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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Goldplat Plc | LSE:GDP | London | Ordinary Share | GB00B0HCWM45 | ORD 1P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| -0.15 | -1.94% | 7.60 | 7.80 | 8.50 | 8.15 | 7.75 | 7.75 | 370,496 | 16:35:25 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Gold Ores | 41.88M | 2.8M | 0.0167 | 4.88 | 13.67M |
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TIDMGDP
Goldplat plc / Ticker: GDP / Index: AIM / Sector: Mining & Exploration
26 September 2018
Goldplat plc
('Goldplat', the 'Group' or 'the Company')
Preliminary Results
Goldplat plc, the AIM listed gold producer, with international gold
recovery operations located in South Africa and Ghana and a gold mine in
Kenya is pleased to announce its preliminary results for the year ended
30 June 2018 ('FY 2018').
Operations / Corporate
-- 35,431 gold equivalent ounces, representing a 17% decrease over the
previous year, were produced during FY 2018 (FY 2017: 42,857 ounces),
albeit at higher margins
-- When compared to FY 2017, production at both Goldplat Recovery (Pty) Ltd
('GPL') and Gold Recovery Ghana ('GRG') were lower whereas production at
Kilimapesa Gold (Pty) Limited ('Kilimapesa') increased by more than 50%
-- 39,400 gold equivalent ounces were sold and transferred during FY 2018
(FY 2017: 40,285 ounces). The amount of gold sold and transferred during
FY 2018 was higher than production for the period primarily due to sales
of stock being carried over from the previous year
Goldplat Recovery (Pty) Ltd ('GPL') -- South Africa
-- Produced 23,567 ounces of gold and gold equivalent during FY 2018 (FY
2017: 29,418) of which 21,059 ounces were produced for its own account
(FY 2017: 22,570) and 5,219 ounces were transferred to clients (FY 2017:
6,173)
-- Resolved dispute with Rand Refinery, with an undisclosed amount being
paid to GPL
-- Purchased a large strategic stockpile of raw material (containing circa
16,000 ounces of gold) to secure future production through the CIL
circuits
-- Continue to identify best way in which to monetise tailings storage
facility, which contains 81,959oz Au -- good progress made to find
additional processing options whilst discussions regarding the use of
West Pit 3 remain ongoing
Gold Recovery Ghana Limited ('GRG') - Ghana
-- Produced 6,752 ounces of gold during FY 2018 (FY 2017: 10,031) and 8,010
ounces were sold (FY 2017: 8,327). The decrease in production is
primarily a result of a large, one-off contract being processed during FY
2017, with the sales figure for FY 2018 reflecting sales of gold produced
from this contract
-- Identified an opportunity to promote the environmental value of GRG's
recovery services and entered into discussions with the Government of
Ghana regarding a potential project to address environmental issues
in-country by recovering and treating artisanal tailings
-- Refurbished and commissioned a 3-tonne elution plant (acquired in South
Africa in FY 2017) creating greater value uplift as beneficiation of most
material to Dore bars can now be completed in-country
Kilimapesa Gold (Pty) Limited ('Kilimapesa') - Kenya
-- Increased production by 50% to 5,112 ounces of gold during the year (FY
2017: 3,408 ounces), all of which were sold during the period (FY 2017:
3,215 ounces)
-- Stage 2 expansion at Plant 2 was completed early in the financial year
and the Stage 2 mill throughput target of 120 tonnes per day has been
exceeded with feed rates of 180 tonnes per day being regularly achieved
-- In May 2018, in line with previously announced plans, processing at Plant
1 was stopped, reducing overall production costs and allowing gold
recovery to be optimised
-- The Board of Goldplat approved a process to seek an investment partner
for Kilimapesa to enable existing shareholders to realise value from the
operation without having to invest additional capital -- discussions have
begun with a number of interested parties and operational focus remains
on achieving profitable production
Financials
-- 6.8% increase in revenue to GBP33,796,000 (FY 2017: GBP31,650,000)
-- Profit from operating activities, including a bad debt write-off of
GBP320,000 decreased by 13.8% GBP2,509,000 (FY 2017: GBP2,910,000)
-- Strong performance continues to be reported at the GPL with a 10.7%
increase in profit from operating activities to GBP3,667,000 (FY 2017:
GBP3,312,000)
-- GRG reported a 51% decrease in profit from operating activities to
GBP646,000 (FY 2017: GBP1,325,000)
-- Kilimapesa reported a net loss of GBP892,000 for the year (FY 2017: loss
of GBP1,100,000)
-- Net profit for the year decreased by 48% to GBP506,000 (FY 2017:
GBP964,000) for the Group
-- Net cash position for the Group of GBP1,539,000 as at 30 June 2018
(GBP2,650,000 as at 30 June 2017)
For further information visit www.goldplat.com, follow on Twitter
@GoldPlatPlc or contact:
Gerard Kisbey-Green Goldplat plc Tel: +27 (71) 8915775
(CEO)
Colin Aaronson / Jen Clarke Grant Thornton UK LLP Tel: +44 (0) 20 7383 5100
(Nominated Adviser)
James Joyce / Jessica Cave WH Ireland Limited Tel: +44 (0) 207 220 1666
(Broker)
Charlotte Page / Susie St Brides Partners Ltd Tel: +44 (0) 20 7236 1177
Geliher (Financial PR)
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations (EU) No. 596/2014. Upon the publication of this announcement,
this inside information is now considered to be in the public domain.
Chairman's Statement
Goldplat is a unique gold producer, combining gold recovery with primary
mining across the Group's three principal operations - precious metal
recovery facilities in South Africa and Ghana, and gold mining in Kenya.
This diverse production approach provides us with multiple growth
opportunities, which we have self-funded as we look to build production
and revenues for the benefit of all stakeholders.
For the year to 30 June 2018 Group results from operating activities
achieved a profit of GBP2,509,000 (FY 2017: GBP2,910,000). Whilst this
is lower than the previous year, I believe this is a positive result
which underpins the robustness of our business model as whilst our South
African operation, Goldplat Recovery (Pty) Ltd ('GPL') performed
strongly during the period with significantly increased operating
profits, the Ghanaian and Kenyan operations faced challenges, which
impacted bottom line numbers. In Ghana, at Gold Recovery Ghana Limited
('GRG'), the issue was a period of shortage of suitable material for
processing, meaning that we operated at under-capacity. I am pleased to
confirm that we have a number of new contracts in the pipeline, which we
expect to positively impact production and accordingly profitability
moving forward. In Kenya, at Kilimapesa Gold (Pty) Limited
('Kilimapesa'), unseasonably high rainfall, disruptions from elections
and production hold-ups presented issues as we seek to transition to
steady-state mining and processing. We have identified a number of
operational improvements that already have and can be made to lower
costs and improve efficiencies to achieve profitability in the short
term, and we are actively seeking an investment partner to help us
realise the full value potential of the mine moving forward.
Profit for the year from continuing operations was GBP506,000 (FY 2017:
GBP1,976,000), reflecting higher charges for finance costs of GBP722,000
(FY 2017: GBP74,000) and for taxation of GBP1,281,000 (FY 2017:
GBP860,000). As a result, I believe that the year's financial
performance masks progress. We have made good progress in developing
worldwide opportunities for sourcing material for processing in our
precious metal recovery facilities and we continue to enhance our
processing facilities in order to profit from those opportunities. We
have also run a lean operation when it comes to administrative expenses,
after adjusting for a one-off bad debt provision for the year. As a
result, I believe our foundations for growth remain strong.
In support of this growth, as a Group we continue to engage positively
with the governmental, regulatory and community structures in countries
where we operate. In Ghana, we have been supportive of the government's
initiative to address the environmental aspects of artisanal mining,
providing equipment and sitting on the steering committee. Furthermore,
in South Africa we continue to contribute our views on the proposed
changes relating to the ownership and operation of entities in the
mining sector. Our operations in South Africa, Ghana and Kenya continue
to provide employment, skills upgrading for employees and local
purchasing, all of them operating to high standards of environmental and
health and safety protocols.
At a corporate level, during the year and in response to a change in the
rules of the AIM market, the Board adopted the QCA Corporate Governance
Code (2018). Since Goldplat's admission to AIM in 2006, the Board has
practiced standards of corporate governance generally recognised as
appropriate for an AIM company of Goldplat's size and resources. The
adoption of the Code in 2018 represents a significant step in the
evolution of the Group's corporate governance as we continue to examine
its management and how we communicate that corporate governance to
shareholders and other stakeholders in line with our commitment to
maintaining transparency and operating honestly and fairly in all that
we do. This report covers a period prior to the adoption of the Code.
As part of this transparency, we also remain committed to maintaining
our programme of seeking active engagement with our shareholders, as
demonstrated by the executive team hosting a well-attended Q&A
conference call in March 2018. We look forward to organising similar
events in the coming year and of course will continue to keep
shareholders updated on developments across our portfolio.
Finally, whilst this year has had its frustrations and successes,
constant through the year has been the effort and enthusiasm of
management, staff and advisors in South Africa, Ghana and Kenya, for
which I'd like to give thanks. With a skilled workforce, strong
portfolio of assets and a clear development pipeline through which we
can grow our business, I am optimistic about our prospects in FY 2019.
Matthew Robinson
Chairman
26 September 2018
Operations Report
Introduction
FY 2018 was identified as the year where production and profitability
would increase following a number of strategic initiatives undertaken at
the different subsidiaries, however it became clear towards the end of
the year that FY 2018 would serve more as a building block for a solid
foundation in FY 2019. At Goldplat Recovery (Pty) Ltd ('GPL') in South
Africa, the Rand Refinery dispute was resolved, a strategic stockpile of
material for processing through the carbon in leach ('CIL') circuits was
sourced, and new sources of material were identified and secured both
within South Africa as well as elsewhere on the continent. At Gold
Recovery Ghana Limited ('GRG') an elution plant was installed and
commissioned, good progress was made in identifying and securing sources
of by-product material from West Africa and South America, an initiative
to re-process artisanal tailings in partnership with the Ghanaian
Government was begun and the GRG site was cleaned up with the old
tailings facility being completely removed during the year. At
Kilimapesa Gold (Pty) Limited ('Kilimapesa') Stage 2 of the planned
Plant 2 expansion was completed but for various reasons sustainable
profitability was not achieved. The Board of Goldplat has approved a
process to seek an investment partner for Kilimapesa therefore enabling
existing shareholders to realise value from the operation without having
to invest further capital. Discussions have begun with a number of
interested parties and whilst these are in progress the focus remains on
getting Kilimapesa to produce profitably in the short term.
FY 2018 was a year during which a lot was achieved which did not
translate into increased production or profitability, but Goldplat is
confident that this will materialise during FY 2019.
Areas of Strategic Focus
The following strategic areas of priority were identified during the
year:
-- Concluding a number of long-standing projects at GPL, including the stock
dam re-processing, optimisation of recoveries from the strategic
stockpile and making Platinum Group Metal by-products a regular and
profitable source of material.
-- Achieving profitability on a sustainable basis at Kilimapesa. As this
requires further capital, Goldplat is seeking a partner to provide the
required funding to enable profitability, complete further expansion and
to continue the exploration work programme.
-- Sourcing sufficient appropriate quality carbon material to support the
carbon processing business at GRG, which remains key to the operation.
Within Ghana, material supply is unpredictable and hence procurement in
South America, West Africa and elsewhere in Africa is of utmost strategic
importance.
-- Goldplat believes 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 two-year period. While 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 2018, with comparisons to FY 2017. During FY
2018, 35,431 gold equivalent ounces, representing a 17% decrease over
the previous year, were produced (FY 2017: 42,857 ounces), albeit at
higher margins. Production at both GPL and GRG were lower whereas
production at Kilimapesa increased by roughly 50% when compared to FY
2017. In order to achieve the levels of production of FY 2017 at the
recovery operations it is essential that large contracts are secured
from outside of the countries of operation. This was not achieved at
either GRG or GPL during the year. 39,400 gold equivalent ounces were
sold and transferred during FY 2018 (FY 2017: 40,285 ounces). The level
of gold sold and transferred during FY 2018 was higher than production
for the period primarily to due to the sale of stock carried over from
the previous year.
Goldplat Plc
Consolidated Year ending Year ending Year ending Year ending
Jun-18 Jun-18 Jun-17 Jun-17
Equivalent Equivalent Equivalent Equivalent
Gold Gold Gold Gold
kg oz kg oz
Gold
Equivalent
Production
Goldplat
Recovery 733 23,567 915 29,418
Gold Recovery
Ghana 210 6,752 312 10,031
Kilimapesa
Gold 159 5,112 106 3,408
Total 1,102 35,431 1,333 42,857
Gold
Equivalent
Sold
Goldplat
Recovery 655 21,059 702 22,570
Gold Recovery
Ghana 249 8,010 259 8 327
Kilimapesa
Gold 159 5,112 100 3,215
Total 1,063 34,181 1,061 34,112
Gold
Equivalent
Transferred
Goldplat
Recovery 162 5,219 192 6,173
Total 162 5,219 192 6,173
Gold
Equivalent
Sold and
Transferred
Goldplat
Recovery 817 26,278 894 28,743
Gold Recovery
Ghana 249 8,010 259 8,327
Kilimapesa
Gold 159 5,112 100 3,215
Total 1,225 39,400 1,253 40,285
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 operations, 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 various gold producers in South Africa and
Ghana as well as numerous producers from elsewhere in the world,
including a growing 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,
carbon-in-leach ('CIL'), elution, incineration, flotation, spiraling and
shotblasting.
During FY 2018 GPL produced 23,567 ounces of gold and gold equivalent
(FY 2017: 29,418) of which 21,059 ounces were produced for its own
account (FY 2017: 22,570) and 5,219 ounces were transferred to clients
(FY 2017: 6,173). Goldplat believes that its "base" production level
from traditional South African sources is around 22,000 ounces of gold
and gold equivalents, and, as such, it is essential to secure large
contracts from outside of South Africa in order to enable production
closer to FY 2017 levels of around 29,000 ounces. No such large contract
was concluded during FY 2018.
During the period, terms of a settlement of the dispute between GPL and
Rand Refinery were agreed and a Memorandum of Understanding (the
'Memorandum') was signed by the two parties early in January 2018 (see
announcement of 12 January 2018). The Memorandum contained the terms
agreed to for inclusion in a Settlement Agreement, including agreement
on an undisclosed amount to be paid by Rand Refinery to GPL in full and
final settlement of the dispute. The Settlement Agreement was signed by
the two parties on 22 February 2018 (see announcement of 22 February
2018). The finalisation of this dispute represented a significant
achievement, freeing up valuable management time to focus on the core
operations of our business.
A large strategic stockpile of raw material (containing circa 16,000
ounces of gold) was purchased during the period to secure production
through the CIL circuits. Metallurgical test work to optimise recoveries
from this stockpile is ongoing and is expected to be concluded early in
FY 2019. Whereas this stockpile is marginal by nature, opportunistic
processing at times of high gold prices and when other sources of
material are insufficient to run the plant to capacity will be
undertaken.
Focus continues on optimising the recovery of gold from the Tailings
Storage Facility ('TSF'), which has a JORC reported resource of 81,959
ounces of gold earmarked for future reprocessing. Progress in securing
the West 3 Pit for final tailings deposition (which will allow
re-processing of the stock dam to begin) is subject to the consent of
the Department of Mineral Resources and the current owners of the pit
working on legal requirements for reclassification of the status of the
pit. Whilst this process is outside of GPL's control, Goldplat continues
to engage with both parties. Refurbishment and configuration of an
existing flotation circuit at GPL was completed to facilitate test work
for the TSF material. These tests were successfully completed during the
period. During the year an alternative option for reprocessing and final
deposition of the TSF, where the rate of processing can be significantly
increased, was also explored with encouraging results. This alternative
option will be further investigated in parallel with the existing plan
of reprocessing the TSF onsite and final deposition into West Pit 3.
Sourcing of material remained an area of strategic focus at GPL during
FY 2018. 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 the availability of
by-product material for GPL. Focus remained on securing contracts with
new operators both within South Africa as well as elsewhere in Africa,
and in seeking new by-products from existing clients. Good progress was
made towards the end of the year regarding sourcing of materials
containing Platinum Group Metals and this is expected to become a more
regular source of material during FY 2019.
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
spiralling section, filter presses, incinerators 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, including fine carbon, fine carbon sludges, steel and
rubber mill liners, wood chips, slag, scaling and grease. Due to a
gradual decrease in the availability of material in Ghana, increasing
amounts are sourced from outside of Ghana, including East Africa, West
Africa and South America.
During FY 2018 GRG produced 6,752 ounces of gold (FY 2017: 10,031) and
8,010 ounces were sold during the period (FY 2017: 8,327). The decrease
in production compared to the previous year is primarily a result of a
one-off large contract processed during FY 2017, whilst the sales figure
for FY 2018 includes sales of gold produced from this contract.
Notwithstanding the lack of a single one-off large contract during the
year, sourcing of sufficient good-quality material for Ghana was
difficult throughout the year and the plant was under-utilised most of
the time. Relentless efforts by management to conclude new contracts
have progressed well, but unfortunately none of these resulted in
production during the year. We are however optimistic that these should
positively impact production for FY 2019.
During the year, a 3-tonne elution plant (acquired in South Africa in FY
2017) was refurbished at GPL, shipped to Ghana, assembled and
commissioned on site at GRG. This plant is operating efficiently and has
enabled further in-country value add. Installation of eluting capacity
was also a stipulation by the Ghanaian Government in terms of GRG's
license renewal and it was commissioned 6 months ahead of the required
deadline.
The process of removing the tailings deposit from the GRG site that
began during FY 2017 was completed during FY 2018. This removed an
environmental liability and freed up space for potential plant and other
infrastructure expansion. During the year, security on-site was improved
and a general clean-up of large stockpiles of low-grade material was
completed, ensuring space and a secure environment for the planned
increase in production at GRG in the future.
A third fluidised bed incinerator, which was purchased second-hand from
an operator in Tanzania, was shipped to GRG for later installation and
commissioning. This unit is intended mainly for the treatment of lower
grade materials being sourced from South America and is designed to
increase incinerator throughput by circa 33%.
Aligned with efforts to increase market reach, an opportunity was
identified to benefit from the environmental value of our recovery
services and discussions were held with the Government of Ghana
regarding a potential project to clean-up artisanal tailings in-country.
In support of this, a pilot plant was delivered to Ghana to test the
reprocessing of the artisanal material. The Government has delayed the
project pending formalisation of a coordinated programme of artisanal
tailings clean-up and the simultaneous rehabilitation of land in the
test area. A steering committee has been appointed to manage these
efforts and a GRG Board member is part of this committee. Whereas the
economic benefit of this initiative is still not known, it is not likely
to be a significant source of profitability but rather a social
responsibility and environmental awareness initiative, leading to other
opportunities. We look forward to continuing work with the Government to
finalise plans for this potential partnership. Whilst these discussions
progress, we have taken advantage of having the pilot plant on site by
using it on a trial basis to process tailings from the spiral plants at
GRG.
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. The Company has been sourcing and shipping material on a
regular basis from various individual suppliers in South America, with a
number of producers now supplying regular batches of material.
Negotiations regarding a large plant clean-up for a South American
producer progressed to an advanced stage during the year with conclusion
expected early in Q1 of FY 2019. Discussions with North American
producers are also ongoing with the expectation of signing contracts
during FY 2019. Finally, during the year significant progress was made
in sourcing material from West African producers and numerous trial
batches were processed at GRG. A number of large contracts are near
completion and are expected to be concluded in FY 2019. Alongside this,
contracts with one of the large Ghanaian producers were successfully
renegotiated towards the end of the financial year and large batches of
material are expected to be delivered early in FY 2019. Positive
announcements about the Obuasi Gold Mine, which is located in the
Ashanti Region of Ghana, regarding re-opening and expansion, also augur
well for supply of material from within Ghana going forward.
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 of 8,715,291 tonnes at 2.40 g/t
of gold for a total of 671,446 ounces of gold at 1 g/t.
Kilimapesa increased production by 50% to 5,112 ounces of gold during
the year (FY 2017: 3,408 ounces), all of which were sold during the
period (FY 2017: 3,215 ounces). This production was lower than the
initial forecast for the year of 5,800 ounces of gold but exceeded the
revised guidance of 5,000 ounces given in the announcement to cease
operations at the existing processing plant, 'Plant 1' in May 2018.
Stage 2 expansion at the new 'Plant 2' was completed early in the
financial year and whereas mill throughput for Stage 2 expansion at
Plant 2 was initially planned at 120 tonnes per day, a rate of 180
tonnes per day has been regularly achieved. This tonnage throughput is
being derived from a combination of ore from the Kilimapesa Hill
underground mine and purchased artisanal tailings which were previously
processed at Plant 1.
Having achieved operational profitability in the last two months of the
previous financial year, FY 2018 was beset with issues which led to
higher than expected costs, lower than expected grades, and operational
losses throughout the year. The main issues impacting on production and
profitability were unseasonal high rainfall; disruption caused by a
protracted presidential election process; difficulties procuring good
quality artisanal tailings; and consistent delays in releasing spares
and equipment through customs.
Looking first at mining activity, production from Kilimapesa Hill mine
increased steadily throughout the year, with three veins being mined
from both Adit Bull and Adit D. Despite the use of a mechanical loader,
development rates have not been sufficient to open adequate blocks of
ground for selective mining, and for better grade management, which
resulted in grades from the underground operations continuing to be
below plan throughout the year. Limited selective mining from higher
grade blocks is necessary as the average grade of the resource is not
currently economically viable and accordingly towards the end of the
year two additional second-hand loaders were acquired and these began
operating early in FY 2019 to help deliver on this strategy.
In support of selective mining we are also undertaking strategic
underground exploration work to enable better planning and mining going
forward. A qualified and experienced Kenyan driller familiar with the
local geology was employed to manage this programme. A Kempe exploration
drill has been commissioned and an underground drilling programme is in
process. A Kenyan geologist was also employed during the year to allow
outstanding underground sampling and mapping to be undertaken.
Information from these exploration and sampling programmes are being fed
into a 3-D mining model to assist in mine planning.
Exploration operations were stopped at the Teng Teng decline as
sufficient work has been done to enable a resource to be calculated and
a mining licence applied for if found to be viable. Dewatering remains
ongoing with the water being used by the community and to provide a
back-up supply for the processing plants during the dry season.
At the processing level, in May 2018, in line with previously announced
plans, processing at the incumbent Plant 1 was stopped with a view to
reducing overall production costs and optimising gold recovery. Whilst
this resulted in lower gold production than initially forecast, I am
pleased to report that the planned decrease in costs was achieved in the
last months of the financial year despite not retrenching any of the
employees, who were all deployed to the new Plant 2 and other areas of
the operations.
Stage 3 expansion at Plant 2, which will include installation of an
additional mill (sourced and on site), an additional thickener and three
additional carbon in leach ('CIL') tanks, is on hold until consistent
operational profitability is achieved. Construction of the new tailings
facility was delayed in order to preserve cash, and a series of borrow
pits were constructed within the final facility footprint. Completion of
the main facility is planned for early in FY 2019 as the borrow pits are
nearing capacity.
A decision was taken in FY 2017 to install grid power to Plant 2 and the
Kilimapesa Hill mine. This was initially planned for completion during
FY 2018 but, due to financial constraints and delays in obtaining
authorisations and quotes, this is now planned for FY 2019.
In October 2017 management were advised of an application for an
exploration licence over an area in the Kilimapesa exploration licence.
An objection was lodged and numerous meetings have been held with
officials from the Ministry of Mining and the Licensing Authority,
including the Cabinet Secretary (Minister of Mines). Despite meeting
with the Cabinet Secretary, it is unclear as to the exact status of this
application and the Company is taking legal advice on the best way to
proceed. The area under dispute contains roughly 140,000 ounces of gold
in resource, or approximately 20% of the total resource for Kilimapesa.
However, the resource on Kilimapesa Hill, where current mining
activities are taking place, remains unaffected at approximately 532,000
ounces. No exploration will be undertaken until this issue has been
resolved and confirmation has been received that no part of the initial
exploration licence has been taken away without compensation.
Finally, looking at the Group's wider development strategy for
Kilimapesa, the Board of Goldplat has approved a process to seek an
investment partner for the mine to enable existing shareholders to
realise value from the operation without having to invest additional
capital. Discussions have begun with a number of interested parties and
whilst these discussions progress the focus remains on getting
Kilimapesa to produce profitably in the short term.
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 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 USD3.0 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 USD1.5
million over 18 months. Ashanti is obliged to either expend USD1.5
million on the project within the initial option period or pay the
deficiency to Goldplat. On 12 January 2018 it was announced that the
initial option period had been extended to 31 October 2018.
Should Ashanti meet the expenditure condition within the initial option
period and receive 51% of Goldplat's interest in 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 USD1.5 million in the following 12-month
period, or by paying the deficiency to Goldplat.
By the end of FY 2018, Ashanti had spent an aggregate of USD1.4 million
on exploration work at the project. The results from this work were
announced by Ashanti during FY 2018, with metallurgical test work
results for work done in FY 2017 demonstrating encouraging recoveries.
An extensive soil sampling programme across Anumso to test the strike
extent of the Banka conglomerate was also completed and Adit sampling
was undertaken to investigate mineralisation beneath the known surface
anomalies. Ashanti's planned work for the next period includes the
completion of assaying of soil and Adit samples as well as beginning a
trenching programme ahead of the next drilling campaign. The next
drilling campaign is planned for Q2 of FY 2019 to test the soil sample
anomaly to the north of the existing JORC resource.
Outlook
Goldplat believes that many of the initiatives completed during FY 2018
and those currently in progress will result in increased production and
profitability in FY 2019. Growth in the recovery business in FY 2019 is
expected to come from GRG, primarily as a result of ongoing initiatives
to source material from West Africa and South America. A number of large
contracts which are at advanced stages of negotiation are expected to be
concluded early in FY 2019. Although the project being assessed with
the Ghanaian Government to clean-up artisanal tailings is currently on
hold, if the project is approved during the year and test work is
commenced, the economies and potential benefits to GRG will be
considered.
At GPL, we expect production and profitability to remain at current
levels, albeit the focus has shifted to the more profitable CIL
production locally and sourcing of additional by-products from outside
of South Africa. If discussions with a third-party producer to process
the TSF off-site progress well, this project could begin during the FY
2019. Production of Platinum Group Metal concentrates is also expected
to increase significantly during this new financial year.
At Kilimapesa, with Plant 1 now closed and costs stabilised, focus will
be on production volumes and grade. At the same time, if efforts to find
a partner to invest in the mine and the exploration licence are
successful, the requirement for any more capital input by the Group will
be removed.
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, ideally with a project where an opportunity
exists to create a simultaneous recovery operation.
Conclusion
I would like to take this opportunity to thank our Goldplat employees,
advisors, fellow directors and shareholders for their support during
what was a very challenging year on many fronts. The Board looks
forward to successes on identified strategic initiatives and consequent
growth in production and profitability.
GERARD KISBEY-GREEN
CHIEF EXECUTIVE OFFICER
26 September 2018
Financial Review
The recovery operations delivered another strong performance achieving a
profit from operating activities for the year under review of
GBP4,313,000 (FY 2017: GBP4,636,000), while Kilimapesa continued to
trade at a loss resulting in a loss from operating activities from
continued operations for the mining and exploration segment of
GBP995,000 (FY2017: 862,000). In total the profit from Group operating
activities of GBP2,509,000 (FY2017: 2,910,000) decreased by GBP401,000,
due to a bad debt write-off of GBP320,000 during the current period and
additional losses incurred in the mining and explorations segment.
The 6.8% increase in revenue was driven by higher a gold price of
USD1,293 per ounce (FY 2017: USD1,258 per ounce) and a slight increase
in the gold sold for the Group's own account to 34,181 ounces (FY 2017:
34,112 ounces).
If the bad debt write-off of GBP320,000 is excluded, the administrative
expenses for the year under review of GBP2,562,000 decreased slightly
(FY 2017: GBP2,286,000).
The operating currencies for the Group are South African Rand (ZAR),
Ghanaian Cedi (GHS) and Kenyan Shilling (KES). The average exchange
rates for the year used in the conversion of operating currencies in the
Statement of Profit or Loss and Other Comprehensive Income weakened
against the Pound Sterling during the period under review, apart from
the South African Rand (ZAR) which remained approximately the same.
The net finance loss from continued operations of GBP722,000 (FY 2017:
GBP74,000) includes GBP543,000 interest on borrowings and finance
liabilities (FY 2017: GBP85,000). The increase in interest on borrowings
and finance liabilities was due to financing of the construction of the
elution plant at GRG during the period and Plant 2 at Kilimapesa in the
previous period, as well the Group cost in pre-financing sales to
smelters and refiners.
Included in the foreign exchange loss from continued operations of
GBP199,000 (FY 2017: GBP11,000) is GBP80,000 unrealised loss on
translation of the proceeds from sale of shares in subsidiary.
The additional foreign exchange loss is mainly as a result of the
movement of the operating currencies against the US Dollar. The
performance of the operating currencies against the USD Dollar
fluctuated significantly during the period and the performance of each
operating currency varied. The GHS weakened against the USD Dollar,
while the KES strengthened over the same period. The ZAR year on year
weakened against the US Dollar, but on average the ZAR was 5,6% stronger
against the US Dollar during the current financial period.
The Group's capital expenditure for the year, including development
costs, amounted to GBP2,015,000 (FY 2017: GBP2,213,000) of which
GBP992,000 was expended to complete the elution plant in Ghana.
The expansion in Ghana was primarily funded by drawing down GBP358,000
on the on-demand, revolving pre-export facility with Scipion Active
Trading Fund to the value of US$2,000,000. The loan is secured over the
GPL tailings facility in South Africa, intercompany loan agreements,
contracts and proceeds from sales with gold refiners, and collection
bank accounts operated by GMR for that purpose. The loan is repayable
over 12 months and the intention is to draw-down on the facility as and
when needed.
At GPL, capital spent during the period totalled GBP283,000 (FY 2017:
GBP372,000), of which GBP81,000 was focussed on maintaining current
circuits and GBP49,000 on expanding and improving the blending and
sampling section. A loader was replaced on finance lease at a cost of
GBP112,000. The balance of the capital was spent on improving waterflow
in the plant (GBP19,000), reducing the electricity cost (GBP8,000),
upgrading security (GBP9,000) and maintaining office buildings
(GBP5,000).
At GRG, in addition to the elution plant, a further GBP57,000 was spent
on upgrading the incinerator section and GBP97,000 on the pilot plant
planned to be used to assist the government in the potential
environmental clean-up project being discussed.
At Kilimapesa capital expenditure for the period totalled GBP489,000;
GBP393,000 was spent on Plant 2 and the remainder on power generators
and vehicles for the underground mine. The capital expended on Plant 2
includes GBP89,000 for a ball mill to be installed as part of the
planned Stage 3 upgrades, GBP92,000 on a second power generator and
GBP64,000 on mechanical loading equipment.
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 USD1.5 million in the first 18
months, which includes a six-month review period. On 12 January 2018 it
was announced that the initial option period had been extended to 31
October 2018. At year-end Ashanti has not yet met the expenditure
condition in full and the sale of Goldplat's 51% interest in Anumso has
therefore not been recorded in the current period.
The decrease in precious metals on hand and in process to GBP3,797,000
(FY 2017: GBP6,898,000) can be attributed to high levels of stock at the
end of FY 2017 relating to a large one-off contract and the reduction in
inventory days in FY 2018. The reduction in inventory days was as a
result of additional refiner contracts signed in the previous period and
the resolution of the Rand Refinery dispute during the year.
During the period GPL and GRG made use of a purchase contract and bill
of sale agreement with Auramet International LLC to part-finance
material en-route to refineries. The balance of amounts received in
advance at the year-end was GBP2,407,000 (FY 2017: GBP6,334,000) and is
secured against the receivable balance it relates to. The proceeds from
pre-financed material were used to settle suppliers of this material.
The Group reported a decrease in net cash resources to GBP1,539,000 at
30 June 2018 (FY 2017: GBP2,650,000). The decrease is partly due to
GBP1,961,000 invested in raw materials, mostly in GPR to ensure that
sufficient material is on site for the CIL sections to operate for the
next 24 months.
Goldplat Recovery (Pty) Ltd -- South Africa
Although revenues decreased to GBP22,669,000 (FY 2017: GBP25,066,000),
mostly due to a large one -off contract in FY 2017, GPL continued to
perform well and increased its operating profits to GBP4,670,000 (FY
2017: GBP3,312,000).
The operating result in South Africa was achieved primarily on the
performance of the CIL circuits, supported by the by-product material
received from the mines and the finalisation of treatment of a large
one-off batch of by-products received from a client in Africa in FY
2017.
The South African subsidiary reported a net profit after tax of
GBP2,765,000 (FY 2017: GBP2,420,000).
Gold Recovery Ghana Limited - Ghana
GRG was maintained on similar levels to the previous year, with revenues
increasing in Ghanaian Cedi but decreasing in British Pound from
GBP9,082,000 to GBP8,241,000 during the year under review. The revenues
however include the sale of more higher-grade material at lower margins
than the previous year, resulting in a decrease of gross profit to
GBP1,032,000 (FY 2017: GBP1,662,000).
The profit before finance cost of GBP646,000 (FY 2017: GBP1,325,000) was
reduced to a loss after tax of GBP33,000 (FY 2017: profit of
GBP1,354,000) due to the foreign exchange losses on an intercompany loan
balance of GBP505,000 and interest on pre-financing of sales of
GBP148,000.
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%.
Kilimapesa Gold (Pty) Limited - Kenya
Kilimapesa reported an increase in revenue of 54% from GBP3,150,000 to
GBP4,834,000 as a result of more ounces produced on the back of
increased processing capacity in Plant 2. The increase in revenue did
not translate into increased profits due to lower than expected grades
and higher than expected costs, as more fully explained in the
Operations Report, resulted in increased losses before finance costs of
GBP986,000 (FY 2017: GBP838,000).
Taxation
The tax charged for the year increased, although profits have reduced,
as there is no set-off between losses in one jurisdiction against
profits in another jurisdiction. An increase in dividends declared by
GPL of more than 100% also attracted an irrecoverable withholding tax on
portion of dividend paid to the Group.
Further to above, the tax rate for GPL increased as it is subjected to
formula tax based on its profitability and the amount of capital
invested. The withholding tax rate on dividends in South Africa
increased from 15% to 20% effective 22 February 2017.
Contingencies
Trade and other receivables for the Group include a balance of
GBP1,074,000 (FY 2016: GBP812,000) of Value Added Taxation receivable
from the Kenya Revenue Authority. Of the current balance GBP542,000 is
older than three 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 remains outstanding. Management is of the opinion that there is no
legal reason not to recover the balance due.
Werner Klingenberg
Finance Director
26 September 2018
Financial Statements
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEARED 30 JUNE 2018
2018 2017
GBP'000 GBP'000
Continuing operations
Revenue 33,796 31,650
Cost of sales (28,725) (26,454)
Gross profit 5,071 5,196
Administrative expenses (2,562) (2,286)
Profit from operating
activities 2,509 2,910
------- -------
Finance income 20 22
Finance costs (742) (96)
Net finance cost (722) (74)
------- -------
Profit from operating
activities after finance
income 1,787 2,836
Taxation (1,281) (860)
Profit for the year from
continuing operations 506 1,976
Discontinued operations
Loss for the year from discontinued operations - (1,012)
Profit for the year 506 964
----------
(Loss)/Profit from continued operations attributable
to:
Owners of the Company (213) 1,348
Non-controlling interests 719 628
Profit for the year 506 1,976
(Loss)/Profit from operations attributable to:
Owners of the Company (213) 336
Non-controlling interests 719 628
--------
Profit for the year 506 964
--------
Other comprehensive income
Items that may be reclassified subsequently to profit
or loss: (880 1,025
Exchange translation )
Other comprehensive (expense)/income for the year (880) 1,025
------- --------
Total comprehensive (expense)/income for the year (374) 1,989
========
Total comprehensive (expense)/ income attributable
to:
Owners of the Company (1,093) 1,361
Non-controlling interests 719 628
--------
Total comprehensive (expense)/ income for the year (374) 1,989
========
Earnings per share
Basic earnings per share (pence) (0.13) 0.20
--------
Diluted earnings per share (pence) n/a 0.19
----------- --------
Earnings per share -- continuing operations
Basic earnings per share (pence) (0.13) 0.81
--------
Diluted earnings per share (pence) n/a 0.78
----------- --------
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT JUNE 30 2018
2018 2017
GBP'000 GBP'000
Assets
Property, plant and
equipment 8,023 7,181
Intangible assets 8,462 8,707
Proceeds from sale of
shares in subsidiary 1,137 1,424
Non-current cash deposits - 201
Non-current assets 17,622 17,513
------- -------
Inventories 7,791 8,962
Trade and other receivables 7,603 12,003
Cash and cash equivalents 1,915 2,650
Current assets 17,309 23,615
Total assets 34,931 41,128
Equity
Share capital 1,675 1,675
Share premium 11,441 11,441
Exchange reserve (6,073) (5,193)
Retained earnings 11,092 11,305
Equity attributable to owners
of the Company 18,135 19,228
Non-controlling interests 2,964 2,673
Total equity 21,099 21,901
Liabilities
Obligations under finance
leases 268 229
Provisions 417 446
Deferred tax liabilities 623 584
Non-current liabilities 1,308 1,259
------- -------
Bank overdraft 376 -
Obligations under finance
leases 192 154
Interest bearing borrowings 728 1,172
Taxation 300 211
Trade and other payables 10,928 16,431
Current liabilities 12,524 17,968
Total liabilities 13,832 19,227
Total equity and
liabilities 34,931 41,128
======= =======
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
AS AT JUNE 30 2018
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 2017 1,675 11,441 (5,193) 11,305 19,228 2,673 21,901
Total comprehensive
(expense)/income for the year
(Loss)/Profit for the year - - - (213) (213) 719 506
Total other comprehensive
expense - - (880) - (880) - (880)
---------------------- ---------------
Total comprehensive
(expense)/income for the year - - (880) (213) (1,093) 719 (374)
---------------------- ---------------
Transactions with owners of the Company recognised
directly in equity
Changes in ownership interests in
subsidiaries
Non-controlling interests in
subsidiary dividend - - - - - (428) (428)
Total transactions with owners of
the Company - - - - - (428) (428)
---------------------- ---------------
Balance at 30 June 2018 1,675 11,441 (6,073) 11,092 18,135 2,964 21,099
====================== ===============
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) (185)
----------------------- --------------- ------------------- ----------
Balance at 30 June 2017 1,675 11,441 (5,193) 11,305 19,228 2,673 21,901
======================= =============== =================== ==========
CONCOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEARED 30 JUNE 2018
2018 2017
GBP'000 GBP'000
Cash flows from operating activities
Result from continuing operating activities 2,509 2,910
Result from discontinued operating activities - (1,012)
Adjustments for:
Depreciation 856 650
Amortisation 218 224
Write off development cost - 980
Loss on sale of property, plant and equipment 7 4
Equity-settled share-based payment transactions - 16
Foreign exchange differences (415) 818
3,175 4,590
Changes in:
- inventories 1,171 (1,215)
- trade and other receivables 4,400 (5,748)
- trade and other payables (5,503) 5,296
Cash generated from operating activities 3,243 2,923
Finance income 20 22
Finance cost (647) (373)
Taxes paid (1,153) (805)
Net cash from operating activities 1,463 1,767
Cash flows from investing activities
Proceeds from sale of property, plant and equipment 7 105
Enhancement of exploration and development asset (17) (157)
Acquisition of property, plant and equipment (1,738) (1,756)
Receipt of proceeds from sale of shares in subsidiary 181 85
Non-current cash deposit 201 (41)
Net cash used in investing activities (1,366) (1,764)
Cash flows from financing activities
Proceeds from drawdown of interest bearing borrowings 358 1,538
Payment of interest bearing borrowings (802) (421)
Payment of dividend by subsidiary to non-controlling
interest (428) (201)
Payment of finance lease liabilities (183) (203)
Net cash flows (used in)/from financing activities (1,055) 713
------- --------
Net (decrease)/increase in cash and cash equivalents (958) 716
Cash and cash equivalents at 1 July 2,650 2,056
Foreign exchange movement on opening balance (153) (122)
Cash and cash equivalents at 30 June 1,539 2,650
======= ========
NOTES TO THE RESULTS ANNOUNCEMENT
1. Basis on preparation
2. Statement of compliance
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 financial information contained in this announcement does not
constitute the Company's statutory accounts for the year ended 30 June
2018. The statutory accounts for the year ended 30 June 2018 have yet to
be reported on by the independent auditors. The independent auditor's
report for the year ended 30 June 2017 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 2017 have been filed with
the Registrar of Companies and the statutory accounts for the year ended
30 June 2018 will be filed with the Registrar of Companies following the
Company's Annual General Meeting.
1. Basis of measurement
The consolidated financial statements have been prepared on the
historical cost basis.
1. Functional and presentation currency
These consolidated financial statements are presented in Pounds Sterling
("GBP"), which is considered by the Directors to be the most appropriate
presentation currency to assist the users of the financial statements.
All financial information presented in GBP has been rounded to the
nearest thousand, except when otherwise indicated.
The Company's functional currency is considered to be the US Dollar
("USD") as this currency mainly influences sales prices and expenses.
1. 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 --
Notes 4(a)(i) and 15
-- Capitalisation of pre-production expenditure -- Notes 4(e)(ii)
and 15
-- Valuation of Inventory --
Notes 4(g) and 20
Accounting entries are made in accordance with the accounting policies
detailed below.
1. Earnings per share
Basic earnings per share
The calculation of basic earnings per share at 30 June 2018 was based on
the loss attributable to owners of the Company of GBP(213,000) (2017:
profit GBP336,000), and a weighted average number of ordinary shares
outstanding of 167,441,000 (2017: 167,441,000), calculated as follows:
(Loss)/profit attributable to ordinary shareholders
2018 2018 2018 2017 Continuing 2017 2017
Continuing Discontinued Total operations GBP'000 Discontinued operations Total
operations operations GBP'000 GBP'000 GBP'000
GBP'000 GBP'000
(Loss)/profit
attributable to (213 ) - (213 ) 1,348 (1,012 ) 336
owners of the
Company
============= ======================== === ========
Weighted average number of ordinary shares
2018 2017
Issued ordinary shares at 1 July 167,441,000 167,441,000
Weighted average number of ordinary
shares at 30 June 167,441,000 167,441,000
=========== ===========
Diluted earnings per share
Diluted earnings per share at 30 June 2018 have not been calculated as
the effect would be antidilutive. The calculation of diluted earnings
per share at 30 June 2017 was based on the profit attributable to
ordinary shareholders of GBP336,000, and a weighted average number of
ordinary shares outstanding after adjustment for the effect of all
dilutive potential ordinary shares of 172,932,186, calculated as
follows:
(Loss)/profit attributable to ordinary shareholders (diluted)
2018 2018 2018 2017 2017 2017
Continuing Discontinued Total Continuing operations Discontinued operations Total
operations operations GBP'000 GBP'000 GBP'000 GBP'000
GBP'000 GBP'000
(Loss)/profit
attributable to n/a - n/a 1,348 (1,012 ) 336
owners of the
Company
=========== ============= ======== ====================== ========
Weighted average number of ordinary shares (diluted)
2018 2017
Weighted average number of ordinary shares (basic) 167,441,000 167,441,000
Effect of share options on issue 5,364,754 5,491,186
Weighted average number of ordinary shares (diluted)
at 30 June 172,805,754 172,932,186
=========== ===========
1. Directors' emoluments
2018
Executive Non-executive Total
GBP'000 GBP'000 GBP'000
Wages and salaries 551 - 551
Fees - 80 80
Other benefits 100 - 100
651 80 731
=========== ============= =========
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
=========== ============= =========
Emoluments disclosed above include the following amounts paid to the
highest director:
2018 2017
GBP'000 GBP'000
Emoluments for qualifying services 216 186
======== ========
Key management
Apart from the Directors, the emoluments paid to key management
personnel amounted to GBP857,000 (2017: GBP816,000).
1. Related parties
Other than the waiver of intercompany interest and not having fix
repayment dates, 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:
2018 2017
GBP'000 GBP'000
Goldplat plc
- Loans and borrowings (4,402) (4,500)
- Goods, equipment and services
received (358) (154)
Kilimapesa Gold (Pty) Limited
- Loans and borrowings 5,087 4,743
Nyieme Gold SARL
- Loans and borrowings 1,252 1,255
Anumso Gold Limited
- Loans and borrowings 80 81
Midas Gold SARL
- Loans and borrowings 444 441
Goldplat Recovery (Pty) Limited
- Loans and borrowings (280) (217)
- Goods, equipment and services
supplied (41) 173
Gold Recovery Ghana Limited
- Loans and borrowings - 75
The Group's subsidiary Goldplat Recovery (Pty) Limited had the following
related party transactions and balances:
2018 2017
GBP'000 GBP'000
Kilimapesa Gold (Pty) Limited
- Trade and other receivables 1,821 863
- Goods, equipment and
services supplied 1,113 881
Gold Recovery Ghana Limited
- Trade and other
receivables 1,364 699
- Goods, equipment and
services supplied 1,146 557
- Purchase of precious
metals (1,782) (5,648)
- Trade and other payables - (1)
Anumso Gold Limited
- Trade and other
receivables 12 8
- Goods, equipment and - -
services supplied
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:
2018 2017
GBP'000 GBP'000
Nyieme Gold SARL
- Trade and other receivables 46 46
- Goods, equipment and services
supplied 3 11
Kilimapesa Gold (Pty) Limited
- Trade and other receivables - 275
Anumso Gold Limited
- Trade and other receivables 35 31
- Goods, equipment and services
supplied 8 30
The Group's subsidiary Midas Gold had the following related party
transactions and balances in addition to those already noted:
2018 2017
GBP'000 GBP'000
Nyieme Gold SARL
- Trade and other receivables - 1
- Trade and other payables 4 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:
2018 2017
GBP'000 GBP'000
Directors
- Trade and other payables (222) (139 )
1. Capital and reserves
Share capital and share premium
Number of ordinary shares
2018 2017
On issue at 1 July 167,441,000 167,441,000
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
2018 2017
GBP'000 GBP'000
Balance at 1 July 1,675 1,675
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**
(END) Dow Jones Newswires
September 26, 2018 02:16 ET (06:16 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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