TIDMGDP
RNS Number : 9844C
Goldplat plc
23 October 2020
G ol dp lat plc / Ti cker: GDP / Index: AIM / Secto r: M in i ng
& E x p l o rati on
23 October 2020
Goldplat plc
( 'Goldplat', t he 'Group' or 'the Company ')
Quarterly Update - Update on the first quarter ended 30
September 2020
G ol dp lat pl c, the AIM quoted g o ld p r o ducer, w ith
internati onal g o ld reco very o perati ons l o cated in South Afr
i ca and Ghana and a held-for-sale m i ning operation in Ken ya, is
p leased to announce an operational update for the first quarter
("Q1") ended 30 September 2020.
Group
-- The Group maintained good operating results with the South
African operations achieving a profit for the Q1 of GBP1,123,000
(Q1, September 2019 - GBP1,074,000) and the Ghanaian operations a
profit of GBP280,000 ( Q1, September 2019 - GBP23,000) .
-- The initial results from a pilot plant test on Tailings
Storage Facility ("TSF") material has been encouraging and is
bringing us closer to finalising a detailed plan for the processing
of TSF.
-- Significant progress has been made in the sourcing efforts in
the Group, with a constant flow of material received in Ghana, a
new contract signed in South America and positive progress made in
securing more material in Mali as detailed below.
-- Similarly, in South Africa, material sourced for our surface
material and woodchip circuits exceeded production capacity,
maintaining visibility of stock on site and on contract to more
than 24 months.
-- The relationships with the plants supplying other by-products
remain in good standing, with constant flow of by-products, despite
the challenges of Covid-19.
-- Progress is being made on obtaining final approval for
extending our current TSF and an additional GBP90,000 will be
incurred to allow for the increased volumes that can be deposited
until the extended TSF has been established.
-- The cash requirement for Kilimapesa has been reduced with the
signing of a binding term sheet with Mayflower as announced
previously.
Goldplat Recovery (Pty) Limited ("GPL")
-- The South African operation achieved an operating profit for
the Q1 of GBP1,123,000 (Q1, September 2019 - GBP1,074,000).
-- During Q1, part of our plant facility was modified to improve
the processing of the TSF material on a production scale. The
initial results are encouraging and exceed the results from initial
lab scale test work, and we will continue measuring performance
going forward. The aim is to build up a data base on production and
recoveries from representative areas on the TSF using different
parameters in the plant sufficient to support the investment
required to reprocess the TSF material.
-- One of our producing mills has been allocated to this
modified plant and as a result 1kg per month of gold production was
sacrificed during the period. The plant was commissioned towards
end of September and it is expected that the TSF material processed
from it is expected to exceed the 1kg sacrificed by repurposing the
mill.
-- The company continued improving its the largest
carbon-in-leach circuit to enable the processing of lower grade
contaminated material. During the period we installed an upgraded
screening unit, sacrificing 3kg of gold production during the
installation phase. With the modification on the underground
circuit completed, the full benefit of this improvement should be
reflected during the 2(nd) quarter.
-- Additional costs of GBP50,000 were incurred under Covid-19
procedures introduced to transport our staff in a hygienic and safe
manner to and from work. With South Africa moving to lockdown level
1, these measures have been reduced. We are glad to report that all
employees who tested positive for Covid-19 have recovered and are
back at work and we are currently unaware of any cases in our
workforce, which is constantly monitored.
-- Surface material and woodchips sourced during Q1 exceeded
production capacity, increasing the feed material on site and
contracted to more than 24 months. We received good volumes of
by-products from a number of clients.
-- The processing of the current TSF at the required scale still
remains dependent on securing a final deposition site and a plant.
Management still believe that processing the TSF through an
existing third-party facility should create most value for
shareholders and reduce the initial capital requirement.
-- The application to extend our current TSF for deposition of
current production is progressing and indications from authorities
are that we should have feedback towards the end of January 2021. A
further GBP90,000 will be spent on managing our current facility
until a larger facility can be established at an estimated build
cost of GBP700,000.
-- Our extensive exploration and testing campaign to secure more long-term feed material for the carbon-in-leach circuits is continuing and we spend close to GBP75,000 during Q1 on various test work. This is in line with GPL's strategy to ensure long term visibility of supply, profitability and growth.
Gold Recovery Ghana Limited
-- The Ghanaian operation maintained its improved production
levels achieved during the previous financial period and achieved
an operating profit for the first quarter of GBP280,000 ( Q1,
September 2019 - GBP23,000) .
-- The sustained and improving operating results is due to a
constant flow of material received from clients in Ghana, Mali and
South America.
-- During the quarter we have made progress on our strategic
focus of securing more material from West Africa. We are currently
finalising terms on a large batch of material from a mine in Mali
but this remains dependent on receiving export approval from the
government of Mali.
-- We also signed a new contract with a company in South
America, with material currently being shipped and due to arrive in
Ghana during the second quarter.
-- The application for a license to procure and toll-treat
tailings material in Ghana has been delayed by the Covid-19
lockdown but we are pleased that engagement on this has
re-started.
Kilimapesa (Pty) Limited
-- As previously announced, a binding conditional term sheet for
the sale of Kilimapesa was signed with Mayflower during the
quarter, with completion of the transaction subsequently extended
until 31 December 2020.
-- Operating losses at Kilimapesa for the first quarter were
GBP232,000 ( Q1, September 2019 - GBP127,000), of which GBP118,000
related to depreciation and amortisation.
-- The operations started processing artisanal tailings material
from the area on 22 August 2020 largely financed by Mayflower.
-- The Group does not expect to contribute any further cash to
Kilimapesa before completion of the proposed sale.
Werner Klingenberg, CEO of Goldplat commented: "I am pleased by
the continued profitability of the recovery businesses, and
encouraged by strong performance in Ghana during the quarter.
Additionally, I believe we can achieve an even stronger performance
from the operation in South Africa and I am confident that the
changes made to the circuits during the 1(st) quarter will return
positive results during the remainder of the financial period.
The progress made on our planning for processing the TSF is
positive and I'm confident that the pilot plant data should assist
us in accelerating the processing of the TSF.
The Covid-19 pandemic remains a risk for the business and we
will maintain procedures to protect the health and safety of all
our people and the continuity of the business."
For further i n fo rmat i on v i s it www .g o ld p lat.com, f o
l l ow on Twitter @GoldPlatPlc or contact:
Werner Klingenberg Goldplat plc (CEO) Tel: +27 (0) 82 051
1071
C o l i n Aaro n s on / Richard Tonthat Grant Thornton UK LLP
(Nominated Adviser) Tel: +44 (0) 20 7383 5100
/ Harrison Clarke/Seamus Fricker
James Jo yce / Jess ica Cave WH Ireland Limited (Broker)
Tel: +44 (0) 207 220 1666
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