Interim Results

Goldplat plc / Ticker: GDP / Index: AIM / Sector: Mining & Exploration 23rd February 2009 Goldplat plc ('Goldplat' or 'the Company') Interim Results Goldplat plc, the AIM listed gold producer, is pleased to announce its unaudited results for the six months ended 31 December 2008. Overview * Pre-tax profits up 92% to £1,201,000 (2007: £624,000) strong cash flow with healthy cash balance of £2.5 million as at 31 December 2008 * Margins positively impacted by the rise in the gold price * Commenced production at the Kilimapesa mine in Kenya in January 2009, which is expected to fund the development of the mine * South African and Ghanaian recovery plants continuing to perform buoyantly * South Africa: Further stockpiles secured, bringing the total stocks of materials for processing to 44,050 oz of contained gold, equating to four years of current woodchip production capability, three years of gravity concentration capacity and three years of leach capacity * Ghana: Further stockpiles have been identified and sampled - Goldfields Ltd has extended the fine carbon contract with Gold Recovery Ghana Ltd * Compliance with Black Economic Empowerment rules in South Africa in advance of the May 2009 deadline * Expanding geographic reach, locating opportunities in Tanzania and Zambia Goldplat CEO Demetri Manolis said, "These excellent results underpin the rapid progress that the Company is making and the strength of our business model. With the cash flow from our processing plants continuing to increase and the contribution from our Kenyan mining operation due to impact the Company in Q2 2009, I believe we are in a strong financial position. Importantly, our earnings from gold sales are in US dollars, which should equate to a strong performance in sterling terms. This, in tandem with the favourable gold market conditions, should enhance shareholder value." * * ENDS * * For further information visit www.goldplat.com or contact: Demetri Manolis, CEO Goldplat plc Tel: +27 11 423 1203 James Joyce/Sarang Shah WH Ireland Limited Tel: +44 (0)20 7220 1666 Bill Sharp/David Scott Alexander David Securities Tel: +44 (0)20 Limited 7448 9820 Felicity Edwards/Hugo de St Brides Media & Finance Tel: +44 (0)20 Salis Ltd 7236 1177 Chairman's Statement It gives me great pleasure to report a strong financial result for the six months ended 31 December 2008 and our substantial progress towards becoming a mid-tier gold miner in Africa. Profit before tax for the six months is £1,201,000 (2007: £624,000), an increase of 92% and profit after tax has seen an increase of 113% at £806,000 (2007: £379,000). This is the first time that a six month period has shown profits of more than £1 million for the Company. During the period under review, we have maintained our strong growth profile and as a result have increased our cash position to £2.5 million. Revenue was contributed from both the South African and Ghanaian recovery operations which have been further reinforced following the securing of additional stockpiles of gold bearing materials which will increase the production potential of our operations. Post period end, we commenced production at our Kilimapesa gold mining project in Kenya which is expected to make an operational profit from Q2 2009, which will fund the development of the underground mine. On a broader level we continue to evaluate additional mining opportunities in line with our growth strategy of developing further cash generative assets in Africa and building a mid tier gold producing company. Gold Recovery Businesses Currently the Company's primary business is the recovery of gold and, to a small extent, platinum group metals from the by-products of the mining industry, which fulfils an important aspect of a mine's environmental management programme. Goldplat recovers gold from metallurgically challenging materials, primarily those which have been inadvertently enriched by the mining process. It does not process low grade tailings and other partly depleted materials, except artisanal tailings in Ghana, which have a high gold content. The South African subsidiary, Goldplat Recovery (Pty) Ltd ('GRL') has previously been described as a 'mature' business, as it controls the major part of the material available for processing in its sector. Nevertheless, a combination of improvements to technology and a committed management has enabled profits to continue to increase. Importantly, strong relationships with the major mines have enabled GRL to increase its stocks of materials for processing to 44,050 oz of contained gold, which equates to four years of current woodchip production capability, three years of gravity concentration capacity and three years of leach capacity, thus safeguarding future profitability. To comply with Black Economic Empowerment ('BEE') rules in South Africa, the Company sold 15% of GRL to a subsidiary of Amabubesi Capital for a total of ZAR 15.3 million, which equated to £1.01 million as at 6 October 2008. We believe that compliance with BEE rules will facilitate GRL's business in South Africa, enabling it to acquire or apply for mining rights, as well as improving its competitive position when tendering for processing contracts. GRL is now fully BEE compliant until 1 May 2014, when the percentage in the hands of Historically Disadvantaged South Africans (HDSA) will need to increase to 26%. Additionally, our wholly owned Ghanaian operation, Gold Recovery Ghana Ltd. ('GRG'), has also performed buoyantly. Full production commenced at the beginning of 2008, with profits building steadily as plant improvements and efficiencies have been implemented. Although GRG is a smaller operation than GRL, the 10 year tax free status of the operations in the free port of Tema has resulted in a noticeable reduction in the percentage of Group profits being paid in tax. Importantly, GRG's operations have been welcomed by authorities in Ghana as a positive contribution for their strategy of environmental improvement in the mining industry, an objective we hope to capitalise on going forward. The ability of GRG to acquire stock for processing has been gratifying, with stocks of materials at a high level totalling 35,000 oz of contained gold. Importantly further stockpiles are being identified and secured, reinforcing the plant's economics and facilitating its future expansion. In particular, GRG extended an agreement with Goldfields' Tarkwa operation to deliver fine carbon for a further year and won a contract to process fine carbon from the Bibiani mine in Ghana. GRG is also transporting woodchips from Golden Star's Wassa operation to establish a stockpile for burning once the new incinerator is operational - this expected to be shipped imminently from South Africa and in operation by the end of April 2009. Mining The Company's first mining project, the Kilimapesa mine in Kenya, commenced production in January 2009. All costs in the first half year have been capitalised and further developments will continue in 2009 in parallel with production to enhance gold recovery rates and in turn increase operational economies of scale. The mine, which is a 50-50 Joint Venture with International Gold Exploration AB, is expected to make an operational profit from Q2 2009. In addition, the high grade gold vein system is being rapidly developed with exploration and development targeting both surface and underground anomalies. We are aiming to publish a JORC compliant resource statement later this year which will further reinforce the economic potential of the project. The Directors believe that the current problems being experienced by the junior natural resource sector provides a unique opportunity for Goldplat, with its strong cash flow, to acquire additional mining projects. A number of opportunities are under consideration, which are being evaluated using a stringent criteria, to ensure that the Company's resources will not be dissipated. Additional Opportunities In line with the Company's strategy of developing further cash generative opportunities in Africa, Goldplat's management team have made exploratory visits to Tanzania and Zambia to examine the possibility of commencing additional gold recovery activities. Volumes of artisanal tailings in excess of 100,000 tonnes have been identified, measured and sampled. Discussions with two Tanzanian parties are ongoing, with a view to Goldplat providing its technological expertise, and the Tanzanian parties supplying the tailings. Additionally in Zambia, Goldplat has initiated a preliminary investigation into the potential of an operation, under which copper gold material will be upgraded by Goldplat and the concentrates sold to our strategic partner, Rand Refinery, which has facilities to handle copper gold concentrates. We look forward to updating the market accordingly on any developments in due course. Financial Results The profit before tax for six months ending 31 December 2008 is £1,201,000 (2007: £624,000) an increase of 92% and profit after tax has seen an increase of 113% at £806,000 (2007: £379,000). The profit after tax benefits from the increasing profits generated in Ghana, where our wholly owned subsidiary has a 10 year 'tax holiday' as a new business in Ghana. The profit before tax indicated is after allowing for the 15% minority interest due to our BEE partner in South Africa post acquisition. In December 2008 the Company issued options to Directors and senior management to acquire new Goldplat ordinary shares. This will give rise to charges in the Group Income Statement over the next two years, although reserves in total will not be reduced. No charge has been made in the Income Statement for the six months to 31 December 2008 as the amount is not considered material. Future Prospects The Directors expect the progress made in the first six months to continue during the rest of financial year. The gold price has proved resistant to the reductions experienced by other precious and base metals, giving us an excellent platform for expansion. In addition, opportunities for new mining projects are constantly being offered to and evaluated by Goldplat, which bodes well for future growth. Finally, I would like to take this opportunity to thank my fellow directors, advisers, management teams and shareholders for their dedication and support over the past year, which has seen Goldplat go from strength to strength. Brian Moritz (Chairman) 23 February 2009 Consolidated Income Statement for the six months ended 31 December 2008 Six months Six months Year ended ended ended December 2008 December 2007 30 June 2008 (unaudited) (unaudited) (audited) £'000 £'000 £'000 Revenue from precious 5,216 2,999 7,713 metals Cost of Sales (3,974) (2,144) (5,259) Gross Profit 1,242 855 2,454 Administrative expenses (450) (253) (715) Operating profit before 792 602 1,739 finance costs Finance income 412 29 82 Finance expense (3) (7) (197) Profit before tax 1,201 624 1,624 Income tax expense (298) (245) (570) Profit for the period 903 379 1,054 Attributable to: Equity holders of the 806 parent Minority interest 97 903 Earnings per share Basic 0.72p 0.34p 0.95p Diluted 0.69p 0.33p 0.94p Consolidated Balance Sheet at 31 December 2008 as at as at as at 31 December 31 December 30 June 2008 2008 2007 (unaudited) (unaudited) (audited) £'000 £'000 £'000 Assets Property, plant and 2,318 1,912 1,885 equipment Pre-production expenditure 635 233 Goodwill 4,358 5,018 5,018 Due on sale of shares in 558 subsidiary Non-current assets 7,869 6,930 7,136 Inventories 1,960 2,112 1,138 Trade and other receivables 2,318 1,195 1,437 Cash and cash equivalents 2,518 1,167 1,486 Current assets 6,796 4,474 4,061 Total Assets 14,665 11,404 11,197 Equity and liabilities Issued capital 1,121 1,106 1,121 Share premium 6,772 6,657 6,772 Retained earnings 2,429 944 1,623 Exchange reserves (31) (62) (482) Equity attributable to 10,291 8,645 9,034 equity holders Minority interest 448 Liabilities Provisions 126 43 109 Deferred tax liabilities 302 323 241 Loans and borrowings 483 301 Non-current liabilities 911 366 651 Trade and other payables 2,634 1,840 1,145 Obligations under finance 98 30 leases Taxation 381 335 337 Bank overdraft 120 Current Liabilities 3,015 2,393 1,512 Total Equity and Liabilities 14,665 11,404 11,197 Statement of changes in equity for the period ended 31 December 2008 Share Share Retained Exchange Minority capital premium income reserves Interest Total £'000 £'000 £'000 £'000 £'000 £'000 Balance as at 30 1,090 6,556 569 (155) 8,060 June 2007 Profit for the year 1,054 1,054 Issue of share 31 216 247 capital Exchange (327) (327) translation loss Balance at 30 June 1,121 6,772 1,623 (482) 9,034 2008 Profit for the 806 97 903 period Investment by 351 351 minorities Exchange 451 451 translation gain Balance at 31 1,121 6,772 2,429 (31) 448 10,739 December 2008 Cash Flow Statement for the period ended 31 December 2008 Six months ended Year ended December 2008 30 June 2008 (unaudited) (audited) Notes £'000 £'000 Cash flows from operating activities Cash generated from 7.1 653 1,320 operations Financing income 412 82 Financing costs (3) (188) Income taxes paid (254) (439) Net cash flows from operating 808 775 activities Cash flows from investing activities Proceeds from sale of 35 property, plant and equipment Acquisition of property, plant and equipment - Additions to (229) (626) expand operations - Pre-production (402) (233) expenditure Net cash outflow from (631) (824) investing activities Cash flows from financing activities Net proceeds on issues of 247 shares Proceeds received on shares 7.2 506 sold in subsidiary Loans raised 182 301 Finance lease payments (30) (60) Net cash from financing 658 488 activities Net increase in cash and cash 835 439 equivalents Cash and cash equivalents at 1,486 1,222 beginning of period Effect of exchange rate 197 (175) fluctuations on monetary assets Cash and cash equivalents at 2,518 1,486 end of period 1. Accounting policies a) Presentation of financial information Goldplat plc is incorporated in the United Kingdom under the Companies Act 1985. The consolidated financial statements are presented in pounds sterling, which is considered by the Directors to be the most appropriate presentation currency for the consolidated financial statements. b) Basis of preparation of the financial statements The financial statements have been prepared in accordance with International Financial Reporting Standards as adopted by the EU. The financial statements have been prepared on the historical cost basis. The principal accounting policies adopted are set out below. The preparation of the financial statements requires the Directors 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 the Directors' 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. c) New Standards and Interpretation At the date of authorisation of these financial statements, there were International Reporting Standards and Interpretations that were in issue but not yet effective, which have not been applied in preparing these financial statements. The Directors anticipate that the adoption of these Standards and Interpretations in future years will have no impact on the financial statements except for additional disclosures when the relevant Standards and Interpretations come into effect. d) Basis of consolidation The consolidated financial statements incorporate the financial statements of the Company and enterprises controlled by the Company (its subsidiaries) as at the reporting date. Control is achieved where the Company has the power to govern the financial and operating policies of a subsidiary. All intra-Group transactions, balances, income and expenses are eliminated on consolidation. e) Goodwill The purchase method of accounting is used to account for the acquisition of subsidiaries. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination, irrespective of the extent of minority interests, are measured initially at their fair values at the acquisition date. The excess of the cost of the acquisition over the fair value of the Group's share of the identifiable net assets acquired is recorded as goodwill. If the cost of the acquisition is less than the fair value of the net assets of the subsidiary acquired, the difference is accounted for directly in the income statement. The cost of an acquisition is measured at the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the acquisition. f) Property, plant and equipment Items of property, plant and equipment are stated at historical cost less accumulated depreciation and impairment losses. The cost of the mining assets includes the costs of dismantling and removing the items and restoring the site on which they are located. Where parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items of property, plant and equipment. Subsequent costs The Group recognises in the carrying amount of an item of property, plant and equipment the cost of replacing part of such an item when that cost is incurred if it is probable that the future economic benefits embodied with the item will flow to the Group and the cost of the item can be measured reliably. All other costs are recognised in the income statement as an expense as incurred. Depreciation Depreciation is charged to the income statement on a straight-line basis over the estimated useful lives of each part of an item of property, plant and equipment. Owned land is not depreciated. * Leasehold land Lease period * Buildings 20 years * Plant and equipment 10 years * Motor vehicles 5 years * Office equipment 6 years * Spare parts 10 years Assets held under finance leases are depreciated over their expected useful lives on the same basis as owned assets or, where shorter, over the term of the relevant lease. Surpluses/(deficits) on the disposal of mining assets, plant and equipment are credited/(charged) to income. The surplus or deficit is the difference between the net disposal proceeds and the carrying amount of the asset. g) Leases Leases under the terms of which the Group assumes substantially all the risks and rewards of ownership are classified as finance leases. The owner-occupied property acquired by way of finance lease is stated at an amount equal to the lower of its fair value and the present value of the minimum lease payments at inception of the lease, less accumulated depreciation and impairment losses. h) Inventories Inventories are valued at the lower of cost and net realisable value on the weighted average basis, and include costs incurred in acquiring the inventories and bringing them to their existing location and condition. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses. Work-in-progress comprises materials in the process of being converted from raw materials to finished goods. Work-in-progress is valued at the lower of cost and net realisable value on the weighted average basis. Bullion on hand, gold and platinum in process represent production on hand after the smelting process, gold contained in the elution process, gold loaded carbon in the CIL and CIP processes, gravity concentrates, platinum group metals (PGM) concentrates and any form of precious metal in process where the quantum of the contained metal can be accurately determined. It is valued at the average production cost for the year, including amortisation and depreciation. Stores and materials consist of consumable stores and are valued at the lower of average cost or net realisable value. i) Provisions A provision is recognised in the balance sheet when the Group has a present legal or constructive obligation as a result of a past event, and it is probable that an outflow of economic benefits will be required to settle the obligation. If the effect is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability. j) Income tax Income tax on the profit or loss for the year comprises current and deferred tax. Income tax is recognised in the income statement except to the extent that it relates to items recognised directly in equity, in which case it is recognised in equity. Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantially enacted at the balance sheet date, and any adjustment to tax payable in respect of previous years. Deferred tax is provided using the balance sheet liability method, providing for temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The following temporary differences are not provided for: goodwill not deductible for tax purposes, the initial recognition of assets or liabilities that affect neither accounting nor taxable profit, and differences relating to investments in subsidiaries to the extent that they will probably not reverse in the foreseeable future. The amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying amount of assets and liabilities using tax rates enacted or substantively enacted at the balance sheet date. 2. Business and geographical segments For management purposes, the Company's main activity is that of a holding Company. Subsidiaries Main activity Country Percentage owned Goldplat Recovery (Pty) Precious metal South 85 % Ltd extraction Africa Gold Recovery Ghana Precious metal Ghana 100 % Limited extraction Kilimapesa Gold (Pty) Gold producer Kenya 50 % Limited 3. Share capital December December 2008 June 2008 June 2008 2008 £'000 No of shares £'000 No of shares Authorised Ordinary Shares of 10,000 1,000,000,000 10,000 1,000,000,000 1p Issued and fully paid Ordinary shares of 1,121 112,120,000 1,121 112,120,000 1p 4. Share based payments Share options Number options During the period ended 31 December 2008 the Company had the following share options in issue: As at 30 June 2008 1,950,000 Granted during the period 16,000,000 Exercised during the period - 17,950,000 Effective 5 December 2008 the Company issued 16,000,000 share options to Directors and senior employees with a vesting period of 2 years at an exercise price of 10p. 5. Earnings per share The calculation of earnings per ordinary share is based on the following: Earnings for the purpose of basic earnings and 806 diluted earnings per share Number of shares Weighted average number of common shares in issue 112,120,000 during the year Effect of dilutive options 4,297,826 Weighted average number of common shares in issue during the year for the purpose of diluted 116,417,826 earnings per share Six months ended Year ended December 2008 30 June 2008 (unaudited) (audited) £'000 £'000 6. Goodwill As previously 5,018 5,018 stated Reduction on sale 660 of shares in subsidiary 4,358 5,018 7. Notes to the cash flow statement 7.1 Cash generated by operations Operating income 792 1,739 before interest and taxation Adjustments for: Depreciation of 71 244 property, plant and equipment Loss on disposal of 4 9 property, plant and equipment Operating income 867 1,992 before working capital changes Increase in (822) (720) inventories Increase in trade and (881) (552) other receivables Increase in trade and 1,489 600 other payables 653 1,320 7.2 Proceeds received on shares of subsidiary Sale of 15% of 1,012 shareholding in Goldplat Recovery Proceeds receivable (506) from future dividends Cash received on 506 sale ---END OF MESSAGE--- This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.

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