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.
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
The Company commenced mining at Kilimapesa and poured its first gold in January 2012 - this was Kenya's first gold mine to be commissioned since independence in 1963. Kilimapesa has a JORC-compliant resource of 8,715,291 tonnes at 2.40 g/t Au for 671,446oz of gold at a cut-off grade of 1 g/t of gold for all categories.
Goldplat undertook a company strategic review in Q1 2013 which focussed on identifying and realigning the Company’s business model to primarily concentrate on its strong cash generating capabilities of its core gold recovery operations in South Africa and Ghana and the growth potential of this business across the continent.
Accordingly, in order to eliminate the losses caused by continued operational constraints and an uncertain gold price environment, Kilimapesa is currently on a limited mining and development programme, which is maintained on a skeleton staff to significantly reduce overheads. Since 1 July 2014, plant improvements at a minimal cost have increased the recovery and gold production at Kilimapesa despite the limited milling capacity and indications are that the increased gold production will enable the mine to operate near breakeven despite the current plant design limitations.
The Company is currently evaluating proposals for potential joint venture partners in order to best realise value from this Project going forward.
Nyieme Gold Project - Burkina Faso
The 246 sq 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 totalling 1,395,000 tonnes at 2.06 g/t gold for 92,598 oz at a cut-off grade of 1.0 g/t gold for all categories.
The Company is currently assessing opportunities to realise value/ monetise this project.
Anumso Gold Project - Ghana
The Company has a 90% interest in the Anumso Mining Lease, a ten year renewable mining lease for gold and associated minerals covering an area of 29 sq km located in the highly prospective Amansie East and Asante Akim South Districts of the Ashanti Region of the Republic of Ghana.
Anumso has a current JORC compliant resource of 166,865 oz of gold at 2.04g/t.
The Company is currently undertaking an assessment of the licence area to ascertain whether the resource has the potential to meet the mine development investment criteria of the Company.
Brian Moritz - Non-executive Chairman
Brian is a Chartered Accountant and former Senior Partner of Grant Thornton, London. He formed Grant Thornton's Capital Markets Team, which floated over 100 companies on AIM under his chairmanship. In 1995 he retired to concentrate on bringing new companies to the market as a director. He focuses on mining companies, primarily in Africa, and was formerly Chairman of African Platinum PLC and Metal Bulletin PLC as well as currently being Chairman of several junior mining companies. Brian is a member of the audit and remuneration committees of the Company and is responsible for corporate governance issues and compliance with AIM.
Gerard Kisbey-Green - 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 Visagie - Executive Director
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.
Nigel Wyatt - Non Executive
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.
Pedro De Souza - Plant Manager
Pedro, who has more than 40 years of experience operating gold plants, joined Goldplat Recovery in September 2003 having worked previously at Consolidated Modderfontein Mines Limited and Gravelotte Mines Limited. He is responsible for the operation of the plant together with his team of assistants.
Sam Du Plessis - Consultant
Prior to 1992, Sam was employed by the Department of Minerals and Energy in South Africa as assistant government mining engineer (Director - Mining Economics). Since then, he has acted as a consultant to various mining groups and has many years of experience in mining legislation, valuation, mining taxation and mining rights. Sam is responsible for and prepares Goldplat Recovery's environmental management programme and reports on it annually to the Department of Minerals and Energy.
Stock Code: GDP
Sector: General Mining
Financial year end: 30 June
Total issued share capital: 168,441,000 Ordinary Shares
Total voting capital: 167,441,000 Ordinary Shares, Treasury shares: 1,000,000
Percentage issued share capital not in public hands: 11.58%
There are no restrictions on the transfer of AIM securities
As of 23 July 2015, the following are registered as being interested in 3% or more of the Company's ordinary share capital:
Nominated Adviser and Joint Broker
SP Angel Corporate Finance LLP
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VSA Capital Limited
New Liverpool House
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Tel 020 3005 5000
Chantrey Vellacott DFK LLP
Russell Square House
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Auditors - South Africa
Nexia Levitt Kirson
196 Louis Botha Avenue
PO Box 1523
Legal advisers - English law
55 Gower Street
London WC1E 6HQ
Legal advisers - South African law
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Share Registrars Limited
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Financial Public Relations
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