Goldplat plc Trading And Operational Update

 
TIDMGDP 
 
   Goldplat plc / Ticker: GDP / Index: AIM / Sector: Mining & Exploration 
 
   27 July 2017 
 
   Goldplat plc ('Goldplat' or 'the Company') 
 
   Trading and Operational Update 
 
   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 a trading update for the year ended 30 
June 2017 ('FY 2017'), a production update for FY 2017 and an 
operational update for the three months (the 'Quarter') ended 30 June 
2017 
 
   Trading update 
 
   Goldplat is pleased to announce that consolidated profit before tax for 
the Company before any adjustment for the Nyieme Project (as described 
further below) is expected to exceed market expectations for FY 2017. 
The Company expects to publish its annual financial results in September 
2017 
 
   Production for the year ended 30 June 2017 
 
 
   -- 42,857 gold equivalent ounces, representing a 14% increase over the 
      previous year were produced during FY 2017 (FY June, 2016: 37,666 
      ounces). All operations contributed to the year-on-year increase which 
      exceeded targets for the year 
 
   -- 40,285 gold equivalent ounces were sold and transferred during FY 2017 
      (FY 2016: 40,763 ounces). The high level of gold sold and transferred 
      during FY 2016 was due to stock carried over from the previous year being 
      sold, whereas the Gold equivalent ounces sold during 2017 reflects a 
      build-up of material in Ghana which will be sold in the first quarter of 
      the new year 
 
 
   Production for the Quarter 
 
   Overall production of 14,790 ounces of gold and gold equivalents was 
achieved during the Quarter. This relatively high quarterly production 
was primarily as a result of: 
 
 
   -- commissioning most of the stage two expansion at Kilimapesa Gold Limited 
      ('KPG') during the Quarter and consequent increase in production to 1,254 
      ounces of gold 
 
   -- production from a large contract with a new client in Africa being 
      completed at Goldplat Recovery Limited ('GPL') during the Quarter, 
      resulting in 11,896 ounces of gold equivalent ounces of production at GPL 
      for the Quarter. 
 
 
 
 
                4th Qtr ending    4th Qtr ending     Year ending       Year ending 
                   June 2017         June 2017         June 2017         June 2017     Year ending June 2016  Year ending June 2016 
Goldplat Plc    Equivalent Gold   Equivalent Gold   Equivalent Gold   Equivalent Gold     Equivalent Gold        Equivalent Gold 
Consolidated          kg                oz                kg                oz                   kg                     oz 
Gold 
 Equivalent 
 Production 
Gold Recovery 
 Ghana                       51             1 640               312            10 031                    214                  6 883 
Kilimapesa 
 Gold                        39             1 254               106             3 408                     62                  2 005 
Goldplat 
 Recovery                   370            11 896               915            29 418                    895                 28 778 
Total                       460            14 790             1 333            42 857                  1 171                 37 666 
Gold 
 Equivalent 
 Sold 
Gold Recovery 
 Ghana                       13               418               259             8 327                    279                  8 964 
Kilimapesa 
 Gold                        38             1 222               100             3 215                     62                  1 999 
Goldplat 
 Recovery                   306             9 838               702            22 570                    516                 16 575 
Total                       357            11 478             1 061            34 112                    857                 27 538 
Gold 
 Equivalent 
 Transferred 
Goldplat 
 Recovery                    34             1 094               192             6 173                    411                 13 225 
Total                        34             1 094               192             6 173                    411                 13 225 
Gold 
 Equivalent 
 Sold and 
 Transferred 
Gold Recovery 
 Ghana                       13               418               259             8 327                    279                  8 964 
Kilimapesa 
 Gold                        38             1 222               100             3 215                     62                  1 999 
Goldplat 
 Recovery                   340            10 932               894            28 743                    927                 29 800 
Total                       391            12 572             1 253            40 285                  1 268                 40 763 
 
 
   Goldplat Recovery (Pty) Ltd ('GPL'), South Africa 
 
 
   -- Gold production at GPL during the Quarter was high (at 11,896 ounces of 
      gold equivalent produced) due primarily to the completion of processing 
      of a large one-off batch of carbon from a new client in Africa. Most of 
      this production was also sold during the Quarter with the remainder 
      planned for sales in the first quarter of the new year 
 
   -- The Carbon-in-leach ('CIL') circuits exceeded planned gold production due 
      to higher grade of processed material, despite an unplanned stoppage of a 
      mill during the period. 
 
   -- With sourcing of feed for the CIL circuits remaining a priority, the 
      Company is pleased that large volumes of material for the CIL circuits 
      for the new financial year were sourced during the Quarter. Some of this 
      material will benefit from various different testwork being undertaken to 
      improve recoveries. 
 
   -- Metallurgical testwork and pilot tests on the stock dam material 
      continue. The process of securing the West 3 Pit for deposition tailings 
      continues but with the different interests of the various stakeholders 
      and the changing regulatory environment, the approval process is taking 
      longer than initially anticipated. The Company remains confident that the 
      logistical and regulatory issues will be overcome and the pit will be 
      secured. 
 
   -- No further progress has been made on the Rand Refinery dispute. 
 
 
   Goldplat Recovery Ghana ('GRG'), Ghana 
 
 
   -- Gold production at GRG improved significantly during the Quarter to 1,640 
      ounces of gold equivalent resulting in an annual production of 10,031 
      ounces of gold equivalent production. 
 
   -- With sources of material from within Ghana continuing to deplete for 
      various reasons, focus remained on sourcing from outside of the country. 
      Momentum in this regard is picking up with contracts secured from 
      elsewhere in Africa as well as South America. 
 
   -- The planned elution plant was shipped from GPL during the Quarter and 
      arrived in Ghana shortly after the end of the Quarter, with work started 
      on site preparation and civils. Whereas the deadline for commissioning is 
      June 2018, GRG would like to target the end of December 2017 for 
      commissioning. 
 
   -- A third fluidised bed incinerator which was purchased second-hand from an 
      operator in Tanzania is currently being transported for shipment to GRG. 
 
   -- During the Quarter, more focus was put into improving security at the 
      plant and also in processing the large stockpiles of low-grade material. 
      These projects are ongoing and contribute to ensuring space for and a 
      secure environment for planned increased production at GRG in the future. 
 
   -- GRG is investigating a major project with the Ghanaian Government to 
      assist in clean-up of artisanal mining tailings. The Company is 
      conducting extensive sampling programmes to assess both gold as well as 
      contaminant (mainly mercury and cyanide) content and is simultaneously 
      investigating the most efficient processing methods so as to recover gold 
      and deal with contaminants in an environmentally acceptable manner (in 
      compliance with acceptable global standards). 
 
 
   Kilimapesa Gold ('KPG'), Kenya 
 
 
   -- Production at KPG of 1,254 ounces of gold equivalent during the Quarter 
      represented a 41% increase on the previous quarter and a record gold 
      production quarter for the operation. Notwithstanding the improvement, 
      the production was lower than that planned due to both lower tonnages and 
      grades mined. 
 
   -- Production rates were impacted by problems with generators, mainly 
      associated with poor diesel quality. These issues have been largely dealt 
      with during the Quarter. A new diesel bowser has been installed at the 
      new plant, a new supplier has been engaged, and the process of installing 
      grid power at plant 2 has been initiated. 
 
   -- KPG achieved operational profitability during the months of May and June 
      2017 - for the first time since the acquisition a decade ago. Management 
      is confident that profitability will now be maintained and improved. 
 
   -- Full commissioning of stage two of the new plant is still not complete 
      due to ongoing delays in clearing key equipment through the port. Planned 
      mill throughput was achieved as sufficient fine material was previously 
      stockpiled for processing during commissioning. Increased mine production 
      and final commissioning of the crusher section during the first quarter 
      of the new financial year should improve both tonnage and grade of 
      material and should allow improved recoveries. 
 
   -- All sections of the crusher section have been run on trial basis and have 
      performed very well. Full commissioning is expected during the first 
      quarter of the new financial year. 
 
   -- KPG continues to acquire good quality tailings for processing at the old 
      plant where the tailings facility capacity has been increased to provide 
      for a further 12 months of production. 
 
 

   Anumso Gold Project, Ghana 
 
 
   -- During the Quarter, Ashanti Gold Corp completed an extensive soil 
      sampling programme across the Anumso Gold Project properties to test the 
      strike extent of the Banka conglomerate. 1,300 samples were collected 
      which are now being assayed locally 
 
   -- All core has been reviewed and a 320Kg sample was selected for 
      metallurgical testing. Samples are currently in Vancouver for test work. 
 
   -- All core is now being stored on GRG's site in Tema 
 
   -- Ashanti Gold Corp's planned work for the next period includes the 
      completion of assaying of soil samples and metallurgical testwork of core 
      samples. 
 
 
   Nyieme Gold Project, Burkina Faso 
 
   The exceptional 3-year extension granted for Nyieme Gold Project in 
Burkina Faso on 29 September, 2014 expires in October 2017. The Company 
has no intention to apply for a further extension or a renewal as 
previous work at the project found it to be of too small a scale to be 
viable and the Company does not wish to commit any further capital on 
exploration at this project. A decision has been taken by the Board to 
fully write-off the value of the Nyieme Gold Project during FY 2017. The 
value of this write-off in Goldplat's income statement for the year 
ended 30 June 2017 is expected to be approximately GBP980,000. 
 
   South America 
 
 
   -- Strong progress has been made in securing contracts with operators in 
      various South American countries. A local Brazilian metallurgist has been 
      employed to work alongside the Company's local partner (Oretec). 
 
   -- Deliveries of material to GRG from the Company's first large, long-term 
      contract in Uruguay were received during the Quarter with production 
      expected in the new financial year. 
 
   -- Trial batches of mill liners, wood chips and low-grade carbon have proved 
      to be economically viable. This is important as significant competition 
      for higher grade carbon has been encountered. 
 
   -- The Board expects further progress in South America in the new financial 
      year which will assist with the growth plans at GRG. 
 
 
   Gerard Kisbey-Green, CEO of Goldplat plc, commented: 
 
   "The final quarter of the financial year produced good results all 
around for Goldplat, with a particular highlight being the continued 
record gold production and first operational profitability at our 
Kilimapesa operation. Delays in the final commissioning of stage two of 
the new plant were largely out of the team's control and I remain very 
proud of the work done on the project which should reap rewards in the 
years to come! Securing and completion of a very large contract for a 
new client in Africa was a further highlight at GPL! Despite this being 
a one-off contract, it proved our ability to source material from new 
clients and geographies, manage the logistics and process large amounts 
of material quickly and profitably! This is an important aspect of 
overall risk mitigation for Goldplat. I believe that the extensive 
progress being achieved in the diversification of sourcing of material 
at all of our operations will stand the Company in good stead for the 
coming financial year. I look forward to sharing comprehensive results 
with the market in September 2017". 
 
   **ENDS** 
 
   For further information visit www.goldplat.com or contact: 
 
 
 
 
Gerard Kisbey-Green        CEO Goldplat plc          Tel: [phone] 
Colin Aaronson/ Daniel     Grant Thornton UK LLP     Tel: [phone] 
Bush                       (Nominated Adviser) 
Andre Raca/ Justin         VSA Capital Limited       Tel: [phone] 
McKeegan                   (Broker) 
Charlotte Page/Susie       St Brides Partners        Tel: [phone] 
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. 
 
   This announcement is distributed by Nasdaq Corporate Solutions on behalf 
of Nasdaq Corporate Solutions clients. 
 
   The issuer of this announcement warrants that they are solely 
responsible for the content, accuracy and originality of the information 
contained therein. 
 
   Source: Goldplat plc via Globenewswire 
 
 
 
 

(END) Dow Jones Newswires

July 27, 2017 02:00 ET (06:00 GMT)

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