Goldplat plc - Update on Preliminary Results & Sale of Kilimapesa

Goldplat plc / Ticker: GDP / Index: AIM / Sector: Mining & Exploration

11 November 2020

Goldplat plc

('Goldplat', the 'Group' or 'the Company')

Update on timing of the preliminary results announcement for 30 June 2020 and the sale of Kilimapesa

Goldplat plc (“Goldplat”), the AIM quoted gold producer, with international gold recovery operations located in South Africa and Ghana and an held for sale mining operation in Kenya, is pleased to provide an update on the publication of its preliminary results for the year ended 30 June 2020.

The preliminary results announcement is in the process of finalisation and will be released towards the end of November 2020 and will include restated results for the prior year.  These restatements do not have a cashflow impact and result in a modest net increase in equity attributable to Goldplat shareholders. The accounts will show the results for the prior year restated for:  

·    The allocation the attributable portion of the translation loss to the minority shareholders' non-controlling interest reserve. The translation loss arose on the conversion of the Goldplat Recovery (Pty) limited ("GPL") results to sterling during the prior year.

·    The recognition of the environmental and decommissioning assets for GPL and Kilimapesa which should be amortised over the life of the asset. The environmental liabilities were adequately provided for in prior years and expensed as rehabilitation costs, without raising a corresponding asset. A decommissioning asset should have been raised and then amortised over the life of the operations.

·    On 5 November 2018, Ashanti Gold Corp Limited (Ashanti") exercised its option to earn a 51% shareholding in Anumso, after expending USD 1 500 000 on exploration. Additional shares were not issued to Ashanti at that time and Ashanti did not appoint any board members. A decision was made to consolidate the Anumso results as at 30 June 2019, as Ashanti were not seen to have legal control. However, because Ashanti did take over effective control of Anumso in the prior year, we have restated the prior results and have accounted for Anumso on an equity accounting basis. As part of the restatement, the translation loss relating to Anumso will be allocated to retained earnings through the statement of profit and loss.  

Kilimapesa Update

Progress has been made on the transaction with a draft restructuring plan and due diligence information received from Mayflower and we are working closely with them in advancing the transaction and finalising the due diligence, which will only be completed once the restructuring plan has been concluded. Further to the Company's announcement of 15 October 2020, it has been agreed that all conditions have been met or waived and the exclusivity period for the sale of Kilimapesa be extended to 31 December 2020. Further updates will be provided on the transaction in due course.

Werner Klingenberg, CEO of Goldplat commented: "I fully support these improvements in our reported results and despite the additional delay this has caused I trust it will be useful to all stakeholders involved. The progress made on the Kilimapesa transaction have been encouraging and we look forward to share updated timelines soon."   

For further information visit www.goldplat.com, follow on Twitter @GoldPlatPlc or contact: