Information  X 
Enter a valid email address

Goldplat plc (GDP)

  Print      Mail a friend       Annual reports

Tuesday 24 April, 2018

Goldplat plc

Operational Update

Operational Update

Goldplat plc / Ticker: GDP / Index: AIM / Sector: Mining & Exploration
24 April 2018
Goldplat plc ('Goldplat' or 'the Company')
Operational Update

Goldplat plc, the AIM listed gold producer, with international gold recovery operations based in South Africa and Ghana and a gold mine in Kenya, is pleased to announce an operational update for the three months ended 31 March 2018 (the 'Quarter').


  • 28,534 gold equivalent ounces were sold and transferred during the nine months ended 31 March 2018 (nine months ended 31 March 2017: 27,714 ounces)
  • The installation of the elution plant and associated ancillary infrastructure at Gold Recovery Ghana was completed, with the first gold pour from this operation taking place during the Quarter
  • Rand Refinery paid Goldplat Recovery (Pty) Ltd an undisclosed amount in full and final settlement of the dispute between the two parties. This dispute has now been concluded
  • WH Ireland has been appointed as sole Broker to Goldplat plc

Production for the Quarter

Overall production of 6,966 ounces of gold and gold equivalents was achieved during the Quarter, with operating profitability continuing at the recovery operations together with a continued reduction in losses made at Kilimapesa Gold Mine ('Kilimapesa').  In line with our commitment to build production output and profitability, the sourcing of by-product material for processing at the recovery operations and improving operational efficiencies at Kilimapesa remain primary areas of strategic focus for the Company.  During the Quarter, sourcing of material for Gold Recovery Ghana was slower than anticipated, however several batches of new material are in the final stages of contract completion. Losses continued at Kilimapesa due to lower grades and problems with the impact crusher at Plant 2.

Gold Equivalent Ounces    
for the month period ending 31 March 2018    
Goldplat Plc - Group   Year ending
3rd Qtr9 Months9 Months12 Months
Equivalent GoldEquivalent GoldEquivalent GoldEquivalent Gold
Gold Equivalent Production    
Goldplat Recovery (Pty) Ltd 4,533 18,501 17,518 29,418
Gold Recovery Ghana Ltd 1,192  4,789 8,391  10,031
Kilimapesa Gold (Pty) Ltd 1,241 3,922 2,154  3,408
Total 6,966 27,212 28,063 42,857
Gold Equivalent Sold    
Goldplat Recovery (Pty) Ltd 3,852 15,272 12,732 22,570
Gold Recovery Ghana Ltd  339  5,032 7,909  8,327
Kilimapesa Gold (Pty) Ltd 1,380 4,100 1,993 3,215
Total5,571 24,404 22,634 34,112
Gold Equivalent Transferred        
Goldplat Recovery (Pty) Ltd 1,180 4,130 5,080 6,173
Total  1,180   4,130   5,080   6,173
Gold Equivalent Sold and Transferred    
Goldplat Recovery (Pty) Ltd  5,032   19,402   17,812  28,743
Gold Recovery Ghana Ltd   339   5,032   7,909 8,327
Kilimapesa Gold (Pty) Ltd 1,380 4,100 1,993  3,215
Total6,751 28,534 27,714 40,285

Goldplat Recovery (Pty) Ltd ('GPL'), South Africa

  • During the Quarter GPL produced 4,533 ounces of gold and gold equivalents with 3,852 ounces of gold sold for own account and 1,180 ounces transferred to clients
  • Overall production at GPL was slightly below plan, with Carbon-In-Leach ('CIL') production exceeding plan and deliveries to the by-product circuits below plan. Overall targets for the year remain on track
  • The dispute between Rand Refinery and GPL was concluded during the Quarter with all legal agreements being completed and Rand Refinery paying an undisclosed amount to GPL. Business between the two parties has resumed
  • Good progress was made during the Quarter to clean-up a decommissioned gold operation for a large South African gold mining producer, with completion on track for the end of FY2018
  • By-product contract renewals for the major South African gold producers are currently underway
  • Metallurgical testwork to increase the economics of the strategic CIL stockpile are ongoing and are yielding positive results
  • Process optimisation test work for the re-processing of the Tailings Storage Facility resource continues, as progress (by the DMR) on the West Pit 3 for final deposition is awaited

Goldplat Recovery Ghana ('GRG'), Ghana

  • GRG produced 1,192 ounces of gold and gold equivalents, with 339 ounces of gold being sold for own account during the Quarter
  • During the Quarter the elution plant and associated infrastructure was completed. This allows further beneficiation of a lot of the material to Dore bars and also fulfils a requirement of the previous gold licence renewal
  • Sourcing of material for GRG remains a primary focus and several batches of new material are currently being finalised
  • GRG began pouring gold on-site during the Quarter
  • An environmental clean-up project with the Ghanaian Government to rehabilitate artisanal mining tailings remains under discussion, pending Government go-ahead

Kilimapesa Gold ('KPG')

  • KPG produced 1,241 ounces of gold and gold equivalents, with 1,380 ounces of gold sold for own account during the Quarter
  • Production for the Quarter was below plan due to lower than expected grades from the underground mine as well as problems experienced with the crushing circuit at Plant 2
  • Cost optimisation is ongoing and internal approval for the installation of grid power at Plant 2, and the underground mine and Teng Teng was granted during the Quarter
  • The Kempe drill is now operational at Kilimapesa Hill underground mine. This will assist in the forward planning of mining layouts with a consequent improvement of grades and costs
  • Further optimisation of the metallurgical recovery is underway and we expect positive results in the near term

International marketing and sourcing

  • During the Quarter the Global Sourcing Team completed a strategic global sourcing plan, which supported the Group's ongoing focus on South and North America as well as West Africa, with material being shipped to and processed primarily at GRG
  • Senior teams concluded a comprehensive roadshow to North America as well as to Peru during the Quarter

Gerard Kisbey-Green, CEO of Goldplat plc, commented:

"The conclusion of the Rand Refinery dispute and the completion of the elution circuit at GRG were key highlights of the Quarter.  As we continue to focus on building gold production and increasing profitability, we look forward to progressing the turnaround at Kilimapesa and securing new strategic supply contracts at an international level for our recovery operations."

** ENDS **

For further information visit, follow on Twitter @GoldPlatPlc or contact:

Gerard Kisbey-Green Goldplat plc
Tel: +27 (71) 8915775
Colin Aaronson / Jen Clarke Grant Thornton UK LLP
(Nominated Adviser)
Tel: +44 (0) 20 7383 5100
James Joyce / Jessica Cave WH Ireland Limited
Tel: +44 (0) 207 220 1666
Charlotte Page / Susie Geliher St Brides Partners Ltd
(Financial PR)
Tel: +44 (0) 20 7236 1177

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

About Goldplat                                                                                                
Goldplat plc is an AIM quoted gold producer with two market leading recovery operations in South Africa and Ghana and an operational gold mine in Kenya.   The Company produced 42,857 ounces of gold during FY 2017, with 40,285 gold equivalent ounces sold and transferred, resulting in an operating profit from continuing operations of £2.9m for the year.  This result does not benefit from the increased processing capacity that was achieved at the Kilimapesa Gold Mine towards the end of FY 2017, with operational profitability achieved during last two months of FY 2017.  Accordingly, the Company believes it is well placed to build upon production and profitability during FY 2018.

The Company's strategy is focussed on utilising cash flow generated from its flagship gold recovery and mining operations to self-fund the sustainable growth and expansion of its niche gold recovery business model internationally. The Company is also committed to increasing its primary mining production output through acquisition / gaining interests in producing or near-production assets, preferably in Africa.  Goldplat retains exposure to a small exploration project in Ghana, in which Ashanti Gold Corp. is earning an interest via an earn-in option agreement.

This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Goldplat plc via Globenewswire

a d v e r t i s e m e n t