Goldplat plc Preliminary Results

 
TIDMGDP 
 
 
   Goldplat plc / Ticker: GDP / Index: AIM / Sector: Mining & Exploration 
 
   18 September 2017 
 
   Goldplat plc 
 
   ('Goldplat', the 'Group' or 'the Company') 
 
   Preliminary Results 
 
   Goldplat plc, the AIM listed gold producer, announces its preliminary 
results for the year ended 30 June 2017 ('FY 2017'). 
 
   Operations / Corporate 
 
 
   -- Significant increase in operating profitability from continuing 
      operations in FY 2017 following the successful turnaround strategy at 
      Kilimapesa Gold Mine, meaning by the end of the last quarter of the year, 
      all operations were operating profitably 
 
   -- Increased gold equivalent production highlights the continued and steady 
      growth of the business - Goldplat produced 42,857 ounces of gold during 
      the year, marking a 13.7% increase on 2016 (2016: 37,666 ounces), which 
      follows a 23.3% increase from 2015 
 
          -- Recovery operations produced 39,449 gold equivalent ounces (2016: 
             35,661 ounces) 
 
          -- Kilimapesa Mine produced 3,408 ounces of gold (2016: 2,005 ounces) 
             - the increased processing capacity was only seen towards the end 
             of FY 2017 meaning further upside expected with in excess of 
             5,800oz targeted during FY 2018 
 
   -- Actual sales were 40,285 gold equivalent ounces (2016: 40,763 ounces) 
 
          -- 34,112 gold equivalent ounces sold for own account (2016: 27,538 
             ounces) 
 
          -- 6,173 gold equivalent ounces transferred to clients (2016: 13,225 
             ounces) 
 
   -- Committed to maintaining active growth strategy to build production and 
      profitability: 
 
          -- Gold recovery: 
 
                 -- Work well advanced to increase geographical reach, by 
                    establishing Ghana as an international recovery hub, with 
                    material already being imported from elsewhere in Africa 
                    and South America and opportunities identified in North 
                    America 
 
                 -- Opportunity to diversify metal focus - platinum group 
                    metals trials continuing in South Africa 
 
                 -- Potential to maximise environmental value by offering 
                    mining "clean-up" services processing by-products with 
                    contaminants such as mercury - investigating a major 
                    project with the Ghanaian Government to assist in the 
                    clean-up of artisanal mining tailings 
 
          -- Primary mining: 
 
                 -- Focussed on driving increased production at Kilimapesa 
 
                 -- Targeting expansion by considering opportunities to gain 
                    interests in producing or near-production assets 
 
   -- Non-core exploration portfolio: 
 
          -- TSX quoted Ashanti Gold Corp has the option to earn up to 75% of 
             Goldplat's interest in the Anumso Gold Project in Ghana by 
             expending US$3million on exploration work at the project 
 
          -- Strategic decision to write off Nyieme Gold Project in Burkina 
             Faso having found the project to be too small scale to be 
             economically viable 
 
   -- Matthew Robinson appointed as Chairman - bolsters the experienced 
      management team 
 
 
   Financials 
 
 
   -- 140% increase in operating profit from continuing operations to 
      GBP2,910,000 (2016: GBP1,212,000) 
 
   -- 43% increase in profit before tax from continuing operations to 
      GBP2,836,000 (2016: GBP1,988,000) 
 
   -- Strong performance continues to be reported at the Group's recovery 
      subsidiaries: 
 
          -- Goldplat Recovery (Pty) Ltd - South Africa - 36% increase in 
             profit after tax to GBP2,420,000 (2016: GBP1,777,000) 
 
          -- Gold Recovery Ghana Limited - Ghana - 169% increase in profit 
             after tax to GBP1,177,000 (2016: GBP437,000) 
 
 
   -- Kilimapesa Gold (Pty) Limited reported a net loss of GBP1,100,000 for the 
      year (2016: loss of GBP711,000) as the benefits of increased production 
      capacity were only realised during the second half of FY 2017. In FY 2017 
      revenue increased to GBP3,150,000 (2016: GBP156,000), with operating 
      profit achieved towards the end of the year 
 
   -- Nyieme exploration project discontinued and development cost of 
      GBP955,000 written-off, with no cashflow impact in current period. 
 
   -- Total comprehensive income for the year still higher than comparative 
      year at GBP1,989,000 (2016: GBP1,897,000) 
 
   -- Net cash position of GBP2,650,000 as at 30 June 2017 (GBP2,056,000 as at 
      30 June 2016) 
 
 
   For further information visit www.goldplat.com, follow on Twitter 
@GoldPlatPlc or contact: 
 
 
 
 
Gerard Kisbey-Green (CEO)  Goldplat plc              Tel: [phone] 
Colin Aaronson / Daniel    Grant Thornton UK LLP     Tel: [phone] 
Bush                       (Nominated Adviser) 
Andrew Raca / Justin       VSA Capital Limited       Tel: [phone] 
McKeegan                   (Broker) 
Charlotte Page / Susie     St Brides Partners Ltd    Tel: [phone] 
Geliher 
 
 
 
   The information contained within this announcement is considered to be 
inside information, for the purposes of Article 7 of EU Regulation 
596/2014, prior to its release. 
 
   Chairman's Statement 
 
   I am pleased to report in my first Chairman's statement continued growth 
in profits from operating activities and progress in our strategic 
objectives.  Our revenue generating assets comprise sophisticated 
precious metal recovery facilities in South Africa and Ghana and gold 
mining in Kenya.  Results from operating activities for the year from 
continued operations have crucially increased to GBP2,910,000 (2016: 
GBP1,212,000) underpinning the growing strength of our business and in 
the final part of the year under review all three operations were making 
a positive contribution to profitability, with our long-term investment 
in our Kilimapesa Gold Mine in Kenya now starting to produce worthwhile 
results. This has, accordingly been a very positive year for our Company 
and I am pleased to report that our growth initiatives are set to 
continue as we remain focused on further building production and 
profitability. 
 
   Strategically, we continue to seek to diversify; this diversification is 
in sourcing material for our processing operations, both geographically 
and in material types, and in the balance between our recovery and our 
mining activities.  Regarding our recovery operations, we have been 
active in South America and are encouraged by the opportunities for 
sourcing materials we see there.  We are also active in West and East 
Africa and considering further opportunities in North America. 
 
   We have been continuing to invest in the businesses, sustaining and 
upgrading equipment in South Africa, developing new processing 
capacities in Ghana and installing the new, higher capacity, processing 
circuit in Kenya. We have borrowed modestly and conservatively to 
develop the Kenyan operations but otherwise investment has been financed, 
as it has now been for many years, from internally generated cash flows. 
We have shown the discipline to manage our resources and consider 
investment opportunities with care; if we see compelling opportunities 
which require additional capital we will of course consider that also. 
 
   Your board of directors has seen a number of changes during the period. 
In October 2016 my predecessor Brian Moritz retired; Brian had been 
Chairman since the Company's admission to AIM in 2006 and the Group is 
grateful for his guidance and enthusiasm over those years.  In light of 
his departure, at the annual general meeting held in October 2016 
shareholders elected me to the board. I am delighted to have joined 
Goldplat at a time of growth, and look forward to stewarding the Company 
forward to maintain our active development approach in order to create 
meaningful value. In June 2017 we were pleased to welcome Sango Ntsaluba 
and Werner Klingenberg to the board.  Alongside a distinguished auditing 
career, Sango has extensive corporate experience in both the public and 
private sectors and is executive chairman of a diversified investment 
holding group.  Werner is a Chartered Accountant and, having worked in 
the Group for two years has exemplary knowledge of our Company; we are 
accordingly delighted he has taken on the role of Goldplat's Finance 
Director. 
 
   As a Group we aim to engage positively with the governmental, regulatory 
and community structures where we operate.  We believe that we make a 
significant contribution where we operate, both financially in terms of 
fiscal contributions, employment, skills upgrading and local purchasing, 
as well as by operating high standards of environmental and health and 
safety protocols.  There are currently proposed changes in South Africa 
in relation to the ownership and operation of entities in the mining 
sector and we will monitor and assess how best to respond as the 
situation develops. 
 
   We have recently instituted a new programme to engage further with our 
shareholders.  In August this year, the executive team hosted a 
conference call at which shareholders, and potential shareholders, were 
invited to question management.  We were delighted with the response 
from shareholders and we intend to offer this opportunity regularly in 
future.  Additionally we will be hosting on Goldplat's website a Q&A 
document addressing shareholder questions on the Group and its 
businesses.  I therefore urge shareholders to take advantage of this 
initiative, send us questions you have and participate in the calls. 
 
   Running and growing our businesses profitably requires constant and 
close attention to detail in sourcing, operations and cost control.  I 
would therefore like to acknowledge and thank management, staff and 
advisors across the Group, in South Africa, in Ghana, in Kenya and in 

the UK, for all their efforts over the year. 
 
   Matthew Robinson 
 
   Chairman 
 
   Operations Report 
 
   Introduction 
 
   I am pleased to report that the turnaround in Goldplat continues and 
good progress has been achieved on all strategic initiatives during FY 
2017. The progress of the Group can be summarised by my statements over 
the past few years: in 2015, I reported that Goldplat had laid the 
foundations for a turnaround of the Group's performance and a return to 
profitability; in 2016 I reported that we had laid the foundations for 
growth and diversification; now Goldplat is executing the strategy of 
growth and diversification and expects continued improvements in 
production and profitability. 
 
   With most major capital projects having been completed during the 
previous year, the three priorities for FY 2017 included a focus on 
procurement; developing business opportunities in South America and 
returning Kilimapesa Gold (Pty) Limited ('Kilimapesa') to profitability 
through a processing plant expansion project. I am pleased to report 
that during FY 2017 the Group has made good progress on all of these 
strategic priorities. 
 
   Major capital projects for FY 2018 include the continued expansion at 
Kilimapesa as well as the installation of an elution plant at Gold 
Recovery Ghana Limited ('GRG'). The Group is also undertaking numerous 
research projects on the recovery side of our operation, with a view to 
diversifying processes and products and creating niches in the industry 
so as to ensure continued competitiveness. Some of these projects may 
develop to the point during FY 2018 where capital is required for 
further development. 
 
   Areas of Strategic Focus 
 
   With the three areas of strategic focus identified for FY 2017 
proceeding well and ongoing, the following additional strategic areas of 
priority were identified during the year: 
 
   With the processing plant expansion at Kilimapesa progressing well, the 
focus is now to ensure that the underground operations produce 
sufficient, quality ore to fill the milling capacity at the new 
processing plant. 
 
   Changing market dynamics over the past few years have resulted in the 
mix of profitability at Goldplat Recovery (Pty) Ltd ('GPL') evolving to 
a point where the carbon-in-leach ('CIL') circuits now offer the best 
profitability for this business.  The focus therefore is to ensure that 
sources of appropriate quality material for all of the CIL circuits are 
secured and strategic stockpiles built up. 
 
   At Gold Recovery Ghana Limited ('GRG') the carbon processing business 
remains key. Prospects of procuring sufficient appropriate quality 
carbon material within Ghana are unpredictable and hence procurement in 
South America, West Africa and elsewhere in Africa is of utmost 
strategic importance. 
 
   Goldplat is of the opinion that, strategically, production from recovery 
operations needs to be complemented by production from primary mining 
and has set a target of building primary mining production to match that 
of the recovery operations over a three-year period. Whereas there are a 
lot of assets available on the market, Goldplat is focused on seeking 
producing, or near-production assets, which are value-accretive to 
existing shareholders. 
 
   Gold Production and Sales 
 
   The table below provides a summary of gold and gold equivalent 
production and sales for FY 2017, with comparisons to FY 2016. During 
the year overall production was 42,857 ounces (FY 2016: 37,666) and 
sales and transfers totaled 40,285 ounces (FY 2016: 40,763). Gold and 
gold equivalent ounces sold on the Group's own account was 34,112 (FY 
2016: 27,538) and that transferred to clients was 6,173 ounces (FY 2016: 
13,225). 
 
   The increase in gold and gold equivalent production of 13.7% over the 
year (on 2016) follows a 23.3% increase in FY 2016 on FY 2015 and 
demonstrates the continued and steady growth of the business. Production 
grew at all operations with the most notable growth coming from 
Kilimapesa as a result of the plant expansion project and from GRG, 
reflecting increased production from sources outside of Ghana. 
Production at GPL was once again boosted by a large project executed for 
a large African producer during the year. 
 
 
 
 
Goldplat Plc 
Gold 
Equivalent Oz 
Reported 
June 2017 
 
                 Year ending       Year ending 
                   June 2017         June 2017     Year ending June 2016  Year ending June 2016 
Goldplat Plc    Equivalent Gold   Equivalent Gold     Equivalent Gold        Equivalent Gold 
Consolidated          kg                oz                   kg                     oz 
Gold 
Equivalent 
Production 
Goldplat 
 Recovery                   915            29,418                    895                 28,778 
Gold Recovery 
 Ghana                      312            10,031                    214                  6,883 
Kilimapesa 
 Gold                       106             3,408                     62                  2,005 
Total                     1,333            42,857                  1,171                 37,666 
Gold 
Equivalent 
Sold 
Goldplat 
 Recovery                   702            22,570                    516                 16,575 
Gold Recovery 
 Ghana                      259             8,327                    279                  8,964 
Kilimapesa 
 Gold                       100             3,215                     62                  1,999 
Total                     1,061            34,112                    857                 27,538 
Gold 
Equivalent 
Transferred 
Goldplat 
 Recovery                   192             6,173                    411                 13,225 
Total                       192             6,173                    411                 13,225 
Gold 
Equivalent 
Sold and 
Transferred 
Goldplat 
 Recovery                   894            28,743                    927                 29,800 
Gold Recovery 
 Ghana                      259             8,327                    279                  8,964 
Kilimapesa 
 Gold                       100             3,215                     62                  1,999 
Total                     1,253            40,285                  1,268                 40,763 
 
 
   Goldplat's Recovery Operations 
 
   Goldplat recovers precious metals, primarily gold and silver but also 
platinum group metals ('PGM's'), from by-products of the mining industry 
and gains its competitive advantage from a combination of the diversity 
and flexibility of its treatment circuits, which make possible the 
recovery of metals and concentrates from these by-product materials, the 
strategic geographic locations of the Group's plants, and the extensive 
depth of knowledge and experience of its longstanding team. 
 
   Goldplat sources by-products from the mining and related industries. 
These include coarse and fine carbon, woodchips, rubber and steel mill 
liners, grease, concentrate bags, surface materials and rock dumps. The 
Group also assists in plant clean-up operations. These materials 
typically present an environmental risk and cost to producers but can 
become a source of precious metals and revenue when processed by 
Goldplat. Clients include most of the significant gold producers in 
South Africa and Ghana as well as numerous producers from elsewhere in 
the world and an increasing number of PGM producers, and a number of 
refineries requiring the processing of concentrate materials prior to 
final refining as bullion. 
 
   Goldplat Recovery (Pty) Ltd - South Africa 
 
   GPL is a well-established operation based near Johannesburg in South 
Africa, serving clients as a Responsible Gold Producer, fulfilling the 
requirements set out by the London Bullion Market Association. The 
Company's facilities include crushing, milling, thickening, wash plants, 
CIL, elution, incineration, flotation, spiralling and shotblasting. 
 
   During FY 2017 GPL produced 29,418 ounces of gold and gold equivalent 
(FY 2016: 28,778) of which 22,570 ounces were produced for its own 
account (FY 2016: 16,575) and 6,173 ounces were transferred to clients 
(FY 2016: 13,225). 
 
   Sourcing of material remained an area of strategic focus at GPL during 
FY 2017. The mining industry in South Africa remains under pressure and 
closure of mining operations with consequent reduction in production 
took place throughout the year and is expected to continue. The major 
impact to date has been on the gold mines, with this gradual decrease in 
gold production resulting in a decrease in availability of by-product 
material for GPL. Goldplat believes that its "base" production level 
from traditional South African sources is around FY 2015 levels of 
22,000 ounces of gold and gold equivalents. In FY 2016 the Rand Refinery 
silver sulphide tolling project added significantly to this base level 
and in FY 2017 a large one-off batch of carbon from a new African client 
was processed. In order to keep production levels at around the 29,000 
ounces of gold and gold equivalent level, GPL has to ensure that it 
sources and processes similar large one-off by-product projects every 
year. 
 
   With production from the CIL circuits becoming more strategically 
important than from the by-product streams, focus is now on procuring 
long-term supplies of material to feed these circuits. Numerous projects 
are underway in partnership with existing clients and a large strategic 
batch of material was procured during FY 2017. Metallurgical test work 
is being conducted on this material to improve recovery rates and 
profitability. As a result of the strengthened strategic sourcing team, 
smaller precious metal producers are now also being visited to source 
by-products in addition to those received from the large mining 
companies. Volumes at the smaller operators are lower compared to the 
larger mining companies but increases our footprint as service provider 
of choice. 
 
   With all major capital projects having been completed during FY 2016, 
capital expenditure during the year was primarily on sustaining capex. 

During the year the cyclone sections and kiln seals on one of the rotary 
kilns were replaced and a new mill was installed in the high grade CIL 
section. 
 
   Metallurgical test work and pilot tests on the stock dam/tailings 
storage facility material continue; this has a JORC-compliant resource 
(refer to the announcement of 29 January 2016) of 81,959 ounces of gold, 
216,094 ounces of silver and 193,276 pounds of U3O8 (uranium oxide) and 
accordingly we believe it has significant value potential. Alongside 
this, the process of securing the West 3 Pit for deposition of tailings 
continues but with the different interests of the various stakeholders 
and the changing regulatory environment, the approval process is taking 
longer than initially anticipated. The Company remains confident that 
the logistical and regulatory issues will be overcome and the pit will 
be secured. 
 
   No resolution regarding the Rand Refinery dispute was reached during the 
year. Goldplat now has working arrangements with four different refiners 
with each product having potential for refining at one of at least three 
places, including GPL itself. Goldplat is confident that the previous 
single refiner risk has been mitigated and proceeded with legal action 
against Rand Refinery on 11 September 2017. 
 
   On 15 June, 2017 the Broad Based Socio-Economic Empowerment Charter for 
the South African mining and minerals industry, 2017, (the '2017 
Charter') was announced and gazetted in South Africa. The 2017 Charter 
aims to introduce far-reaching, new, and in some cases, radical measures 
and requirements on the industry. GPL is compliant with the preceding 
Charter, and if the 2017 Charter is implemented, certain changes will be 
required to maintain compliance, primarily in respect of: (i) the 
increased mandatory Black Economic Empowerment shareholding which is 
currently set at 26%, but is proposed to be increased to 30%, and (ii) 
in the required make-up of management demographics. Further to an 
interdict application brought by the Chamber of Mines against 
implementation of the Charter, the Minister of Mineral Resources has 
undertaken not to implement or apply the provisions of the 2017 Charter 
pending judgment on the interdict. Goldplat and GPL will monitor this 
issue and will keep shareholders informed as to progress and the 
possible impact on the Company as the process unfolds. 
 
   Gold Recovery Ghana Limited - Ghana 
 
   GRG's gold recovery operation, which had a tax-free status until 
December 2016, and a favourable tax rate thereafter of 15%, is located 
in the free port of Tema in Ghana. Processing facilities include a 
spiraling section, filter presses, an incinerator and a shotblast 
facility, used to recover gold from mill liners.  Concentrates produced 
at GRG are exported to GPL or to one of the Group's refinery partners. 
Most of the region's major gold producers and a number of smaller 
operations have contracts with GRG for the processing of their 
by-products, which include fine carbon, fine carbon sludges, steel and 
rubber mill liners, wood chips, slag, scaling and grease. 
 
   During FY 2017 GRG produced 10,031 ounces of gold (FY 2016: 6,883) of 
which 8,327 ounces were produced for its own account (FY 2016: 8,964). 
 
   With sources of material from within Ghana continuing to deplete for 
various reasons, focus during the year remained on sourcing from outside 
of the country. Momentum in this regard is picking up with contracts 
secured from elsewhere in Africa as well as South America. The Company 
has been sourcing and shipping material on a regular basis from various 
individual suppliers in South America since the second half of 2016 and 
good progress was made on contract negotiations during FY 2017. The 
first significant recurring contract was signed with initial shipments 
of 360 tonnes of carbon underway to Ghana and shipments of rubber mill 
liners being finalised. 
 
   A complete, second-hand 3-tonne elution plant was acquired from a 
producer in South Africa for ZAR 2 million (approximately US$155k). This 
plant is modular, complete with all ancillary equipment and will more 
than meet the requirement of the Ghanaian operations. As such, it was 
deemed a better option than moving an existing 4-tonne plant from GPL to 
GRG and the purchase of the required ancillary equipment and 
infrastructure. It is estimated that the final cost of installation will 
be in the order of US$1m, compared to the initial estimate of US$2m for 
the plant from GPL. During the last quarter of FY 2017, the acquired 
elution plant was dismantled, moved to GPL for refurbishment and is now 
in the process of being shipped to Ghana. Installation and commissioning 
is expected to be significantly quicker than per previous plans, with 
commissioning now planned for the end of December 2017, six months ahead 
of the milestone date stipulated by the Ghanaian Government in 
accordance with the Company's gold license renewal terms. 
 
   A third fluidised bed incinerator, which was purchased second-hand from 
an operator in Tanzania is currently being transported for shipment to 
GRG. 
 
   Focus was put into improving security at the plant and also in 
processing the large stockpiles of low-grade material. These projects 
are ongoing and contribute to ensuring space and a secure environment 
for planned increased production at GRG in the future. 
 
   GRG is investigating a major project with the Ghanaian Government to 
assist in clean-up of artisanal mining tailings. The Company is 
conducting extensive sampling programmes to assess both gold as well as 
contaminant (mainly mercury and cyanide) content and is simultaneously 
investigating the most efficient processing methods so as to recover 
gold and deal with contaminants in an environmentally acceptable manner 
(in compliance with acceptable global standards). 
 
   Goldplat's Mining and Exploration 
 
   Kilimapesa Gold (Pty) Limited - Kenya 
 
   Kilimapesa is a producing gold mine located in South Western Kenya. The 
mine is located in the historically productive Migori Archaean 
Greenstone Belt and has a total resource (refer to the announcement of 
12 December 2012) of 8,715,291 tonnes at 2.40 g/t of gold for a total of 
671,446 ounces of gold at a cut-off of 1 g/t. 
 
   Kilimapesa made operational profits during the last two months of FY 
2017 the first time in the ten years since acquisition. This has been 
made possible primarily due to the substantial completion during the 
year of an additional processing plant ('Plant 2'), but also as a result 
of continued cost cutting and process efficiency improvements across the 
operation. 
 
   Kilimapesa produced 3,408 ounces of gold during the year (FY 2016: 2,005 
ounces), of which 3,215 ounces of gold were sold during the period (FY 
2016: 1,999 ounces). Significantly, 1,254 ounces of gold was produced 
during the last quarter of the year and an annualised production rate of 
roughly 5,800 ounces of gold was achieved in the last two months of the 
year - a rate which is sustainable with current infrastructure. 
 
   During FY 2016 it was decided by the Board to invest in the expansion of 
processing capacity at Kilimapesa, at an overall capital expenditure in 
the order of US$2 million. During that year a CIL plant from GRG was 
deconstructed and shipped to Kenya for installation and commissioning at 
Kilimapesa, and two matching second-hand ball mills were also acquired 
in South Africa for installation at the mine. These would be used to 
construct the new Plant 2, and during 2017 the site for construction was 
chosen to be near to Kilimapesa Hill, from which the mined ore would be 
sourced. All necessary regulatory approvals were also obtained during 
the period. 
 
   During 2017 Goldplat put in place a three stage development plan to 
construct Plant 2 and build production. Stage One included the 
installation of a generator, the first of the two ball mills, a 
concentrator facility, thickener and six CIL tanks from GRG, as well as 
the construction of a borrow pit for initial tailings deposition and the 
site preparation and key cut for the final tailings storage facility 
('TSF'). As the crusher circuit was planned for Stage Two, a stockpile 
of fine ore was created during Stage One construction to facilitate 
commissioning and production during Stage Two installation. Stage One 
was commissioned by the end of December 2016 with a mill throughput rate 
of 60 tonnes per day being achieved as per plan, using uncrushed and 
partially crushed ore. 
 
   Up to this point the plant expansion had been funded out of 
internally-generated operating cash flows from the Group.  With stage 
one of the expansion commissioned, the Company decided to arrange a loan 
facility of up to US$2 million (the "Scipion Loan") to recapitalise the 
Group's subsidiaries that had financed the work to date, and to fund the 
expenditure of Stage Two of the processing plant expansion. 
 
   During the second half of FY 2017 Stage Two was substantially completed, 
which included installation of the crusher section, associated feed 
belts and bins, classifier and three additional larger CIL tanks. Two 
additional borrow pits were constructed to allow tailings deposition of 
up to a year before completion of the final TSF. Complete commissioning 
was delayed by a few months due to hold-ups in delivery of key materials, 
primarily steelwork associated with safety. Notwithstanding these delays, 
during the last two months of FY 2017 Plant 2 was successfully 
processing at a mill throughput rate of the planned 120 tonnes per day. 
 
   Stage Three of the plant expansion includes the installation of the 
second mill, an additional thickener and three additional CIL tanks. 
This stage will only commence once management is confident of sustained 
profitability and once the Scipion debt facility has been substantially 
repaid. 
 
   The old processing plant ('Plant 1') continued producing throughout and 
with more flexibility better efficiencies were achieved from this plant. 

Plant 1 is now processing primarily tailings sourced from artisanal 
operations in nearby areas. Better management of the TSF at Plant 1 has 
increased the available life of this facility to around a year (from the 
3-6 months at the beginning of FY 2017). 
 
   During the year the mining focus was on creating capacity at Kilimapesa 
Hill underground to produce enough ore of appropriate grade to satisfy 
the throughput requirements of Plant 2. Focus was on developing reef 
drives and raises so as to delineate profitable mining blocks. A 
mechanical loader was acquired to facilitate ore handling in the cross 
cuts and reef drives and a Kempe core drilling machine was acquired to 
assist in understanding the orebody, and aid in strategic planning of 
mining operations. Commissioning of this machine was not completed 
during the year as the required generator had not yet been delivered. By 
year end, production from the Kilimapesa underground had not yet reached 
planned levels and throughput at Plant 2 was being met by the addition 
of stockpiled material and artisanal tailings. 
 
   A decision was taken during the year to install grid power to Plant 2. 
Required authorisations and procurement of equipment was still in 
progress at the end of the year and this is expected to be completed in 
H1 of FY 2018. 
 
   During FY 2017, significant progress was made at Teng Teng mine. A 
second outlet was established, the shaft was deepened to facilitate more 
efficient ore loading, and significant underground exploration was 
completed. Due to a breakdown of the compressor and low priority of 
allocation of funds for repair, Teng Teng exploration was temporarily 
halted for the last few months of FY 2017. Activities will recommence as 
soon as the compressor has been repaired. It is expected that the 
process of applying for conversion of the Teng Teng area into a mining 
license will commence during FY 2018. 
 
   Subsequent to the year end, Kenyan National elections were held during 
August 2017. The Cabinet Secretary for Mining and the Governor of Narok 
County, where our project is located, remain unchanged which is 
important for smooth relations in the country as Goldplat and Kilimapesa 
management have developed very good working relationships with these 
individuals.  The result of the Presidential election was subsequently 
declared null and void by the High Court and a new election process has 
to be completed within sixty days from the day of the Court ruling, 1 
September 2017. 
 
   Anumso Gold Project - Ghana 
 
   Goldplat has a 90% interest in Anumso Gold Limited ('Anumso'), which is 
the holder of a ten-year renewable mining lease for gold and associated 
minerals covering an area of 29 sq. km. The project is located in the 
prospective Amansie East and Asante Akim South Districts of the Ashanti 
Region of the Republic of Ghana and has a current JORC compliant 
resource (refer to the announcement of 12 December 2012) of 166,865 
ounces of gold at 2.04g/t. 
 
   During FY 2016, Goldplat entered into an earn-in option agreement with 
Ashanti Gold Corp. ('Ashanti') (formerly Gulf Shore Resources Ltd), 
which provides Ashanti with the exclusive option to earn 75% of 
Goldplat's interest in Anumso (67.5% of the overall project interest) in 
two instalments by expending an aggregate of US$3 million on exploration 
on the project. In March, 2017, Ashanti exercised its initial option 
which triggered the initial option period, during which a 51% share of 
Goldplat's interest will be earned through expending US$1.5 million over 
18 months. Ashanti is obliged to either expend US$1.5 million on the 
project within the initial option period, or pay the deficiency to 
Goldplat. 
 
   Should Ashanti meet the expenditure condition within the Initial Option 
Period and receive 51% of Goldplat's interest in the Anumso (45.9% of 
the overall project interest), it will have the option to earn an 
additional 24% share of Goldplat's interest (21.6% of the overall 
project interest) by expending an additional US$1.5 million in the 
following 12 month period, or by paying the deficiency to Goldplat. 
 
   By the end of FY 2017 Ashanti had spent an aggregate of US$750,000. Work 
included setting up an exploration camp; establishing relationships with 
local chiefs and community; the analysis of historic core; core 
intersections submitted for metallurgical testing; completion of a 
20-hole reverse circulation ('RC') drill programme; continued analysis 
of drill results; and a comprehensive soil sampling programme (1,300 
soil samples) over the West and East Banka conglomerate. Results of 
metallurgical test work and assay results of soil samples are awaited. 
 
   Nyieme Gold Project - Burkina Faso 
 
   The 246 square km Nyieme Gold Project is located some 270 km southwest 
of Ouagadougou near the town of Dano on the prospective Birimian 
Greenstone Belt in southern Burkina Faso. The project has a 
JORC-compliant resource (refer to the announcement of 12 December 2012) 
totaling 1,395,000 tonnes at 2.06 g/t gold for 92,598 ounces at a 
cut-off grade of 1.0 g/t gold for all categories. The exceptional 3-year 
extension which was granted on 29 September, 2014 expires in October 
2017. The Company has no intention to apply for a further extension or a 
renewal as previous work at the project found it to be of too small a 
scale to be viable and the Company does not wish to commit any further 
capital on exploration at this project. A decision has been taken by the 
Board to fully write-off the value of the Nyieme Gold Project during FY 
2017. The value of this write-off in Goldplat's Statement of Profit and 
Loss and other Comprehensive Income for the year ended 30 June 2017 is 
GBP955,000. 
 
   Outlook 
 
   Goldplat is now operating profitably at all of its operations and the 
Board believes performance should continue to improve during FY 2018. 
Growth in the recovery business is expected to come from GRG as a result 
of initiatives to procure material from West Africa and South America, 
as well as the commissioning of the elution plant at GRG. The project 
being assessed with the Ghanaian Government to clean up artisanal 
tailings could potentially turn into a large opportunity for GRG. If 
successful, this project will not only be profitable and contribute to 
growth in GRG, but it will pave the way for once again processing 
artisanal tailings and for processing by-products with contaminants such 
as mercury - both from within Ghana as well as from international 
sources, thus creating new revenue opportunities. Subsequent to the 
year-end, a pilot plant for the processing of artisanal tailings was 
procured at minimal cost and is expected to be in production in the 
second quarter of FY 2018. We expect production and profitability at GPL 
to remain at current levels albeit that the focus will shift to the more 
profitable CIL products locally and procurement of additional 
by-products from outside of South Africa. We initiated legal proceedings 
against Rand Refinery on 11 September 2017 and cannot predict how long 
such proceedings might last. Goldplat remain confident that all monies 
owed to GPL by Rand Refinery will be recovered. 
 
   Growth from mining operations will be focussed on the Kilimapesa 
expansion project. Subsequent to the year-end, the crusher section at 
Plant 2 was commissioned and the plant is consistently exceeding the 
planned 120 tonnes per day throughput target, and managing closer to 160 
tonnes per day regularly. A decision has been taken to install the 
second mill at Plant 2 whether or not a decision is taken to proceed 
with Stage Three to provide back-up to the first mill and potentially 
additional production capacity. The plan for the year is to get to a 
point where only ore from Kilimapesa Hill underground is processed at 
Plant 2 with artisanal tailings being processed at Plant 1. Production 
exceeding 5,800 ounces is expected during FY 2018. 
 
   In addition to Kilimapesa, Goldplat will continue to seek out 
opportunities to increase primary production from new sources. Goldplat 
recognises that growth from recovery operations will be slower and more 
difficult than the potential to grow the mining business. The current 
market presents many opportunities for acquisitions of assets, joint 
ventures, partnerships and corporate deals. Goldplat does not intend to 
enter into exploration, and will prefer to gain interests in producing 
or near-production assets, preferably in Africa. 
 
   Conclusion 
 
   I would like to take this opportunity to thank our Goldplat employees, 
advisors, fellow directors and shareholders for their support as we 
embark upon our growth and diversification strategy in FY 2018. I look 
forward to working with all of you as we implement this strategy. I 
would like to welcome Matthew Robinson, Sango Ntsaluba and Werner 
Klingenberg who joined the Goldplat Board during the year as Chairman, 
Non-Executive Director and Finance Director respectively. I would also 
like to thank Ian Visagie, who has changed his Board role during the 
period, now assuming the role of Executive Director; he remains an 
integral part of the executive management team. I would like to take 
this opportunity to thank him for the incredible contribution he has 
made to Goldplat over the years as founder, CFO and acting CEO, and 
particularly his immense contribution to the turnaround of the 
businesses over the past couple of years. 
 
   Gerard Kisbey-Green 
 
   Chief Executive Officer 
 
   Financial Review 
 
   Profit from operating activities from continued operations for the year 
under review increased by 140% to GBP2,910,000 (FY 2016: GBP1,212,000) 
due to strong performance of both recovery operations. The Kilimapesa 
mine continued to trade at a loss as the benefit from increased 
processing capacity was only seen towards end of FY 2017, due to delays 
experienced during construction of the processing plant. 
 
   Gold equivalent ounces sold on our own account increased by 24% to 
34,112 ounces (FY 2016: 27,538 ounces), which is reflected in the 57% 

increase in revenue for the year. 
 
   The increase in revenue was driven by higher recoveries achieved from 
the CIL circuits at GPL and more contracts being settled by cash rather 
than transferring of gold. A steady flow of gold bearing raw materials 
from traditional suppliers, two large one-off contracts and increase in 
average dollar price of gold for the year to US$1,258 per ounce (FY 
2016: US$1,167 per ounce) also contributed. 
 
   The Group increased gross profit by 73% from FY 2016: GBP3,008,000 to FY 
2017: GBP5,196,000, primarily as a result of increased revenue and 
continued focus on reducing operational costs. 
 
   Administrative expenses from continued operations increased by 27% to 
GBP2,286,000 (FY 2016: GBP1,796,000), primarily as a result of increased 
activity in South America, Kenya and Ghana. 
 
   The exceptional three-year extension granted for the Nyieme Gold Project 
in Burkina Faso on 29 September 2014 expires in October 2017. As there 
is no intention to apply for a further extension or a renewal, as 
previous work at the project found it to be of too small a scale to be 
viable, the development costs of GBP955,000 have been fully written off 
and operations discontinued. The loss from discontinued operations was 
GBP1,012,000, including the write-off of development cost, which had no 
cashflow impact during the current period. 
 
   The operating currencies for the Group are South African Rand (ZAR) in 
South Africa, Ghanaian Cedi (GHS) in Ghana and Kenyan Shilling (KES) in 
Kenya. The average exchange rates used in the conversion of operating 
currencies in the Statement of Profit or Loss and Other Comprehensive 
Income strengthened against the Pound Sterling during the period under 
review. 
 
   The net finance loss from continued operations of GBP74,000 includes 
GBP85,000 interest on borrowings and finance liabilities. Due to the 
strengthening in operating currencies against the US Dollar, a foreign 
exchange loss from continued operations of GBP11,000 was incurred versus 
a foreign exchange profit of GBP804,000 in FY 2016. The improvement of 
the operating currencies against the Pound Sterling also resulted in a 
positive unrealised exchange translation gain of GBP1,025,000 (FY 2016: 
GBP489,000). 
 
   The Group's capital expenditure for the year, including development 
costs, amounted to GBP2,213,000 (FY 2016: GBP1,475,000) of which 
GBP1,409,000 was expended to complete Stage one and two of the expansion 
of processing capacity at Kilimapesa. 
 
   The expansion at Kilimapesa was primarily funded by an on-demand, 
revolving pre-export loan with Scipion Active Trading Fund to the value 
of US$2,000,000. Security on the drawn amounts has been granted over 
Goldplat Recovery (Pty) Limited's tailings facility in South Africa, 
intercompany loan agreements, contracts and proceeds of sale with gold 
refiners, and collection bank accounts operated by GMR for that purpose. 
It is intended that the loan granted in March 2017 will be repaid over 
12 months from profits generated as a result of the increased plant 
capacity at Kilimapesa. 
 
   After major capital investments at GPL over the last 2 years on a new 
elution plant, wash plant and a milling circuit, capital expenditure 
reduced to GBP372,000 (FY 2016: GBP818,000) and was focussed on 
maintaining current circuits. One of the milling circuits was 
refurbished for GBP59,000 and cyclones on one of the Rotary Kilns were 
replaced at a cost of GBP57,000. Capital was incurred on the expansion 
of the sampling section through the acquisition of blenders for carbon 
at a cost of GBP74,000. The balance of the capital was spent on 
replacement of production vehicles (GBP92,000), an old store (GBP28,000), 
upgrading of security and storage facility (GBP26,000) and modification 
on the elution columns (GBP37,000). 
 
   A complete elution plant has been bought and shipped from South Africa 
to GRG at cost of GBP67,000 and is planned to be erected and 
commissioned before December 2017 at a total projected cost of 
GBP900,000. A further GBP60,000 was spent on purchasing incinerators and 
a dryer for GRG. 
 
   A further GBP120,000 was expended on loading equipment for the new Plant 
2 and a production vehicle at Kilimapesa. Capital spent on the 
development of the mine at Kilimapesa Hill was GBP157,000 (FY 2016: 
GBP110,000). 
 
   On 30 March 2017, Ashanti exercised its initial option to earn into the 
Anumso Gold Project in Ghana under the terms of the option agreement 
between Goldplat and Ashanti. An initial 51% share of Goldplat's 
interest will be earned through expending US$1.5 million in the first 18 
months, which includes a six-month review period. At year-end Ashanti 
has not met the expenditure condition, and the sale of 51% Goldplat's 
interest in Anumso has not been recorded in the current period. 
 
   During the period Rand Refinery aligned its payment terms of its smelter 
section to those of other international smelters, increasing its payment 
days after agreement of assay to 90 days (previously 14 days). Delivery 
of dore bars to Rand Refinery are still being settled within 7 days. 
 
   To mitigate the single refiner's risk, contracts have been signed with 3 
additional refiners, two for refining of dore bars and one for 
processing of carbon and other by-products. In addition to the 
flexibility the new contracts have provided, they also increase the 
amounts of material that can be delivered for refining or processing. 
The increased capacity assisted the recovery operations to reduce its 
inventory days. 
 
   During the period GPL and GRG made use of a purchase contract and bill 
of sale agreement with Auramet, to finance part of material en-route to 
refineries. The balance of amounts received in advance at end of the 
period was GBP6,334,000 (FY 2016: GBP1,107,000) and is secured against 
the receivable balance it relates to. The proceeds from material 
pre-financed during the fourth quarter was used to settle suppliers of 
this material. 
 
   The Group reported increased net cash resources of GBP2,650,000 as at 30 
June 2017 (FY 2016: GBP2,056,000) whilst investing GBP935,000 (FY 2016: 
GBP1,645,000) of internal generated funds into capital projects. 
 
   GPL - South Africa 
 
   Revenues of GBP25,066,000 (FY 2016: GBP15,223,000) were achieved and 
cost of sales amounted to GBP21,083,000 (FY 2016: GBP12,504,000). 
 
   GPL continued to perform well and increased its operating profits to 
GBP3,312,000 (FY 2016: GBP2,111,000). 
 
   The improved revenues and operating result in South Africa was built 
primarily on the performance of the CIL circuits, and supported by the 
by-product material received from the mines and a large one-off batch 
from a client in Africa. 
 
   The South African subsidiary reported a net profit after tax of 
GBP2,420,000 (FY 2016: GBP1,777,000). The 36% increase in net profit 
after tax was partly due to an 19.6% lower average Pound Sterling used 
to convert the South African Rand results in FY 2017 versus the prior 
year. 
 
   GRG - Ghana 
 
   The Ghana Gold Recovery operation built on it strong performance of the 
previous year and reported a profit after tax of GBP1,177,000 (FY 2016: 
GBP437,000). The previous zero tax rate enjoyed as part of the Free Zone 
status ceased in December 2016 and the Company is currently subject to a 
favourable tax rate of 15%. 
 
   The increase in profitability is attributable to a steady flow of 
material from our traditional suppliers, completion of a large clean-up 
contract awarded by AGA Obuasi and material received from South America. 
GRG started to see the benefit of the investment in South America during 
the period. 
 
   Kilimapesa - Kenya 
 
   The Kilimapesa gold mine reported a net loss of GBP1,100,000 (FY 2016: 
loss of GBP711,000) for the year under review. An increase in unrealised 
foreign exchange losses of GBP177,000 on intercompany payables 
contributed to the increased loss. As in South Africa, the increased net 
loss was partly due to an 14.2% lower average Pound Sterling used to 
convert the Kenyan Shillings results in FY 2017 versus the prior year. 
 
   With the increase in capacity during the second half of the year, 
Kilimapesa managed to increase revenue to GBP3,150,000 (FY 2016: 
GBP1,560,000) and turned profitable towards the end of FY 2017. 
 
   Contingencies 
 
   We are pleased to report that the preliminary enquiry into the tax 
affairs of Kilimapesa by the Kenya Revenue Authorities have been 
substantially finalised. Of the original preliminary assessment of 
GBP1,288,540, GBP55,000 has been paid and GBP51,000 still remains under 
dispute. 
 
   Trade and other receivables for the Group include a balance of 
GBP812,000 (FY 2016: GBP556,000) of Value Added Taxation receivable from 
the Kenya Revenue Authority. Of the current balance GBP472,000 is older 
than 3 years. Despite clear provisions in the Kenyan Legislation 
regarding the recoverability of VAT, and two audits and continuous 
consultation with the Kenya Revenue Authorities the balance due remain 
outstanding. Management is of the opinion that there is no legal reason 
not to recover the balance due. 
 
   The process of investigation agreed with Rand Refinery was completed 
during the period, but no agreement could be reached between the two 
parties. GPL initiated legal proceedings against Rand Refinery on 11 
September 2017 to recover ZAR 13.5 million (approximately GBP792,000 at 
30 June 2017) plus interest due. Management remain confident that the 
balance will be collected. 
 
   Werner Klingenberg 
 
   Finance Director 
 
   Financial Statements 
 
   CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME 
 
   FOR THE YEARED 30 JUNE 2017 
 
 
 
 
                                            2017      2016 
                                           GBP'000   GBP'000 
Continuing operations 
 
Revenue                                     31,650    20,185 
Cost of sales                             (26,454)  (17,177) 
Gross profit                                 5,196     3,008 
 

Administrative expenses                    (2,286)   (1,796) 
Results from operating activities            2,910     1,212 
 
Finance income                                  22       815 
Finance costs                                 (96)      (39) 
Net finance (cost)/income                     (74)       776 
 
Results from operating activities 
 after finance income                        2,836     1,988 
 
Taxation                                     (860)     (534) 
Profit for the year from continuing 
 operations                                  1,976     1,454 
 
 
 
 
Discontinued operations 
 
Loss for the year from discontinued operations                         (1,012)       (46) 
 
Profit for the year                                                        964      1,408 
 
  Profit from continued operations attributable to: 
Owners of the Company                                                    1,348      992 
Non-controlling interests                                                  628      462 
Profit for the year                                                      1,976    1,454 
 
Profit from operations attributable to: 
Owners of the Company                                                      336      946 
Non-controlling interests                                                  628      462 
Profit for the year                                                        964    1,408 
 
Other comprehensive income 
 
  Items that may be reclassified subsequently to profit 
  or loss:                                                               1,025      489 
  Exchange translation 
Other comprehensive income for the year                                  1,025      489 
 
Total comprehensive income for the year                                  1,989    1,897 
 
 
 
 
Total comprehensive income attributable to: 
Owners of the Company                                1,361  1,435 
Non-controlling interests                              628    462 
Total comprehensive income for the year              1,989  1,897 
 
Earnings per share 
Basic earnings per share (pence)                      0.20   0.56 
Diluted earnings per share (pence)                    0.18   0.51 
 
  Earnings per share - continuing operations 
Basic earnings per share (pence)                      0.81   0.59 
Diluted earnings per share (pence)                    0.73   0.54 
 
   CONSOLIDATED STATEMENT OF FINANCIAL POSITION 
 
   AS AT 30 JUNE 2017 
 
 
 
 
                                              2017      2016 
                                             GBP'000   GBP'000 
Assets 
Property, plant and equipment                  7,181     5,404 
Intangible assets                              8,707     9,726 
Proceeds from sale of shares in 
 subsidiary                                    1,424     1,271 
Non-current cash deposits                        201       160 
Non-current assets                            17,513    16,561 
 
Inventories                                    8,962     7,747 
Trade and other receivables                   12,003     6,255 
Cash and cash equivalents                      2,650     2,148 
Current assets                                23,615    16,150 
 
Total assets                                  41,128    32,711 
 
Equity 
Share capital                                  1,675     1,675 
Share premium                                 11,441    11,441 
Exchange reserve                             (5,193)   (6,218) 
Retained earnings                             11,305    10,953 
Equity attributable to owners of the 
 Company                                      19,228    17,851 
Non-controlling interests                      2,673     2,246 
Total equity                                  21,901    20,097 
 
Liabilities 
Obligations under finance leases                 229       157 
Provisions                                       446       383 
Deferred tax liabilities                         584       510 
Non-current liabilities                        1,259     1,050 
 
Bank overdraft                                     -        92 
Obligations under finance leases                 154       129 
Interest bearing borrowings                    1,172        55 
Taxation                                         211       153 
Trade and other payables                      16,431    11,135 
Current liabilities                           17,968    11,564 
 
Total liabilities                             19,227    12,614 
 
Total equity and liabilities                  41,128    32,711 
 
 
 
 
 
   CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 
 
   AS AT 30 JUNE 2017 
 
 
 
 
Attributable to owners of the Company 
 
                                                     Share 
                                                   capital    Share premium    Exchange reserve    Retained earnings     Total    Non-controlling interests    Total equity 
                                                   GBP'000       GBP'000           GBP'000              GBP'000         GBP '000           GBP'000               GBP'000 
Balance at 1 July 2016                               1,675           11,441             (6,218)               10,953      17,851                      2,246          20,097 
Total comprehensive income for 
the year 
Profit for the year                                      -                -                   -                  336         336                        628             964 
Total other comprehensive 
 income                                                  -                -               1,025                    -       1,025                          -           1,025 
Total comprehensive income for 
 the year                                                -                -               1,025                  336       1,361                        628           1,989 
 
Transactions with owners of the Company recognised 
 directly in equity 
 
Share based payment 
 transactions                                            -                -                   -                   16          16                          -              16 
 
Changes in ownership interests 
in subsidiaries 
Non-controlling interests in 
 subsidiary dividend                                     -                -                   -                    -           -                      (201)           (201) 
 
Total transactions with owners 
 of the Company                                          -                -                   -                   16          16                      (201)           (201) 
 
Balance at 30 June 2017                              1,675           11,441             (5,193)               11,305      19,228                      2,673          21,901 
 
 
 
 
 
   CONSOLIDATED STATEMENT OF CASH FLOWS 
 
   FOR THE YEARED 30 JUNE 2017 
 
 
 
 
                                            2017      2016 
                                           GBP'000   GBP'000 
Cash flows from operating 
activities 
Result from continued operating 
 activities                                  2,910     1,218 
Result from discontinued operating 
 activities                                (1,012)      (46) 
 
Adjustments for: 
Depreciation                                   650       514 
Amortisation                                   224       192 
Write off development cost                     980         - 
Loss on sale of property, plant and 
 equipment                                       4        62 
Equity-settled share-based payment 
 transactions                                   16        72 
Foreign exchange differences                   303     (421) 
                                             4,075     1,591 
 
Changes in: 
- inventories                              (1,215)      (20) 
- trade and other receivables              (5,748)   (2,950) 
- trade and other payables                   5,296     3,579 
- provisions                                     -       244 
Cash generated from operating 
 activities                                  2,408     2,444 
 
Finance income                                  22       809 
Finance cost                                  (96)      (39) 
Taxes paid                                   (805)     (342) 
Net cash from operating activities           1,529     2,872 
 
Cash flows from investing 
activities 
Proceeds from sale of property, 
 plant and equipment                           105        94 
Enhancement of exploration and 
 development asset                           (157)     (110) 
Acquisition of property, plant and 
 equipment                                 (1,756)   (1,284) 
Non-current cash deposit                      (41)        73 
Net cash used in investing 
 activities                                (1,849)   (1,227) 
 
Cash flows from financing 
activities 
Proceeds from payment of interest 
 bearing borrowings                          1,538         - 
Payment of interest bearing 
 borrowings                                  (421)     (105) 
Payment of finance lease liabilities         (203)     (114) 
Net cash flows from financing 
 activities                                    914     (219) 
 
Net increase in cash and cash 
 equivalents                                   594     1,426 
 
Cash and cash equivalents at 1 July          2,056       630 
 
Cash and cash equivalents at 30 June         2,650     2,056 
 
   NOTES TO THE RESULTS ANNOUNCEMENT 
 
 
 
 
   1. Basis of preparation 
 
 
   The consolidated financial statements have been prepared in accordance 
with International Financial Reporting Standards ("IFRSs") as issued by 
the International Accounting Standards Board ("IASB") and as adopted by 
the European Union, and the Companies Act 2006 as applicable to entities 
reporting in accordance with IFRS. The consolidated financial statements 
have been prepared on the historical cost basis. 
 
   The financial information contained in this announcement does not 
constitute the Company's statutory accounts for the year ended 30 June 

2017. The statutory accounts for the year ended 30 June 2017 have yet to 
be reported on by the independent auditors. The independent auditor's 
report for the year ended 30 June 2016 was unqualified, did not draw 
attention to any matters by way of emphasis and did not contain a 
statement under 498(2) or 498(3) of the Companies Act 2006. The 
statutory accounts for the year ended 30 June 2016 have been filed with 
the Registrar of Companies and the statutory accounts for the year ended 
30 June 2017 will be filed with the Registrar of Companies following the 
Company's Annual General Meeting. 
 
   Use of estimates and judgements 
 
   The preparation of the consolidated financial statements in conformity 
with IFRS requires management to make judgements, estimates and 
assumptions that affect the application of accounting policies and the 
reported amounts of assets, liabilities, income and expenses.  The 
estimates and associated assumptions are based on historical experience 
and various other factors that are believed to be reasonable under the 
circumstances, the results of which form the basis of making judgements 
about carrying values of assets and liabilities that are not readily 
apparent from other sources.  Actual results may differ from these 
estimates. 
 
   Estimates and underlying assumptions are reviewed on an ongoing basis. 
Revisions to accounting estimates are recognised in the period in which 
the estimates are revised if the revision affects only that period, or 
in the period of revision and future periods of the revision if it 
affects both current and future periods. 
 
   Critical estimates and assumptions that have the most significant effect 
on the amounts recognised in the consolidated financial statements 
and/or have a significant risk of resulting in a material adjustment 
within the next financial year are as follows: 
 
 
   -- Carrying value of goodwill 
 
   -- Capitalisation of pre-production expenditure 
 
   -- Valuation of Inventory 
 
   Accounting entries are made in accordance with the Company's accounting 
policies. 
 
 
 
 
 
 
   1. Earnings per share 
 
 
 
   Basic earnings per share 
 
   The calculation of basic earnings per share at 30 June 2017 was based on 
the profit attributable to owners of the Company of GBP336,000 (2016: 
profit GBP946,000), and a weighted average number of ordinary shares 
outstanding of 167,441,000 (2016: 168,364,288), calculated as follows: 
 
 
 
   Profit attributable to ordinary shareholders 
 
 
 
 
                      2017             2017         2017                        2016                            2016         2016 
                Continuing     Discontinued        Total       Continuing operations        Discontinuing operations        Total 
                Operations       Operations     GBP '000                    GBP '000                         GBP'000      GBP'000 
                   GBP'000          GBP'000 
Profit/(loss) 
attributable         1,348          (1,012)          336                       992                            (46)              946 
to owners of 
the Company 
 
 
 
   Weighted average number of ordinary shares 
 
 
 
 
                                                 2017                              2016 
Issued ordinary shares at 1 July              167,441,000                   168,441,000 
Effect of treasury shares cancelled                     -                      (76,712) 
 Weighted average number of ordinary shares   167,441,000 
  at 30 June                                                                168,364,288 
 
 
 
   Diluted earnings per share 
 
   The calculation of diluted earnings per share at 30 June 2017 was based 
on the profit attributable to ordinary shareholders of GBP336,000 (2016: 
profit GBP946,000), and a weighted average number of ordinary shares 
outstanding after adjustment for the effect of all dilutive potential 
ordinary shares of 184,720,125 (2016: 185,010,536), calculated as 
follows: 
 
 
 
   Profit attributable to ordinary shareholders (diluted) 
 
 
 
 
                          2017             2017         2017                      2016                         2016        2016 
                    Continuing     Discontinued        Total     Continuing operations     Discontinuing operations       Total 
                    Operations       Operations     GBP '000                  GBP '000                      GBP'000     GBP'000 
                       GBP'000          GBP'000 
Profit/(loss) 
attributable to          1,348          (1,012)          336                       992                         (46)         946 
owners of the 
Company 
 
 
   Weighted average number of ordinary shares (diluted) 
 
 
 
 
                                                                  2017             2016 
Weighted average number of ordinary shares (basic)         167,441,000      168,364,288 
Effect of share options on issue                            17,279,125       16,646,248 
Weighted average number of ordinary shares (diluted) 
 at 30 June                                                184,720,125      185,010,536 
 
 
 
 
 
   1. Directors' emoluments 
 
 
 
   2017 
 
 
 
 
 
                             Executive              Non-executive         Total GBP'000 
                              GBP'000                  GBP'000 
Wages and 
 salaries                          444                          -                         444 
Fees                                 -                         63                          63 
Share based 
 payments                           16                          -                          16 
                                   460                         63                           523 
 
 
 
   2016 
 
 
 
 
                                            Non- 
                           Executive      executive          Total 
                            GBP'000        GBP'000          GBP'000 
Wages and salaries               397               -              397 
Fees                               -              65               65 
Share based payments              72               -               72 
Other benefits                     5               -                5 
                                 474              65                539 
 
 
 
   Emoluments disclosed above include the following amounts paid to the 
highest director: 
 
 
 
 
 
 
                                                2017                  2016 
                                             GBP'000               GBP'000 
Emoluments for qualifying 
 services                                        186                   227 
 
   Key management 
 
   Apart from the Directors, the emoluments paid to key management 
personnel amounted to GBP816,000 (2016: GBP576,000). 
 
 
 
 
   1. Related parties 
 
 
 
   Other than the waiver of intercompany interest, transactions with 
related parties take place on terms no more favourable than transactions 
with unrelated parties. 
 
 
 
   Other related party transactions 
 
 
 
   Transactions with Group companies 
 
 
 
   The Group's subsidiary Gold Mineral Resources Limited had the following 
related party transactions and balances: 
 
 
 
 
 
 
 
 
                                                  2017      2016 
                                                 GBP'000   GBP'000 
Goldplat plc 
- Loans and borrowings                           (4,500)   (4,614) 
- Goods, equipment and services received           (154)     (144) 
 
 
 
 
 
 
 
Kilimapesa Gold (Pty) Limited 
- Loans and borrowings           4,743  3,327 
 
 
 
 
 
 
 
Nyieme Gold SARL 
- Loans and borrowings    1,255  1,198 
 
 
 
 
 
 
 
Anumso Gold Limited 
- Loans and borrowings    81  79 
 
 
 
 
 
 
 
Midas Gold SARL 
- Loans and borrowings    441  417 
 
 
 
   Goldplat Recovery (Pty) Limited 
 
 
 
 
- Loans and borrowings                      (217)  (44) 
- Goods, equipment and services supplied      173     9 
 
 
 
 
Gold Recovery Ghana Limited 
- Loans and borrowings           75  - 
 
 
 
   The Group's subsidiary Goldplat Recovery (Pty) Limited had the following 
related party transactions and balances: 
 
 
 
 
                                                  2017      2016 
                                                 GBP'000   GBP'000 
Kilimapesa Gold (Pty) Limited 
- Trade and other receivables                        863       658 
- Goods, equipment and services supplied             881       532 
 
Gold Recovery Ghana Limited 
- Trade and other receivables                        699       575 
- Goods, equipment and services supplied             557       346 
- Purchase of precious metals                    (5,648)   (4,459) 
- Trade and other payables                           (1)     (295) 
 
Anumso Gold Limited 
- Trade and other receivables                          8         8 
- Goods, equipment and services supplied               -         3 
 
 
   The carrying value of these assets approximates to their fair value and 
require no impairment. 
 
   The Group's subsidiary, Gold Recovery Ghana Limited had the following 
related party transactions and balances in addition to those already 
noted: 
 
 
 
 
                                                  2017      2016 
                                                 GBP'000   GBP'000 
Nyieme Gold SARL 
- Trade and other receivables                         46        35 
- Goods, equipment and services supplied              11        17 
 
Kilimapesa Gold (Pty) Limited 
- Trade and other receivables                        275         - 
- Sale of asset                                        -       225 
 
Anumso Gold Limited 
- Trade and other receivables                         31        15 
- Goods, equipment and services supplied              30        11 
 
 
   The Group's subsidiary Midas Gold had the following related party 
transactions and balances in addition to those already noted: 
 
 
 
 
                                                  2017      2016 
                                                 GBP'000   GBP'000 

Nyieme Gold SARL 
- Trade and other receivables                          1         - 
- Trade and other payables                             3         - 
- Goods, equipment and services supplied               2         - 
 
   Other transactions 
 
   The Group's subsidiary Gold Mineral Resources had the following related 
party transactions and balances in addition to those already noted: 
 
 
 
 
 
 
                                       2017           2016 
                                    GBP'000        GBP'000 
Directors - Trade and other 
payables                              (139)           (69) 
 
 
   1. Capital and reserves 
 
 
   Share capital and share premium 
 
 
 
 
                                    Number of ordinary shares 
                                       2017           2016 
On issue at 1 July                   167,441,000    168,441,000 
Cancellation of treasury shares                -    (1,000,000) 
On issue at 30 June - fully paid     167,441,000    167,441,000 
Authorised - par value GBP0.01     1,000,000,000  1,000,000,000 
 
                                      Ordinary share capital 
                                            2017           2016 
                                         GBP'000        GBP'000 
Balance at 1 July                          1,675          1,685 
Shares cancelled in year                       -           (10) 
Balance at 30 June                         1,675          1,675 
 
   Ordinary shares 
 
   All shares rank equally with regard to the Company's residual assets. 
 
   The holders of ordinary shares are entitled to receive dividends as 
declared from time to time, and are entitled to one vote per share at 
meetings of the Company. 
 
   Share Premium 
 
   Represents excess paid above nominal value on historical shares issued. 
 
   Exchange reserve 
 
   The exchange reserve comprises all foreign currency differences arising 
from the translation of the financial statements of foreign operations. 
 
   **ENDS** 
 
   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 
 
 
 
 

(END) Dow Jones Newswires

September 18, 2017 02:00 ET (06:00 GMT)

Copyright (c) 2017 Dow Jones & Company, Inc.