Goldplat plc - Quarterly Update
Goldplat plc / Ticker: GDP / Index: AIM / Sector: Mining & Exploration
('Goldplat', the 'Group' or 'the Company')
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 an operational update for the three months ending
The following events have contributed to the improved performance during the Quarter -
· The continued production in
· Increase in production levels in
· Reduction in losses at Kilimapesa due to the mine being on care and maintenance, with only artisanal tailings being processed to contribute towards the costs of care and maintenance;
· Cost reductions and improved operational efficiencies throughout the Group over the past year are contributing to profitability, including cost reductions on central group overheads;
· Improvement in certain plant operational efficiencies 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
We remain committed to our key initiatives of increasing long term visibility of earnings in the recovery business and finding an investment partner or buyer for Kilimapesa.
We aim to achieve improved visibility of earnings in the recovery business through:
· improving our gold recoveries from lower grade contaminated material so that this type of material can be treated profitably. Reserves of lower grade materials are more readily available and where we can source stockpiles of this material the sourcing risk is alleviated;
· Increased investment into sourcing initiatives and test work on a wider range of materials, including PGM discards.
To help shareholders' understanding of the Group's performance we are also pleased to initiate quarterly reporting of the sales and operating profit, on an unaudited basis, of each principal operating entity.
GPL maintained good production levels and recorded sales during the Quarter of £4,479,000. In comparison, sales in the first quarter of the previous financial period (QTR1 FY2019: £3,374,000) were low because of specific production issues. The improvement in production levels year-on-year, supported by higher gold prices, resulted in an increase in quarterly operating profit to £1,074,000 (QTR1 FY2019: loss of £252,000).
Towards the end of the Quarter, we started to install the first stage of a pre-treatment section to the largest CIL section at a cost of
Our tailings storage facility ('TSF') is approaching full capacity in its current form and we will be spending
Once we have established the new TSF, the existing TSF, which contains circa 88,000 oz of gold, can be allowed to dry out after which we can look at monetising this asset.
Gold Recovery Ghana ('GRG')
GRG experienced increased activity during the Quarter, achieving sales of
The current indications are that the next quarter's results should improve further, however the sourcing of material to process remains sporadic and the visibility of future consignments remains low.
There are indications that we are penetrating the West African market as planned and we remain optimistic that we will receive support from the various Governments and the mines to expand our market reach to source material in
We are exploring the opportunities for toll treating lower grade material from
Kilimapesa Gold ('KPG')
The mine remains on care and maintenance; mining has ceased and we are only incurring costs on security at the mining sites to safeguard our assets.
To reduce the cash costs of care and maintenance and to support the local community while we seek an investment partner, we are processing batches of artisanal material, which we will continue to do whilst it makes a cash contribution to the care and maintenance costs.
Operating losses were
The majority of VAT refunds that have been received so far of
We have agreed with our Joint Venture partner at Anumso, Desert Gold (
For further information visit www.goldplat.com, follow on Twitter @GoldPlatPlc or contact:
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Tel: +27 (0) 82 051 1071
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Tel: +44 (0) 20 7383 5100
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Tel: +44 (0) 207 220 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.
This information is provided by RNS, the news service of the
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