GOLDPLAT - One Mans Rubbish is Our Golden Lining

RNS Number:4579O
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