# Goldplat plc Good results all around - Link: https://www.directorstalkinterviews.com/goldplat-plc-good-results-around/412732690 - Published: 2017-07-27T07:09:17+01:00 - Author: Giles Arbor **Goldplat plc** ([LON:GDP](https://www.directorstalkinterviews.com/company/goldplat-plc/gdp.l)), the AIM listed gold producer, with international gold recovery operations located in South Africa and Ghana and a gold mine in Kenya, has today announced a trading update for the year ended 30 June 2017 (‘FY 2017’), a production update for FY 2017 and an operational update for the three months (the ‘Quarter’) ended 30 June 2017 **Trading update** Goldplat is pleased to announce that consolidated profit before tax for the Company before any adjustment for the Nyieme Project (as described further below) is expected to exceed market expectations for FY 2017. The Company expects to publish its annual financial results in September 2017 **Production for the year ended 30 June 2017** 42,857 gold equivalent ounces, representing a 14% increase over the previous year were produced during FY 2017 (FY June, 2016: 37,666 ounces). All operations contributed to the year-on-year increase which exceeded targets for the year 40,285 gold equivalent ounces were sold and transferred during FY 2017 (FY 2016: 40,763 ounces). The high level of gold sold and transferred during FY 2016 was due to stock carried over from the previous year being sold, whereas the Gold equivalent ounces sold during 2017 reflects a build-up of material in Ghana which will be sold in the first quarter of the new year. **Production for the Quarter** Overall production of 14,790 ounces of gold and gold equivalents was achieved during the Quarter. This relatively high quarterly production was primarily as a result of: commissioning most of the stage two expansion at Kilimapesa Gold Limited (‘KPG’) during the Quarter and consequent increase in production to 1,254 ounces of gold production from a large contract with a new client in Africa being completed at Goldplat Recovery Limited (‘GPL’) during the Quarter, resulting in 11,896 ounces of gold equivalent ounces of production at GPL for the Quarter. | Goldplat Plc Consolidated | 4th Qtr ending | 4th Qtr ending | Year ending | Year ending | Year ending June 2016 | Year ending June 2016 | | Jun-17 | Jun-17 | Jun-17 | Jun-17 | Equivalent Gold | Equivalent Gold | | Equivalent Gold | Equivalent Gold | Equivalent Gold | Equivalent Gold | kg | oz | | kg | oz | kg | oz | | | | Gold Equivalent Production | | | | | | | | Gold Recovery Ghana |  51 |  1 640 |  312 |  10 031 |  214 |  6 883 | | Kilimapesa Gold |  39 |  1 254 |  106 |  3 408 |  62 |  2 005 | | Goldplat Recovery |  370 |  11 896 |  915 |  29 418 |  895 |  28 778 | | Total |  460 |  14 790 |  1 333 |  42 857 |  1 171 |  37 666 | | Gold Equivalent Sold | | | | | | | | Gold Recovery Ghana |  13 |  418 |  259 |  8 327 |  279 |  8 964 | | Kilimapesa Gold |  38 |  1 222 |  100 |  3 215 |  62 |  1 999 | | Goldplat Recovery |  306 |  9 838 |  702 |  22 570 |  516 |  16 575 | | Total |  357 |  11 478 |  1 061 |  34 112 |  857 |  27 538 | | Gold Equivalent Transferred | | | | | | | | Goldplat Recovery |  34 |  1 094 |  192 |  6 173 |  411 |  13 225 | | Total |  34 |  1 094 |  192 |  6 173 |  411 |  13 225 | | Gold Equivalent Sold and Transferred | | | | | | | | Gold Recovery Ghana |  13 |  418 |  259 |  8 327 |  279 |  8 964 | | Kilimapesa Gold |  38 |  1 222 |  100 |  3 215 |  62 |  1 999 | | Goldplat Recovery |  340 |  10 932 |  894 |  28 743 |  927 |  29 800 | | Total |  391 |  12 572 |  1 253 |  40 285 |  1 268 |  40 763 | **Goldplat Recovery (Pty) Ltd (‘GPL’), South Africa** Gold production at GPL during the Quarter was high (at 11,896 ounces of gold equivalent produced) due primarily to the completion of processing of a large one-off batch of carbon from a new client in Africa. Most of this production was also sold during the Quarter with the remainder planned for sales in the first quarter of the new year The Carbon-in-leach (‘CIL’) circuits exceeded planned gold production due to higher grade of processed material, despite an unplanned stoppage of a mill during the period. With sourcing of feed for the CIL circuits remaining a priority, the Company is pleased that large volumes of material for the CIL circuits for the new financial year were sourced during the Quarter. Some of this material will benefit from various different testwork being undertaken to improve recoveries. Metallurgical testwork and pilot tests on the stock dam material continue. The process of securing the West 3 Pit for deposition 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 further progress has been made on the Rand Refinery dispute. **Goldplat Recovery Ghana (‘GRG’), Ghana** Gold production at GRG improved significantly during the Quarter to 1,640 ounces of gold equivalent resulting in an annual production of 10,031 ounces of gold equivalent production. With sources of material from within Ghana continuing to deplete for various reasons, focus 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 planned elution plant was shipped from GPL during the Quarter and arrived in Ghana shortly after the end of the Quarter, with work started on site preparation and civils. Whereas the deadline for commissioning is June 2018, GRG would like to target the end of December 2017 for commissioning. A third fluidised bed incinerator which was purchased second-hand from an operator in Tanzania is currently being transported for shipment to GRG. During the Quarter, more 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 for 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). **Kilimapesa Gold (‘KPG’), Kenya** Production at KPG of 1,254 ounces of gold equivalent during the Quarter represented a 41% increase on the previous quarter and a record gold production quarter for the operation. Notwithstanding the improvement, the production was lower than that planned due to both lower tonnages and grades mined. Production rates were impacted by problems with generators, mainly associated with poor diesel quality. These issues have been largely dealt with during the Quarter. A new diesel bowser has been installed at the new plant, a new supplier has been engaged, and the process of installing grid power at plant 2 has been initiated. KPG achieved operational profitability during the months of May and June 2017 – for the first time since the acquisition a decade ago. Management is confident that profitability will now be maintained and improved. Full commissioning of stage two of the new plant is still not complete due to ongoing delays in clearing key equipment through the port. Planned mill throughput was achieved as sufficient fine material was previously stockpiled for processing during commissioning. Increased mine production and final commissioning of the crusher section during the first quarter of the new financial year should improve both tonnage and grade of material and should allow improved recoveries. All sections of the crusher section have been run on trial basis and have performed very well. Full commissioning is expected during the first quarter of the new financial year. KPG continues to acquire good quality tailings for processing at the old plant where the tailings facility capacity has been increased to provide for a further 12 months of production. **Anumso Gold Project, Ghana** During the Quarter, Ashanti Gold Corp completed an extensive soil sampling programme across the Anumso Gold Project properties to test the strike extent of the Banka conglomerate. 1,300 samples were collected which are now being assayed locally. All core has been reviewed and a 320Kg sample was selected for metallurgical testing. Samples are currently in Vancouver for test work. All core is now being stored on GRG’s site in Tema. Ashanti Gold Corp’s planned work for the next period includes the completion of assaying of soil samples and metallurgical testwork of core samples. **Nyieme Gold Project, Burkina Faso** The exceptional 3-year extension granted for Nyieme Gold Project in Burkina Faso 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 income statement for the year ended 30 June 2017 is expected to be approximately £980,000. **South America** Strong progress has been made in securing contracts with operators in various South American countries. A local Brazilian metallurgist has been employed to work alongside the Company’s local partner (Oretec). Deliveries of material to GRG from the Company’s first large, long-term contract in Uruguay were received during the Quarter with production expected in the new financial year. Trial batches of mill liners, wood chips and low-grade carbon have proved to be economically viable. This is important as significant competition for higher grade carbon has been encountered.The Board expects further progress in South America in the new financial year which will assist with the growth plans at GRG. > **Gerard Kisbey-Green, CEO of Goldplat plc, commented:** “The final quarter of > the financial year produced good results all around for Goldplat, with a particular > highlight being the continued record gold production and first operational profitability > at our Kilimapesa operation. Delays in the final commissioning of stage two of > the new plant were largely out of the team’s control and I remain very proud of > the work done on the project which should reap rewards in the years to come! Securing > and completion of a very large contract for a new client in Africa was a further > highlight at GPL! Despite this being a one-off contract, it proved our ability > to source material from new clients and geographies, manage the logistics and > process large amounts of material quickly and profitably! This is an important > aspect of overall risk mitigation for Goldplat. I believe that the extensive progress > being achieved in the diversification of sourcing of material at all of our operations > will stand the Company in good stead for the coming financial year. I look forward > to sharing comprehensive results with the market in September 2017.” Share on: