Skip to main content

Goldplat provide operational update

Published by
Global Mining Review,


Goldplat plc, an AIM listed gold producer with international gold recovery operations located in South Africa and Ghana, has announced an operational update for the 12 months ended 30 June 2021.

The recovery operations achieved a combined operating profit for the 12 months ended 30 June 2021 of £5.3 million (30 June 2020: £6 350 000) and a combined operating profit in 4Q21 of the financial year of £1080 000 (4Q20: £2 546 000).

The Ghana operations continue to perform well as a result of steady supply of material and achieved an operating profit for 4Q21 of £729 000 (4Q20: £366 000). The South African operation achieved an operating profit for 4Q21 of £350 000 (4Q20: £2 180 000).

The following events have contributed to 4Q21’s operating results:

Ghana

  • There was continued good supply of material from regular clients during the period, with supply and production from two large batches from different clients continuing.
  • The company’s engagement with mine management and government officials on different levels has continued, with the aim of increasing our footprint to ensure ongoing and regular supply. During the quarter specific progress have been made with respect to engagement with potential suppliers and government officials in Burkina Faso and Mali.

South Africa

  • Excluded from profits at the end of 4Q21, 30 June 2021, was £1.1 million of unrealised profit in gold material produced not sold, compared with the end of the 4Q20, 30 June 2020, when the equivalent number was £400 000. This was mainly due to higher amount of gravity concentrated gold produced during the quarter, that had not been sold by the period end.
  • The group had an extremely profitable 4Q21 at end of the previous financial period, driven by increasing gold prices and sale of material produced in 3Q21.
  • Gold production during 4Q21 was above the average of the last 8 quarters, with production in the company’s CIL circuit contributing the most to this. Although volumes and gold grades of by-product received during 4Q21 were lower than 2 – 3 years ago, they have stabilised over the last 18 months and Goldplat expects them to remain stable on the back of a 3-year contract renewal with one of its major suppliers.
  • Operating profitability, y/y, continue to be impacted by higher electricity prices and increased water usage from the local municipality due to poor water quality from one of the group's other water sources.
  • The group has started to see benefits of equipment installed to remove carbonaceous material pre-milling towards end of the period. Based on successes in other circuits, the company has decided to incur capital to the amount of £75 000 to install gravity circuits in its largest milling circuits, to increase gold recoveries from the carbonaceous material. This will be commission during September 2021.
  • The authorities requested the company to submit additional supporting information for, should it be required, an adjusted design for its tailing's facility. The company estimates the resubmission and evaluation to take a further 3 months. It continues to manage and extend the deposit of material within the group's current facility with the help of consulting engineers.
  • As indicated, Goldplat has identified what it believe to be the best available options for both the processing facility and the deposition site and is in discussions to start the approval process with the relevant parties.

The cash and cash equivalents on hand on 30 June 2021 in the group were £3 110 000 (30 June 2020: £3.1 million) and loan outstanding to Scipion was £33 000 (30 June 2020: £1 imllion). The Scipion loan has subsequently been settled in full in accordance with Nedbank's requirements with regard to the financing of the Goldplat Recovery (Pty) Limited share repurchase as announced on 20 July 2021.

Werner Klingenberg, CEO of Goldplat, commented: “I am pleased to report continued profitability in the group and expect returns in the first quarter of the current financial year in South Africa to benefit from the sale of the stockpile of gravity concentrates at the year end. The regular supply into Ghana remains encouraging, but even more so the increased engagement in neighbouring countries creating the potential of future supply. With the sale of Kilimapesa, the group will focus on growth and diversification within its recovery operations, whilst remaining cognisant of its goal of distributing value to shareholders.”

Read the article online at: https://www.globalminingreview.com/finance-business/05082021/goldplat-provide-operational-update/

You might also like

 
 

Embed article link: (copy the HTML code below):


 

This article has been tagged under the following:

African mining news Gold mining news