Goldplat plc (LON:GDP) Chief Executive Officer Gerard Kisbey-Green caught up with DirectorsTalk for an exclusive interview to discuss the completion of the elution plant in Ghana
Q1: Gerard, we’re chatting this morning about the completion of the elution plan at your recovery operation in Ghana. Briefly, what is it that you’ve installed and commissioned?
A1: We installed a complete elution circuit, including the elution column, the acid wash circuit and steam boiler, as well as an electro-winning circuit and a smelt-house which includes an induction furnace.
Q2: So what difference will this make to your business now?
A2: It adds a lot of value to Goldplat on a number of different levels.
Firstly, obviously, it was a requirement under our renewed gold license to do this by June of this year which we’ve obviously completed early.
Secondly, from a cost perspective, this allows us to beneficiate by-products to Bullion or Dore and remove the costs of transporting concentrates, carbon etc to our South African operation or to other refiners.
Thirdly, from a cashflow perspective, very importantly, we realise cash in Ghana far more quickly than previously.
Fourth, it allows us the potential to toll-elute third party material which is quite a new exciting new avenue for us.
Finally, the facility gives us flexibility with respect to where we’re able to process various materials and hence the ability to optimise our profitability.
Q3: What was the cost of this installation?
A3: Our initial internal budget, which we did announced, was in the order of about $2 million. We subsequently, again we did announce, that we procured a more suitable cheaper circuit in South Africa which enabled us to reduce the budget to around $1.2 million which is more or less what the project cost at the end of the day. We did, during the process, add on an additional infrastructure which cost about $150,000, bringing the overall project cost to around $1.35 million.
Q4: Can you comment on the actual gold smelting?
A4: Of course, yes. It’s really satisfying to now be producing Dore in-country, it’s a milestone in our growth in and commitment to beneficiation in Ghana. We’ve done a couple of trial gold pours and are now into normal production. Obviously, the Dore needs to be refined at a third-party refiner as always.
Q5: Lastly then, how does this align with Goldplat’s strategic growth plans?
A5: It aligns 100% with our strategic plans to use GRG as our hub for growth in our recovery operations, as we’ve outlined already and it offers costs reductions, quicker cashflow and more operational flexibility.