Goldplat plc Operational Update

 
TIDMGDP 
 
 
   Goldplat plc / Ticker: GDP / Index: AIM / Sector: Mining & Exploration 
 
   4 February 2019 
 
   Goldplat plc ('Goldplat' or 'the Company') 
 
   Operational Update 
 
 
 
   Goldplat plc, the AIM quoted gold producer, with international gold 
recovery operations located in South Africa and Ghana and a gold mine in 
Kenya, is pleased to announce an operational update for the three months 
ended 31 December 2018 (the 'Quarter' or 'Q2 2019'). 
 
   Overview 
 
 
   -- 57% increase in gold equivalent ounces produced from the previous quarter 
      to 9,648 ounces (Q1 2019: 6,138 ounces) and a 4% decrease year-on-year 
      (Q2 2018: 10,022 ounces) demonstrating a return to planned production 
      levels. 
 
   -- 16% year-on-year increase in gold equivalent ounces sold and transferred 
      during the Quarter due to higher production to 10,178 ounces (Q2-2018: 
      8,794 ounces). 
 
   -- As was forecast at the end of the previous quarter, production levels at 
      Goldplat Recovery during the period returned to normal levels with both 
      the by-product sections as well as the carbon-in-leach ('CIL') circuits 
      exceeding planned production. This was due to the sourcing of material 
      from clients returning to normal as well as the focus on processing 
      built-up inventory in the plant during the period. 
 
   -- Production at Gold Recovery Ghana improved on the previous quarter due to 
      a number of local Ghanaian contracts being processed and increased 
      sourcing from South America. During the Quarter a major West African 
      client with substantial material available from a number of operations 
      agreed to send a trial batch of material to Gold Recovery Ghana and this 
      is expected to be processed during the current quarter, as soon as export 
      logistics and legalities have been finalised. 
 
   -- Sourcing sufficient quantities of material for processing in Ghana 
      remains erratic and an area of strategic priority. 
 
   -- At Kilimapesa, production was further reduced, according to plan. In the 
      last update it was reported that a strategy had been implemented to put 
      the mine on care and maintenance by the end of November 2018 should a 
      transaction to secure funding not be in progress. Progress in respect of 
      a possible transaction during the Quarter enabled management to take the 
      decision not to proceed to care and maintenance to date. 
 
 
   Gerard Kisbey-Green, CEO of Goldplat, commented: "Overall the production 
numbers for the Quarter were good and importantly, showed a dramatic 
turnaround when compared to the previous quarter. Goldplat Recovery had 
a very good Quarter and this momentum has carried through to the current 
quarter. Although the situation in Ghana has improved, our teams are 
focussed on improving the predictability of sourcing material, including 
from within Ghana, elsewhere in West Africa as well as South America. 
Unfortunately, Kilimapesa continues to report poor results and the 
Company hopes to progress financing discussions to a point where plans 
can be shared with the market and our investors during the current 
quarter. 
 
   "While we reported very positive production and sales numbers for the 
Quarter, unfortunately we don't expect this to be sufficient to make up 
financially for the continued losses at Kilimapesa and poor first 
quarter of the financial year-- this will be reflected in the Interim 
announcement scheduled for 25 February 2019." 
 
   Production for the Quarter 
 
 
 
 
               2(nd) Qtr   2(nd) Qtr   2(nd) Qtr   2(nd) Qtr    6 months    6 months 
-------------  ----------  ----------  ----------  ----------  ----------  ---------- 
                 Dec-18      Dec-18      Dec-17      Dec-17      Dec-18      Dec-18 
               ----------  ----------  ----------  ----------  ----------  ---------- 
               Equivalent  Equivalent  Equivalent  Equivalent  Equivalent  Equivalent 
                  Gold        Gold        Gold        Gold        Gold        Gold 
               ----------  ----------  ----------  ----------  ----------  ---------- 
Goldplat Plc 
Consolidated       Kg          Oz          kg          oz          kg          Oz 
-------------  ----------  ----------  ----------  ----------  ----------  ---------- 
Gold 
Equivalent 
Production 
-------------  ----------  ----------  ----------  ----------  ----------  ---------- 
Goldplat 
 Recovery             219       7 034         198       6 380         351      11 285 
-------------  ----------  ----------  ----------  ----------  ----------  ---------- 
Gold Recovery 
 Ghana                 55       1 757          75       2 408          76       2 443 
-------------  ----------  ----------  ----------  ----------  ----------  ---------- 
Kilimapesa 
 Gold                  27         857          38       1 234          64       2 058 
-------------  ----------  ----------  ----------  ----------  ----------  ---------- 
 
Total                 301       9 648         311      10 022         491      15 786 
-------------  ----------  ----------  ----------  ----------  ----------  ---------- 
Gold 
Equivalent 
Sold 
-------------  ----------  ----------  ----------  ----------  ----------  ---------- 
Goldplat 
 Recovery             185       5 932         113       3 639         279       8 970 
-------------  ----------  ----------  ----------  ----------  ----------  ---------- 
Gold Recovery 
 Ghana                 41       1 319          65       2 089          60       1 929 
-------------  ----------  ----------  ----------  ----------  ----------  ---------- 
Kilimapesa 
 Gold                  36       1 174          47       1 498          71       2 283 
-------------  ----------  ----------  ----------  ----------  ----------  ---------- 
 
Total                 262       8 425         225       7 226         410      13 182 
-------------  ----------  ----------  ----------  ----------  ----------  ---------- 
Gold 
Equivalent 
Transferred 
-------------  ----------  ----------  ----------  ----------  ----------  ---------- 
Goldplat 
 Recovery              55       1 762          49       1 568          75       2 411 
-------------  ----------  ----------  ----------  ----------  ----------  ---------- 
Total                  55       1 762          49       1 568          75       2 411 
-------------  ----------  ----------  ----------  ----------  ----------  ---------- 
Gold 
Equivalent 
Sold and 
Transferred 
-------------  ----------  ----------  ----------  ----------  ----------  ---------- 
Goldplat 
 Recovery             240       7 694         162       5 207         354      11 381 
-------------  ----------  ----------  ----------  ----------  ----------  ---------- 
Gold Recovery 
 Ghana                 41       1 319          65       2 089          60       1 929 
-------------  ----------  ----------  ----------  ----------  ----------  ---------- 
Kilimapesa 
 Gold                  36       1 174          47       1 498          71       2 283 
-------------  ----------  ----------  ----------  ----------  ----------  ---------- 
 
Total                 317      10 187         274       8 794         485      15 593 
-------------  ----------  ----------  ----------  ----------  ----------  ---------- 
 
 
   Goldplat Recovery (Pty) Ltd ('GPL'), South Africa 
 
 
   -- 10% increase year on year ('YoY') to 7,034 ounces (Q2 2018: 6,380 ounces 
      of gold and gold equivalents produced during the quarter). 
 
   -- During Q1 2019 production from both by product circuits as well as the 
      CIL circuits was significantly below plan and it was reported that these 
      levels were returning to normal during Q2 2019. Production levels during 
      the Quarter showed an increase of 65% on the previous quarter (Q1 2019: 
      4,251 ounces). 
 
   -- 48% increase YoY of gold sold and transferred to 7,694 ounces during the 
      Quarter (Q2 2018: 5,207 ounces) and an increase of 109% on the previous 
      quarter (Q1 2019: 3,687 ounces). 
 
 
   -- Production from the by-product and the CIL sections was higher than 
      expected due to the return to expected supply of material from clients, 
      as well as a concerted effort to process inventory on site. 
 
   -- Large volumes of inventory, not including strategic stockpiles, were 
      processed during the Quarter, monetising inventory previously "dormant" 
      due to the nature of the material or economics of final processing. This 
      clean-up has continued into the second quarter. 
 
   -- Test work on the large CIL stockpile material continued during the period 
      with a trial campaign yielding opportunities for upgrading this material 
      should it be decided to process all or part of the stockpile in the 
      future. 
 
   -- The process to secure West Pit 3 for deposition is still awaiting 
      finalisation with the Department of Mineral Resources before GPL can move 
      forward to finalise the design and other requirements. 
 
   -- The alternative option for reprocessing and final deposition of the 
      Tailings Storage Facility ('TSF') continues to be evaluated. 
 
   -- Supply of material containing PGMs including woodchips and other by 
      product material was enhanced with a contract being concluded with one of 
      the major producers. This will allow a degree of flexibility going 
      forward in processing either gold containing or PGM containing woodchips 
      so as to optimising some of the lower grade circuits. 
 
 
   Gold Recovery Ghana Limited ('GRG'), Ghana 
 
 
   -- 27% decrease year on year of gold and gold equivalents produced during 
      the Quarter to 1,757 ounces (Q2 2018: 2,408 ounces), production did 
      however increase by 156% compared to the preceding quarter (Q1 2019: 686 
      ounces). 
 
   -- 27% decrease YoY of gold sold and transferred to 1,319 ounces during the 
      Quarter (Q2 2018: 2,089 ounces). 
 
   -- Two contracts in Ghana were re-initiated during the Quarter and supply of 

      small batches of material from South America continued. 
 
   -- A one-off small but very high-grade batch of material was also received 
      from a South American client and processed during the Quarter. 
 
   -- Following prolonged negotiations with a major gold producer with 
      operations in West Africa, the producer has agreed to deliver a trial 
      batch of material to GRG once export logistics and legalities have been 
      finalised. 
 
   -- Sourcing material for GRG remains erratic and difficult to predict and 
      continues to be of the prime strategic focus areas for management. 
 
 
   Kilimapesa Gold ('KPG'), Kenya 
 
 
   -- KPG produced 857 ounces of gold and gold equivalents (Q2 2018: 1,234 
      ounces) with 1,174 ounces of gold sold (Q2 2018: 1,498 ounces) on KPG's 
      own account during the Quarter. 
 
 
   -- The Company took the decision not to put operations on care and 
      maintenance at the end of November 2018 despite continuing losses due to 
      progress on discussions regarding securing funding. 
 
   -- Plant throughput has been decreased further and costs reduced in order to 
      try to minimise losses during these financing discussions. Grades from 
      the underground mine as well as from purchased tailings were lower than 
      planned during the Quarter. 
 
 
   Anumso Gold Project, ('Anumso') Ghana 
 
 
   -- The initial expenditure of US$1.5 million that was required to be made by 
      31 October 2018 has been verified and Ashanti has exercised the initial 
      option to take up 51% of Goldplat's interest in the project.  Ashanti has 
      notified Goldplat that they will not elect the Subsequent Option for an 
      additional 24% of the project and the parties will, according to the 
      agreement, form a Joint Venture to manage the project going forward. 
      Details regarding structure will be announced once decided and concluded. 
 
 
   ** ENDS ** 
 
   For further information visit www.goldplat.com, follow on Twitter 
@GoldPlatPlc or contact: 
 
 
 
 
Gerard Kisbey-Green          Goldplat plc            Tel: [phone] 
                              (CEO) 
Colin Aaronson / Jen Clarke  Grant Thornton UK LLP   Tel: [phone] 
/ Ben Roberts                 (Nominated Adviser) 
James Joyce / Jessica Cave   WH Ireland Limited      Tel: [phone] 
                              (Broker) 
Susie Geliher / Priit Piip   St Brides Partners Ltd  Tel: [phone] 
                              (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. 
 
 
 
 

(END) Dow Jones Newswires

February 04, 2019 02:00 ET (07:00 GMT)

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