Goldplat plc (LON: GDP) , the AIM-listed gold producer, with international gold recovery operations based in South Africa and Ghana and a gold mine in Kenya, has today provided an operational update for the three months ended 30 June 2019.
Goldplat Recovery Ltd (‘GPL’), South Africa
- During the Quarter GPL maintained good production levels and achieved the planned margins.
- Production during the last month was lower as a result of a planned trial on a stockpile batch of the lower grade strategic material which was processed for evaluation purposes.
- A number of initiatives to reduce the operational cost in GPL has yielded positive results thus far together with improved efficiencies as an additional benefit. This will aid in the ability to source and process lower grade material in future.
Goldplat Recovery Ghana (‘GRG’), Ghana
- GRG production was supported by local clients during the Quarter, however was below expectations due to difficulties in sourcing sufficient material to process.
- GRG’s sourcing initiatives in West Africa and South America continue and the Company has made considerable inroads in developing these markets, especially in the Ivory Coast, Mali and Burkina Faso.
- A trial batch of material has been received for evaluation from one of the new clients in Mali and the Company is hopeful that this will result in continued future business on a larger scale.
Kilimapesa Gold (‘KPG’)
- Operations at KPG were put on care and maintenance in May 2019.
- Goldplat has continued to engage with the stakeholders of KPG and substantial support has been received from a number of stakeholders, with a high percentage of them agreeing not to demand payment from KPG for the six-month period ending November 2019.
- To support the cash flow requirements while the mine is under care and maintenance, the remaining stockpiles, together with purchased artisanal tailings, are treated on site to reduce the cost of care and maintenance.
- A major positive development has been that the Kenyan Revenue Authorities started refunding the mine’s VAT claims for the first time since incorporation. This action sends a strong message to potential investors about Kenya as an investment destination and for Kilimapesa it is of tremendous importance as the funds will be applied to reduce the KPG’s debt. Refunds received to date amount to circa USD 200,000.
- Discussions regarding seeking an investment partner remains ongoing. The Company is engaged in early stage talks with a number of interested partie
The cost saving initiatives in the Group, including subsidiaries mentioned above is expected to reduce costs by circa GBP500,000 per annum.
The Company had circa GBP2.1 million cash on hand at end of the Quarter and still anticipates reporting a loss from operating activities for the full year, at approximately the level of the loss incurred for the half-year ended 31 December 2018, having broken even in the second half.
Werner Klingenberg, CEO of Goldplat plc, commented:
“We delivered continued profitable production in South Africa during the quarter and achieved substantial savings by putting Kilimapesa under care and maintenance. In the next Quarter we aim to accelerate the progress of growing the greater West African market. Management’s continued priority will be to maintain the established momentum of the recovery operation and improve the reliability of sourcing material.
“Discussions regarding seeking an investment partner for KPG remain ongoing and we hope to update the market in due course.”