Final Results
Goldplat plc
21 December 2006
Goldplat plc / Ticker: GDP / Index: AIM / Sector: Mining & Exploration
21 December 2006
Goldplat plc ('Goldplat' or 'the Group')
Preliminary Results
Goldplat plc, the AIM-traded producer of gold and platinum group metals ('PGM')
recovered from by-products of the mining process, announces its results for the
period ended 30 June 2006. These results do not include the results of Goldplat
Recovery (Pty) Ltd ('Goldplat Recovery'), which was acquired by Goldplat after
the year end. The results for Goldplat Recovery were announced on 24 October
2006.
Overview
• Listed on AIM in July 2006 having raised £1.5 million
• Acquired Goldplat Recovery, a South African producer of gold and PGM's
recovered from by-products of the mining process
• Increased productivity and profitability of Goldplat Recovery following
investment in new and the upgrading of existing machinery
• Established complementary processing plant in Ghana to meet the demand
from West African gold mines - Gold Recovery Ghana Limited
• Strategy to create a junior mining house focused on gold production
through the acquisition of known gold deposits - actively reviewing a
number of projects in Ghana, Mozambique and Kenya
Chairman's Statement
The accounts of Goldplat plc are drawn up to 30 June 2006, prior to the
admission to AIM and the acquisition of Goldplat Recovery (Pty) Limited
('Goldplat Recovery'). They reflect a period during which the Company agreed to
acquire a Tanzanian gold exploration company, Zari Exploration Tanzania Pty
Limited. The contract to acquire Zari lapsed on 30 September 2005 and
subsequently the Directors concentrated their efforts on the acquisition of
Goldplat Recovery and Gold Recovery Ghana Limited, and the AIM admission.
It gives me great pleasure to report on progress made since listing on AIM in
July 2006.
On listing, Goldplat acquired Goldplat Recovery, a market leading South African
producer of gold and PGMs recovered from by-products of the mining process and
raised £1.5 million. The Company's stated strategy is to create a junior mining
house focussed on gold production through a phased development strategy backed
by revenue generated from the recovery business.
Phase one is to increase the efficiency, flexibility and profitability of the
South African processing plant. Phase two is to establish a complementary
processing plant in Ghana to meet the demand from West African gold mines. Phase
three is to expand into mining through the acquisition of known gold deposits
with targets of between 200,000 and 2,000,000 ounces of contained gold. To this
end, your Company has made considerable progress.
Beginning with the South African operation, Goldplat Recovery, as announced in
October 2006, we have made great progress in increasing productivity and
profitability. Following investment in new and the upgrading of existing
machinery and the solving of how to deal with some technically challenging
materials, the operation is now generating strong cash flow. These improvements
were demonstrated by the results recently released which showed that it went
from making a loss after tax of ZAR306,868 for the first nine months, to a
profit after tax of ZAR1,327,674 for the full year.
Goldplat Recovery works with all the key operators in South Africa. It operates
from a freehold site of 22 hectares near Benoni in Gauteng, South Africa, where
it houses a processing plant and raw material stockpiles. It also has surface
rights over an adjacent 12 hectare site where it has established a tailings
facility. Mining operators are obliged to dispose of mining by products in an
environmentally friendly manner, which is where we step in. The Company
acquires raw materials, such as woodchips, fine carbon and waste grease, from
mine operators after testing to establish gold or PGM content, moisture content,
recoverability and size.
The next part of the strategy was to establish a complementary recovery facility
in Ghana. To this end we established Gold Recovery Ghana Limited ('GRG') and in
September we acquired a 4.25 acre site in the free zone port of Tema for
USD200,000 cash. Construction of the processing plant is underway and
operations will commence in January 2007 with further expansion to take place
during 2007. We expect to access raw materials from mines in Mali, Guinea,
Burkina Faso, Benin, Cote D'Ivoire, Senegal, the DRC, Mauritania and naturally
Ghana too. We are currently building relationships in these areas. GRG has
already established an initial turnover through agreements with local mines and
is exporting fine activated carbon to the plant in South Africa. Once the plant
is up and running GRG's first operations will be the cleaning of rubber and
steel liners to produce a concentrate for export. The cleaned aluminium and
steel will be sold locally.
The final part of our strategy is to expand into gold mining through the
acquisition of known deposits (not greenfield exploration), supported by revenue
generated from the gold and PGM recovery operations. We are focused on
acquiring gold targets of between 200,000 - 2,000,000 ounces of contained gold,
which are too small for major mining companies, yet potentially highly
profitable. The Directors have been actively reviewing a number of projects in
Ghana, Mozambique and Kenya and are excited about the opportunities available.
With its highly profitable recovery business in South Africa, its soon to be in
operation plant in Ghana and balanced risk approach using cash flows from
existing processing operation to fund development of mining projects, I believe
that your Company is in a very strong position to develop its growth strategy
and reward its shareholders.
The profits from Goldplat Recovery for the first four months of the current year
are in excess of forecasts and bear out the statement in the admission document
that the outlook for the future is favourable.
I would like to thank the management and the rest of the team for their support
through the extremely busy listing period and for their successful efforts in
both turning the South African business and establishing the new operation in
Ghana.
Brian Moritz
Chairman
19 December 2006
INCOME STATEMENT
30 JUNE 2006
5 months Year
ended Ended
Note 30 June 31 January
2006 2006
£ £
Administrative expenses (9,067) (9,448)
OPERATING LOSS (9,067) (9,448)
Interest receivable 5 426 425
LOSS BEFORE TAXATION 6 (8,641) (9,023)
Taxation 7 - -
LOSS FOR THE YEAR (8,641) (9,023)
LOSS PER ORDINARY SHARE
Basic and diluted 8 0.0017 0.00025
The operating loss for the period arises from the company's continuing
operations.
BALANCE SHEET
30 JUNE 2006
30 June 31 January
2006 2006
Note £ £ £ £
CURRENT ASSETS
Cash and cash equivalents 9 16,818 43,915
Trade and other receivables 10 24,493 -
41,311 43,915
CURRENT LIABILITIES
Trade and other payables 11 8,975 2,938
NET CURRENT ASSETS £32,336 £40,977
EQUITY
Share capital 12 50,000 50,000
Retained losses (17,664) (9,023)
TOTAL EQUITY £32,336 £40,977
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 30 JUNE 2006
Share Retained Total
Capital earnings equity
£ £ £
Balance at 1 February 2006 50,000 (9,023) 40,977
Total recognised income and expense for the period - (8,641) (8,641)
Balance at 30 June 2006 £50,000 £(17,664) £32,336
CASHFLOW STATEMENT
FOR THE PERIOD ENDED 30 JUNE 2006
5 months Year
ended ended
30 June 31 January
2006 2006
£ £
Cash flows from operating activities
Loss before tax (8,641) (9,023)
Adjustments for:
Interest income (426) (425)
Increase in trade payables 6,037 2,938
Increase in debtors (24,493) -
Cash generated from operations (27,523) (6,510)
Bank interest received 426 425
Net cash from operating activities (27,097) (6,085)
Cash flows from financing activities
Net proceeds from issue of ordinary share capital - 50,000
Net cash raised in financing activities - 50,000
Net (decrease)/ increase in cash and cash equivalents £(27,097) £43,915
Cash and cash equivalents at 30 June 2006 £16,818 £43,915
At 1 Cash At 30
February Flow June
2006 2006
£ £ £
Cash and cash equivalents consists of:
Cash in hand and at bank (note 9) £43,915 £(27,097) £16,818
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2006
1. Accounting policies
a) Basis of preparation of the financial statements
The financial statements have been prepared in accordance with International
Financial Reporting Standards (IFRSs), and IFRIC interpretations endorsed by the
European Union, and with those parts of the Companies Act 1985 applicable to
companies reporting under IFRS. They have been prepared using the historical
cost convention.
The preparation of the financial statements requires management to make
estimates and assumptions that affect the reported amounts of revenues,
expenses, assets and liabilities, and the disclosure of contingent liabilities
at the date of the financial statements. If in the future such estimates and
assumptions, which are based on management's best judgement at the date of the
financial statements, deviate from the actual circumstances, the original
estimates and assumptions will be modified as appropriate in the year in which
the circumstances change.
b) New standards and interpretation
At the date of authorisation of these financial statements, the following
Standards and Interpretation which have not been applied in these financial
statements were in issue but not yet mandatorily effective:
IFRS 7 Financial Instruments: Disclosures
IFRS 8 Segment Reporting and the ongoing need for
country- by-country reporting
IFRIC 7 On Applying the Restatement Approach under IAS
29
The directors do not anticipate that the adoption of these statements and
interpretations will have a material impact on the company's financial
statements in the period of initial application.
c) Critical accounting judgements and key sources of estimation uncertainty
The preparation of financial statements in conformity with generally accepted
accounting practice requires management to make estimates and judgements that
affect the reported amounts of assets and liabilities as well as the disclosure
of contingent assets and liabilities at the balance sheet date and the reported
amount of revenues and expenses during the reported.
Estimates and judgements are continually evaluated and are based on historical
experience and other factors, including expectations of future events that are
believed to be reasonable under the circumstances.
d) Financial instruments
Trade and other receivables are measured at initial recognition at fair value,
and are subsequently measured at amortised cost using the effective interest
method. A provision is established when there is objective evidence that the
Group will not be able to collect all amounts due. The amount of any provision
is recognised in the income statement.
Cash and cash equivalents comprise cash held by the company and short-term bank
deposits with an original maturity of three months or less.
Trade and other payables are initially measured at fair value, and are
subsequently measured at amortised cost, using the effective interest rate
method.
Financial liabilities and equity instruments issued by the group are classified
in accordance with the substance of the contractual arrangements entered into
and the definitions of a financial liability and an equity instrument. An equity
instrument is any contract that evidences a residual interest in the assets of
the group after deducting all of its liabilities. Equity instruments issued by
the company are recorded at the proceeds received, net of direct issue costs.
e) Taxes
Tax expense represents the sum of the tax currently payable and deferred tax.
Deferred tax is provided, using the liability method, on temporary differences
between the tax bases of assets and liabilities and their carrying amounts, in
the financial statements. Deferred tax assets relating to the carry-forward of
unused tax losses are recognised to the extent that it is probable that future
taxable profits will be available against which the unused tax losses can be
utilised.
Current and deferred tax assets and liabilities are offset when the income taxes
are levied by the same taxation authority and when there is a legally
enforceable right to offset them.
2. Business and geographical segments
For management purposes, the company's main activity is that of a holding
company, but, as yet has not commenced to trade. Its activity is wholly within
the United Kingdom.
3. Financial risk management
The company's operations expose it to a variety of financial risks that include
liquidity risk. The company has in place a risk management programme that seeks
to limit the adverse effect of such risks on its financial performance.
a) Liquidity risk
The company reviews its facilities regularly to ensure that it has adequate
funds for operations and expansion plans.
5 months Year
ended ended
30 June 31 January
2006 2006
4. Employees and directors
Staff costs, including directors
Wages and salaries £ - £3,200
Average monthly number of staff, including directors employed by the
Company during the year No. No.
Management and administration 3 3
Key management personnel compensation
Salaries and short term employee benefits £ - £3,200
All of the above key management personnel compensation relates to directors' aggregate emoluments
5. Interest receivable
Bank interest received £426 £425
6. Loss before taxation
Loss has been arrived at after charging:
Auditors' remuneration for audit services £8,225 £2,938
7. Taxation
30 June 31 January
2006 2006
Current tax
UK corporation tax on profits for the year £ - £ -
Reconciliation of tax expense
Loss before tax (8,641) (9,023)
Tax on loss at standard rate of tax (30%) (2,592) (2,707)
Losses carried forward 2,592 2,707
Tax expense £ - £ -
The company has unrelieved tax losses of approximately £5,299 (31 January 2006:
£2,707) to carry forward and offset against future profits from the same trade.
No deferred tax asset has been recognised in respect of these losses, as there
is currently insufficient evidence that the asset will be recoverable in the
foreseeable future.
8. Loss on Ordinary Shares
The calculation of basis and diluted loss per ordinary shares is based on the following losses
and number of shares
Period to Period to
30 June 31 January
2006 2006
£ £
Loss for the financial period £(8,641) £(9,023)
No of shares No of shares
Weighted average number of shares 5,000,000 35,849,623
9. Cash and cash equivalents
Cash at bank and in hand £16,818 £43,915
10. Trade and other receivables
Prepayments £24,493 £ -
11. Trade and other payables
Accruals £8,975 £2,938
12. Called up share capital
Authorised:
1,000,000,000 ordinary shares of 1p each 10,000,000 1,000,000
Issued and fully paid ordinary shares of 1p each:
At 30 June 2006 50,000
On 13 June 2006, the authorised share capital was increased to £10,000,000
divided into 1,000,000,000 ordinary shares of £0.01 each.
On 11 July 2006 a further 20,000,000 Ordinary shares were subscribed for cash
consideration of 7.5p per share, and 79,000,000 Ordinary shares were subscribed
for non cash consideration of 7.5p per share being the acquisition of the whole
of the issued share capital of Gold Minerals Resources Limited.
13. Related party transactions
Capital Ideas is wholly owned by John Woolgar. During the period the company
paid £nil (31 January 2006: £1,600) to Capital Ideas as consultancy fees.
There was no amount outstanding at 30 June 2006.
Stanford Burgess Limited is a company controlled by David Burgess, the brother
of James Burgess, who served as a director during the period. During the period
the company paid £nil (31 January 2006: £3,131) to Stanford Burgess Limited in
respect of stationery costs. There was no amount outstanding at 30 June 2006.
14. Ultimate controlling party
The ultimate controlling party is the trustees of the Perseus Settlement as a
body.
15. Post balance sheet events
On 26 July 2006 the company was admitted to the Alternative Investment Market
(AIM) on the London stock exchange and raised £1.5 million, before listing
expenses of £300,000, from the placing of 20,000,000 shares at 7.5p per share.
Gold Minerals Resources Limited (GMR) is a holding company incorporated in
Guernsey, which wholly owns Gold Recovery Ghana Limited (GRG), a company
incorporated in Ghana. The requirement of the conditional contract to acquire
the entire shareholding of Gold Minerals Resources Limited was fulfilled on 26
July 2006, for a consideration of 79,000,000 ordinary shares issued at 7.5p
each. An amount of £500,000 of the proceeds raised has been used to subscribe
in cash for 500,000 ordinary shares of £1 each in Gold Mineral Resources Limited
to finance the cash element of the consideration for the acquisition of the
entire shareholding in Goldplat Recovery (Pty) Limited, a company incorporated
in South Africa, which recovers gold and platinum group metals from material
consisting primarily of by-products from gold and platinum mines.
The assets and liabilities acquired are as follows:
Book / Fair Value
GMR Goldplat GRG Total
Recovery
Fixed assets:
Property, plant and equipment - 1,480,899 - 1,480,899
Current assets:
Inventories - 222,265 - 222,265
Trade and other receivables 100 538,620 29,741 568,461
Cash and cash equivalents - 108,301 9,312 117,613
Total assets 100 2,350,085 39,053 2,389,238
Non-Current liabilities:
Provisions - 25,650 - 25,650
Interest-bearing loans and borrowings - 3,279 - 3,279
Deferred tax liabilities - 344,251 - 344,251
Current liabilities:
Trade and other payables - 432,069 11,800 443,869
Interest-bearing loans and borrowings - 33,343 - 33,343
Total liabilities - 838,592 11,800 850,392
Net Assets 100 1,511,493 27,253 1,538,846
The Directors have reviewed the carrying value of the assets acquired and have
determined that no fair value adjustments are required.
Total consideration 5,925,000
Net assets acquired (1,538,846)
Goodwill arising on acquisition of GMR group 4,386,154
The balance of funds raised was earmarked for the cost of establishing a gold
recovery plant in Ghana (£450,000), and £250,000 for the evaluating of gold
mining opportunities and working capital.
In September 2006 Gold Recovery Ghana Limited acquired for US$200,000 an
industrial plot of 4.25 acres in extent in the Heavy industrial area in the Free
Zone area in Tema, Ghana.
Gold Recovery Ghana Limited has committed a further US$60,000 for the excavation
and erection of a building to house a section of the processing facility and a
further US$30,000 for the erection of a boundary wall.
The operations of Goldplat Recovery (Pty) Limited has continued in a
satisfactory manner and its results will be incorporated in the interim results
of the company.
16. Basis of presentation
The financial information set out in this announcement, which does not
constitute the statutory accounts of the company, is extracted from the audited
statutory accounts for the period ended 30 June 2006, which were approved by the
Board on 19 December 2006. The auditors have reported on those accounts in
accordance with Section 235 of the Companies Act 1985, their report was
unqualified and did not contain a statement under Section 237(2) or 237(3) of
the Companies Act 1985. The statutory accounts for the year ended 31 January
2006 have been delivered to the Registrar of Companies. Those for the period
ended 30 June 2006 will be delivered to the Registrar after the Annual General
Meeting to be convened in 2007 . The Annual Report and Accounts will be posted
to shareholders on 20 December 2006. Copies will be available from the
Company's registered office, Third Floor, 55 Gower Street, London WC1E 6HQ.
* * ENDS * *
For further information please visit www.goldplat.com or contact:
Brian Moritz Goldplat plc Tel: +44 (0) 7976 994300
Demetri Manolis Goldplat plc Tel: +27 11 423 1203
Mob: +27 82 454 7392
Hugo de Salis St Brides Media & Finance Ltd Tel: +44 (0) 20 7242 4477
Felicity Edwards St Brides Media & Finance Ltd Tel: +44 (0) 20 7242 4477
Luke Cairns HB Corporate Tel: +44 (0) 20 7510 8600
This information is provided by RNS
The company news service from the London Stock Exchange
Tuesday, 14th May 2024
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