TIDMGDP
Goldplat plc / Ticker: GDP / Index: AIM / Sector: Mining & Exploration
18 September 2017
Goldplat plc
('Goldplat', the 'Group' or 'the Company')
Preliminary Results
Goldplat plc, the AIM listed gold producer, announces its preliminary
results for the year ended 30 June 2017 ('FY 2017').
Operations / Corporate
-- Significant increase in operating profitability from continuing
operations in FY 2017 following the successful turnaround strategy at
Kilimapesa Gold Mine, meaning by the end of the last quarter of the year,
all operations were operating profitably
-- Increased gold equivalent production highlights the continued and steady
growth of the business - Goldplat produced 42,857 ounces of gold during
the year, marking a 13.7% increase on 2016 (2016: 37,666 ounces), which
follows a 23.3% increase from 2015
-- Recovery operations produced 39,449 gold equivalent ounces (2016:
35,661 ounces)
-- Kilimapesa Mine produced 3,408 ounces of gold (2016: 2,005 ounces)
- the increased processing capacity was only seen towards the end
of FY 2017 meaning further upside expected with in excess of
5,800oz targeted during FY 2018
-- Actual sales were 40,285 gold equivalent ounces (2016: 40,763 ounces)
-- 34,112 gold equivalent ounces sold for own account (2016: 27,538
ounces)
-- 6,173 gold equivalent ounces transferred to clients (2016: 13,225
ounces)
-- Committed to maintaining active growth strategy to build production and
profitability:
-- Gold recovery:
-- Work well advanced to increase geographical reach, by
establishing Ghana as an international recovery hub, with
material already being imported from elsewhere in Africa
and South America and opportunities identified in North
America
-- Opportunity to diversify metal focus - platinum group
metals trials continuing in South Africa
-- Potential to maximise environmental value by offering
mining "clean-up" services processing by-products with
contaminants such as mercury - investigating a major
project with the Ghanaian Government to assist in the
clean-up of artisanal mining tailings
-- Primary mining:
-- Focussed on driving increased production at Kilimapesa
-- Targeting expansion by considering opportunities to gain
interests in producing or near-production assets
-- Non-core exploration portfolio:
-- TSX quoted Ashanti Gold Corp has the option to earn up to 75% of
Goldplat's interest in the Anumso Gold Project in Ghana by
expending US$3million on exploration work at the project
-- Strategic decision to write off Nyieme Gold Project in Burkina
Faso having found the project to be too small scale to be
economically viable
-- Matthew Robinson appointed as Chairman - bolsters the experienced
management team
Financials
-- 140% increase in operating profit from continuing operations to
GBP2,910,000 (2016: GBP1,212,000)
-- 43% increase in profit before tax from continuing operations to
GBP2,836,000 (2016: GBP1,988,000)
-- Strong performance continues to be reported at the Group's recovery
subsidiaries:
-- Goldplat Recovery (Pty) Ltd - South Africa - 36% increase in
profit after tax to GBP2,420,000 (2016: GBP1,777,000)
-- Gold Recovery Ghana Limited - Ghana - 169% increase in profit
after tax to GBP1,177,000 (2016: GBP437,000)
-- Kilimapesa Gold (Pty) Limited reported a net loss of GBP1,100,000 for the
year (2016: loss of GBP711,000) as the benefits of increased production
capacity were only realised during the second half of FY 2017. In FY 2017
revenue increased to GBP3,150,000 (2016: GBP156,000), with operating
profit achieved towards the end of the year
-- Nyieme exploration project discontinued and development cost of
GBP955,000 written-off, with no cashflow impact in current period.
-- Total comprehensive income for the year still higher than comparative
year at GBP1,989,000 (2016: GBP1,897,000)
-- Net cash position of GBP2,650,000 as at 30 June 2017 (GBP2,056,000 as at
30 June 2016)
For further information visit www.goldplat.com, follow on Twitter
@GoldPlatPlc or contact:
Gerard Kisbey-Green (CEO) Goldplat plc Tel: +27 (71) 8915775
Colin Aaronson / Daniel Grant Thornton UK LLP Tel: +44 (0) 20 7383 5100
Bush (Nominated Adviser)
Andrew Raca / Justin VSA Capital Limited Tel: +44 (0) 20 3005 5000
McKeegan (Broker)
Charlotte Page / Susie St Brides Partners Ltd Tel: +44 (0) 20 7236 1177
Geliher
The information contained within this announcement is considered to be
inside information, for the purposes of Article 7 of EU Regulation
596/2014, prior to its release.
Chairman's Statement
I am pleased to report in my first Chairman's statement continued growth
in profits from operating activities and progress in our strategic
objectives. Our revenue generating assets comprise sophisticated
precious metal recovery facilities in South Africa and Ghana and gold
mining in Kenya. Results from operating activities for the year from
continued operations have crucially increased to GBP2,910,000 (2016:
GBP1,212,000) underpinning the growing strength of our business and in
the final part of the year under review all three operations were making
a positive contribution to profitability, with our long-term investment
in our Kilimapesa Gold Mine in Kenya now starting to produce worthwhile
results. This has, accordingly been a very positive year for our Company
and I am pleased to report that our growth initiatives are set to
continue as we remain focused on further building production and
profitability.
Strategically, we continue to seek to diversify; this diversification is
in sourcing material for our processing operations, both geographically
and in material types, and in the balance between our recovery and our
mining activities. Regarding our recovery operations, we have been
active in South America and are encouraged by the opportunities for
sourcing materials we see there. We are also active in West and East
Africa and considering further opportunities in North America.
We have been continuing to invest in the businesses, sustaining and
upgrading equipment in South Africa, developing new processing
capacities in Ghana and installing the new, higher capacity, processing
circuit in Kenya. We have borrowed modestly and conservatively to
develop the Kenyan operations but otherwise investment has been financed,
as it has now been for many years, from internally generated cash flows.
We have shown the discipline to manage our resources and consider
investment opportunities with care; if we see compelling opportunities
which require additional capital we will of course consider that also.
Your board of directors has seen a number of changes during the period.
In October 2016 my predecessor Brian Moritz retired; Brian had been
Chairman since the Company's admission to AIM in 2006 and the Group is
grateful for his guidance and enthusiasm over those years. In light of
his departure, at the annual general meeting held in October 2016
shareholders elected me to the board. I am delighted to have joined
Goldplat at a time of growth, and look forward to stewarding the Company
forward to maintain our active development approach in order to create
meaningful value. In June 2017 we were pleased to welcome Sango Ntsaluba
and Werner Klingenberg to the board. Alongside a distinguished auditing
career, Sango has extensive corporate experience in both the public and
private sectors and is executive chairman of a diversified investment
holding group. Werner is a Chartered Accountant and, having worked in
the Group for two years has exemplary knowledge of our Company; we are
accordingly delighted he has taken on the role of Goldplat's Finance
Director.
As a Group we aim to engage positively with the governmental, regulatory
and community structures where we operate. We believe that we make a
significant contribution where we operate, both financially in terms of
fiscal contributions, employment, skills upgrading and local purchasing,
as well as by operating high standards of environmental and health and
safety protocols. There are currently proposed changes in South Africa
in relation to the ownership and operation of entities in the mining
sector and we will monitor and assess how best to respond as the
situation develops.
We have recently instituted a new programme to engage further with our
shareholders. In August this year, the executive team hosted a
conference call at which shareholders, and potential shareholders, were
invited to question management. We were delighted with the response
from shareholders and we intend to offer this opportunity regularly in
future. Additionally we will be hosting on Goldplat's website a Q&A
document addressing shareholder questions on the Group and its
businesses. I therefore urge shareholders to take advantage of this
initiative, send us questions you have and participate in the calls.
Running and growing our businesses profitably requires constant and
close attention to detail in sourcing, operations and cost control. I
would therefore like to acknowledge and thank management, staff and
advisors across the Group, in South Africa, in Ghana, in Kenya and in
the UK, for all their efforts over the year.
Matthew Robinson
Chairman
Operations Report
Introduction
I am pleased to report that the turnaround in Goldplat continues and
good progress has been achieved on all strategic initiatives during FY
2017. The progress of the Group can be summarised by my statements over
the past few years: in 2015, I reported that Goldplat had laid the
foundations for a turnaround of the Group's performance and a return to
profitability; in 2016 I reported that we had laid the foundations for
growth and diversification; now Goldplat is executing the strategy of
growth and diversification and expects continued improvements in
production and profitability.
With most major capital projects having been completed during the
previous year, the three priorities for FY 2017 included a focus on
procurement; developing business opportunities in South America and
returning Kilimapesa Gold (Pty) Limited ('Kilimapesa') to profitability
through a processing plant expansion project. I am pleased to report
that during FY 2017 the Group has made good progress on all of these
strategic priorities.
Major capital projects for FY 2018 include the continued expansion at
Kilimapesa as well as the installation of an elution plant at Gold
Recovery Ghana Limited ('GRG'). The Group is also undertaking numerous
research projects on the recovery side of our operation, with a view to
diversifying processes and products and creating niches in the industry
so as to ensure continued competitiveness. Some of these projects may
develop to the point during FY 2018 where capital is required for
further development.
Areas of Strategic Focus
With the three areas of strategic focus identified for FY 2017
proceeding well and ongoing, the following additional strategic areas of
priority were identified during the year:
With the processing plant expansion at Kilimapesa progressing well, the
focus is now to ensure that the underground operations produce
sufficient, quality ore to fill the milling capacity at the new
processing plant.
Changing market dynamics over the past few years have resulted in the
mix of profitability at Goldplat Recovery (Pty) Ltd ('GPL') evolving to
a point where the carbon-in-leach ('CIL') circuits now offer the best
profitability for this business. The focus therefore is to ensure that
sources of appropriate quality material for all of the CIL circuits are
secured and strategic stockpiles built up.
At Gold Recovery Ghana Limited ('GRG') the carbon processing business
remains key. Prospects of procuring sufficient appropriate quality
carbon material within Ghana are unpredictable and hence procurement in
South America, West Africa and elsewhere in Africa is of utmost
strategic importance.
Goldplat is of the opinion that, strategically, production from recovery
operations needs to be complemented by production from primary mining
and has set a target of building primary mining production to match that
of the recovery operations over a three-year period. Whereas there are a
lot of assets available on the market, Goldplat is focused on seeking
producing, or near-production assets, which are value-accretive to
existing shareholders.
Gold Production and Sales
The table below provides a summary of gold and gold equivalent
production and sales for FY 2017, with comparisons to FY 2016. During
the year overall production was 42,857 ounces (FY 2016: 37,666) and
sales and transfers totaled 40,285 ounces (FY 2016: 40,763). Gold and
gold equivalent ounces sold on the Group's own account was 34,112 (FY
2016: 27,538) and that transferred to clients was 6,173 ounces (FY 2016:
13,225).
The increase in gold and gold equivalent production of 13.7% over the
year (on 2016) follows a 23.3% increase in FY 2016 on FY 2015 and
demonstrates the continued and steady growth of the business. Production
grew at all operations with the most notable growth coming from
Kilimapesa as a result of the plant expansion project and from GRG,
reflecting increased production from sources outside of Ghana.
Production at GPL was once again boosted by a large project executed for
a large African producer during the year.
Goldplat Plc
Gold
Equivalent Oz
Reported
June 2017
Year ending Year ending
June 2017 June 2017 Year ending June 2016 Year ending June 2016
Goldplat Plc Equivalent Gold Equivalent Gold Equivalent Gold Equivalent Gold
Consolidated kg oz kg oz
Gold
Equivalent
Production
Goldplat
Recovery 915 29,418 895 28,778
Gold Recovery
Ghana 312 10,031 214 6,883
Kilimapesa
Gold 106 3,408 62 2,005
Total 1,333 42,857 1,171 37,666
Gold
Equivalent
Sold
Goldplat
Recovery 702 22,570 516 16,575
Gold Recovery
Ghana 259 8,327 279 8,964
Kilimapesa
Gold 100 3,215 62 1,999
Total 1,061 34,112 857 27,538
Gold
Equivalent
Transferred
Goldplat
Recovery 192 6,173 411 13,225
Total 192 6,173 411 13,225
Gold
Equivalent
Sold and
Transferred
Goldplat
Recovery 894 28,743 927 29,800
Gold Recovery
Ghana 259 8,327 279 8,964
Kilimapesa
Gold 100 3,215 62 1,999
Total 1,253 40,285 1,268 40,763
Goldplat's Recovery Operations
Goldplat recovers precious metals, primarily gold and silver but also
platinum group metals ('PGM's'), from by-products of the mining industry
and gains its competitive advantage from a combination of the diversity
and flexibility of its treatment circuits, which make possible the
recovery of metals and concentrates from these by-product materials, the
strategic geographic locations of the Group's plants, and the extensive
depth of knowledge and experience of its longstanding team.
Goldplat sources by-products from the mining and related industries.
These include coarse and fine carbon, woodchips, rubber and steel mill
liners, grease, concentrate bags, surface materials and rock dumps. The
Group also assists in plant clean-up operations. These materials
typically present an environmental risk and cost to producers but can
become a source of precious metals and revenue when processed by
Goldplat. Clients include most of the significant gold producers in
South Africa and Ghana as well as numerous producers from elsewhere in
the world and an increasing number of PGM producers, and a number of
refineries requiring the processing of concentrate materials prior to
final refining as bullion.
Goldplat Recovery (Pty) Ltd - South Africa
GPL is a well-established operation based near Johannesburg in South
Africa, serving clients as a Responsible Gold Producer, fulfilling the
requirements set out by the London Bullion Market Association. The
Company's facilities include crushing, milling, thickening, wash plants,
CIL, elution, incineration, flotation, spiralling and shotblasting.
During FY 2017 GPL produced 29,418 ounces of gold and gold equivalent
(FY 2016: 28,778) of which 22,570 ounces were produced for its own
account (FY 2016: 16,575) and 6,173 ounces were transferred to clients
(FY 2016: 13,225).
Sourcing of material remained an area of strategic focus at GPL during
FY 2017. The mining industry in South Africa remains under pressure and
closure of mining operations with consequent reduction in production
took place throughout the year and is expected to continue. The major
impact to date has been on the gold mines, with this gradual decrease in
gold production resulting in a decrease in availability of by-product
material for GPL. Goldplat believes that its "base" production level
from traditional South African sources is around FY 2015 levels of
22,000 ounces of gold and gold equivalents. In FY 2016 the Rand Refinery
silver sulphide tolling project added significantly to this base level
and in FY 2017 a large one-off batch of carbon from a new African client
was processed. In order to keep production levels at around the 29,000
ounces of gold and gold equivalent level, GPL has to ensure that it
sources and processes similar large one-off by-product projects every
year.
With production from the CIL circuits becoming more strategically
important than from the by-product streams, focus is now on procuring
long-term supplies of material to feed these circuits. Numerous projects
are underway in partnership with existing clients and a large strategic
batch of material was procured during FY 2017. Metallurgical test work
is being conducted on this material to improve recovery rates and
profitability. As a result of the strengthened strategic sourcing team,
smaller precious metal producers are now also being visited to source
by-products in addition to those received from the large mining
companies. Volumes at the smaller operators are lower compared to the
larger mining companies but increases our footprint as service provider
of choice.
With all major capital projects having been completed during FY 2016,
capital expenditure during the year was primarily on sustaining capex.
During the year the cyclone sections and kiln seals on one of the rotary
kilns were replaced and a new mill was installed in the high grade CIL
section.
Metallurgical test work and pilot tests on the stock dam/tailings
storage facility material continue; this has a JORC-compliant resource
(refer to the announcement of 29 January 2016) of 81,959 ounces of gold,
216,094 ounces of silver and 193,276 pounds of U3O8 (uranium oxide) and
accordingly we believe it has significant value potential. Alongside
this, the process of securing the West 3 Pit for deposition of tailings
continues but with the different interests of the various stakeholders
and the changing regulatory environment, the approval process is taking
longer than initially anticipated. The Company remains confident that
the logistical and regulatory issues will be overcome and the pit will
be secured.
No resolution regarding the Rand Refinery dispute was reached during the
year. Goldplat now has working arrangements with four different refiners
with each product having potential for refining at one of at least three
places, including GPL itself. Goldplat is confident that the previous
single refiner risk has been mitigated and proceeded with legal action
against Rand Refinery on 11 September 2017.
On 15 June, 2017 the Broad Based Socio-Economic Empowerment Charter for
the South African mining and minerals industry, 2017, (the '2017
Charter') was announced and gazetted in South Africa. The 2017 Charter
aims to introduce far-reaching, new, and in some cases, radical measures
and requirements on the industry. GPL is compliant with the preceding
Charter, and if the 2017 Charter is implemented, certain changes will be
required to maintain compliance, primarily in respect of: (i) the
increased mandatory Black Economic Empowerment shareholding which is
currently set at 26%, but is proposed to be increased to 30%, and (ii)
in the required make-up of management demographics. Further to an
interdict application brought by the Chamber of Mines against
implementation of the Charter, the Minister of Mineral Resources has
undertaken not to implement or apply the provisions of the 2017 Charter
pending judgment on the interdict. Goldplat and GPL will monitor this
issue and will keep shareholders informed as to progress and the
possible impact on the Company as the process unfolds.
Gold Recovery Ghana Limited - Ghana
GRG's gold recovery operation, which had a tax-free status until
December 2016, and a favourable tax rate thereafter of 15%, is located
in the free port of Tema in Ghana. Processing facilities include a
spiraling section, filter presses, an incinerator and a shotblast
facility, used to recover gold from mill liners. Concentrates produced
at GRG are exported to GPL or to one of the Group's refinery partners.
Most of the region's major gold producers and a number of smaller
operations have contracts with GRG for the processing of their
by-products, which include fine carbon, fine carbon sludges, steel and
rubber mill liners, wood chips, slag, scaling and grease.
During FY 2017 GRG produced 10,031 ounces of gold (FY 2016: 6,883) of
which 8,327 ounces were produced for its own account (FY 2016: 8,964).
With sources of material from within Ghana continuing to deplete for
various reasons, focus during the year remained on sourcing from outside
of the country. Momentum in this regard is picking up with contracts
secured from elsewhere in Africa as well as South America. The Company
has been sourcing and shipping material on a regular basis from various
individual suppliers in South America since the second half of 2016 and
good progress was made on contract negotiations during FY 2017. The
first significant recurring contract was signed with initial shipments
of 360 tonnes of carbon underway to Ghana and shipments of rubber mill
liners being finalised.
A complete, second-hand 3-tonne elution plant was acquired from a
producer in South Africa for ZAR 2 million (approximately US$155k). This
plant is modular, complete with all ancillary equipment and will more
than meet the requirement of the Ghanaian operations. As such, it was
deemed a better option than moving an existing 4-tonne plant from GPL to
GRG and the purchase of the required ancillary equipment and
infrastructure. It is estimated that the final cost of installation will
be in the order of US$1m, compared to the initial estimate of US$2m for
the plant from GPL. During the last quarter of FY 2017, the acquired
elution plant was dismantled, moved to GPL for refurbishment and is now
in the process of being shipped to Ghana. Installation and commissioning
is expected to be significantly quicker than per previous plans, with
commissioning now planned for the end of December 2017, six months ahead
of the milestone date stipulated by the Ghanaian Government in
accordance with the Company's gold license renewal terms.
A third fluidised bed incinerator, which was purchased second-hand from
an operator in Tanzania is currently being transported for shipment to
GRG.
Focus was put into improving security at the plant and also in
processing the large stockpiles of low-grade material. These projects
are ongoing and contribute to ensuring space and a secure environment
for planned increased production at GRG in the future.
GRG is investigating a major project with the Ghanaian Government to
assist in clean-up of artisanal mining tailings. The Company is
conducting extensive sampling programmes to assess both gold as well as
contaminant (mainly mercury and cyanide) content and is simultaneously
investigating the most efficient processing methods so as to recover
gold and deal with contaminants in an environmentally acceptable manner
(in compliance with acceptable global standards).
Goldplat's Mining and Exploration
Kilimapesa Gold (Pty) Limited - 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 (refer to the announcement of
12 December 2012) of 8,715,291 tonnes at 2.40 g/t of gold for a total of
671,446 ounces of gold at a cut-off of 1 g/t.
Kilimapesa made operational profits during the last two months of FY
2017 the first time in the ten years since acquisition. This has been
made possible primarily due to the substantial completion during the
year of an additional processing plant ('Plant 2'), but also as a result
of continued cost cutting and process efficiency improvements across the
operation.
Kilimapesa produced 3,408 ounces of gold during the year (FY 2016: 2,005
ounces), of which 3,215 ounces of gold were sold during the period (FY
2016: 1,999 ounces). Significantly, 1,254 ounces of gold was produced
during the last quarter of the year and an annualised production rate of
roughly 5,800 ounces of gold was achieved in the last two months of the
year - a rate which is sustainable with current infrastructure.
During FY 2016 it was decided by the Board to invest in the expansion of
processing capacity at Kilimapesa, at an overall capital expenditure in
the order of US$2 million. During that year a CIL plant from GRG was
deconstructed and shipped to Kenya for installation and commissioning at
Kilimapesa, and two matching second-hand ball mills were also acquired
in South Africa for installation at the mine. These would be used to
construct the new Plant 2, and during 2017 the site for construction was
chosen to be near to Kilimapesa Hill, from which the mined ore would be
sourced. All necessary regulatory approvals were also obtained during
the period.
During 2017 Goldplat put in place a three stage development plan to
construct Plant 2 and build production. Stage One included the
installation of a generator, the first of the two ball mills, a
concentrator facility, thickener and six CIL tanks from GRG, as well as
the construction of a borrow pit for initial tailings deposition and the
site preparation and key cut for the final tailings storage facility
('TSF'). As the crusher circuit was planned for Stage Two, a stockpile
of fine ore was created during Stage One construction to facilitate
commissioning and production during Stage Two installation. Stage One
was commissioned by the end of December 2016 with a mill throughput rate
of 60 tonnes per day being achieved as per plan, using uncrushed and
partially crushed ore.
Up to this point the plant expansion had been funded out of
internally-generated operating cash flows from the Group. With stage
one of the expansion commissioned, the Company decided to arrange a loan
facility of up to US$2 million (the "Scipion Loan") to recapitalise the
Group's subsidiaries that had financed the work to date, and to fund the
expenditure of Stage Two of the processing plant expansion.
During the second half of FY 2017 Stage Two was substantially completed,
which included installation of the crusher section, associated feed
belts and bins, classifier and three additional larger CIL tanks. Two
additional borrow pits were constructed to allow tailings deposition of
up to a year before completion of the final TSF. Complete commissioning
was delayed by a few months due to hold-ups in delivery of key materials,
primarily steelwork associated with safety. Notwithstanding these delays,
during the last two months of FY 2017 Plant 2 was successfully
processing at a mill throughput rate of the planned 120 tonnes per day.
Stage Three of the plant expansion includes the installation of the
second mill, an additional thickener and three additional CIL tanks.
This stage will only commence once management is confident of sustained
profitability and once the Scipion debt facility has been substantially
repaid.
The old processing plant ('Plant 1') continued producing throughout and
with more flexibility better efficiencies were achieved from this plant.
Plant 1 is now processing primarily tailings sourced from artisanal
operations in nearby areas. Better management of the TSF at Plant 1 has
increased the available life of this facility to around a year (from the
3-6 months at the beginning of FY 2017).
During the year the mining focus was on creating capacity at Kilimapesa
Hill underground to produce enough ore of appropriate grade to satisfy
the throughput requirements of Plant 2. Focus was on developing reef
drives and raises so as to delineate profitable mining blocks. A
mechanical loader was acquired to facilitate ore handling in the cross
cuts and reef drives and a Kempe core drilling machine was acquired to
assist in understanding the orebody, and aid in strategic planning of
mining operations. Commissioning of this machine was not completed
during the year as the required generator had not yet been delivered. By
year end, production from the Kilimapesa underground had not yet reached
planned levels and throughput at Plant 2 was being met by the addition
of stockpiled material and artisanal tailings.
A decision was taken during the year to install grid power to Plant 2.
Required authorisations and procurement of equipment was still in
progress at the end of the year and this is expected to be completed in
H1 of FY 2018.
During FY 2017, significant progress was made at Teng Teng mine. A
second outlet was established, the shaft was deepened to facilitate more
efficient ore loading, and significant underground exploration was
completed. Due to a breakdown of the compressor and low priority of
allocation of funds for repair, Teng Teng exploration was temporarily
halted for the last few months of FY 2017. Activities will recommence as
soon as the compressor has been repaired. It is expected that the
process of applying for conversion of the Teng Teng area into a mining
license will commence during FY 2018.
Subsequent to the year end, Kenyan National elections were held during
August 2017. The Cabinet Secretary for Mining and the Governor of Narok
County, where our project is located, remain unchanged which is
important for smooth relations in the country as Goldplat and Kilimapesa
management have developed very good working relationships with these
individuals. The result of the Presidential election was subsequently
declared null and void by the High Court and a new election process has
to be completed within sixty days from the day of the Court ruling, 1
September 2017.
Anumso Gold Project - Ghana
Goldplat has a 90% interest in Anumso Gold Limited ('Anumso'), which is
the holder of a ten-year renewable mining lease for gold and associated
minerals covering an area of 29 sq. km. The project is located in the
prospective Amansie East and Asante Akim South Districts of the Ashanti
Region of the Republic of Ghana and has a current JORC compliant
resource (refer to the announcement of 12 December 2012) of 166,865
ounces of gold at 2.04g/t.
During FY 2016, Goldplat entered into an earn-in option agreement with
Ashanti Gold Corp. ('Ashanti') (formerly Gulf Shore Resources Ltd),
which provides Ashanti with the exclusive option to earn 75% of
Goldplat's interest in Anumso (67.5% of the overall project interest) in
two instalments by expending an aggregate of US$3 million on exploration
on the project. In March, 2017, Ashanti exercised its initial option
which triggered the initial option period, during which a 51% share of
Goldplat's interest will be earned through expending US$1.5 million over
18 months. Ashanti is obliged to either expend US$1.5 million on the
project within the initial option period, or pay the deficiency to
Goldplat.
Should Ashanti meet the expenditure condition within the Initial Option
Period and receive 51% of Goldplat's interest in the Anumso (45.9% of
the overall project interest), it will have the option to earn an
additional 24% share of Goldplat's interest (21.6% of the overall
project interest) by expending an additional US$1.5 million in the
following 12 month period, or by paying the deficiency to Goldplat.
By the end of FY 2017 Ashanti had spent an aggregate of US$750,000. Work
included setting up an exploration camp; establishing relationships with
local chiefs and community; the analysis of historic core; core
intersections submitted for metallurgical testing; completion of a
20-hole reverse circulation ('RC') drill programme; continued analysis
of drill results; and a comprehensive soil sampling programme (1,300
soil samples) over the West and East Banka conglomerate. Results of
metallurgical test work and assay results of soil samples are awaited.
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
GBP955,000.
Outlook
Goldplat is now operating profitably at all of its operations and the
Board believes performance should continue to improve during FY 2018.
Growth in the recovery business is expected to come from GRG as a result
of initiatives to procure material from West Africa and South America,
as well as the commissioning of the elution plant at GRG. The project
being assessed with the Ghanaian Government to clean up artisanal
tailings could potentially turn into a large opportunity for GRG. If
successful, this project will not only be profitable and contribute to
growth in GRG, but it will pave the way for once again processing
artisanal tailings and for processing by-products with contaminants such
as mercury - both from within Ghana as well as from international
sources, thus creating new revenue opportunities. Subsequent to the
year-end, a pilot plant for the processing of artisanal tailings was
procured at minimal cost and is expected to be in production in the
second quarter of FY 2018. We expect production and profitability at GPL
to remain at current levels albeit that the focus will shift to the more
profitable CIL products locally and procurement of additional
by-products from outside of South Africa. We initiated legal proceedings
against Rand Refinery on 11 September 2017 and cannot predict how long
such proceedings might last. Goldplat remain confident that all monies
owed to GPL by Rand Refinery will be recovered.
Growth from mining operations will be focussed on the Kilimapesa
expansion project. Subsequent to the year-end, the crusher section at
Plant 2 was commissioned and the plant is consistently exceeding the
planned 120 tonnes per day throughput target, and managing closer to 160
tonnes per day regularly. A decision has been taken to install the
second mill at Plant 2 whether or not a decision is taken to proceed
with Stage Three to provide back-up to the first mill and potentially
additional production capacity. The plan for the year is to get to a
point where only ore from Kilimapesa Hill underground is processed at
Plant 2 with artisanal tailings being processed at Plant 1. Production
exceeding 5,800 ounces is expected during FY 2018.
In addition to Kilimapesa, Goldplat will continue to seek out
opportunities to increase primary production from new sources. Goldplat
recognises that growth from recovery operations will be slower and more
difficult than the potential to grow the mining business. The current
market presents many opportunities for acquisitions of assets, joint
ventures, partnerships and corporate deals. Goldplat does not intend to
enter into exploration, and will prefer to gain interests in producing
or near-production assets, preferably in Africa.
Conclusion
I would like to take this opportunity to thank our Goldplat employees,
advisors, fellow directors and shareholders for their support as we
embark upon our growth and diversification strategy in FY 2018. I look
forward to working with all of you as we implement this strategy. I
would like to welcome Matthew Robinson, Sango Ntsaluba and Werner
Klingenberg who joined the Goldplat Board during the year as Chairman,
Non-Executive Director and Finance Director respectively. I would also
like to thank Ian Visagie, who has changed his Board role during the
period, now assuming the role of Executive Director; he remains an
integral part of the executive management team. I would like to take
this opportunity to thank him for the incredible contribution he has
made to Goldplat over the years as founder, CFO and acting CEO, and
particularly his immense contribution to the turnaround of the
businesses over the past couple of years.
Gerard Kisbey-Green
Chief Executive Officer
Financial Review
Profit from operating activities from continued operations for the year
under review increased by 140% to GBP2,910,000 (FY 2016: GBP1,212,000)
due to strong performance of both recovery operations. The Kilimapesa
mine continued to trade at a loss as the benefit from increased
processing capacity was only seen towards end of FY 2017, due to delays
experienced during construction of the processing plant.
Gold equivalent ounces sold on our own account increased by 24% to
34,112 ounces (FY 2016: 27,538 ounces), which is reflected in the 57%
increase in revenue for the year.
The increase in revenue was driven by higher recoveries achieved from
the CIL circuits at GPL and more contracts being settled by cash rather
than transferring of gold. A steady flow of gold bearing raw materials
from traditional suppliers, two large one-off contracts and increase in
average dollar price of gold for the year to US$1,258 per ounce (FY
2016: US$1,167 per ounce) also contributed.
The Group increased gross profit by 73% from FY 2016: GBP3,008,000 to FY
2017: GBP5,196,000, primarily as a result of increased revenue and
continued focus on reducing operational costs.
Administrative expenses from continued operations increased by 27% to
GBP2,286,000 (FY 2016: GBP1,796,000), primarily as a result of increased
activity in South America, Kenya and Ghana.
The exceptional three-year extension granted for the Nyieme Gold Project
in Burkina Faso on 29 September 2014 expires in October 2017. As there
is 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, the development costs of GBP955,000 have been fully written off
and operations discontinued. The loss from discontinued operations was
GBP1,012,000, including the write-off of development cost, which had no
cashflow impact during the current period.
The operating currencies for the Group are South African Rand (ZAR) in
South Africa, Ghanaian Cedi (GHS) in Ghana and Kenyan Shilling (KES) in
Kenya. The average exchange rates used in the conversion of operating
currencies in the Statement of Profit or Loss and Other Comprehensive
Income strengthened against the Pound Sterling during the period under
review.
The net finance loss from continued operations of GBP74,000 includes
GBP85,000 interest on borrowings and finance liabilities. Due to the
strengthening in operating currencies against the US Dollar, a foreign
exchange loss from continued operations of GBP11,000 was incurred versus
a foreign exchange profit of GBP804,000 in FY 2016. The improvement of
the operating currencies against the Pound Sterling also resulted in a
positive unrealised exchange translation gain of GBP1,025,000 (FY 2016:
GBP489,000).
The Group's capital expenditure for the year, including development
costs, amounted to GBP2,213,000 (FY 2016: GBP1,475,000) of which
GBP1,409,000 was expended to complete Stage one and two of the expansion
of processing capacity at Kilimapesa.
The expansion at Kilimapesa was primarily funded by an on-demand,
revolving pre-export loan with Scipion Active Trading Fund to the value
of US$2,000,000. Security on the drawn amounts has been granted over
Goldplat Recovery (Pty) Limited's tailings facility in South Africa,
intercompany loan agreements, contracts and proceeds of sale with gold
refiners, and collection bank accounts operated by GMR for that purpose.
It is intended that the loan granted in March 2017 will be repaid over
12 months from profits generated as a result of the increased plant
capacity at Kilimapesa.
After major capital investments at GPL over the last 2 years on a new
elution plant, wash plant and a milling circuit, capital expenditure
reduced to GBP372,000 (FY 2016: GBP818,000) and was focussed on
maintaining current circuits. One of the milling circuits was
refurbished for GBP59,000 and cyclones on one of the Rotary Kilns were
replaced at a cost of GBP57,000. Capital was incurred on the expansion
of the sampling section through the acquisition of blenders for carbon
at a cost of GBP74,000. The balance of the capital was spent on
replacement of production vehicles (GBP92,000), an old store (GBP28,000),
upgrading of security and storage facility (GBP26,000) and modification
on the elution columns (GBP37,000).
A complete elution plant has been bought and shipped from South Africa
to GRG at cost of GBP67,000 and is planned to be erected and
commissioned before December 2017 at a total projected cost of
GBP900,000. A further GBP60,000 was spent on purchasing incinerators and
a dryer for GRG.
A further GBP120,000 was expended on loading equipment for the new Plant
2 and a production vehicle at Kilimapesa. Capital spent on the
development of the mine at Kilimapesa Hill was GBP157,000 (FY 2016:
GBP110,000).
On 30 March 2017, Ashanti exercised its initial option to earn into the
Anumso Gold Project in Ghana under the terms of the option agreement
between Goldplat and Ashanti. An initial 51% share of Goldplat's
interest will be earned through expending US$1.5 million in the first 18
months, which includes a six-month review period. At year-end Ashanti
has not met the expenditure condition, and the sale of 51% Goldplat's
interest in Anumso has not been recorded in the current period.
During the period Rand Refinery aligned its payment terms of its smelter
section to those of other international smelters, increasing its payment
days after agreement of assay to 90 days (previously 14 days). Delivery
of dore bars to Rand Refinery are still being settled within 7 days.
To mitigate the single refiner's risk, contracts have been signed with 3
additional refiners, two for refining of dore bars and one for
processing of carbon and other by-products. In addition to the
flexibility the new contracts have provided, they also increase the
amounts of material that can be delivered for refining or processing.
The increased capacity assisted the recovery operations to reduce its
inventory days.
During the period GPL and GRG made use of a purchase contract and bill
of sale agreement with Auramet, to finance part of material en-route to
refineries. The balance of amounts received in advance at end of the
period was GBP6,334,000 (FY 2016: GBP1,107,000) and is secured against
the receivable balance it relates to. The proceeds from material
pre-financed during the fourth quarter was used to settle suppliers of
this material.
The Group reported increased net cash resources of GBP2,650,000 as at 30
June 2017 (FY 2016: GBP2,056,000) whilst investing GBP935,000 (FY 2016:
GBP1,645,000) of internal generated funds into capital projects.
GPL - South Africa
Revenues of GBP25,066,000 (FY 2016: GBP15,223,000) were achieved and
cost of sales amounted to GBP21,083,000 (FY 2016: GBP12,504,000).
GPL continued to perform well and increased its operating profits to
GBP3,312,000 (FY 2016: GBP2,111,000).
The improved revenues and operating result in South Africa was built
primarily on the performance of the CIL circuits, and supported by the
by-product material received from the mines and a large one-off batch
from a client in Africa.
The South African subsidiary reported a net profit after tax of
GBP2,420,000 (FY 2016: GBP1,777,000). The 36% increase in net profit
after tax was partly due to an 19.6% lower average Pound Sterling used
to convert the South African Rand results in FY 2017 versus the prior
year.
GRG - Ghana
The Ghana Gold Recovery operation built on it strong performance of the
previous year and reported a profit after tax of GBP1,177,000 (FY 2016:
GBP437,000). The previous zero tax rate enjoyed as part of the Free Zone
status ceased in December 2016 and the Company is currently subject to a
favourable tax rate of 15%.
The increase in profitability is attributable to a steady flow of
material from our traditional suppliers, completion of a large clean-up
contract awarded by AGA Obuasi and material received from South America.
GRG started to see the benefit of the investment in South America during
the period.
Kilimapesa - Kenya
The Kilimapesa gold mine reported a net loss of GBP1,100,000 (FY 2016:
loss of GBP711,000) for the year under review. An increase in unrealised
foreign exchange losses of GBP177,000 on intercompany payables
contributed to the increased loss. As in South Africa, the increased net
loss was partly due to an 14.2% lower average Pound Sterling used to
convert the Kenyan Shillings results in FY 2017 versus the prior year.
With the increase in capacity during the second half of the year,
Kilimapesa managed to increase revenue to GBP3,150,000 (FY 2016:
GBP1,560,000) and turned profitable towards the end of FY 2017.
Contingencies
We are pleased to report that the preliminary enquiry into the tax
affairs of Kilimapesa by the Kenya Revenue Authorities have been
substantially finalised. Of the original preliminary assessment of
GBP1,288,540, GBP55,000 has been paid and GBP51,000 still remains under
dispute.
Trade and other receivables for the Group include a balance of
GBP812,000 (FY 2016: GBP556,000) of Value Added Taxation receivable from
the Kenya Revenue Authority. Of the current balance GBP472,000 is older
than 3 years. Despite clear provisions in the Kenyan Legislation
regarding the recoverability of VAT, and two audits and continuous
consultation with the Kenya Revenue Authorities the balance due remain
outstanding. Management is of the opinion that there is no legal reason
not to recover the balance due.
The process of investigation agreed with Rand Refinery was completed
during the period, but no agreement could be reached between the two
parties. GPL initiated legal proceedings against Rand Refinery on 11
September 2017 to recover ZAR 13.5 million (approximately GBP792,000 at
30 June 2017) plus interest due. Management remain confident that the
balance will be collected.
Werner Klingenberg
Finance Director
Financial Statements
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEARED 30 JUNE 2017
2017 2016
GBP'000 GBP'000
Continuing operations
Revenue 31,650 20,185
Cost of sales (26,454) (17,177)
Gross profit 5,196 3,008
Administrative expenses (2,286) (1,796)
Results from operating activities 2,910 1,212
Finance income 22 815
Finance costs (96) (39)
Net finance (cost)/income (74) 776
Results from operating activities
after finance income 2,836 1,988
Taxation (860) (534)
Profit for the year from continuing
operations 1,976 1,454
Discontinued operations
Loss for the year from discontinued operations (1,012) (46)
Profit for the year 964 1,408
Profit from continued operations attributable to:
Owners of the Company 1,348 992
Non-controlling interests 628 462
Profit for the year 1,976 1,454
Profit from operations attributable to:
Owners of the Company 336 946
Non-controlling interests 628 462
Profit for the year 964 1,408
Other comprehensive income
Items that may be reclassified subsequently to profit
or loss: 1,025 489
Exchange translation
Other comprehensive income for the year 1,025 489
Total comprehensive income for the year 1,989 1,897
Total comprehensive income attributable to:
Owners of the Company 1,361 1,435
Non-controlling interests 628 462
Total comprehensive income for the year 1,989 1,897
Earnings per share
Basic earnings per share (pence) 0.20 0.56
Diluted earnings per share (pence) 0.18 0.51
Earnings per share - continuing operations
Basic earnings per share (pence) 0.81 0.59
Diluted earnings per share (pence) 0.73 0.54
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2017
2017 2016
GBP'000 GBP'000
Assets
Property, plant and equipment 7,181 5,404
Intangible assets 8,707 9,726
Proceeds from sale of shares in
subsidiary 1,424 1,271
Non-current cash deposits 201 160
Non-current assets 17,513 16,561
Inventories 8,962 7,747
Trade and other receivables 12,003 6,255
Cash and cash equivalents 2,650 2,148
Current assets 23,615 16,150
Total assets 41,128 32,711
Equity
Share capital 1,675 1,675
Share premium 11,441 11,441
Exchange reserve (5,193) (6,218)
Retained earnings 11,305 10,953
Equity attributable to owners of the
Company 19,228 17,851
Non-controlling interests 2,673 2,246
Total equity 21,901 20,097
Liabilities
Obligations under finance leases 229 157
Provisions 446 383
Deferred tax liabilities 584 510
Non-current liabilities 1,259 1,050
Bank overdraft - 92
Obligations under finance leases 154 129
Interest bearing borrowings 1,172 55
Taxation 211 153
Trade and other payables 16,431 11,135
Current liabilities 17,968 11,564
Total liabilities 19,227 12,614
Total equity and liabilities 41,128 32,711
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
AS AT 30 JUNE 2017
Attributable to owners of the Company
Share
capital Share premium Exchange reserve Retained earnings Total Non-controlling interests Total equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP '000 GBP'000 GBP'000
Balance at 1 July 2016 1,675 11,441 (6,218) 10,953 17,851 2,246 20,097
Total comprehensive income for
the year
Profit for the year - - - 336 336 628 964
Total other comprehensive
income - - 1,025 - 1,025 - 1,025
Total comprehensive income for
the year - - 1,025 336 1,361 628 1,989
Transactions with owners of the Company recognised
directly in equity
Share based payment
transactions - - - 16 16 - 16
Changes in ownership interests
in subsidiaries
Non-controlling interests in
subsidiary dividend - - - - - (201) (201)
Total transactions with owners
of the Company - - - 16 16 (201) (201)
Balance at 30 June 2017 1,675 11,441 (5,193) 11,305 19,228 2,673 21,901
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEARED 30 JUNE 2017
2017 2016
GBP'000 GBP'000
Cash flows from operating
activities
Result from continued operating
activities 2,910 1,218
Result from discontinued operating
activities (1,012) (46)
Adjustments for:
Depreciation 650 514
Amortisation 224 192
Write off development cost 980 -
Loss on sale of property, plant and
equipment 4 62
Equity-settled share-based payment
transactions 16 72
Foreign exchange differences 303 (421)
4,075 1,591
Changes in:
- inventories (1,215) (20)
- trade and other receivables (5,748) (2,950)
- trade and other payables 5,296 3,579
- provisions - 244
Cash generated from operating
activities 2,408 2,444
Finance income 22 809
Finance cost (96) (39)
Taxes paid (805) (342)
Net cash from operating activities 1,529 2,872
Cash flows from investing
activities
Proceeds from sale of property,
plant and equipment 105 94
Enhancement of exploration and
development asset (157) (110)
Acquisition of property, plant and
equipment (1,756) (1,284)
Non-current cash deposit (41) 73
Net cash used in investing
activities (1,849) (1,227)
Cash flows from financing
activities
Proceeds from payment of interest
bearing borrowings 1,538 -
Payment of interest bearing
borrowings (421) (105)
Payment of finance lease liabilities (203) (114)
Net cash flows from financing
activities 914 (219)
Net increase in cash and cash
equivalents 594 1,426
Cash and cash equivalents at 1 July 2,056 630
Cash and cash equivalents at 30 June 2,650 2,056
NOTES TO THE RESULTS ANNOUNCEMENT
1. Basis of preparation
The consolidated financial statements have been prepared in accordance
with International Financial Reporting Standards ("IFRSs") as issued by
the International Accounting Standards Board ("IASB") and as adopted by
the European Union, and the Companies Act 2006 as applicable to entities
reporting in accordance with IFRS. The consolidated financial statements
have been prepared on the historical cost basis.
The financial information contained in this announcement does not
constitute the Company's statutory accounts for the year ended 30 June
2017. The statutory accounts for the year ended 30 June 2017 have yet to
be reported on by the independent auditors. The independent auditor's
report for the year ended 30 June 2016 was unqualified, did not draw
attention to any matters by way of emphasis and did not contain a
statement under 498(2) or 498(3) of the Companies Act 2006. The
statutory accounts for the year ended 30 June 2016 have been filed with
the Registrar of Companies and the statutory accounts for the year ended
30 June 2017 will be filed with the Registrar of Companies following the
Company's Annual General Meeting.
Use of estimates and judgements
The preparation of the consolidated financial statements in conformity
with IFRS requires management to make judgements, estimates and
assumptions that affect the application of accounting policies and the
reported amounts of assets, liabilities, income and expenses. The
estimates and associated assumptions are based on historical experience
and various other factors that are believed to be reasonable under the
circumstances, the results of which form the basis of making judgements
about carrying values of assets and liabilities that are not readily
apparent from other sources. Actual results may differ from these
estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognised in the period in which
the estimates are revised if the revision affects only that period, or
in the period of revision and future periods of the revision if it
affects both current and future periods.
Critical estimates and assumptions that have the most significant effect
on the amounts recognised in the consolidated financial statements
and/or have a significant risk of resulting in a material adjustment
within the next financial year are as follows:
-- Carrying value of goodwill
-- Capitalisation of pre-production expenditure
-- Valuation of Inventory
Accounting entries are made in accordance with the Company's accounting
policies.
1. Earnings per share
Basic earnings per share
The calculation of basic earnings per share at 30 June 2017 was based on
the profit attributable to owners of the Company of GBP336,000 (2016:
profit GBP946,000), and a weighted average number of ordinary shares
outstanding of 167,441,000 (2016: 168,364,288), calculated as follows:
Profit attributable to ordinary shareholders
2017 2017 2017 2016 2016 2016
Continuing Discontinued Total Continuing operations Discontinuing operations Total
Operations Operations GBP '000 GBP '000 GBP'000 GBP'000
GBP'000 GBP'000
Profit/(loss)
attributable 1,348 (1,012) 336 992 (46) 946
to owners of
the Company
Weighted average number of ordinary shares
2017 2016
Issued ordinary shares at 1 July 167,441,000 168,441,000
Effect of treasury shares cancelled - (76,712)
Weighted average number of ordinary shares 167,441,000
at 30 June 168,364,288
Diluted earnings per share
The calculation of diluted earnings per share at 30 June 2017 was based
on the profit attributable to ordinary shareholders of GBP336,000 (2016:
profit GBP946,000), and a weighted average number of ordinary shares
outstanding after adjustment for the effect of all dilutive potential
ordinary shares of 184,720,125 (2016: 185,010,536), calculated as
follows:
Profit attributable to ordinary shareholders (diluted)
2017 2017 2017 2016 2016 2016
Continuing Discontinued Total Continuing operations Discontinuing operations Total
Operations Operations GBP '000 GBP '000 GBP'000 GBP'000
GBP'000 GBP'000
Profit/(loss)
attributable to 1,348 (1,012) 336 992 (46) 946
owners of the
Company
Weighted average number of ordinary shares (diluted)
2017 2016
Weighted average number of ordinary shares (basic) 167,441,000 168,364,288
Effect of share options on issue 17,279,125 16,646,248
Weighted average number of ordinary shares (diluted)
at 30 June 184,720,125 185,010,536
1. Directors' emoluments
2017
Executive Non-executive Total GBP'000
GBP'000 GBP'000
Wages and
salaries 444 - 444
Fees - 63 63
Share based
payments 16 - 16
460 63 523
2016
Non-
Executive executive Total
GBP'000 GBP'000 GBP'000
Wages and salaries 397 - 397
Fees - 65 65
Share based payments 72 - 72
Other benefits 5 - 5
474 65 539
Emoluments disclosed above include the following amounts paid to the
highest director:
2017 2016
GBP'000 GBP'000
Emoluments for qualifying
services 186 227
Key management
Apart from the Directors, the emoluments paid to key management
personnel amounted to GBP816,000 (2016: GBP576,000).
1. Related parties
Other than the waiver of intercompany interest, transactions with
related parties take place on terms no more favourable than transactions
with unrelated parties.
Other related party transactions
Transactions with Group companies
The Group's subsidiary Gold Mineral Resources Limited had the following
related party transactions and balances:
2017 2016
GBP'000 GBP'000
Goldplat plc
- Loans and borrowings (4,500) (4,614)
- Goods, equipment and services received (154) (144)
Kilimapesa Gold (Pty) Limited
- Loans and borrowings 4,743 3,327
Nyieme Gold SARL
- Loans and borrowings 1,255 1,198
Anumso Gold Limited
- Loans and borrowings 81 79
Midas Gold SARL
- Loans and borrowings 441 417
Goldplat Recovery (Pty) Limited
- Loans and borrowings (217) (44)
- Goods, equipment and services supplied 173 9
Gold Recovery Ghana Limited
- Loans and borrowings 75 -
The Group's subsidiary Goldplat Recovery (Pty) Limited had the following
related party transactions and balances:
2017 2016
GBP'000 GBP'000
Kilimapesa Gold (Pty) Limited
- Trade and other receivables 863 658
- Goods, equipment and services supplied 881 532
Gold Recovery Ghana Limited
- Trade and other receivables 699 575
- Goods, equipment and services supplied 557 346
- Purchase of precious metals (5,648) (4,459)
- Trade and other payables (1) (295)
Anumso Gold Limited
- Trade and other receivables 8 8
- Goods, equipment and services supplied - 3
The carrying value of these assets approximates to their fair value and
require no impairment.
The Group's subsidiary, Gold Recovery Ghana Limited had the following
related party transactions and balances in addition to those already
noted:
2017 2016
GBP'000 GBP'000
Nyieme Gold SARL
- Trade and other receivables 46 35
- Goods, equipment and services supplied 11 17
Kilimapesa Gold (Pty) Limited
- Trade and other receivables 275 -
- Sale of asset - 225
Anumso Gold Limited
- Trade and other receivables 31 15
- Goods, equipment and services supplied 30 11
The Group's subsidiary Midas Gold had the following related party
transactions and balances in addition to those already noted:
2017 2016
GBP'000 GBP'000
Nyieme Gold SARL
- Trade and other receivables 1 -
- Trade and other payables 3 -
- Goods, equipment and services supplied 2 -
Other transactions
The Group's subsidiary Gold Mineral Resources had the following related
party transactions and balances in addition to those already noted:
2017 2016
GBP'000 GBP'000
Directors - Trade and other
payables (139) (69)
1. Capital and reserves
Share capital and share premium
Number of ordinary shares
2017 2016
On issue at 1 July 167,441,000 168,441,000
Cancellation of treasury shares - (1,000,000)
On issue at 30 June - fully paid 167,441,000 167,441,000
Authorised - par value GBP0.01 1,000,000,000 1,000,000,000
Ordinary share capital
2017 2016
GBP'000 GBP'000
Balance at 1 July 1,675 1,685
Shares cancelled in year - (10)
Balance at 30 June 1,675 1,675
Ordinary shares
All shares rank equally with regard to the Company's residual assets.
The holders of ordinary shares are entitled to receive dividends as
declared from time to time, and are entitled to one vote per share at
meetings of the Company.
Share Premium
Represents excess paid above nominal value on historical shares issued.
Exchange reserve
The exchange reserve comprises all foreign currency differences arising
from the translation of the financial statements of foreign operations.
**ENDS**
This announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the information
contained therein.
Source: Goldplat plc via Globenewswire
(END) Dow Jones Newswires
September 18, 2017 02:00 ET (06:00 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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