operations £'000 | Mining and exploration £'000 | Adminis-tration £'000 | Reconcil-iation to Group figures £'000 | Group £'000 | |||
| External revenues | 19,620 | - | - | - | 19,620 | ||
| Inter-segment revenues | 294 | - | - | (294) | - | ||
| Total revenues | 19,620 | - | - | (294) | 19,620 | ||
| Segment result (profit before tax) | 3,482 | - | (54) | - | 3,428 | ||
| Capital expenditure on non- | |||||||
| current assets | 1,588 | 1,639 | - | - | 3,227 | ||
| Depreciation and amortisation | |||||||
| on non-current assets | 287 | - | - | - | 287 | ||
| Segment assets | 14,507 | 4,260 | 8,265 | - | 27,032 |
Earnings per share
The calculation of earnings per ordinary share is based on the following:
| 6 months 31 Dec 11 (unaudited) £'000 | 6 months 31 Dec 10 (unaudited) £'000 | 12 months 30 Jun 11 (audited) £'000 | ||||||||||
| Earnings for the purpose of earnings per share | ||||||||||||
| - Basic | 1,930 | 1,143 | 2,956 | |||||||||
| - Diluted | 1,939 | 1,151 | 2,965 | |||||||||
| 6 months 31 Dec 11 (unaudited) | 6 months 31 Dec 10 (unaudited) | 12 months 30 Jun 11 (audited) | ||||||||||
| Weighted average number of ordinary shares in issue | ||||||||||||
| during the year | 167,120,000 | 112,418,913 | 139,393,973 | |||||||||
| Effect of dilutive options | 16,351,474 | 16,173,750 | 16,173,750 | |||||||||
| Weighted average number of ordinary shares in issue for the | ||||||||||||
| purpose of diluted earnings per share | 183,471,474 | 128,592,663 | 155,567,723 | |||||||||
Property, plant and equipment
During the six months ended 31 December 2011 the Group acquired assets with a cost of £1,293 thousand (six months ended 31 December 2010: £131 thousand).
Assets with a carrying amount of £22 thousand (six months ended 31 December 2010: £nil) were disposed of by the Group resulting in a loss on disposal of £15 thousand (six months ended 31 December 2010: £nil), which is included within administrative expenses in the condensed consolidated statement of comprehensive income.
Pre-production expenditure
| 6 months 31 Dec 11 (unaudited) £'000 | 6 months 31 Dec 10 (unaudited) £'000 | 12 months 30 Jun 11 (audited) £'000 | ||||||||||
| Cost | ||||||||||||
| Balance at beginning of period | 2,748 | 1,552 | 1,552 | |||||||||
| Expenditure incurred | 780 | 308 | 1,391 | |||||||||
| Foreign exchange translation | 149 | (4) | (195) | |||||||||
| Balance at end of period | 3,677 | 1,856 | 2,748 | |||||||||
| Impairment losses | ||||||
| Balance at beginning and end of period | - | - | - |
| Carrying amounts | ||||||
| Balance at end of period | 3,677 | 308 | 1,391 | |||
| Balance at beginning of period | 2,748 | 1,552 | 1,552 |
The Group has capitalised all expenditure incurred on the Kilimapesa Hill gold mining project, the Nyieme gold mining project and the Anumso gold mining project whilst the mines are in the development phase.
Intangible assets
10.1 Goodwill
| 6 months 31 Dec 11 (unaudited) £'000 | 6 months 31 Dec 10 (unaudited) £'000 | 12 months 30 Jun 11 (audited) £'000 | ||||||||||
| Cost | ||||||||||||
| Balance at beginning of period | 5,780 | 5,745 | 5,745 | |||||||||
| Additions | - | - | 35 | |||||||||
| Balance at end of period | 5,780 | 5,745 | 5,780 | |||||||||
| Impairment losses | ||||||
| Balance at beginning and end of period | - | - | - |
| Carrying amounts | ||||||
| Balance at end of period | 5,780 | 5,745 | 5,780 | |||
| Balance at beginning of period | 5,780 | 5,745 | 5,745 |
Goodwill relates to the investment held in Gold Mineral Resources Limited and is supported by the ongoing gold recovery operations in South Africa and Ghana and the Kilimapesa mine in Kenya.
10. Intangible assets (continued)
10.2 Mineral rights
| 6 months 31 Dec 11 (unaudited) £'000 | 6 months 31 Dec 10 (unaudited) £'000 | 12 months 30 Jun 11 (audited) £'000 | ||||||||||
| Cost | ||||||||||||
| Balance at beginning of period | 1,140 | - | - | |||||||||
| Expenditure incurred | - | - | 1,140 | |||||||||
| Foreign exchange translation | (61) | - | - | |||||||||
| Balance at end of period | 1,079 | - | 1,140 | |||||||||
| Impairment losses | ||||||
| Balance at beginning and end of period | - | - | - |
| Carrying amounts | ||||||
| Balance at end of period | 1,079 | - | 1,140 | |||
| Balance at beginning of period | 1,140 | - | - |
The mineral rights relate to exploration and mining licenses in Burkina Faso and Ghana.
Proceeds from sale of shares in subsidiary
Consideration due on sale of 15% of the issued share capital of Goldplat Recovery (Pty) Limited:
| 6 months 31 Dec 11 (unaudited) £'000 | 6 months 31 Dec 10 (unaudited) £'000 | 12 months 30 Jun 11 (audited) £'000 | ||||||||||
| Balance at beginning of period | 383 | 472 | 390 | |||||||||
| Received from dividends | (112) | (64) | (27) | |||||||||
| Foreign exchange translation | (46) | - | 20 | |||||||||
| Balance at end of period | 225 | 408 | 383 | |||||||||
Inventories
| 6 months 31 Dec 11 (unaudited) £'000 | 6 months 31 Dec 10 (unaudited) £'000 | 12 months 30 Jun 11 (audited) £'000 | ||||||||||
| Consumable stores | 693 | 483 | 590 | |||||||||
| Raw materials | 2,160 | 1,154 | 962 | |||||||||
| Precious metals on hand in process | 979 | 1,571 | 1,815 | |||||||||
| 3,832 | 3,208 | 3,367 | ||||||||||
Trade and other receivables
| 6 months 31 Dec 11 (unaudited) £'000 | 6 months 31 Dec 10 (unaudited) £'000 | 12 months 30 Jun 11 (audited) £'000 | ||||||||||
| Trade receivables | 2,421 | 3,204 | 5,879 | |||||||||
| Other receivables | 1,597 | 572 | 705 | |||||||||
| 4,018 | 3,776 | 6,584 | ||||||||||
Share capital and reserves
Issues of ordinary shares
No resolutions have been passed during the period regarding the issue of new ordinary shares (2010: 55 million ordinary shares at an exercise price of £0.10 per share). All issued shares are fully paid.
No ordinary shares have been issued as a result of vested options and warrants during the period (2010: nil) (see note 19).
Dividends
No dividends were declared or paid in the six months to 31 December 2011 (six months to 31 December 2010: £nil).
Provisions
| 6 months 31 Dec 11 (unaudited) £'000 | 6 months 31 Dec 10 (unaudited) £'000 | 12 months 30 Jun 11 (audited) £'000 | ||||||||||
| Environmental obligation | ||||||||||||
| Balance at beginning of period | 220 | 180 | 180 | |||||||||
| Provisions made during the period | (14) | - | 17 | |||||||||
| Unwinding of discount | 8 | - | 14 | |||||||||
| Foreign exchange translation | (28) | 22 | 9 | |||||||||
| 186 | 202 | 220 | ||||||||||
The provision relates to a requirement to rehabilitate the land owned in South Africa upon cessation of the mining right.
Obligations under finance leases
| 6 months 31 Dec 11 (unaudited) £'000 | 6 months 31 Dec 10 (unaudited) £'000 | 12 months 30 Jun 11 (audited) £'000 | ||||||||||
| Minimum instalment - less than one year | 148 | 127 | 171 | |||||||||
| Interest | (12) | (11) | (14) | |||||||||
| Principle | 136 | 116 | 157 | |||||||||
Obligations under finance leases (continued)
| 6 months 31 Dec 11 (unaudited) £'000 | 6 months 31 Dec 10 (unaudited) £'000 | 12 months 30 Jun 11 (audited) £'000 | ||||||||||
| Minimum instalment - between one and five years | 67 | 59 | 65 | |||||||||
| Interest | (2) | (2) | (3) | |||||||||
| Principle | 65 | 57 | 62 | |||||||||
| Balance at end of period | 201 | 173 | 219 |
The average lease term is 2 years. The average effective borrowing rate for the six months to 31 December 2011 was 10 per cent (six months to 31 December 2010: 10 per cent). Interest rates are variable over the lease term and vary according to the South African prime interest rate.
The Group's obligations under finance leases are secured over the leased assets.
Trade and other payables
| 6 months 31 Dec 11 (unaudited) £'000 | 6 months 31 Dec 10 (unaudited) £'000 | 12 months 30 Jun 11 (audited) £'000 | ||||||||||
| Trade creditors | 953 | 1,300 | 1,756 | |||||||||
| Accruals | 2,847 | 1,545 | 2,721 | |||||||||
| Due on purchase of shares in subsidiary | - | 970 | - | |||||||||
| Costs due on issue of shares | - | 342 | - | |||||||||
| Other payables | 596 | - | - | |||||||||
| 4,396 | 4,157 | 4,477 | ||||||||||
Loans and borrowings
| 6 months 31 Dec 11 (unaudited) £'000 | 6 months 31 Dec 10 (unaudited) £'000 | 12 months 30 Jun 11 (audited) £'000 | ||||||||||
| Non-current | ||||||||||||
| Balance at beginning of period | - | 647 | - | |||||||||
| Repaid | - | (647) | - | |||||||||
| - | - | - | ||||||||||
| Current | ||||||
| Bank overdrafts | 49 | - | 117 |
Share options and warrants
The Company has granted share options and warrants. The terms and conditions of the share options and warrants are disclosed in the consolidated financial statements as at and for the year ended 30 June 2011.
No further options or warrants were granted during the six months ended 31 December 2011.
Notes to the cash flow statement
| 6 months 31 Dec 11 (unaudited) £'000 | 6 months 31 Dec 10 (unaudited) £'000 | 12 months 30 Jun 11 (audited) £'000 |
20.1 Cash generated from operations
| Operating profit | 2,003 | 1,435 | 3,054 | |||
| Adjustments for: | ||||||
| Depreciation of property, plant and equipment | 156 | 137 | 287 | |||
| Loss on disposal of property, plant and equipment | 15 | - | 8 | |||
| Share incentive scheme cost | - | 51 | 102 | |||
| Exceptional gain | - | - | (425) | |||
| Operating profit before working capital changes | 2,174 | 1,623 | 3,026 | |||
| (Increase)/Decrease in inventories | (465) | 617 | 458 | |||
| Decrease/(Increase) in trade and other receivables | 2,566 | (1,910) | (4,718) | |||
| (Decrease)/Increase in trade and other payables | (81) | 721 | 2,011 | |||
| Effect of exchange rate on payables | - | (26) | - | |||
| 4,194 | 1,025 | 777 |
20.2 Financing cost
| As per statement of comprehensive income | (242) | (142) | (119) | |||
| Adjust for: Interest on environmental liability | 8 | - | 14 | |||
| (234) | (142) | (105) |
20.3 Acquisition of property, plant and equipment
| Additions for the year | (1,293) | (131) | (696) | |||
| Adjust for: Additions to environmental assets | 292 | - | 16 | |||
| Acquisition of mining rights | - | (150) | - | |||
| (1,001) | (281) | (680) |
20.4 Cash and cash equivalents
Cash and cash equivalents include the following for the purposes of the cash flow statement:
| Bank balances and short term deposits | 4,620 | 6,464 | 3,127 | |||
| Bank overdrafts (note 18) | (49) | - | (117) | |||
| 4,571 | 6,464 | 3,010 |
Related parties
Transactions with key management personnel
During the six months ended 31 December 2011 the Group paid professional fees to MSP Securities Limited, a company of which B M Moritz is a director, in relation to accounting services provided, totalling £2 thousand.
In addition, during the six months ended 31 December 2011 the Group paid professional fees to Share Registrars Limited, a subsidiary of MSP Securities Limited, in relation to the maintenance of the Company's share register, totalling £nil thousand.
All transactions with related parties take place on terms no more favourable than transactions with unrelated parties.
**ENDS**
The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of the
information contained therein.
Source: Goldplat plc via Thomson Reuters ONE
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