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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
  -0.10 -1.98% 4.95 4.90 5.00 5.05 4.95 5.05 277,321 11:17:06
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Mining 24.8 -1.1 -1.3 - 8

Goldplat plc Interim results for the 6 months ended 31 Dec 2019

24/02/2020 7:00am

UK Regulatory (RNS & others)


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Goldplat plc

24 February 2020

Goldplat plc / Ticker: GDP / Index: AIM / Sector: Mining & Exploration

24 February 2020

Goldplat plc

('Goldplat' or 'the Company')

Interim results for the six months ended 31 December 2019

Goldplat plc, the AIM listed gold producer, with international gold recovery operations located in South Africa and Ghana and a gold mine in Kenya, announces its unaudited interim results for the six months ended 31 December 2019.

Overview

-- The group reports a return to operating profitability for the first six months ended 31 December 2019 of GBP2,221,000 (31 December 2018: Operating loss GBP653,000)

-- The group profit for the six months ended 31 December 2019, excluding unrealised intragroup foreign exchange losses on intercompany loan balances, was GBP1,032,000 (31 December 2018: Loss, excluding intragroup foreign exchange losses on intercompany balances, GBP1,214,000)

-- The group has intercompany loans denominated in USD which differ from the parent company and its various subsidiaries reporting currencies. The strengthening of GBP and weakening of the Ghana Cedi contributed the most to the group's unrealised intragroup foreign exchange loss for the six months to 31 December 2019 of GBP333,000 (31 December 2018: unrealised intragroup foreign exchange profit, GBP279,000)

-- With the increase in profits the group also reported an increase in taxation for the six months ended 31 December 2019 to GBP918,000 (31 December 2018: GBP98,000). Included in the taxation expense is dividend taxation paid on the declaration of dividends from GPL to support the group cash flows. The dividend taxation paid for the six months ended 31 December 2019 was GBP190,000 (31 December 2018: GBP200,000)

-- The South African operation performed strongly and achieved an operating profit for the six months ended 31 December 2019 of GBP2,659,000 (31 December 2018: GBP752,028). A pre-treatment facility has been added at a cost of GBP70,000 which enables the company to treat lower grade material with a higher degree of contamination.

-- Performance at the Ghana operation improved as the company's marketing and sourcing efforts gained momentum and achieved an operating profit for the six months ended 31 December 2019 of GBP151,000 (31 December 2018: operating loss GBP241,449) .

-- Operating losses at Kilimapesa have been reduced, year on year, for the six months ended 31 December 2019 to GBP301,000 (31 December 2018: Operating loss GBP686,845) while we have continued to hold discussions with funding partners to re-capitalize this valuable asset.

-- The continuing focus on operational excellence was enhanced by higher gold price in this period.

-- During the six-month period, GBP523,000 of VAT reclaims have been paid by the Kenyan Revenue Authorities.

   --    Cost reductions and improved operational efficiencies remain an area of focus. 

-- Improvement in plant operational efficiencies in South Africa have not only reduced costs but improved gold recovery.

-- Some of the cost savings have been invested into material sourcing initiatives and increasing physical security in South Africa.

-- The Tailings Storage facility ('TSF') in South Africa has been structurally supported at a planned cost of GBP250,000 of which GBP123,000 has been spent in the first half of FY 2020. This expenditure will increase the life of the TSF whilst we investigate the design of a new TSF.

Chairman's Statement

I am delighted to report that Goldplat continues to deliver effectively on its stated strategic objectives at its operating subsidiaries. Our portfolio of core assets consists of two gold recovery operations in South Africa and Ghana, which recover gold from by-products of the mining process, thereby providing mines with an environmentally-friendly and cost-efficient way of removing waste material, and the Kilimapesa Gold Mine in Kenya, currently under care and maintenance.

We remain committed to our strategy of increasing long term visibility of earnings in the recovery businesses through key initiatives and finding an investment partner or buyer for Kilimapesa. These key initiatives include:

-- improving our gold recoveries from lower grade contaminated material, effectively reducing the grade of the material we will be able to process economically. Reserves of lower grade materials are more readily available and help to alleviate the sourcing risk;

   --    Building strategic partnerships within the mining industry; 

-- Evaluating the investment into a larger t ailings storage facility and additional mill and leaching capacity to enable us to reprocess our current TSF;

-- Increased investment into sourcing initiatives and test work on a wider range of materials, including PGM discards.

Revenues for the six months ended 31 December 2019 of GBP12,462,000 represent a 3% decrease on the same period last year (six months ended 31 December 2018: GBP12,843,000), as a result of Kilimapesa Mine being placed under care and maintenance. The revenues for the six months ended 31 December 2019 on the recovery operations increased by 10% to GBP11,759,000 (31 December 2018: GBP10,684,000). In line with this, I am pleased to report a turnaround to operating profit to GBP2,221,000 (six months ended 31 December 2018: loss of GBP653,000).

The net finance cost of GBP180,000 for the six months ended 31 December 2019 (31 December 2018: GBP200,000) includes GBP41,000 (31 December 2018: GBP70,000) interest paid on the renewed Scipion loan.

The profit after taxation of GBP669,000 (31 December 2018: loss GBP935,000) was negatively impacted by unrealised intragroup foreign exchange losses on intercompany loans balances for the six months ended of GBP333,000

(31 December 2018: GBP279,000). The group has intercompany loans dominated in USD which differ from its reporting currencies. The strengthening of the GBP and weakening of the Ghana Cedi contributed the most to the unrealised intragroup foreign exchange loss for the six months.

With the increase in profits the group also reported an increase in taxation for the six months ended 31 December 2019 to GBP918,000 (31 December 2018: GBP98,000). Included in the taxation expense is dividend taxation paid on the declaration of dividends from GPL to support the group cash flows. The dividend taxation paid for the six months ended 31 December 2019 was GBP190,000 (31 December 2018: GBP200,000).

During the period the US$2 million uncommitted, on-demand, revolving pre-export loan facility with Scipion was renewed which is providing increased flexibility in the sourcing initiatives in West Africa and further abroad. During the period, US$1.2 million was drawn down for these purposes and will be repaid by the end of April 2019.

Cash and cash equivalents at the end of the period stood at GBP2,070,000 (31 December 2018: GBP1,000,000).

Goldplat Recovery (Pty) Ltd ('GPL')

GPL had a very strong operational performance and recorded sales during the six months ended 31 December 2019 of GBP9,486,000 (six months ended 31 December 2018: GBP8,817,842). Operating profits for the six months ended 31 December 2019 of GBP2,659,000 increased by 254% (six months ended 31 December 2018: GBP752,028), and reflects the contribution of the abovementioned interventions and a higher gold price.

Towards the end of the 1st Quarter, GPL started the construction of the first stage of a pre-treatment facility to the largest Carbon in Leach ('CIL') section at a cost of GBP70,000. The purpose of the pre-treatment facility is to improve recoveries and margins on lower grade contaminated material and together with efforts to reduce operating costs, should allow us to source and profitably process lower grade contaminated material. This project has been completed on time, on budget and the new facility is currently being commissioned.

Our TSF is approaching full capacity in its current form and so we planned to spend GBP250,000 during the 2nd quarter to structurally support and increase its life by a further 12 to 18 months. Capital expenditure on this project at 31 December 2019 was GBP123,000 and has since been completed at the original budgeted cost of GBP250,000.

Gold Recovery Ghana ('GRG')

Activities at GRG continued to increase during the 2nd Quarter, achieving sales of GBP2,273,000 during the six months ended 31 December 2019 (31 December 2018 - GBP1,865,957) resulting in a turnaround from an operating loss during the six months ended 31 December 2018 of GBP241,449 to a profit of GBP151,000.

The sourcing of material improved further in the 2nd quarter with material being received from Ghana and other West African countries as well as from South America. We remain positive that material from Burkina Faso and the Ivory Coast will also become available. The sourcing of material remains paramount and we continue to work towards our objective to be the preferred processor of material from the Economic Community of West African States (ECOWAS).

GRG's Gold license, which has to be renewed every three years, has been approved for a further term up to December 2022.

We are continuing exploring the opportunities for toll treating lower grade material from artisanal sources in Ghana. This potential new revenue stream will be subject to obtaining support from The Minerals Commission of Ghana. We have incorporated a company specifically for this purpose so that we can keep our free zone activities ring fenced.

Kilimapesa Gold ('KPG')

The mining operation remains on care and maintenance whilst we seek an investment partner to inject funds directly into KPG or the assets.

The processing of artisanal tailings continues and operating losses are lower than would have been under full care and maintenance.

KPG has reduced liabilities to creditors by GBP521,000 during the six months ended 31 December 2019, mainly from the recovery of previously unpaid VAT reclaims. During the six-month period, GBP523,000 of VAT reclaims have been paid by the Kenyan Revenue Authorities.

We are pleased that we have support from the Kenyan Government and that the status of our permits and licenses has not been affected by our decision to halt underground mining and that the local community continues to receive some benefit from KPG's activities.

Operating losses reduced circa 56%, year on year, to GBP301,000 for the six months ended 31 December 2019 (six months ended 31 December 2018: Loss GBP686,845). The cash utilized in operating activities before working capital changes for the six months ended 31 December 2019 was GBP141,000 (six months ended December 2018 - GBP388,545). There has been no capital expenditure incurred.

Anumso Gold Corp ('Anumso')

We have agreed with our Joint Venture partner at Anumso, Desert Gold (Ashanti Gold and Desert Gold merged towards the end of September 2019), to seek a buyer for the Anumso gold project. We have had discussions with a potential buyer and will announce the outcome in due course.

Post-Period End

Progress can be reported subsequent to 31 December 2019 on the following:

-- The construction of the pre-treatment facility at one of the CIL circuits at GPL has been completed and the facility is being commissioned, with all indications being that it has increased, as planned, the gold recoveries and margins of the large contaminated stockpile we have on site, improving visibility of material supplies for next 18 to 24 months.

-- The construction of a buttress around the TSF has been completed, structurally improving the TSF and extending the life of the TSF by 12 to 18 months.

-- Application has been filed for a new tailing's facility, at GPL, adjacent to our current facility and we will update the market on cost and timelines before end of June 2020.

Outlook

The progress made on key initiatives to increase long term visibility of earnings in the recovery businesses, specifically improved recovery on lower grade contaminated material and strengthened relationships within mining industry, are encouraging. Although monthly production levels are still dependent on sourcing of quality material, we are confident that at current higher gold prices, we will remain profitable for remainder of the year.

Matthew Robinson

Chairman

24 February 2020

For further information visit www.goldplat.com, follow on Twitter @GoldPlatPlc or contact:

 
  Werner Klingenberg                  Goldplat plc (CEO)             Tel: +27 (0) 82 051 1071 
  Colin Aaronson / Richard            Grant Thornton UK LLP          Tel: +44 (0) 20 7383 
   Tonthat / Harrison Clarke/Seamus    (Nominated Adviser)            5100 
   Fricker 
                                     ----------------------------  -------------------------- 
  James Joyce / Jessica               WH Ireland Limited (Broker)    Tel: +44 (0) 207 220 
   Cave                                                               1666 
                                     ----------------------------  -------------------------- 
 

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.

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHESED 31 DECEMBER 2019

 
                                                                        6 months            6 months         12 months 
                                                       Notes           31-Dec-19           31-Dec-18         30-Jun-19 
                                                                     (unaudited)         (unaudited)         (audited) 
                                                                         GBP'000             GBP'000           GBP'000 
 
 Revenue                                                                  12,462              12,843            24,837 
 Cost of sales                                                           (9,501)            (12,464)          (23,325) 
                                                                   -------------       -------------       ----------- 
 Gross profit                                                              2,961                 379             1,512 
 Administrative expenses                                                   (740)             (1,032)           (2,013) 
                                                                   ------------- 
 Profit/(Loss) from operating 
  activities                                                               2,221               (653)             (501) 
                                                                   -------------       -------------       ----------- 
 Net finance cost                                                          (180)               (200)             (352) 
 Other realised foreign 
  exchange losses                                                          (111)               (151)             (176) 
 Unrealised Intergroup foreign 
  exchange (losses)/profit                                                 (333)                 279             (124) 
 Other unrealised foreign 
  exchange (losses)/profit                                                  (10)               (112)                66 
                                                                   ------------- 
 Net unrealised foreign exchange 
  (losses)/profit                                                          (343)                 167              (58) 
                                                                   -------------       -------------       ----------- 
 Profit/(Loss) from operating 
  activities after finance 
  cost                                                                     1,587               (837)           (1,087) 
 Taxation                                                  6               (918)                (98)             (653) 
                                                                   -------------       -------------       ----------- 
 Profit/(Loss) for the period                                                669               (935)           (1,740) 
                                                                   -------------       -------------       ----------- 
 Other comprehensive expense 
 Exchange translation                                                     (213 )               (147)              (27) 
                                                                   ------------- 
 Other comprehensive expense for the 
  period, net of tax                                                       (213)               (147)              (27) 
                                                                   -------------       -------------       ----------- 
 Total comprehensive income/(expense) 
  for the period                                                             456             (1,082)           (1,767) 
                                                                   =============       =============       =========== 
 Profit/(Loss) attributable 
  to: 
 Owners of the Company                                                       219             (1,133)           (2,234) 
 Non-controlling interests                                                   450                 198               494 
                                                                   -------------       -------------       ----------- 
 Profit/(Loss) for the period                                                669               (935)           (1,740) 
                                                                   =============       =============       =========== 
 Total comprehensive income/(expense) 
  attributable to: 
 Owners of the Company                                                         6             (1,280)           (2,261) 
 Non-controlling interests                                                   450                 198               494 
                                                                   -------------       -------------       ----------- 
 Total comprehensive income/(expense) 
  for the period                                                             456             (1,082)           (1,767) 
                                                                   =============       =============       =========== 
 Earnings per share 
 Basic earnings/(loss) per 
  share (pence)                                                             0.26              (0.67)            (1.33) 
 Diluted earnings per share                                                 0.26                 n/a               n/a 
  (pence) 
                                                                   =============       =============       =========== 
 

The notes below are an integral part of this condensed consolidated interim financial report.

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2019

 
                                                             31-Dec-19           31-Dec-18                   30-Jun-19 
                                                           (unaudited)         (unaudited)                   (audited) 
                                             Notes             GBP'000             GBP'000                     GBP'000 
 Assets 
 Property, plant and 
  equipment                                      7               7,135               7,948                       7,512 
 Intangible assets                               8               8,086               8,413                       8,201 
 Proceeds from sale of shares 
  in subsidiary                                                    786                 980                         950 
 Non-current assets                                             16,007              17,341                      16,663 
                                                         -------------       -------------       --------------------- 
 Inventories                                     9               7,926               7,718                       5,842 
 Trade and other 
  receivables                                   10               7,344               7,047                       7,918 
 Cash at bank and on 
  hand                                          11               2,070               1,000                       2,368 
                                                         -------------       -------------       --------------------- 
 Current assets                                                 17,340              15,765                      16,128 
                                                         -------------       -------------       --------------------- 
 Total assets                                                   33,347              33,106                      32,791 
                                                         =============       =============       ===================== 
 
 Equity 
 Share capital                                  12               1,675               1,675                       1,675 
 Share premium                                                  11,441              11,441                      11,441 
 Exchange reserve                                              (6,313)             (6,220)                     (6,100) 
 Retained earnings                                               9,077               9,959                       8,858 
                                                         -------------       -------------       --------------------- 
 Equity attributable to owners of 
  the Company                                                   15,880              16,855                      15,874 
 Non-controlling 
  interests                                                      3,139               2,992                       2,991 
                                                         -------------       -------------       --------------------- 
 Total equity                                                   19,019              19,847                      18,865 
                                                         -------------       -------------       --------------------- 
 
 Liabilities 
 Obligations under finance 
  leases                                        14                 183                 239                         151 
 Provisions                                     16                 613                 413                         633 
 Deferred tax 
  liabilities                                                      445                 432                         362 
                                                         ------------- 
 Non-current 
  liabilities                                                    1,241               1,084                       1,146 
                                                         -------------       -------------       --------------------- 
 
 Bank overdraft                                 11                  89                   1                         560 
 Obligations under 
  finance 
  leases                                        14                 266                 257                         213 
 Interest bearing 
  borrowings                                    15               1,388                 838                         528 
 Taxation                                                          154                 201                          53 
 Trade and other 
  payables                                      17              11,190              10,878                      11,426 
                                                         -------------       -------------       --------------------- 
 Current liabilities                                            13,087              12,175                      12,780 
                                                         -------------       -------------       --------------------- 
 Total liabilities                                              14,328              13,259                      13,926 
                                                         -------------       -------------       --------------------- 
 Total equity and 
  liabilities                                                   33,347              33,106                      32,791 
                                                         =============       =============       ===================== 
 

The notes below are an integral part of this condensed consolidated interim financial report.

The consolidated interim report of Goldplat plc, company number 05340664, were approved by the Board of Directors and authorised for issue on 24 February 2020. They were signed on its behalf by:

Werner Klingenberg, Director

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTHSED 31 DECEMBER 2018

 
                                                              Attributable to owners of the Company 
                                                                                                          Non-controlling 
                                         Share      Share    Exchange        Retained                           interests      Total 
                                       capital    premium     reserve        earnings         Total               GBP'000     equity 
                                       GBP'000    GBP'000     GBP'000         GBP'000      GBP '000                          GBP'000 
 Balance at 1 July 2018, as 
  previously 
  reported                               1,675     11,441     (6,073)          11,092   18,135                      2,964     21,099 
 
 Total comprehensive 
 (expense)/income 
 for the period 
 (Loss)/Profit 
  for 
  the period                                 -          -           -         (1,133)   (1,133)                       198      (935) 
 Total other 
  comprehensive 
  expense                                    -          -       (147)               -    (147)                          -      (147) 
                                     ---------  ---------  ----------  --------------  ------------      ----------------  --------- 
 Total comprehensive 
  (expense)/income 
  for the period                             -          -       (147)         (1,133)   (1,280)                       198    (1,082) 
                                     ---------  ---------  ----------  --------------  ------------      ----------------  --------- 
 
 Transactions with owners of the Company, 
 recognised 
 directly in equity 
 
 Changes in ownership interests in 
 subsidiaries 
 Non-controlling interests in 
  subsidiary 
  dividend                                   -          -           -               -             -                 (170)        (170) 
                                     ---------  ---------  ----------      ----------      --------      ----------------  ----------- 
 Total transactions with owners of 
  the 
  Company                                    -          -           -               -             -                 (170)        (170) 
                                     ---------  ---------  ----------      ----------      --------      ----------------  ----------- 
 
 Balance at 31 December 
  2018 (unaudited)                       1,675     11,441     (6,220)           9,959        16,855                 2,992       19,847 
                                     =========  =========  ==========      ==========      ========      ================  =========== 
 
 

The notes below are an integral part of this condensed consolidated interim financial report.

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEARED 30 JUNE 2019

 
                                                              Attributable to owners of the Company 
                                                                                                          Non-controlling 
                                         Share          Share        Exchange    Retained                       interests          Total 
                                       capital        premium         reserve    earnings     Total               GBP'000         equity 
                                       GBP'000        GBP'000         GBP'000     GBP'000       GBP                              GBP'000 
                                                                                               '000 
 Balance at 1 
  July 2018                              1,675         11,441         (6,073)      11,092   18,135                  2,964         21,099 
 Total comprehensive 
 (expense)/income 
 for the period 
 Profit/(loss) 
  for the 
  period                                     -              -               -     (2,234)   (2,234)                   494        (1,740) 
 Total other comprehensive expense           -              -            (27)           -    (27)                       -           (27) 
                                     ---------      ---------      ----------  ----------  --------      ----------------      --------- 
 Total comprehensive 
  (expense)/income 
  for the period                             -              -            (27)     (2,234)   (2,261)                   494        (1,767) 
                                     ---------      ---------      ----------  ----------  --------      ----------------      --------- 
 
 Transactions with owners of the Company 
 recognised 
 directly in equity 
 
 Changes in ownership 
 interests in subsidiaries 
 Non-controlling interests 
  in subsidiary 
  dividend                                   -              -               -           -         -                 (467)            (467) 
                                     ---------      ---------      ----------  ----------  --------      ----------------      ----------- 
 Total transactions with 
  owners of the 
  Company                                    -              -               -           -         -                 (467)            (467) 
                                     ---------      ---------      ----------  ----------  --------      ----------------      ----------- 
 
 Balance at 30 June 2019 
  (audited)                              1,675         11,441         (6,100)       8,858    15,874                 2,991           18,865 
                                     =========      =========      ==========  ==========  ========      ================      =========== 
 
 

The notes below are an integral part of this condensed consolidated interim financial report.

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTHSED 31 DECEMBER 2019

 
                                             Attributable to owners of the Company 
                                                                                     Non-controlling 
                             Share      Share    Exchange    Retained                      interests      Total 
                           capital    premium     reserve    earnings        Total           GBP'000     equity 
                           GBP'000    GBP'000     GBP'000     GBP'000     GBP '000                      GBP'000 
 Balance at 1 July 
  2019                       1,675     11,441     (6,100)       8,858       15,874             2,991     18,865 
 Total comprehensive 
 income for 
 the period 
 Profit for the 
  period                         -          -           -         219          219               450        669 
 Total other 
  comprehensive 
  expense                        -          -       (213)           -        (213)                 -      (213) 
                         ---------  ---------  ----------  ----------  -----------  ----------------  --------- 
 Total comprehensive 
  (expense)/income 
  for the period                 -          -       (213)         219            6               450        456 
                         ---------  ---------  ----------  ----------  -----------  ----------------  --------- 
 
 Transactions with owners of the 
 Company recognised 
 directly in equity 
 
 Changes in ownership 
 interests in 
 subsidiaries 
 Non-controlling 
  interests in 
  subsidiary 
  dividend                       -          -           -           -            -             (302)      (302) 
                         ---------  ---------  ----------  ----------  -----------  ----------------  --------- 
 Total transactions 
  with owners of the 
  Company                        -          -           -           -            -             (302)      (302) 
                         ---------  ---------  ----------  ----------  -----------  ----------------  --------- 
 
 Balance at 31 
  December 2019 
  (unaudited)                1,675     11,441     (6,313)       9,077       15,880             3,139     19,019 
                         =========  =========  ==========  ==========  ===========  ================  ========= 
 

The notes below are an integral part of this condensed consolidated interim financial report.

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE SIX MONTHSED 31 DECEMBER 2019

 
                                                                     6 months              6 months          12 months 
                                                                     31-Dec-19            31-Dec-18          30-Jun-19 
                                                                                        (unaudited) 
                                                      Notes         (unaudited)             GBP'000          (audited) 
                                                                      GBP'000                                  GBP'000 
 Cash flows from operating 
 activities 
 
 Result from operating activities                                         2,221               (653)              (501) 
 Adjustments for: 
 - Depreciation                                                             421                 484                956 
 - Amortisation                                                               -                 111                222 
 - Loss on sale of property, plant                                           13                   -                  - 
  and equipment 
 - Foreign exchange differences                                           (385)                 (1)              (134) 
                                                                          2,270                (59)                543 
 Changes in: 
 - inventories                                                          (2,084)                  73              1,949 
 - trade and other receivables                                              574                 556              (315) 
 - trade and other payables                                               (236)                (50)                498 
 - provisions                                                              (20)                   -                  - 
 Cash generated from operating activities                                   504                 520               2675 
 
 Finance income                                                              51                  30                 19 
 Finance cost                                                             (231)               (380)              (586) 
 Taxes paid                                                               (488)               (388)              (725) 
 Net cash from/ (used in) operating 
  activities                                                              (164)               (218)              1,383 
                                                                  -------------       -------------       ------------ 
 
  Cash flows from investing 
  activities 
 Acquisition of property, plant and 
  equipment                                                               (216)               (321)              (331) 
 Receipt of proceeds from sale of 
  shares in subsidiary                                                      134                  72                199 
 Net cash used in investing 
  activities                                                               (82)               (249)              (132) 
                                                                  -------------       -------------       ------------ 
 
  Cash flows from financing 
  activities 
 Proceeds from drawdown of interest bearing 
  borrowings                                                                916                 760                  - 
 Payment of interest bearing borrowings                                    (77)               (650)              (200) 
 Payment of dividend by subsidiary 
  to non-controlling interest                                             (302)               (170)              (467) 
 Payment of finance lease liabilities                                      (58)                (36)              (242) 
                                                                  -------------       -------------       ------------ 
 Net cash from/ (used in) financing 
  activities                                                                479                (96)              (909) 
                                                                  -------------       -------------       ------------ 
 
 Net decrease in cash and cash equivalents                                  233               (563)                342 
 Cash and cash equivalents at beginning 
  of period                                                               1,808               1,539              1,539 
 Foreign exchange movement on opening 
  balance                                                                  (60)                  23               (73) 
 Cash and cash equivalents at end 
  of period                                              11               1,981                 999              1,808 
                                                                  =============       =============       ============ 
 

The notes below are an integral part of this condensed consolidated interim financial report.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL REPORT

FOR THE SIX MONTHSED 31 DECEMBER 2019

   1.         General information 

This condensed consolidated interim financial information does not comprise statutory accounts within the meaning of section 434 of the Companies Act 2006. Statutory accounts for the year ended 30 June 2019 were approved by the Board of Directors and have been delivered to the Registrar of Companies. The audit report on those accounts: their report was unqualified, did not draw attention to any matters by way of emphasis and did not contain a statement under section 498(2) or (3) of the Companies Act 2006.

   2.         Basis of preparation 
   (a)       Statement of compliance 

The annual financial statements of Goldplat plc (the 'Company') are prepared in accordance with IFRSs as adopted by the European Union.

   (b)       Going concern 

The directors are satisfied that the Company has sufficient resources to continue in operation for the foreseeable future, a period of not less than 12 months from the date of this report. Accordingly, they continue to adopt a going concern basis in preparing the consolidated financial statements.

   3.         Significant accounting policies 

The accounting policies applied in this condensed consolidated interim financial report are the same as those applied in the Group's consolidated financial statements as at and for the year ended 30 June 2019.

   4.         Operating segments 

Information about reportable segments

For the six months ended 31 December 2019 (unaudited)

 
                                                                                    Reconciliation 
                                     Recovery      Mining and     Adminis-tration         to Group 
                                   operations     exploration             GBP'000          figures       Group 
                                      GBP'000         GBP'000                              GBP'000     GBP'000 
 External revenues                     11,759             703                   -                -      12,462 
 Depreciation                             289             132                   -                -         421 
 Reportable segment 
  profit/(loss) 
  before tax                            2,486           (297)               (642)               40       1,587 
 Segment assets                        23,912         (2,463)              32,057         (20,159)      33,347 
 Segment liabilities                   14,084          10,946              10,033         (20,735)      14,328 
 
 

For the six months ended 31 December 2018 (unaudited)

 
                                                                                    Reconciliation 
                                 Recovery         Mining and    Adminis-tration   to Group figures 
                               operations        exploration            GBP'000            GBP'000       Group 
                                  GBP'000            GBP'000                                           GBP'000 
 External revenues                 10,684              2,159                  -                  -      12,843 
 Depreciation                         303                181                  -                  -         484 
 Amortisation                           -                111                  -                  -         111 
 Reportable segment 
  profit/(loss) before 
  tax                                 389              (836)              (429)                 39       (837) 
 Segment assets                    21,793              1,339             31,074           (21,100)      33,106 
 Segment liabilities               11,598              4,195              5,485            (8,019)      13,259 
 

For the twelve months ended 30 June 2019 (audited)

 
                                                                                    Reconciliation 
                                 Recovery              Mining     Adminis-tration         to Group 
                               operations     and exploration             GBP'000          figures       Group 
                                  GBP'000             GBP'000                              GBP'000     GBP'000 
 External revenues                 21,769               3,068                   -                -      24,837 
 Depreciation                         592                 364                   -                -         956 
 Amortisation                           -                 222                   -                -         222 
 Reportable segment 
  profit/(loss) 
  before tax of continuing 
  operation                         1,581             (1,935)               (800)               67       1,087 
 Segment assets                    22,959               7,523              35,356         (33,047)      32,791 
 Segment liabilities               12,922              11,541               9,433         (19,970)      13,926 
 
   5.       Seasonality of operations 

The Group is not considered to be subject to seasonal fluctuations.

   6.       Income tax expense 

Income tax expense is recognised based on management's best estimate of the weighted average annual income tax rate expected for the full financial year applied to the pre-tax income of the interim period. The tax charges for the period arises in South Africa and on declaration of dividends from South Africa. The effective income tax rate in GPL was 29% (six months ended 31 December 2018: nil) and the withholding tax rate on dividends declared was 20% (six months ended 31 December 2018: 20%).

   7.       Property, plant and equipment 

Acquisitions

During the six months ended 31 December 2019, the Group acquired assets with a cost, excluding capitalised borrowing costs of GBP359,000 (six months ended 31 December 2018: GBP321,000; twelve months ended 30 June 2019: GBP477,000).

   8.       Intangible assets and goodwill 
 
                                                                         6 months       6 months    12 months 
                                                                        31-Dec-19      31-Dec-18    30-Jun-19 
                                                                      (unaudited)    (unaudited)    (audited) 
                                                                          GBP'000        GBP'000      GBP'000 
           Cost 
           Balance at beginning of period                                  11,444         11,507       11,507 
           Effect of movement in exchange rates                             (122)             59         (63) 
           Balance at end of period                                        11,322         11,566       11,444 
                                                                    =============  =============  =========== 
 
 
           Amortisation and impairment losses 
           Balance at beginning of period          3,243   3,045   3,045 
           Amortisation                                -     111     222 
           Effect of movement in exchange rates      (7)     (3)    (24) 
           Balance at end of period                3,236   3,153   3,243 
                                                  ======  ======  ====== 
 
             Carrying amounts 
           Balance at end of period                8,086   8,413   8,201 
                                                  ======  ======  ====== 
           Balance at beginning of period          8,201   8,462   8,462 
                                                  ======  ======  ====== 
 
   9.       Inventories 
 
                                                                          6 months       6 months    12 months 
                                                                         31-Dec-19      31-Dec-18    30-Jun-19 
                                                                       (unaudited)    (unaudited)    (audited) 
                                                                           GBP'000        GBP'000      GBP'000 
           Consumable stores                                                 1,059          1,349        1,231 
           Raw materials                                                     2,037          2,075        1,996 
           Precious metal on hand and in process                             4,819          4,259        2,574 
           Broken ore                                                           11             35           41 
                                                                     -------------  -------------  ----------- 
                                                                             7,926          7,718        5,842 
                                                                     =============  =============  =========== 
 
   10.     Trade and other receivables 
 
                                                      6 months       6 months    12 months 
                                                     31-Dec-19      31-Dec-18    30-Jun-19 
                                                   (unaudited)    (unaudited)    (audited) 
                                                       GBP'000        GBP'000      GBP'000 
           Trade receivables                             5,763          4,727        6,124 
           Other receivables                             1,581          2,320        1,794 
                                                 -------------  -------------  ----------- 
                                                         7,344          7,047        7,918 
                                                 =============  =============  =========== 
 
   11.     Cash and cash equivalents 
 
                                                                     6 months       6 months    12 months 
                                                                    31-Dec-19      31-Dec-18    30-Jun-19 
                                                                  (unaudited)    (unaudited)    (audited) 
                                                                      GBP'000        GBP'000      GBP'000 
 Bank balances                                                          2,070          1,000        2,368 
                                                                -------------  -------------  ----------- 
                                                                        2,070          1,000        2,368 
  Bank overdrafts used for cash management 
   purposes                                                              (89)            (1)        (560) 
                                                                -------------  -------------  ----------- 
 Cash and cash equivalents in the statement 
  of cash flows                                                         1,981            999        1,808 
                                                                =============  =============  =========== 
 
   12.     Capital and reserves 
 
        Issue of ordinary shares 
                                                                6 months        6 months       12 months 
                                                               31-Dec-19       31-Dec-18       30-Jun-19 
                                                             (unaudited)     (unaudited)       (audited) 
 On issue at beginning of period                             167,441,000     167,441,000     167,441,000 
 On issue at end of period                                   167,441,000     167,441,000     167,441,000 
                                                          ==============  ==============  ============== 
 Authorised - par value GBP0.01                            1,000,000,000   1,000,000,000   1,000,000,000 
                                                          ==============  ==============  ============== 
 
 
 
        Issue of ordinary shares 
                                                               6 months       6 months    12 months 
                                                              31-Dec-19      31-Dec-18    30-Jun-19 
                                                            (unaudited)    (unaudited)    (audited) 
                                                                GBP'000        GBP'000      GBP'000 
 On issue at beginning of period                                  1,675          1,675        1,675 
 On issue at end of period                                        1,675          1,675        1,675 
                                                          =============  =============  =========== 
 
 

Dividends

No dividends were declared or paid by the Company during the periods.

   13.     Earnings per share 

Basic earnings per share

The calculation of basic earnings per share at 31 December 2019 was based on the profit attributable to owners of the Company of GBP219,000 (31 December 2018: Loss GBP1,133,000; 30 June 2019: Loss GBP2,234,000), and weighted average number of ordinary shares outstanding of 167,441,000 (31 December 2018: 167,441,000; 30 June 2019: 167,441,000)

Diluted earnings per share

The calculation of diluted earnings per share at 31 December 2019 was based on the profit attributable ordinary shareholders of GBP219,000 and weighted average number of ordinary shares outstanding after adjustment for the effect of all dilutive potential ordinary shares of 167,441,000. Diluted earnings per share at 30 June 2019 and 30 June 2018 have not been calculated as the effect would be antidilutive.

   14.     Obligations under finance leases 

Six months ended 31 December 2019 (unaudited)

 
                                                     Interest     Year of   Face value   Carrying 
                                                         rate    maturity      GBP'000     amount 
                                         Currency     nominal                             GBP'000 
 
           Finance lease 
            liabilities                        KES     10.25%        2023          288        288 
           Finance lease 
            liabilities                        ZAR     10.75%        2022          161        161 
           Total 
            Interest-bearing 
            liabilities                                                            449        449 
 
 

Six months ended 31 December 2018 (unaudited)

 
                                                     Interest     Year of   Face value   Carrying 
                                                         rate    maturity      GBP'000     amount 
                                         Currency     nominal                             GBP'000 
 
           Finance lease 
            liabilities                        KES      10.5%        2023          410        410 
           Finance lease 
            liabilities                        ZAR      10.5%        2021           86         86 
           Total 
            Interest-bearing 
            liabilities                                                            496        496 
 

Twelve months ended 30 June 2019 (audited)

 
                                                     Interest     Year of   Face value   Carrying 
                                                         rate    maturity      GBP'000     amount 
                                         Currency     nominal                             GBP'000 
 
           Finance lease 
            liabilities                        KES     10.25%        2023          320        320 
           Finance lease 
            liabilities                        ZAR     10.25%        2021           44         44 
           Total 
            Interest-bearing 
            liabilities                                                            364        364 
 
   15.     Interest bearing borrowings 

Six months ended 31 December 2019 (unaudited)

 
                                                         Interest       Year of    Face value   Carrying 
                                                             rate      maturity       GBP'000     amount 
                                         Currency         nominal                                GBP'000 
 
           Interest bearing                              9.75% plus 
            borrowings                         USD       1 yr LIBOR          2020        1,388      1,388 
           Total 
            Interest-bearing 
            liabilities                                                                 1,388      1,388 
 
 

Six months ended 31 December 2018 (unaudited)

 
                                                         Interest       Year of    Face value   Carrying 
                                                             rate      maturity       GBP'000     amount 
                                         Currency         nominal                                GBP'000 
 
           Interest bearing                               9.5% plus 
            borrowings                         USD       1 yr LIBOR         2019           838        838 
           Total 
            Interest-bearing 
            liabilities                                                                   838        838 
 

Twelve months ended 30 June 2019 (audited)

 
                                                         Interest       Year of    Face value   Carrying 
                                                             rate      maturity       GBP'000     amount 
                                         Currency         nominal                                GBP'000 
 
           Interest bearing                               9.5% plus 
            borrowings                         USD       1 yr LIBOR         2019           528        528 
           Total 
            Interest-bearing 
            liabilities 
 
   16.     Provisions 
 
                                                                        6 months            6 months         12 months 
                                                                       31-Dec-19           31-Dec-18         30-Jun-19 
                                                                     (unaudited)         (unaudited)         (audited) 
                                                                         GBP'000             GBP'000           GBP'000 
           Environmental obligation 
           Balance at beginning of period                                    633                 417               417 
           Increase in provision                                               -                   -               211 
           Effect of foreign exchange movements                             (20)                 (4)                 5 
                                                                             613                 413               633 
                                                                   =============       =============       =========== 
 

The provision relates to a requirement to rehabilitate the land owned in South Africa upon cessation of the mining lease.

   17.       Trade and other payables 
 
                                                                6 months       6 months    12 months 
                                                               31-Dec-19      31-Dec-18    30-Jun-19 
                                                             (unaudited)    (unaudited)    (audited) 
                                                                 GBP'000        GBP'000      GBP'000 
           Trade payables                                          2,878          3,128        3,895 
           Amounts received in advance                             2,516          1,262        2,878 
           Accrued expenses                                        5,796          6,488        4,653 
                                                           -------------  -------------  ----------- 
                                                                  11,190         10,878       11,426 
                                                           =============  =============  =========== 
 
   18.       Share options 

Reconciliation of outstanding share options

 
                                                                        6 months ended              6 months ended 
                                                                           31-Dec-19                   31-Dec-18 
                                                                          (unaudited)                 (unaudited) 
                                                          Number of                             Number of 
                                                            options                               options 
           Outstanding at beginning of period             5,666,667           18,500,000 
           Lapsed during the period                               -          (7,500,000) 
           Granted during the period                      3,000,000                    - 
           Outstanding at end of period                   8,666,667                        11,000,000 
                                                       ============                       =============== 
 
                                                                                                    12 months ended 
                                                                                                       30-Jun-19 
                                                                                                       (audited) 
                                                                                                Number of 
                                                                                                  options 
           Outstanding at beginning of period                                                  18,500,000 
           Lapsed during the period                                                           (7,500,000) 
           Forfeited on resignation of director                                               (5,333,333) 
           Outstanding at end of period                                                         5,666,667 
                                                                                          =============== 
 
 

The weighted average exercise price of the exercisable options is GBP0.0310 (31 December 2018: GBP0.03125; 30 June 2019: GBP0.0313).

The weighted average remaining contractual life of the options outstanding as at 31 December 2019 is 2 years 191 days (31 December 2018: 2 years 171 days; 30 June 2019: 1 year 271 days).

   18.       Fair values 

The fair values of financial instruments such as interest-bearing loans and borrowings, finance lease liabilities, trade and other receivables/payables are substantially identical to carrying amounts reflected in the statement of financial position.

   19.       Group entities 

On 14 September 2016 Goldplat executed an earn-in option agreement (the "Agreement") with Ashanti Gold Corp. ("Ashanti") (formerly Gulf Shore Resources Ltd).

On 5 November 2018, Ashanti provided notice to Goldplat that it intended to exercise its 51% option on Anumso Gold Project. On 27 December 2018, Ashanti informed Goldplat that it will not elect the subsequent option for an additional 24% of Anumso Project.

Goldplat analysed the total and nature of the earn-in expenditure and approved that the US$1,500,000 spent is sufficient for 51% option exercised. The two companies are currently finalizing the shareholders agreement and once done additional shares in Anumso will be issued to Ashanti. As the agreement has not been finalized and the additional shares has not been issued, the issue of additional shares and the compensation for the shares of an exploration asset to the value of US$1,5 million have not been recognized in the annual report.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

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