Goldplat plc Operational Update
February 04 2019 - 1:00AM
UK Regulatory
TIDMGDP
Goldplat plc / Ticker: GDP / Index: AIM / Sector: Mining & Exploration
4 February 2019
Goldplat plc ('Goldplat' or 'the Company')
Operational Update
Goldplat plc, the AIM quoted 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
ended 31 December 2018 (the 'Quarter' or 'Q2 2019').
Overview
-- 57% increase in gold equivalent ounces produced from the previous quarter
to 9,648 ounces (Q1 2019: 6,138 ounces) and a 4% decrease year-on-year
(Q2 2018: 10,022 ounces) demonstrating a return to planned production
levels.
-- 16% year-on-year increase in gold equivalent ounces sold and transferred
during the Quarter due to higher production to 10,178 ounces (Q2-2018:
8,794 ounces).
-- As was forecast at the end of the previous quarter, production levels at
Goldplat Recovery during the period returned to normal levels with both
the by-product sections as well as the carbon-in-leach ('CIL') circuits
exceeding planned production. This was due to the sourcing of material
from clients returning to normal as well as the focus on processing
built-up inventory in the plant during the period.
-- Production at Gold Recovery Ghana improved on the previous quarter due to
a number of local Ghanaian contracts being processed and increased
sourcing from South America. During the Quarter a major West African
client with substantial material available from a number of operations
agreed to send a trial batch of material to Gold Recovery Ghana and this
is expected to be processed during the current quarter, as soon as export
logistics and legalities have been finalised.
-- Sourcing sufficient quantities of material for processing in Ghana
remains erratic and an area of strategic priority.
-- At Kilimapesa, production was further reduced, according to plan. In the
last update it was reported that a strategy had been implemented to put
the mine on care and maintenance by the end of November 2018 should a
transaction to secure funding not be in progress. Progress in respect of
a possible transaction during the Quarter enabled management to take the
decision not to proceed to care and maintenance to date.
Gerard Kisbey-Green, CEO of Goldplat, commented: "Overall the production
numbers for the Quarter were good and importantly, showed a dramatic
turnaround when compared to the previous quarter. Goldplat Recovery had
a very good Quarter and this momentum has carried through to the current
quarter. Although the situation in Ghana has improved, our teams are
focussed on improving the predictability of sourcing material, including
from within Ghana, elsewhere in West Africa as well as South America.
Unfortunately, Kilimapesa continues to report poor results and the
Company hopes to progress financing discussions to a point where plans
can be shared with the market and our investors during the current
quarter.
"While we reported very positive production and sales numbers for the
Quarter, unfortunately we don't expect this to be sufficient to make up
financially for the continued losses at Kilimapesa and poor first
quarter of the financial year-- this will be reflected in the Interim
announcement scheduled for 25 February 2019."
Production for the Quarter
2(nd) Qtr 2(nd) Qtr 2(nd) Qtr 2(nd) Qtr 6 months 6 months
------------- ---------- ---------- ---------- ---------- ---------- ----------
Dec-18 Dec-18 Dec-17 Dec-17 Dec-18 Dec-18
---------- ---------- ---------- ---------- ---------- ----------
Equivalent Equivalent Equivalent Equivalent Equivalent Equivalent
Gold Gold Gold Gold Gold Gold
---------- ---------- ---------- ---------- ---------- ----------
Goldplat Plc
Consolidated Kg Oz kg oz kg Oz
------------- ---------- ---------- ---------- ---------- ---------- ----------
Gold
Equivalent
Production
------------- ---------- ---------- ---------- ---------- ---------- ----------
Goldplat
Recovery 219 7 034 198 6 380 351 11 285
------------- ---------- ---------- ---------- ---------- ---------- ----------
Gold Recovery
Ghana 55 1 757 75 2 408 76 2 443
------------- ---------- ---------- ---------- ---------- ---------- ----------
Kilimapesa
Gold 27 857 38 1 234 64 2 058
------------- ---------- ---------- ---------- ---------- ---------- ----------
Total 301 9 648 311 10 022 491 15 786
------------- ---------- ---------- ---------- ---------- ---------- ----------
Gold
Equivalent
Sold
------------- ---------- ---------- ---------- ---------- ---------- ----------
Goldplat
Recovery 185 5 932 113 3 639 279 8 970
------------- ---------- ---------- ---------- ---------- ---------- ----------
Gold Recovery
Ghana 41 1 319 65 2 089 60 1 929
------------- ---------- ---------- ---------- ---------- ---------- ----------
Kilimapesa
Gold 36 1 174 47 1 498 71 2 283
------------- ---------- ---------- ---------- ---------- ---------- ----------
Total 262 8 425 225 7 226 410 13 182
------------- ---------- ---------- ---------- ---------- ---------- ----------
Gold
Equivalent
Transferred
------------- ---------- ---------- ---------- ---------- ---------- ----------
Goldplat
Recovery 55 1 762 49 1 568 75 2 411
------------- ---------- ---------- ---------- ---------- ---------- ----------
Total 55 1 762 49 1 568 75 2 411
------------- ---------- ---------- ---------- ---------- ---------- ----------
Gold
Equivalent
Sold and
Transferred
------------- ---------- ---------- ---------- ---------- ---------- ----------
Goldplat
Recovery 240 7 694 162 5 207 354 11 381
------------- ---------- ---------- ---------- ---------- ---------- ----------
Gold Recovery
Ghana 41 1 319 65 2 089 60 1 929
------------- ---------- ---------- ---------- ---------- ---------- ----------
Kilimapesa
Gold 36 1 174 47 1 498 71 2 283
------------- ---------- ---------- ---------- ---------- ---------- ----------
Total 317 10 187 274 8 794 485 15 593
------------- ---------- ---------- ---------- ---------- ---------- ----------
Goldplat Recovery (Pty) Ltd ('GPL'), South Africa
-- 10% increase year on year ('YoY') to 7,034 ounces (Q2 2018: 6,380 ounces
of gold and gold equivalents produced during the quarter).
-- During Q1 2019 production from both by product circuits as well as the
CIL circuits was significantly below plan and it was reported that these
levels were returning to normal during Q2 2019. Production levels during
the Quarter showed an increase of 65% on the previous quarter (Q1 2019:
4,251 ounces).
-- 48% increase YoY of gold sold and transferred to 7,694 ounces during the
Quarter (Q2 2018: 5,207 ounces) and an increase of 109% on the previous
quarter (Q1 2019: 3,687 ounces).
-- Production from the by-product and the CIL sections was higher than
expected due to the return to expected supply of material from clients,
as well as a concerted effort to process inventory on site.
-- Large volumes of inventory, not including strategic stockpiles, were
processed during the Quarter, monetising inventory previously "dormant"
due to the nature of the material or economics of final processing. This
clean-up has continued into the second quarter.
-- Test work on the large CIL stockpile material continued during the period
with a trial campaign yielding opportunities for upgrading this material
should it be decided to process all or part of the stockpile in the
future.
-- The process to secure West Pit 3 for deposition is still awaiting
finalisation with the Department of Mineral Resources before GPL can move
forward to finalise the design and other requirements.
-- The alternative option for reprocessing and final deposition of the
Tailings Storage Facility ('TSF') continues to be evaluated.
-- Supply of material containing PGMs including woodchips and other by
product material was enhanced with a contract being concluded with one of
the major producers. This will allow a degree of flexibility going
forward in processing either gold containing or PGM containing woodchips
so as to optimising some of the lower grade circuits.
Gold Recovery Ghana Limited ('GRG'), Ghana
-- 27% decrease year on year of gold and gold equivalents produced during
the Quarter to 1,757 ounces (Q2 2018: 2,408 ounces), production did
however increase by 156% compared to the preceding quarter (Q1 2019: 686
ounces).
-- 27% decrease YoY of gold sold and transferred to 1,319 ounces during the
Quarter (Q2 2018: 2,089 ounces).
-- Two contracts in Ghana were re-initiated during the Quarter and supply of
small batches of material from South America continued.
-- A one-off small but very high-grade batch of material was also received
from a South American client and processed during the Quarter.
-- Following prolonged negotiations with a major gold producer with
operations in West Africa, the producer has agreed to deliver a trial
batch of material to GRG once export logistics and legalities have been
finalised.
-- Sourcing material for GRG remains erratic and difficult to predict and
continues to be of the prime strategic focus areas for management.
Kilimapesa Gold ('KPG'), Kenya
-- KPG produced 857 ounces of gold and gold equivalents (Q2 2018: 1,234
ounces) with 1,174 ounces of gold sold (Q2 2018: 1,498 ounces) on KPG's
own account during the Quarter.
-- The Company took the decision not to put operations on care and
maintenance at the end of November 2018 despite continuing losses due to
progress on discussions regarding securing funding.
-- Plant throughput has been decreased further and costs reduced in order to
try to minimise losses during these financing discussions. Grades from
the underground mine as well as from purchased tailings were lower than
planned during the Quarter.
Anumso Gold Project, ('Anumso') Ghana
-- The initial expenditure of US$1.5 million that was required to be made by
31 October 2018 has been verified and Ashanti has exercised the initial
option to take up 51% of Goldplat's interest in the project. Ashanti has
notified Goldplat that they will not elect the Subsequent Option for an
additional 24% of the project and the parties will, according to the
agreement, form a Joint Venture to manage the project going forward.
Details regarding structure will be announced once decided and concluded.
** ENDS **
For further information visit www.goldplat.com, follow on Twitter
@GoldPlatPlc or contact:
Gerard Kisbey-Green Goldplat plc Tel: +27 (71) 8915775
(CEO)
Colin Aaronson / Jen Clarke Grant Thornton UK LLP Tel: +44 (0) 20 7383 5100
/ Ben Roberts (Nominated Adviser)
James Joyce / Jessica Cave WH Ireland Limited Tel: +44 (0) 207 220 1666
(Broker)
Susie Geliher / Priit Piip St Brides Partners Ltd Tel: +44 (0) 20 7236 1177
(Financial PR)
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.
(END) Dow Jones Newswires
February 04, 2019 02:00 ET (07:00 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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