Interim Results

Goldplat plc / Ticker: GDP / Index: AIM / Sector: Mining & Exploration 23 February 2010 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 2009. Overview * Operating profits up 54% to £1,225,000 (2008: £792,000) * Profit before tax of £1.15m (2008: £1.20m) due to sharp movements in exchange rates * South African and Ghanaian gold recovery plants production for six monthstotalled 8,309oz (2008: 12,084oz ) * Kilimapesa Gold mining operation in Kenya progressing towards commercial gold production - mining lease application expected to be completed shortly * Acquired option over the prospective 246 sq km Nyieme Gold Project in Burkina Faso with the target to bring it into production * Continue to assess various acquisition opportunities across Africa to further strengthen gold portfolio Goldplat CEO Demetri Manolis said,"These are exciting times for Goldplat as we continue to bolster our position as a gold producer in Africa.  With the mining licence allowing us to make commercial gold sales at our Kilimapesa Gold mine close to finalisation, and a new gold mining project in Burkina Faso, an emerging gold district, we are realising our strategy of building a portfolio of production and exploration properties to become a mid tier gold producer.  The development of a strong portfolio is paramount to our strategy and we are actively seeking other opportunities.  What differentiates us is our ability to leverage our two gold recovery businesses in South Africa and Ghana, where we have continued to increase the production efficiencies which in turn has improved our cash flow from which to grow the Company.  With these developments in mind, I believe 2010 will be a period of growth for the Company." For further information visitwww.goldplat.com < http://www.goldplat.com/> or contact: Demetri  Manolis, CEO Goldplat plc Tel: +27 (0) 11 423 1203 James Joyce WH Ireland Limited Tel: +44 (0) 20 7220 1666 David Porter WH Ireland Limited Tel: +44 (0) 20 7220 1666 Felicity Edwards St Brides Media & Finance Ltd Tel: +44 (0)20 7236 1177 Isabel Crossley St Brides Media & Finance Ltd Tel: +44 (0)20 7236 1177 Chairman's Statement It gives me great pleasure to report on Goldplat's progress as it moves towards fulfilling its objective of becoming a mid-tier gold producer focussed in Africa.  During the period under review, our gold recovery businesses in South Africa and Ghana performed well, providing positive cash flow to fund the development of our gold mining project in Kenya towards production and acquire a new gold mining project in Burkina Faso. Gold Recovery Businesses Our two gold recovery plants in South Africa and Ghana are performing well, generating healthy revenues.  For the six months to 31 December 2009 the recovery operation in South Africa produced 6,369 oz (2008: 7,814 oz) whilst our Ghanaian plant produced 1,940oz (2008: 4,270 oz). As these figures demonstrate, the South African plant has performed in line with management's expectations, overcoming the problems facing South African gold producers from the strength of the South African Rand.  In part this can be attributed to the work completed during 2009 to increase the plant's capacity and economic capabilities.  Not only did we commission a larger mill and increase its flotation capacity, we also expanded the range of materials being processed and the techniques used.  To this end,we designed and are currently installing an intensive cyanidation plant to leach the gravity concentrates and load gold onto carbon for elution, due to come on line shortly.  This is expected to result in significant cost savings and improved cash flow.  Additionally, Platinum Group Metal concentrates continue to be produced in small quantities, but these represent less than 5% of total precious metal production. Income at the Ghanaian recovery plant fell slightly short of management expectations, mainly due to delays in the delivery of concentrates to the refiners.  However, production has now increased anddevelopment is proceeding well.  A new incinerator has been commissioned and has produced ash with grades exceeding 600 g/t gold from relatively low grade material.  An intensive cyanidation plant is also being installed, which will enable us to sell our gold in bullion form and will, as with the South African recovery plant, result in cost savings and improve cash flow. Our relationships with major producers as well as with the authorities in both South Africa and Ghana continue to strengthen - indeed, the Ghanaian Minister of Mines recently visited our plant in Tema and was impressed with the added value operation.   These relationships are important to our businesses as we solidify their positions as key cogs in the whole cycle of producing minerals, particularly in terms of fulfilling environmental obligations. Mining Kilimapesa Gold, our gold mining project in south western Kenya within the historically producing Migori Archaean Greenstone Belt, is progressing towards commercial gold production.  Goldplat's management have been working closely with the commissioner of Mines and Geology to finalise the mining lease application.  The National Environmental and Management Agency have issued the licence for the Environmental Impact Assessment and all agreements with the local authorities have been completed.  The final component, the cadastral survey, is underway and is expected to be completed shortly.  The committee for approving the mines Mining lease, which is chaired by the Commissioner of Mines and Geology has given its approval pending the completion of this survey.  Once this is officially approved, Kilimapesa Gold will be permitted to make commercial sales of gold, including gold currently held in stock, and production of gold will recommence. In line with the Company's strategy of expanding its geographic footprint, at the end of the period under review, Goldplat announced that it had acquired an option over the prospective 246 sq km Nyieme Gold Project in Burkina Faso.  Previous exploration generated exciting results and identified high-grade quartz vein structures over a 4 km trend so we now plan to commence a 2,500m diamond drilling programme and also carry out a surface geochemical and mapping programme to define the southerly extent of the veins.  From this we hope to establish a JORC-compliant resource, which will form the basis of a production development programme if economically viable. Additional Opportunities We continue to assess various acquisition opportunities across Africa to strengthen our portfolio, specifically looking at mining assets that would utilise the Company's knowledge and experience in the gold producing sector. Financial Results The financial results show a further strong trading period.  The Operating Profit increased by more than 50% from the same period last year to £1.22m (2008: £792,000) and is the highest six month operating profit achieved by the Group.  This is despite a charge in respect of share options of £118,000, with no comparable charge in the half year to 31 December 2008.  In addition, the costs of seeking new projects and in particular investigating and evaluating the Nyieme gold project, have been charged before arriving at the Operating Profit. Sharp movements in exchange rates, in particular the strengthening of the South African Rand, resulted in Finance Income and Costs being a net charge of £71,000 in the current period compared with a net credit of £409,000 in the comparable period last year.  These movements are random and not connected to the actual trading performance, and, in the case of the 2008 credit, a large part of it was clawed back in the second half.  For that reason the Profit before Tax for the six months is £1.15m (2008: £1.20m). Future Prospects Looking forward, the future for both our recovery businesses looks bright.  With good stock piles and a steady flow of materials for processing through contracts with a growing number of major mining companies as well as increased capacities and capabilities, we anticipate that revenues, in particular in Ghana, should rise accordingly. On the mining front, we are excited about the prospects at Kilimapesa Gold that will, we hope, see the start of commercial production in the near future as well as our new mining venture in Burkina Faso, for which we plan a drilling campaign in 2010 with the aim to establish a JORC compliant resource in due course.  With various other opportunities under review, the remainder of the year will no doubt be busy for us, so we look forward to regularly updating shareholders on our progress and thank them for their continued support. Brian Moritz Chairman 23 February 2010 Consolidated Income Statement for the six months ended 31 December 2009 Six months ended 31   Six monthsended   Yearended December 2009 31 December 2008 30 June 2009 (unaudited)   (unaudited)   (audited) ₤'000   ₤'000   ₤'000 Revenue from precious 5,436   5,216   11,149 metals Cost of Sales (3,769)   (3,974)   (8,225) ---------------------- ------------------ -------------- Grossprofit 1,667   1,242   2,924 Administrative expenses (442)   (450)   (1,100) ---------------------- ------------------ -------------- Operating profit before 1,225   792   1,824 finance costs Profit on sale of       420 interest in subsidiary Finance income 113   412   204 Finance expense (184)   (3)   (43) ---------------------- ------------------ -------------- Profit before tax 1,154   1,201   2,405 Income tax expense (391)   (298)   (527) ---------------------- ------------------ -------------- Profit for the period 763   903   1,878 Earnings per share Basic 0.68p   0.72p   1.67p Diluted 0.60p   0.69p   1.58p Consolidated Balance Sheet at 31 December 2009 As at31 December 2009   As at 31   As at December 2008 30 June 2009 (unaudited)   (unaudited)   (audited) ₤'000   ₤'000   ₤'000 Assets Non-current assets Property, plant and 3,196   2,318   2,570 equipment Pre production 1,241   635   884 expenditure Goodwill 5,763   4,358   4,778 Due on sale of shares in 444   558   472 subsidiary ----------------------- --------------- --------------   10,644   7,869   8,704 ----------------------- --------------- -------------- Current assets Inventories 2,332   1,960   1,473 Trade and other 2,598   2,318   2,012 receivables Cash and cash equivalents 1,048   2,518   2,198 ----------------------- --------------- --------------   5,978   6,796   5,683 ----------------------- --------------- -------------- ----------------------- --------------- -------------- Totalassets 16,622   14,665   14,387 Equity and liabilities Equity attributable to equity holders of the Company Share capital 1,121   1,121   1,121 Share premium 6,772   6,772   6,772 Retained earnings 4,174   2,429   3,414 Exchange reserves 165   (31)   (185) ----------------------- --------------- -------------- Shareholders' equity 12,232   10,291   11,122 Minority interests 470   448   420 ----------------------- --------------- -------------- Totalequity 12,702   10,739   11,542 Non-current liabilities Provisions 162   126   146 Deferred tax liabilities 364   302   289 Loans and borrowings     483   647 ----------------------- --------------- --------------   526   911   1,082 ----------------------- --------------- -------------- Current liabilities Trade and other payables 1,954   2,634   1,471 Balance payable 942 onKilimapesa acquisition Taxation 498   381   292 ----------------------- --------------- --------------   3,394   3,015   1,763 ----------------------- --------------- -------------- ----------------------- --------------- -------------- Totalequity and 16,622   14,665   14,387 liabilities Statement of changes in equity for the period ended 31 December 2009 Share Share Retained Exchange Minority capital premium income reserves interests ₤'000 ₤'000 ₤'000 ₤'000 ₤'000 Balance at 30 June 2008 1,121 6,772 1,623 (482) Profit for the year 1,706 172 Minority interest in subsidiary (103) dividend Investment by minorities 351 Treasury shares (49) Share incentive scheme reserve 134 Exchange translation profit 297 --------------------------------------------- Balance at 30 June 2009 1,121 6,772 3,414 (185) 420 Profit for the period 641 122 Minority interest in subsidiary (72) dividend Share incentive scheme reserve 119 Exchange translation profit 350 --------------------------------------------- Balance at 31 December 2009 1,121 6,772 4,174 165 470 ---------------------------------------------   Six months ended   Six months ended Year Ended30 31December 31December June 2009 2009 2008   (unaudited)   (unaudited) (audited) Note ₤'000   ₤'000 ₤'000 Cash flows from 7.1 operating activities Cash generated from   477   653 1,554 operations Financing income   113   412 204 Financing costs   (184)   (3) (33) Income taxes paid   (268)   (254) (577) ------------------ -------------------------------- Net cash flows from   138   808 1,148 operating activities Cash flows from investing activities Proceeds from sale of   10   1 property, plant and equipment Acquisition of property, plant and equipment Additions to expand   (509)   (229) (666) operations Pre production   (310)   (402) (651) expenditure ------------------ -------------------------------- Net cash outflow from   (809)   (631) (1,316) investing activities Cash flows from financing activities Purchase of treasury     (49) shares Proceeds received on 69   506 540 shares sold in subsidiary Proceeds paid on   (730) acquisition of shares in Kilimapesa Loans raised       182 346 Finance lease payments       (30) (30) ------------------ -------------------------------- Net cash from financing   (661)   658 807 activities ------------------ -------------------------------- Net (decrease) /   (1,332)   835 639 increase in cash and cash equivalents Cash and cash   2,198   1,486 1,486 equivalents at beginning of period Effect of exchange rate   182   197 73 fluctuations on monetary assets ------------------ -------------------------------- Cash and cash   1,048   2,518 2,198 equivalents at end of period NOTES TO THE FINANCIAL STATEMENTS for the period ended 31 December 2009 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) Newstandards 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 CIPprocesses, 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.         Percentage TradingSubsidiaries Main Country Owned activity   Goldplat Recovery Precious South Africa 85 % (Pty) Ltd metal extraction   Gold Recovery Ghana Precious Ghana 100 % Limited metal extraction   KilimaPesa Gold Gold Kenya 100 % (Pty) Limited producer 3. Share capital   31December 2009 31December 2009 30June 30June 2009 2009   £'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 --------------------------------------------------------   Issued share capital includes 400,000 ordinary shares of 1p each held in treasury. 4. Share based payments   Number of Exercise Number of options Exercise options Price Price   December 2009 December June 2009 June 2009 2009   Share options   Outstanding 17,200,000 10p 1,200,000 10p atbeginning of period   750,000 7.5p 750,000 7.5p ----------------------------------------------------------------   Total 17,950,000   1,950,000   Granted     16,000,000 10p during year ----------------------------------------------------------------   Outstanding 17,950,000   17,950,000 atend of period   The fair value of these share options has been independently calculated using the Black Scholes Model using the following assumptions:   Risk free interest 2.93% rate   Expected volatility 55%   Expected dividend 0% yield   Life of the option 3.5 years   The weighted average remaining contractual life of the options outstanding at the balance sheet date is 3 years 316 days. 5. Earnings per share   The calculation of earnings per ordinary share is based on the following:   £'000   Earnings for the purpose of basic earnings and 763 diluted earnings per share ----------------------------   Number of shares   Weighted average number of common shares in 111,720,000 issue during the year   Effect of dilutive options 16,173,750 ----------------------------   Weighted average number of common shares in 127,893,750 issue during the year for the purpose of diluted earnings per share     As at As at As   31 December 2009 31 December 2008 30 June 2009   (unaudited) (unaudited) (audited)   ₤'000 ₤'000 ₤'000 6. Goodwill As previously   4,778 5,018 5,018 stated Reduction on sale     (660) (240) of shares in subsidiary Goodwill on   985 acquisition of Kilimapesa shares -------------------- -----------------   5,763 4,358 4,778 -------------------- -----------------   Six months ended Six months ended Year ended 31 31 30 June 2009 December 2009 December 2008 7. Notes to the cash flow statement 7.1 Cash generated by operations Operating income   1,225 792 1,824 before interest and taxation Adjustments for: Depreciation of   96 71 164 property, plant and equipment (Loss) / profit on   (1) 4 16 disposal of property, plant and equipment Share incentive   119   134 scheme charged to income statement -------------------- ----------------- Operating income   1,439 867 2,138 before working capital changes (Increase) in   (859) (822) (335) inventories (Increase) in trade   (586) (881) (575) and other receivables Increase in trade   483 1,489 326 and other payables -------------------- -----------------   477 653 1,554 -------------------- ----------------- [HUG#1387172]

Companies

Goldplat (GDP)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today