Big picture - Why invest in Goldplat plc
Goldplat plc Snapshot
Goldplat is a profitable, African gold recovery services company with two market leading operations in South Africa and Ghana. Goldplat’s strategy is focussed on utilising its robust cash flow generated from flagship gold recovery operations in Africa to self-fund sustainable growth and expansion of niche gold recovery business model. The Company also has a small gold mining and exploration portfolio in Kenya, Burkina Faso and Ghana and is evaluating various opportunities to create value or monetise these assets.
In addition, Goldplat has an experienced board and management team with a proven track record of creating shareholder value through the development of African resource assets into production.
Goldplat’s primary strategy is to build upon the successes of its profitable core gold recovery operations in South Africa and Ghana where the Company sees the potential for continued strong revenue growth and stable margins. Goldplat will continue to optimise its South African gold recovery operation and build its Ghanaian gold recovery operation to replicate the successful and mature South African operation, which sources by-products primarily from blue chip mining companies. In addition to this, Goldplat will continue to focus on crystallising value from its current gold mining and exploration portfolio.
Goldplat Recovery (Pty) Limited SA - South Africa
Having built its reputation over a 30 year period, Goldplat Recovery’s technology provides an economic method for mines to dispose of by-product materials while at the same time adhering to a mine’s environmental obligations. It has a substantial blue-chip supplier base that includes all the major names of the African mining industry such as Anglogold Ashanti, Goldfields, Harmony, and Lonmin. It remains the leading company in this field by continuous investment in its operations and the implementation of initiatives to optimise its production capabilities.
Goldplat Recovery operates from a 22 hectare freehold site based near Benoni in Gauteng, which is near the centre of the East Rand Goldfield. After testing to establish assay, moisture content, recoverability and size, Goldplat Recovery purchases the materials from the mine operator when they become available, which helps management to schedule production in an efficient manner and makes it more difficult for potential competitors to enter the market.
Goldplat Recovery’s extraction processes and multiple process lines enable it to keep materials separate, which provides a high degree of flexibility when proposing a solution for a particular type of material. The processes which are employed include roasting in a rotary kiln, crushing, milling, thickening, flotation, gravity concentrators, leaching, CIL, elution and smelting of bullion.
Production is scheduled to make the most efficient use of the materials taking into account the ore grade and anticipated recovery factors. Raw materials are blended and routed to the various plants in an effort to ensure that production levels are reasonably consistent from month to month. In some cases, similar material can be treated in different plants. The wide variety of materials stockpiled means that it can benefit from being able to blend materials for more effective processing.
Precious metals are usually recovered from materials within a single process. In some cases, there may be a second process which takes place many months afterwards, for instance where the residue from processing very high grade material is left to oxidize in a stock dam in order to enhance the overall recovery rate. Such stock dams can contain substantial amounts of gold and PGM. Goldplat Recovery’s plant is designed to process a variety of material, such as:
- Woodchips, which are generated from underground mine supports which become caught up in the ore being processed. They are screened off after the milling stage of the mine operator’s processing plant;
- Vlei material, which is generated in the vicinity of the mine operator’s processing plant and which tends to accumulate in settlement dams or vleis;
- Fine carbon, which is generated when modern processing plant re-processes activated carbon for reuse. The abraded carbon grains are collected by screens or filters in the mine operator’s processing plant;
- Waste grease, which when replaced is re-processed by Goldplat Recovery to recover spillages of ore which has stuck to the grease;
- Liners, which are used to protect the mill shell used in the mine operator’s processing plant. Made of rubber or steel alloys, they collect small amounts of gold or precious metals which can be liberated through the Group’s processes.
Any product which contains precious metals is of interest to Goldplat Recovery’s research team who will investigate methods to extract metal from types of material which have not previously been processed by it.
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Gold Recovery Ghana Limited – Ghana
The plant’s location provides access to raw materials from mines in Mali, Guinea, Burkina Faso, Benin, Cote D’Ivoire Senegal, the DRC and Mauritania as well as Ghana. The Company also has a toll processing agreement with Adamus Resources in Ghana which was signed in April 2011 and allows some of GRG’s stockpiled by-products to be processed off-site.
Like Goldplat’s South African gold recovery operation company, Gold Recovery Ghana has contracts with some of the major mine operators including AngloGold Ashanti, Golden Star Mining and Goldfields. Its strategy is to increase by-product contracts through other major mining companies in the west African region. Gold Recovery Ghana also continues to invest in its operations to increase processing capability.
Mining & Development
Kilimapesa Gold - 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.
The Company is focussed on increasing production at the mine through a new processing plant and tailings deposition facility. The new plant was commissioned in February 2017 at a site in close proximity to the Kilimapesa Hill underground mine and has a designed capacity of 200 tonnes per day. The plant has been uniquely designed to maximise production volumes by incorporating a crusher circuit, mills, a thickener, leach tanks, the existing elution plant as well as a tailings deposition facility.
To support the increased processing capacity, underground workings at Kilimapesa Hill are being prepared to maintain plant throughput at the new plant once fully commissioned.
Alongside this, talks with potential investors or joint venture partners continue, primarily with the aim of procuring additional resources within the region and undertaking exploration drilling to increase the resource on Kilimapesa's exploration permit.
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Nyieme Gold Project - Burkina Faso
The 246 square km Nyieme Gold Project is located some 270 km southwest of Ouagadougou near the town of Dano on the prospective Birimian Greenstone Belt in southern Burkina Faso.
The project has a JORC-compliant resource (refer to the announcement of 12 December 2012) totaling 1,395,000 tonnes at 2.06 g/t gold for 92,598 ounces at a cut-off grade of 1.0 g/t gold for all categories. The exceptional 3-year extension which was granted on 29 September, 2014 expires in October 2017. The Company has no intention to apply for a further extension or a renewal as previous work at the project found it to be of too small a scale to be viable and the Company does not wish to commit any further capital on exploration at this project. A decision has been taken by the Board to fully write-off the value of the Nyieme Gold Project during FY 2017. The value of this write-off in Goldplat's Statement of Profit and Loss and other Comprehensive Income for the year ended 30 June 2017 is £955,000.
Anumso Gold Project - Ghana
Anumso has a current JORC compliant resource of 166,865 oz of gold at 2.04g/t.
In September 2016 the Company executed an earn-in option agreement with Ashanti Gold Corp. (‘Ashanti’), a TSX-Venture Exchange listed company, which gives Ashanti the option for a US$3 million earn-in to the Anumso Gold Project.
The agreement provides for two options: in the first option period Ashanti will be given the opportunity to earn a 51% interest in Anumso by expending US$1.5 million on exploration on the project over 18 months (the 'Initial Option Period'). Ashanti has the unilateral power to terminate the agreement within the first 6 months of this Initial Option Period, and expenditure on the Project during this period will be at its sole discretion. Should Ashanti not exercise its right to terminate the agreement during the first six months, it will be obliged to expend US$1.5 million on Project expenditure during the Initial Option Period or pay the deficiency to Goldplat. Should Ashanti meet the expenditure condition within the Initial Option Period, it will be entitled immediately to exercise its option and receive an initial 51% of Goldplat's interest in the Project (45.9% of the overall Project licence).
Conditional upon exercising the Initial Option Period, Ashanti will be entitled to give Goldplat notice that it intends to invest further in the Project, which will trigger a second period of 12 months (the 'Subsequent Option Period') in which it will be given the option to earn an additional 24% of Goldplat's interest by expending a further US$1.5 million on exploration on the Project during the Subsequent Option Period or by paying the deficiency to Goldplat (the "Subsequent Option"). Expenditure during the Subsequent Option Period will be at Ashanti's sole discretion and will not be reimbursable if Ashanti does not exercise the Subsequent Option. Should Ashanti meet the expenditure condition within the Subsequent Option Period, it will be entitled immediately to exercise its option and receive a further 24% of Goldplat's interest in Anumso (21.6% of the overall Project licence).
Ashanti will be the operator of the exploration and development programme during the option periods, with a Joint Technical Committee being established to agree upon the work programmes. If Ashanti does not give Goldplat notice to trigger the Subsequent Option Period, or once the Subsequent Option has been exercised, a Mining Company will be formed, under a Joint Venture Agreement and the mining licence will be assigned to this Company. Both parties will contribute pro-rata to further development with either non-contributing party being diluted. If either party is diluted to 10%, this interest will be converted into a 1.5% Net Smelter Return (“NSR”), which can be bought out by the other party for US$100,000 per 0.1% NSR, for an aggregate of US$1.5 million.
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Matthew is a high profile figure in the growth company arena, with extensive experience in mining and resources. Training as a Chartered Accountant, Matthew began his career at Binder Hamlyn and Touche Ross, the predecessor firm of Deloitte, before founding a business consultancy specialising in corporate turnarounds. He spent several years as the Finance Director and Company Secretary of Internet Music Shop, one of the first online music retailers. During his time, he managed its merger with European competitor Boxman.com, with turnover growing to over £12 million per annum, and was responsible for raising approximately £20 million of equity. He spent the last 15 years of his career as a Corporate Finance Director at finnCap and Panmure Gordon/Durlacher. During this time Matthew was responsible for establishing finnCap and Panmure Gordon's mining and resources investment businesses, in addition to his role as adviser to AIM and Official List companies on the London Stock Exchange. Moving to the nascent finnCap in 2006, Matthew was instrumental in its rapid growth, which saw it become the largest nominated adviser and broking firm, by number of clients, on the London Stock Exchange's AIM market.
Chief Executive Officer
Gerard has built an expansive career in the mining and related financial industry, spanning over 28 years. After graduating as a Mining Engineer in South Africa in 1987, Gerard gained extensive experience working in various management positions for a number of the larger South African mining companies, including Rand Mines Group and the gold division of Anglo American Corporation. During this time he worked on gold, platinum and coal mines primarily in South Africa and also in Germany and Australia.
Gerard subsequently spent 17 years in the financial markets, including five years as a mining equity analyst and 12 years in mining corporate finance. He has worked in South Africa and the UK for banks including JPMorganChase, Investec and Standard Bank, and has extensive experience in IPOs, capital raisings, M&A transactions and deals covering a great diversity of commodities and geographic locations. He also has experience in nomad and broker and advisory roles.
Hansie van Vreden
Chief Operating Officer
Hansie is a qualified Metallurgist who has a solid understanding of the Company’s gold recovery operations having worked as General Manager of GPL, and Managing Director of GPL and GRG gold recovery operations. Prior to joining Goldplat, Hansie worked at several AngloGold Ashanti operations in South Africa and Australia, where responsibilities included working as the Production Metallurgist at AngloGold Ashanti's Kopanang Gold Plant in South Africa.
Ian is a chartered accountant who has worked in senior positions in the mining industry since 1990. A South African citizen he trained as a Chartered Accountant with KPMG in its Pretoria office. Having gained post-qualifying experience with KPMG he moved into a mining environment in 1990 when he joined Consolidated Modderfontein Mines Limited as Financial Manager where he first worked with Demetri Manolis.
In 1992, he joined Gravelotte Mines Limited as Financial Manager and Goldplat Recovery in March 1997 as Financial Director. With Demetri Manolis, he took over management control of Goldplat Recovery in November 2000.
Ian is responsible for the financial and administration affairs of the Company and its subsidiaries.
Werner Klingenberg, is a chartered accountant and has joined Goldplat Plc in 2015 as Group Financial Manager. He trained as a Chartered Accountant with Deloitte’s Pretoria office after which he remained in an audit manager roll for 3 years. He subsequently moved into commerce and gained system and financial experience in the telecommunications and retail industries for 5 years before joining Goldplat. Werner plays an integral role in managing the financial and administration affairs of the Company and its subsidiaries.
Nigel has over 40 years of experience in the mining arena, having held senior positions in a number of mining and engineering companies, primarily in Southern Africa. This includes acting as Group Marketing Director of a De Beers subsidiary group, which was responsible for supplying specialised materials, engineering and technology to the industrial and mining sectors. Following this he was Commercial Director of Dunlop Industrial Products (Pty) Ltd, South Africa.
Nigel is a mining engineer and a graduate of the Camborne School of Mines, England.
Non Executive Director
Sango is the executive chairman and co-founder of NMT Capital, a diversified investment holding group and has built an illustrious career within South Africa, spanning over 30 years.
This includes successfully founding Sizwe Ntsaluba Gobodo, one of South Africa’s ‘Big 5’ accounting firms. Alongside a distinguished auditing career, Sango has extensive corporate experience in areas that include logistics and the automotive industry. He currently serves as an independent board member of Barloworld Limited, a leading global industrial company listed on the Johannesburg Stock Exchange (“JSE”), with responsibility for chairing the group’s audit committee.
He also serves on the boards of Pioneer Foods, a producer and distributor of a range of branded food and beverage products, as well as Basil Read Holdings Limited, a diversified construction company. Both of these companies are also listed on the JSE. Sango is the Chairman of the board of Goldplat’s subsidiary, Goldplat Recovery (Pty) Ltd.
Anton heads up the Engineering Department at our South African operation and oversees projects at other subsidiaries from time to time. He holds a N3 National Certificate in Engineering and is a qualified Electrician as required by the Mining Industry Engineering Trades Training Board. He has 25 years’ experience. Anton has been in the employment of AngloGold Ashanti since 1990 in various positions before joining Goldplat in October 2013.
Bob acted as the Managing Director of Goldplat's Gold Recovery divisions since July 2011. He has worked in the recovery of precious metals since 1984 and formally joined Goldplat Recovery in September 2003. He has a PhD in Chemical Engineering and a MSc in Business Administration and was previously responsible for marketing and technical matters at Goldplat.
He currently consults to the Group. He concentrates his efforts on Gold Recovery Ghana and the Kilimapesa mine whilst acting in a supporting role at the South African Subsidiary.
Neels started with Goldplat in 1998 as a Shift Supervisor and now manages our South African Plant. He has drafting and plant instrumentation qualifications and also assist the group from time to time on the planning, design and commissioning of capital projects.
As of 20 September 2017, the following are registered as being interested in 3% or more of the Company's ordinary share capital:
|Shareholder||Number of Ordinary Shares||% Holding|
|Chase Nominees Limited ( FIL Limited )||16,087,000||9.60|
|Fitel Nominees Limited||13,342,500||7.97|
|Barclayshare Nominees Limited||11,426,421||6.82|
|HSDL Nominees Limited||11,413,197||6.82|
|HSDL Nominees Limited||10,882,627||6.50|
|TD Direct Investing Nominees (Europe) Limited||10,346,871||6.18|
|Canaccord Genuity Group Inc||167,441,000||5.04|
|Hargreave Hale Limited||8,400,000||5.02|
|Hargreaves Lansdown (Nominees) Limited||7,157,899||4.27|
|Hargreaves Lansdown (Nominees) Limited||6,999,316||4.18|
|HSBC Client Holdings Nominee (UK) Limited||5,507,186||3.29|
|Hargreaves Lansdown (Nominees) Limited||5,176,015||3.09|
Nominated Adviser and Joint Broker
Grant Thornton UK LLP
30 Finsbury Square
Tel: +44 (0)20 7383 5100
VSA Capital Limited
New Liverpool House
15-17 Eldon Street
Tel 020 3005 5000
St Brides Partners Ltd
3 St Michael's Alley
Tel: 0207 236 1177