Goldplat Share Discussion Threads

[russman] 06/2/2017 14:07

Due to prevailing capital market conditions.

[pog1234] 06/2/2017 13:58

This piece of news is good, but it is nowhere near enough to take the share price to 10p.. IMVHO! For that to happen I think we need some solid figures delivered....

[kimboy2] 06/2/2017 12:41

Yes a difficult day to be a troll.

[danielmiller1] 06/2/2017 12:18

WELL IT WILL MAKE A CHANGE...BUT BEST LET TIME TELL THEY HAVE BEEN MISERABLE FAILURES TO DATE.

[danielmiller1] 06/2/2017 11:51

that will make a change and will be a big turn around for this dawg company steeped, as it is, in a culture of mismanagement...are you sure?

[wigwammer] 06/2/2017 11:24

"Yep its all very well but can they run it run correctly without losing value."Yes

[danielmiller1] 06/2/2017 11:19

Yep its all very well but can they run it run correctly without losing value.

And I wonder what exactly "in due course means and the end of the announcement. I mean dont they know when they will finish things or is it just another mismanagement job?

Goldplat “Expanding with the commission of the processing plant” Gerard Kisbey-Green, CEO
Goldplat, the AIM quoted African gold producer, have told DirectorsTalk about
the successful commissioning of the first stage of the new processing
plant at Kilimapesa Gold Limited in Kenya.

The plant has a designed capacity of 200 tonnes per day and will consist
of a crusher circuit; mills; a thickener; leach tanks; an elution plant
as well as a tailings deposition facility. The project has been split
into three discreet stages:


-- Stage One: commissioning of the plant excluding the crusher circuit,
which is now completed

-- Stage Two: installation of the crusher circuit and three additional leach
tanks

-- Stage Three: installation of a second mill and a further three additional
leach tanks.


The decision was taken during 2016 to install a new processing plant and
tailings deposition facility, at a site in close proximity to the
Kilimapesa Hill underground mine, to increase production volume and gold
production, decrease operating costs, optimise overhead costs and to
return Kilimapesa to profitability. Due to prevailing capital market
conditions at the time, the Company decided to fund the project
internally, through inter-company loans primarily from the recovery
operations. It was also decided to construct the plant using existing
equipment, and management and skills from within the Goldplat plc Group
where possible. Accordingly, a processing plant at the Company's
recovery operations in Ghana was deconstructed, containerised, and
shipped to Kenya. To provide for two production mills and a spare at the
new plant, two additional second-hand mills were also acquired in South
Africa. All engineering, manufacturing, construction and installation
was completed by in-house teams, with the exception of a few critical
work streams, including the overall plant layout and design work, and
tailings dam design, which were undertaken by outside consultants.

Stage One commissioning began on 23 December 2016 and has progressed on
time and on budget. During the latter months of 2016, a stockpile of
6,000 tonnes of crushed ore was created, which is sufficient to
feed/supply the plant until the crusher circuit and additional leaching
capacity is commissioned. A key cut for the tailings facility has been
constructed and tailings are currently being deposited into a borrow pit
contained within the final tailings dam footprint. Plans are underway to
increase the size of the final tailings facility in the near term to
further reduce costs.

Management is pleased to report, as of the end of January 2017, that
production is at the planned Stage One rate of 60 tonnes per day, which
if maintained, and together with ongoing production from the existing
plant, equates to an annualised 4,600 ounces of gold production,
compared to the 2,005 ounces of gold produced during the 2016 financial
year. At this production rate the mine should be profitable and in a
position to begin repaying loans.

Stage Two installation of the crusher circuit and an additional three
leach tanks has begun and commissioning is expected during April 2017.
At this stage the new plant is expected to process 120 tonnes per day
and once the plant is fully commissioned and producing at steady state,
an annualised rate of roughly 4,500 ounces of gold is planned. The old
plant will continue to produce roughly 2,300 ounces of gold per year as
long as tailings capacity exists, resulting in a potential total
production rate of 6,800 ounces of gold per year.

Stage Three will be planned and commenced based on the performance of
the operation once steady state is achieved.

The new processing plant is scheduled to be opened by the Kenyan Cabinet
Secretary for Mining, Honourable Dan Kazungu, during an official opening
ceremony on site planned for 16 February 2017.

Gerard Kisbey-Green, CEO of Goldplat commented, "I am very pleased with
the Board's decision to proceed with an expansion plan at our Kilimapesa
gold mine, which represents an investment of the order of US$2million.
Although it is modest in terms of production, we believe it will result
in the commencement of sustainable profitability at Kilimapesa. Having
achieved a production rate of 60 tonnes per day, following the
successful implementation of Stage One, I believe we have already proven
that we made the right decision. The team on the ground has done a
sterling job in adhering to schedules and to budget and we look forward
to progressing to final commissioning in ......due course..... Profitability at
Kilimapesa has been a long time coming and I would like to thank our
shareholders for their patience in this regard!"

[kimboy2] 06/2/2017 11:13

I think my estimate of £1m profit from the CIL is about right.

They say that the 60tpd produced atm will make Kili profitable. At Q1/17 they reported a £100k loss, or annualised £400k loss, for Kili which will now be in profit.

Given that there is still another 60tpd to come on line when the crusher and other leach tanks are ready I would suspect that £1m will be an underestimate.

[ironstorm] 06/2/2017 09:54

That's a very bullish statement - am still hoping for trading numbers this month too which should show big progress on last year - and with this in the back points to further growth this year.

[csmwssk12hu] 06/2/2017 09:51

Great news here much better than I was expecting might see a climb towards and past 10 p on this

[sea7] 06/2/2017 08:33

VSA comments...

www.proactiveinvestors.co.uk/columns/vsa-capital-market-movers/27031/vsa-capital-market-movers-goldplat-and-rangold-resources-27031.html

Goldplat has announced the successful commissioning of its Stage One processing facility at its Kilimapesa mine in Kenya. Although in line with our expectations this news confirms that the turnaround at the mine, which has resulted in significant losses in recent period is well underway. The plant has a design capacity of 200tpd and stage one represents the commissioning of the plant whilst stage two includes the installation of the crusher circuit and three leach tanks and stage three is the installation of a second mill and three further leach tanks.

A stockpile of 6kt of crushed ore was created to enable the plant to operate whilst stage two is completed. At the current rate, GDP has guided to gold production of 4,600oz in FY 2017 which is marginally above our estimate of 4,500oz and up from 2,005oz in FY 2016. In line with GDP’s guidance we anticipate that Kilimapesa is likely to reverse operating losses in FY 2017 which would strongly benefit the results of the wider group.

We reiterate our Buy recommendation and 11.2p/sh. target price.

[mrmoneybags123] 06/2/2017 08:24

Finally some good news, share price ticking up nicely.

[danielmiller1] 06/2/2017 08:12

Good start share price nicely up on news.......lets see just how badly they can continue to mismanage things from here.

[sea7] 06/2/2017 08:02

Excellent news, this is the first time since the projects inception back in june 2007, that it looks as though it has a chance of standing on its own, without support from the recovery plants. 120TPD is more than I was expecting, I was thinking of around 80tpd.

Once they hit a steady state and profitability, we ought to start seeing some mine data, such as cash costs, AISC, etc.

[danielmiller1] 06/2/2017 07:31

Well that's phase one at last still waiting on phase 2&3. Cc I wonder if they screw these up!

[michaelfenton] 06/2/2017 07:14

At long last an RNS on Kili. 60 tons a day now on stream. Crusher etc by April. Slow but sure and so 2017 should see repayment begin on the 2Mil cost.

[michaelfenton] 06/2/2017 07:14

At long last an RNS on Kili. 60 tons a day now on stream. Crusher etc by April. Slow but sure and so 2017 should see repayment begin on the 2Mil cost.

[kimboy2] 06/2/2017 07:13

120tpd is more than I thought and they seem to be operating at a grade of 5g/t so quite a bit or artisanal material.

I would presume that a profitable plant will make it easier to get financing for the next stage.

Good to see them getting the bigwigs down to open it. I thought they might.

[sea7] 05/2/2017 20:53

Probably.

On the tax issue..

When Gerard said that kili may have to pay more tax, I wonder if the relatively new kenyan transfer pricing unit at the KRA has been looking at kili. If they feel that any revenue has been moved to South africa or Uk and declared in a lower tax regime, they may feel as though there is a case to answer.

The only other thing I can think of is vat on equipment.

[kimboy2] 05/2/2017 20:44

I suspect that the media is just as slow as the government.

[sea7] 05/2/2017 20:36

Its a long shot, however, perhaps the sudden, apparently late reporting on the ongoing tax situation with the KRA by local media, has been done on purpose to shine a light on it and get the KRA to come to a decision, instead of the ongoing dragging it out.

[kimboy2] 05/2/2017 20:31

Wouldn't surprise me if that is the reason for the delay in the CIL starting up.

[sea7] 05/2/2017 20:26

Yep, we know from the experience at kili, that things move at a snails pace there.

[kimboy2] 05/2/2017 20:24

Yes its a small world isn't it. I can see anything happening very quickly though. The bureaucracy just delays everything for ages.