# Goldplat plc Good results and expect milestones completed this quarter - Link: https://www.directorstalkinterviews.com/goldplat-plc-good-results-expect-milestones-completed-quarter/412727522 - Published: 2017-04-21T11:40:28+01:00 - Author: Giles Arbor **Goldplat plc** ([LON:GDP](https://www.directorstalkinterviews.com/company/goldplat-plc/gdp.l)) CEO Gerard Kisbey-Green talks to DirectorsTalk about the Operational Update (see below) for the quarter ended 31st March 2017. Gerard talks us through the highlights, the lowlights and tells us what investors can look forward to in the current quarter. The AIM listed gold producer, with international gold recovery operations located in South Africa and Ghana and a gold mine in Kenya, yesterday afternoon announced an operational update for the three months ended 31 March 2017 (the ‘Quarter’). **Production for the Quarter** Overall production of 6,746 ounces of gold and gold equivalents was achieved during the Quarter. Operating profitability continued at the recovery operations together with continued reduction in losses made at Kilimapesa. The sourcing of by-product material for processing at the recovery operations remains the number one strategic focus area and good progress is being made in this area at all operations. The second most important area of strategic focus is the installation of the new plant at Kilimapesa, with progress towards operational profitability of this operation also progressing well. **Overview** * 27,714 gold equivalent ounces were sold and transferred during the nine months ended 31 March 2017 (nine months ended 31 March 2016: 25,048 ounces) * Completion of installation of the first stage of the new processing plant at Kilimapesa Mine * Secured US$2million Scipion Loan facility   | Goldplat Plc Consolidated | 3rd Qtr Ending March 2017 Equivalent Gold oz | 9 Months Ending March 2017 Equivalent Gold oz | 9 Months Ending March 2016 Equivalent Gold | 12 Months ending June 2016 Equivalent Gold oz | | Gold and Gold Equivalent Production | | | | | | Gold Recovery Ghana | 803 | 8,391 | 6,579 | 6,883 | | Kilimapesa Gold | 964 | 2,154 | 1,435 | 2,005 | | Goldplat Recovery | 4,979 | 17,518 | 16,695 | 28,778 | | Total | 6,746 | 28,063 | 24,709 | 37,666 | | Gold and Gold Equivalent Sold | | | | | | Gold Recovery Ghana | 5,466 | 7,909 | 8,017 | 8,964 | | Kilimapesa Gold | 900 | 1,993 | 1,374 | 1,999 | | Goldplat Recovery | 2,894 | 12,732 | 11,563 | 16,575 | | Total | 9,260 | 22,634 | 20,954 | 27,538 | | Gold and Gold Equivalent Transferred | | | | | | Goldplat Recovery | 1,801 | 5,080 | 4,094 | 13,225 | | Total | 1,801 | 5,080 | 4,094 | 13,225 | | Gold and Gold Equivalent Sold and Transferred | | | | | | Gold Recovery Ghana | 5,466 | 7,909 | 8,017 | 8,964 | | Kilimapesa Gold | 900 | 1,993 | 1,374 | 1,999 | | Goldplat Recovery | 4,695 | 17,812 | 15,657 | 29,800 | | Total | 11,061 | 27,714 | 25,048 | 40,763 |   **Goldplat Recovery (Pty) Ltd (‘GPL’), South Africa** * During the Quarter GPL produced 4,979 ounces of gold and gold equivalents with 2,894 ounces of gold sold for own account and 1,801 ounces transferred to clients. * Capital expenditure during the Quarter included the replacement of the cyclone sections and kiln seals of one of the rotary kilns and the installation of a new mill in the high-grade section. Capital expenditure in the final quarter of the FY will remain sustaining capital only, including a new store for processing and storage of concentrates. * Legal proceedings with regards to the Rand Refinery dispute are in process and remain separated from the day-to-day operations between the two companies. * Goldplat continued to deliver concentrates to Rand Refinery and Aurubis in Germany during the Quarter. * In line with the Company’s strategic decision to mitigate single refiner risk, another refinery has been identified and a new contract is being finalised to ship concentrates during the next quarter. * Sourcing of sufficient quantity of the right quality material remains GPL’s main focus area. * GPL’s Environmental Consultants are finalising the action plan regarding the use of an old disused pit on adjacent land for tailings deposition. This includes the review of the prospecting rights over the pit as well as discussions with the current prospecting right holder to either close the prospecting right or transfer ownership to GPL. Preparation for the required permits and licences is also underway.   **Goldplat Recovery Ghana (‘GRG’), Ghana** * GRG produced 803 ounces of gold and gold equivalents, with 5,466 ounces of gold being sold for own account during the Quarter. * The first South American agreement with GRG has been finalised and shipment is expected in the next quarter of an estimated 240 tonnes of material. * The focus at GRG continues on the sourcing of material from existing and new clients with positive progress from South America as more shipments are on the way to Ghana. * Sourcing of material from two other West African Countries has been identified and discussions are underway with the mining companies to export the material to Ghana. * The 4-tonne elution project is progressing well and on target. Various equipment and construction material are already in Ghana with the shipment of the main acid and carbon columns planned before the end of June 2017 to allow the engineering modifications on the carbon column to be completed. The final costing of the project is expected in the next quarter. * The installation of a drier for the fluidised bed incinerators was completed and has improved the overall incinerator controls and efficiency. The next step is the installation of a scrubber system purchased from a South African supplier. The unit is currently being manufactured and expected to be shipped and installed in the next quarter. * A third Fluidised Bed Incinerator (‘FBI’) has been purchased for GRG to assist with the increased lower grade material available from clients. The FBI unit will be shipped to GRG in the next quarter. * A second static incinerator has been installed to assist with the increased material received from South America. The unit was sourced from within the group. * The shot blast facility continues to operate well and at capacity. * The removal of material from the on-site tailings dump to a land-fill site continued during the Quarter and is 80% completed. * GRG is complying with the specified milestones following the renewal of the gold licence on 23 December 2016 and is communicating continuously with the Minerals Commission.   **Kilimapesa Gold (‘KPG’)** * KPG produced 964 ounces of gold and gold equivalents, with 900 ounces of gold sold for own account during the Quarter. * Stage Two of the processing plant expansion, which includes the installation and commissioning of the crusher circuit and construction of the civils and fabrication of three additional carbon-in-leach (‘CIL’) tanks is largely on target for completion in April 2017. The crusher circuit has been delayed slightly due to steel availability in country but will not impact the production throughput planned for Stage Two. * With the additional CIL tanks commissioned early in Q4 FY 2017 and the availability of fine material on the stockpile, planned throughput and gold production for Stage Two is expected to be achieved by end April 2017 despite the delay in the crusher section, which is expected to be completed by the end of May 2017. Processing of the lower grade ore stockpile commenced during the Quarter and we continue to add more material from the mine and other surface sources to the stockpile. * At Kilimapesa Hill the new mechanical loader is fully operational and contributed significantly to improved development rates. The availability of working places and production areas has significantly strengthened operational flexibility and consequently improved the ability to meet increased production requirements. * At the Teng-Teng exploration project, the second outlet has holed to surface and the mono winch has been installed. The deepening of the incline has been completed, which will allow for rail transport and tipping of mined ore. * During the Quarter, Goldplat purchased and transported tailings from Migori county where KPG identified significant quantities of good quality surface material. Material is being added to stockpiled ore. * KPG continues to run the existing plant following additional re-designing work that was completed on the existing tailings facility in order to allow a further 6-12 months’ deposition.   **Anumso Gold Project** * During the Quarter, Ashanti Gold Corp completed their initial due diligence work and took the decision to proceed with the first option period earn-in. * All administrative and logistical operations including local company registration and setting up of bank accounts have been completed. * 20 Reverse Circulation (‘RC’) drill holes have been drilled and assayed. * Planned work for the next period includes surface geochemical work over the West Banka trend; advanced project mapping; metallurgical test work and evaluation of further drilling requirements.   **International marketing and sourcing** * During the Quarter, we continued to make good progress in the global sourcing of materials for processing in Ghana and in South Africa with the designated team visiting North America. The first contract with a South American producer has been finalised and shipment is expected in the next quarter. Other proposals submitted to South American clients are in advance stages of finalisation.   **Scipion Loan Facility** During the quarter, Goldplat, through Gold Mineral Resources Ltd (‘GMR’), agreed a US$2 million uncommitted, on-demand, revolving pre-export loan facility with Scipion Active Trading Fund arranged by Scipion Capital Ltd. See announcement dated 17 March 2017 for further information. > **Gerard Kisbey-Green, CEO of Goldplat Plc, commented:** “This has been a good > quarter on all fronts, especially with respect to our main areas of strategic > focus. I am particularly pleased with progress made on the plant expansion and > achievement of targets at Kilimapesa, as well as the positive developments being > made with respect to the sourcing of material from South America. Alongside this > we have identified new sourcing opportunities within West Africa and are also > exploring opportunities in North America. I believe Goldplat is on track to meet > planned targets for FY 2017 and look forward to keeping our shareholders updated > with our continued progress.” Share on: