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Goldplat plc - Interim results for the 6 months ended 31 Dec 2019

RNS Number : 8262D
Goldplat plc
24 February 2020
 

Goldplat plc / Ticker: GDP / Index: AIM / Sector: Mining & Exploration

24 February 2020

Goldplat plc

('Goldplat' or 'the Company')

Interim results for the six months ended 31 December 2019

 

Goldplat plc, the AIM listed gold producer, with international gold recovery operations located in South Africa and Ghana and a gold mine in Kenya, announces its unaudited interim results for the six months ended 31 December 2019.

Overview

·    The group reports a return to operating profitability for the first six months ended 31 December 2019 of £2,221,000 (31 December 2018: Operating loss £653,000)

·    The group profit for the six months ended 31 December 2019, excluding unrealised intragroup foreign exchange losses on intercompany loan balances, was £1,032,000 (31 December 2018: Loss, excluding intragroup foreign exchange losses on intercompany balances, £1,214,000)

·    The group has intercompany loans denominated in USD which differ from the parent company and its various subsidiaries reporting currencies. The strengthening of GBP and weakening of the Ghana Cedi contributed the most to the group's unrealised intragroup foreign exchange loss for the six months to 31 December 2019 of £333,000 (31 December 2018:  unrealised intragroup foreign exchange profit, £279,000)

·    With the increase in profits the group also reported an increase in taxation for the six months ended 31 December 2019 to £918,000 (31 December 2018: £98,000). Included in the taxation expense is dividend taxation paid on the declaration of dividends from GPL to support the group cash flows. The dividend taxation paid for the six months ended 31 December 2019 was £190,000 (31 December 2018: £200,000)

·    The South African operation performed strongly and achieved an operating profit for the six months ended 31 December 2019 of £2,659,000 (31 December 2018: £752,028). A pre-treatment facility has been added at a cost of £70,000 which enables the company to treat lower grade material with a higher degree of contamination.

·    Performance at the Ghana operation improved as the company's marketing and sourcing efforts gained momentum and achieved an operating profit for the six months ended 31 December 2019 of £151,000 (31 December 2018: operating loss £241,449).

·    Operating losses at Kilimapesa have been reduced, year on year, for the six months ended 31 December 2019 to £301,000 (31 December 2018: Operating loss £686,845) while we have continued to hold discussions with funding partners to re-capitalize this valuable asset.

·    The continuing focus on operational excellence was enhanced by higher gold price in this period.

·    During the six-month period, £523,000 of VAT reclaims have been paid by the Kenyan Revenue Authorities.

·    Cost reductions and improved operational efficiencies remain an area of focus.

·    Improvement in plant operational efficiencies in South Africa have not only reduced costs but improved gold recovery.

·    Some of the cost savings have been invested into material sourcing initiatives and increasing physical security in South Africa.

·    The Tailings Storage facility ('TSF') in South Africa has been structurally supported at a planned cost of £250,000 of which £123,000 has been spent in the first half of FY 2020. This expenditure will increase the life of the TSF whilst we investigate the design of a new TSF.  

 

 

 

Chairman's Statement

I am delighted to report that Goldplat continues to deliver effectively on its stated strategic objectives at its operating subsidiaries. Our portfolio of core assets consists of two gold recovery operations in South Africa and Ghana, which recover gold from by-products of the mining process, thereby providing mines with an environmentally-friendly and cost-efficient way of removing waste material, and the Kilimapesa Gold Mine in Kenya, currently under care and maintenance.

 

We remain committed to our strategy of increasing long term visibility of earnings in the recovery businesses through key initiatives and finding an investment partner or buyer for Kilimapesa. These key initiatives include:

 

·    improving our gold recoveries from lower grade contaminated material, effectively reducing the grade of the material we will be able to process economically. Reserves of lower grade materials are more readily available and help to alleviate the sourcing risk;

·    Building strategic partnerships within the mining industry;

·    Evaluating the investment into a larger tailings storage facility and additional mill and leaching capacity to enable us to reprocess our current TSF;

·    Increased investment into sourcing initiatives and test work on a wider range of materials, including PGM discards. 

Revenues for the six months ended 31 December 2019 of £12,462,000 represent a 3% decrease on the same period last year (six months ended 31 December 2018: £12,843,000), as a result of Kilimapesa Mine being placed under care and maintenance. The revenues for the six months ended 31 December 2019 on the recovery operations increased by 10% to £11,759,000 (31 December 2018: £10,684,000). In line with this, I am pleased to report a turnaround to operating profit to £2,221,000 (six months ended 31 December 2018: loss of £653,000).

The net finance cost of £180,000 for the six months ended 31 December 2019 (31 December 2018: £200,000) includes £41,000 (31 December 2018: £70,000) interest paid on the renewed Scipion loan.

 

The profit after taxation of £669,000 (31 December 2018: loss £935,000) was negatively impacted by unrealised intragroup foreign exchange losses on intercompany loans balances for the six months ended of £333,000
(31 December 2018: £279,000). The group has intercompany loans dominated in USD which differ from its reporting currencies. The strengthening of the GBP and weakening of the Ghana Cedi contributed the most to the unrealised intragroup foreign exchange loss for the six months.

 

With the increase in profits the group also reported an increase in taxation for the six months ended 31 December 2019 to £918,000 (31 December 2018: £98,000). Included in the taxation expense is dividend taxation paid on the declaration of dividends from GPL to support the group cash flows. The dividend taxation paid for the six months ended 31 December 2019 was £190,000 (31 December 2018: £200,000).

 

During the period the US$2 million uncommitted, on-demand, revolving pre-export loan facility with Scipion was renewed which is providing increased flexibility in the sourcing initiatives in West Africa and further abroad. During the period, US$1.2 million was drawn down for these purposes and will be repaid by the end of April 2019.

 

Cash and cash equivalents at the end of the period stood at £2,070,000 (31 December 2018: £1,000,000).

 

 

 

Goldplat Recovery (Pty) Ltd ('GPL')

 

GPL had a very strong operational performance and recorded sales during the six months ended 31 December 2019 of £9,486,000 (six months ended 31 December 2018: £8,817,842). Operating profits for the six months ended 31 December 2019 of £2,659,000 increased by 254% (six months ended 31 December 2018: £752,028), and reflects the contribution of the abovementioned interventions and a higher gold price.

 

Towards the end of the 1st Quarter, GPL started the construction of the first stage of a pre-treatment facility to the largest Carbon in Leach ('CIL') section at a cost of £70,000.  The purpose of the pre-treatment facility is to improve recoveries and margins on lower grade contaminated material and together with efforts to reduce operating costs, should allow us to source and profitably process lower grade contaminated material. This project has been completed on time, on budget and the new facility is currently being commissioned.

              

Our TSF is approaching full capacity in its current form and so we planned to spend £250,000 during the 2nd quarter to structurally support and increase its life by a further 12 to 18 months. Capital expenditure on this project at 31 December 2019 was £123,000 and has since been completed at the original budgeted cost of £250,000.

 

Gold Recovery Ghana ('GRG')

 

Activities at GRG continued to increase during the 2nd Quarter, achieving sales of £2,273,000 during the six months ended 31 December 2019 (31 December 2018 - £1,865,957) resulting in a turnaround from an operating loss during the six months ended 31 December 2018 of £241,449 to a profit of £151,000.

 

The sourcing of material improved further in the 2nd quarter with material being received from Ghana and other West African countries as well as from South America. We remain positive that material from Burkina Faso and the Ivory Coast will also become available. The sourcing of material remains paramount and we continue to work towards our objective to be the preferred processor of material from the Economic Community of West African States (ECOWAS).

 

GRG's Gold license, which has to be renewed every three years, has been approved for a further term up to December 2022.

 

We are continuing exploring the opportunities for toll treating lower grade material from artisanal sources in Ghana. This potential new revenue stream will be subject to obtaining support from The Minerals Commission of Ghana. We have incorporated a company specifically for this purpose so that we can keep our free zone activities ring fenced.

 

Kilimapesa Gold ('KPG')

 

The mining operation remains on care and maintenance whilst we seek an investment partner to inject funds directly into KPG or the assets.

 

The processing of artisanal tailings continues and operating losses are lower than would have been under full care and maintenance.

 

KPG has reduced liabilities to creditors by £521,000 during the six months ended 31 December 2019, mainly from the recovery of previously unpaid VAT reclaims. During the six-month period, £523,000 of VAT reclaims have been paid by the Kenyan Revenue Authorities.

 

We are pleased that we have support from the Kenyan Government and that the status of our permits and licenses has not been affected by our decision to halt underground mining and that the local community continues to receive some benefit from KPG's activities.

 

Operating losses reduced circa 56%, year on year, to £301,000 for the six months ended 31 December 2019 (six months ended 31 December 2018: Loss £686,845). The cash utilized in operating activities before working capital changes for the six months ended 31 December 2019 was £141,000 (six months ended December 2018 - £388,545). There has been no capital expenditure incurred.

Anumso Gold Corp ('Anumso')

We have agreed with our Joint Venture partner at Anumso, Desert Gold (Ashanti Gold and Desert Gold merged towards the end of September 2019), to seek a buyer for the Anumso gold project. We have had discussions with a potential buyer and will announce the outcome in due course.

Post-Period End

Progress can be reported subsequent to 31 December 2019 on the following:

·    The construction of the pre-treatment facility at one of the CIL circuits at GPL has been completed and the facility is being commissioned, with all indications being that it has increased, as planned, the gold recoveries and margins of the large contaminated stockpile we have on site, improving visibility of material supplies for next 18 to 24 months.

·    The construction of a buttress around the TSF has been completed, structurally improving the TSF and extending the life of the TSF by 12 to 18 months.

·    Application has been filed for a new tailing's facility, at GPL, adjacent to our current facility and we will update the market on cost and timelines before end of June 2020.

Outlook

The progress made on key initiatives to increase long term visibility of earnings in the recovery businesses, specifically improved recovery on lower grade contaminated material and strengthened relationships within mining industry, are encouraging. Although monthly production levels are still dependent on sourcing of quality material, we are confident that at current higher gold prices, we will remain profitable for remainder of the year.

 

 

Matthew Robinson

Chairman

24 February 2020

 

For further information visit www.goldplat.com, follow on Twitter @GoldPlatPlc or contact:

 

 

Werner Klingenberg

 

Goldplat plc (CEO)

 

Tel: +27 (0) 82 051 1071

 

Colin Aaronson / Richard Tonthat / Harrison Clarke/Seamus Fricker

 

Grant Thornton UK LLP (Nominated Adviser)

 

 

Tel: +44 (0) 20 7383 5100

 

 

James Joyce / Jessica Cave

 

WH Ireland Limited (Broker)

 

 

Tel: +44 (0) 207 220 1666

 

 

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.

 

 

 

 

 

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHES ENDED 31 DECEMBER 2019

 

 

 

 

 

 

 

 

Notes

 

6 months

31-Dec-19

(unaudited)

£'000

 

6 months

31-Dec-18

(unaudited)

£'000

 

12 months

30-Jun-19

(audited)

£'000

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

 

 

 

 

 

 

12,462

 

12,843

 

24,837

Cost of sales

 

 

 

 

 

 

(9,501)

 

(12,464)

 

(23,325)

Gross profit

 

 

 

 

 

 

 

2,961

 

379

 

1,512

Administrative expenses

 

 

 

 

 

(740)

 

(1,032)

 

(2,013)

Profit/(Loss) from operating activities

 

 

 

2,221

 

(653)

 

(501)

Net finance cost

 

 

 

 

 

(180)

 

(200)

 

(352)

Other realised foreign exchange losses

 

 

 

 

 

(111)

 

(151)

 

(176)

Unrealised Intergroup foreign exchange (losses)/profit

 

 

 

 

 

(333)

 

279

 

(124)

Other unrealised foreign exchange (losses)/profit

 

 

 

 

 

(10)

 

(112)

 

66

Net unrealised foreign exchange (losses)/profit

 

 

 

(343)

 

167

 

(58)

Profit/(Loss) from operating activities after finance cost

 

 

 

 

 

1,587

 

(837)

 

(1,087)

Taxation

 

 

 

6

 

(918)

 

(98)

 

(653)

Profit/(Loss) for the period

 

669

 

(935)

 

(1,740)

Other comprehensive expense

 

 

 

 

 

 

Exchange translation

 

(213)

 

(147)

 

(27)

Other comprehensive expense for the period, net of tax

(213)

 

(147)

 

(27)

Total comprehensive income/(expense) for the period

 

456

 

(1,082)

 

(1,767)

Profit/(Loss) attributable to:

 

 

 

 

 

 

 

 

Owners of the Company

 

 

 

219

 

(1,133)

 

(2,234)

Non-controlling interests

 

 

 

450

 

198

 

494

Profit/(Loss) for the period

 

 

 

669

 

(935)

 

(1,740)

Total comprehensive income/(expense) attributable to:

 

 

 

 

 

Owners of the Company

 

 

 

6

 

(1,280)

 

(2,261)

Non-controlling interests

 

 

 

450

 

198

 

494

Total comprehensive income/(expense) for the period

 

456

 

(1,082)

 

(1,767)

Earnings per share

 

 

 

 

 

 

Basic earnings/(loss) per share (pence)

 

 

 

 

0.26

 

(0.67)

 

(1.33)

Diluted earnings per share (pence)

 

 

 

0.26

 

n/a

 

n/a

 

The notes below are an integral part of this condensed consolidated interim financial report.

 

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2019

 

 

 

 

 

 

 

 

 

 

Notes

 

31-Dec-19

(unaudited)

£'000

 

31-Dec-18

(unaudited)

£'000

 

30-Jun-19

(audited)

£'000

Assets

 

 

 

 

 

 

 

 

 

 

Property, plant and equipment

 

 

 

7

 

7,135

 

7,948

 

7,512

Intangible assets

 

 

 

8

 

8,086

 

8,413

 

8,201

Proceeds from sale of shares in subsidiary

 

 

786

 

980

 

950

Non-current assets

 

 

 

 

 

16,007

 

17,341

 

16,663

Inventories

 

 

 

9

 

7,926

 

7,718

 

5,842

Trade and other receivables

 

 

 

10

 

7,344

 

7,047

 

7,918

Cash at bank and on hand

 

 

 

11

 

2,070

 

1,000

 

2,368

Current assets

 

 

 

 

 

17,340

 

15,765

 

16,128

Total assets

 

 

 

 

 

33,347

 

33,106

 

32,791

 

 

 

 

 

 

 

 

 

 

 

Equity

 

 

 

 

 

 

 

 

 

 

Share capital

 

 

 

12

 

1,675

 

1,675

 

                1,675

Share premium

 

 

 

 

 

11,441

 

11,441

 

11,441

Exchange reserve

 

 

 

 

 

(6,313)

 

(6,220)

 

(6,100)

Retained earnings

 

 

 

 

 

9,077

 

9,959

 

8,858

Equity attributable to owners of the Company

 

15,880

 

16,855

 

15,874

Non-controlling interests

 

 

 

 

 

3,139

 

2,992

 

2,991

Total equity

 

 

 

 

 

19,019

 

19,847

 

18,865

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

Obligations under finance leases

 

14

 

183

 

239

 

151

Provisions

 

 

 

16

 

613

 

413

 

633

Deferred tax liabilities

 

 

 

 

 

445

 

432

 

362

Non-current liabilities

 

 

 

 

 

1,241

 

1,084

 

1,146

 

 

 

 

 

 

 

 

 

 

 

Bank overdraft

 

 

 

11

 

89

 

1

 

560

Obligations under finance leases

 

 

 

14

 

266

 

257

 

213

Interest bearing borrowings

 

 

 

15

 

1,388

 

838

 

528

Taxation

 

 

 

 

 

154

 

201

 

53

Trade and other payables

 

 

 

17

 

11,190

 

10,878

 

11,426

Current liabilities

 

 

 

 

 

13,087

 

12,175

 

12,780

Total liabilities

 

 

 

 

 

14,328

 

13,259

 

13,926

Total equity and liabilities

 

 

 

 

 

33,347

 

33,106

 

32,791

 

The notes below are an integral part of this condensed consolidated interim financial report.

 

The consolidated interim report of Goldplat plc, company number 05340664, were approved by the Board of Directors and authorised for issue on 24 February 2020. They were signed on its behalf by:

 

Werner Klingenberg, Director

 

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTHS ENDED 31 DECEMBER 2018

 

Attributable to owners of the Company

 

 

 

 

 

 

 

 

 

 

 

 

Share

capital

£'000

 

Share premium

£'000

 

Exchange reserve

£'000

 

 

Retained earnings

£'000

 

 

Total

£ '000

Non-controlling interests

£'000

 

 

Total equity

£'000

 

Balance at 1 July 2018, as previously reported

 

1,675

 

11,441

 

(6,073)

 

11,092

 

18,135

 

2,964

 

21,099

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total comprehensive (expense)/income for the period

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss)/Profit for the period

 

 

 

 

-

 

-

 

-

 

(1,133)

 

(1,133)

 

198

 

(935)

 

Total other comprehensive expense

 

 

 

-

 

-

 

(147)

 

-

 

   (147)

 

-

 

(147)

 

Total comprehensive (expense)/income for the period

 

-

 

-

 

(147)

 

(1,133)

 

(1,280)

 

198

 

(1,082)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Transactions with owners of the Company, recognised directly in equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Changes in ownership interests in subsidiaries

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-controlling interests in subsidiary dividend

 

-

 

-

 

-

 

-

 

-

             

(170)

 

(170)

Total transactions with owners of the Company

 

-

 

-

 

-

 

-

 

-

              

(170)

 

(170)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at 31 December 2018 (unaudited)

 

 

1,675

 

11,441

 

(6,220)

 

9,959

 

16,855

   

2,992

 

19,847

                                                         

 

The notes below are an integral part of this condensed consolidated interim financial report.

 

 

 

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 30 JUNE 2019           

 

Attributable to owners of the Company

 

 

 

 

 

 

 

 

 

 

 

 

Share

capital

£'000

 

Share premium

£'000

 

Exchange reserve

£'000

 

 

Retained earnings

£'000

 

 

Total

£ '000

Non-controlling interests

£'000

 

 

Total equity

£'000

 

Balance at 1 July 2018

 

 

 

 

1,675

 

11,441

 

(6,073)

 

11,092

 

18,135

 

2,964

 

21,099

 

Total comprehensive (expense)/income for the period

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit/(loss) for the period

 

 

 

 

-

 

-

 

-

 

(2,234)

 

(2,234)

 

494

 

(1,740)

 

Total other comprehensive expense

 

-

 

-

 

(27)

 

-

 

     (27)

 

-

 

(27)

 

Total comprehensive (expense)/income for the period

 

 

-

 

-

 

(27)

 

(2,234)

 

(2,261)

 

494

 

(1,767)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Transactions with owners of the Company recognised directly in equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Changes in ownership interests in subsidiaries

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-controlling interests in subsidiary dividend

 

 

-

 

 

-

 

 -

             

(467)

 

(467)

Total transactions with owners of the Company

 

-

 

-

 

-

 

-

 

-

             

(467)

 

(467)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at 30 June 2019 (audited)

 

 

1,675

 

11,441

 

(6,100)

 

8,858

 

15,874

    

2,991

 

18,865

                                                       

 

 

The notes below are an integral part of this condensed consolidated interim financial report.

 

 

 

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTHS ENDED 31 DECEMBER 2019

 

Attributable to owners of the Company

 

 

 

 

 

 

 

 

 

 

 

Share

capital

£'000

 

Share premium

£'000

 

Exchange reserve

£'000

 

 

Retained earnings

£'000

 

 

Total

£ '000

Non-controlling interests

£'000

 

 

Total equity

£'000

Balance at 1 July 2019

 

 

 

 

1,675

 

11,441

 

(6,100)

 

8,858

 

15,874

 

2,991

 

18,865

Total comprehensive income for the period

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit for the period

 

 

 

 

-

 

-

 

-

 

219

 

219

 

450

 

669

Total other comprehensive expense

 

 

 

-

 

-

 

(213)

 

-

 

(213)

 

-

 

(213)

Total comprehensive (expense)/income for the period

 

 

 

-

 

-

 

(213)

 

219

 

6

 

450

 

456

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Transactions with owners of the Company recognised directly in equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Changes in ownership interests in subsidiaries

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-controlling interests in subsidiary dividend

 

-

 

-

 

-

 

-

 

-

 

(302)

 

(302)

Total transactions with owners of the Company

 

-

 

-

 

-

 

-

 

-

 

(302)

 

(302)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at 31 December 2019 (unaudited)

 

 

1,675

 

11,441

 

(6,313)

 

9,077

 

15,880

 

3,139

 

19,019

 

 

The notes below are an integral part of this condensed consolidated interim financial report.

 

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS ENDED 31 DECEMBER 2019

 

 

 

 

 

 

 

 

 

Notes

 

6 months

31-Dec-19

(unaudited)

        £'000

 

6 months

31-Dec-18 (unaudited)

           £'000

 

12 months

30-Jun-19

  (audited)

         £'000

Cash flows from operating activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Result from operating activities

 

 

 

2,221

 

(653)

 

(501)

Adjustments for:

 

 

 

 

 

 

 

 

 

 

-  Depreciation

 

 

 

 

 

421

 

484

 

956

-  Amortisation

 

 

 

 

 

-

 

 

111

 

222

-  Loss on sale of property, plant and equipment

 

 

 

13

 

-

 

-

-  Foreign exchange differences

 

 

(385)

 

(1)

 

(134)

 

 

 

 

 

 

2,270

 

(59)

 

543

Changes in:

 

 

 

 

 

 

 

 

 

 

-  inventories

 

 

 

 

 

(2,084)

 

73

 

1,949

-  trade and other receivables

 

 

 

 

 

574

 

556

 

(315)

-  trade and other payables

 

 

 

 

 

(236)

 

(50)

 

498

-  provisions

 

 

 

 

 

(20)

 

-

 

-

Cash generated from operating activities

 

 

504

 

520

 

2675

 

 

 

 

 

 

 

 

 

 

 

Finance income

 

 

 

 

 

51

 

30

 

19

Finance cost

 

 

 

 

 

(231)

 

(380)

 

(586)

Taxes paid

 

 

 

 

 

(488)

 

(388)

 

(725)

Net cash from/ (used in) operating activities

 

 

 

(164)

 

(218)

 

1,383

 

Cash flows from investing activities

 

 

 

 

 

 

 

 

 

 

Acquisition of property, plant and equipment

 

 

 

(216)

 

(321)

 

(331)

Receipt of proceeds from sale of shares in subsidiary

 

 

 

134

 

72

 

199

Net cash used in investing activities

 

 

 

 

 

(82)

 

(249)

 

(132)

 

Cash flows from financing activities

 

 

 

 

 

 

 

 

 

 

Proceeds from drawdown of interest bearing borrowings

 

916

 

760

 

-

Payment of interest bearing borrowings

 

 

(77)

 

(650)

 

(200)

Payment of dividend by subsidiary to non-controlling interest

 

 

(302)

 

(170)

 

(467)

Payment of finance lease liabilities

 

 

(58)

 

(36)

 

(242)

Net cash from/ (used in) financing activities

 

 

 

479

 

(96)

 

(909)

 

 

 

 

 

 

 

 

 

 

 

Net decrease in cash and cash equivalents

 

 

233

 

(563)

 

342

Cash and cash equivalents at beginning of period

 

 

 

1,808

 

1,539

 

1,539

Foreign exchange movement on opening balance

 

 

 

(60)

 

23

 

(73)

Cash and cash equivalents at end of period

 

11

 

1,981

 

999

 

1,808

 

The notes below are an integral part of this condensed consolidated interim financial report.

 

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL REPORT

FOR THE SIX MONTHS ENDED 31 DECEMBER 2019

 

1.         General information

This condensed consolidated interim financial information does not comprise statutory accounts within the meaning of section 434 of the Companies Act 2006.  Statutory accounts for the year ended 30 June 2019 were approved by the Board of Directors and have been delivered to the Registrar of Companies.  The audit report on those accounts: their report was unqualified, did not draw attention to any matters by way of emphasis and did not contain a statement under section 498(2) or (3) of the Companies Act 2006.

 

2.         Basis of preparation

 

(a)       Statement of compliance

The annual financial statements of Goldplat plc (the 'Company') are prepared in accordance with IFRSs as adopted by the European Union

 

(b)       Going concern

The directors are satisfied that the Company has sufficient resources to continue in operation for the foreseeable future, a period of not less than 12 months from the date of this report.  Accordingly, they continue to adopt a going concern basis in preparing the consolidated financial statements.

 

3.         Significant accounting policies

The accounting policies applied in this condensed consolidated interim financial report are the same as those applied in the Group's consolidated financial statements as at and for the year ended 30 June 2019.

 

4.         Operating segments

Information about reportable segments

 

For the six months ended 31 December 2019 (unaudited)

 

 

 

 

 

 

Recovery operations

£'000

 

Mining and exploration

£'000

 

Adminis-tration

£'000

Reconciliation to Group figures

£'000

 

 

Group

£'000

External revenues

 

 

11,759

703

-

-

12,462

Depreciation

289

132

-

-

421

Reportable segment profit/(loss) before tax

2,486

(297)

(642)

40

1,587

Segment assets

23,912

(2,463)

32,057

(20,159)

33,347

Segment liabilities

14,084

10,946

10,033

(20,735)

14,328

 

 

 

 

 

 

 

 

 

 

For the six months ended 31 December 2018 (unaudited)

 

 

 

 

 

 

Recovery operations

£'000

 

Mining and exploration

£'000

 

Adminis-tration

£'000

Reconciliation to Group figures

£'000

 

 

Group

£'000

External revenues

 

 

10,684

2,159

-

-

12,843

Depreciation

303

181

-

-

484

Amortisation

-

111

-

-

111

Reportable segment profit/(loss) before tax

389

(836)

(429)

39

(837)

Segment assets

21,793

1,339

31,074

(21,100)

33,106

Segment liabilities

 

11,598

4,195

5,485

(8,019)

13,259

For the twelve months ended 30 June 2019 (audited)

 

 

 

 

 

 

Recovery operations

£'000

 

Mining and exploration

£'000

 

Adminis-tration

£'000

Reconciliation to Group figures

£'000

 

 

Group

£'000

External revenues

 

 

21,769

3,068

-

-

24,837

Depreciation

592

364

-

-

956

Amortisation

-

222

-

-

222

Reportable segment profit/(loss) before tax of continuing operation

1,581

(1,935)

(800)

67

1,087

Segment assets

22,959

7,523

35,356

(33,047)

32,791

Segment liabilities

12,922

11,541

9,433

(19,970)

13,926

 

5.       Seasonality of operations

The Group is not considered to be subject to seasonal fluctuations.

 

6.       Income tax expense

Income tax expense is recognised based on management's best estimate of the weighted average annual income tax rate expected for the full financial year applied to the pre-tax income of the interim period.  The tax charges for the period arises in South Africa and on declaration of dividends from South Africa. The effective income tax rate in GPL was 29% (six months ended 31 December 2018: nil) and the withholding tax rate on dividends declared was 20% (six months ended 31 December 2018: 20%).

 

7.       Property, plant and equipment

 

Acquisitions

During the six months ended 31 December 2019, the Group acquired assets with a cost, excluding capitalised borrowing costs of £359,000 (six months ended 31 December 2018: £321,000; twelve months ended 30 June 2019: £477,000).

 

8.       Intangible assets and goodwill

 

 

 

 

 

 

 

 

 

 

6 months

31-Dec-19

(unaudited)

£'000

6 months

31-Dec-18

(unaudited)

£'000

12 months

30-Jun-19

(audited)

£'000

Cost

 

 

 

Balance at beginning of period

11,444

11,507

11,507

Effect of movement in exchange rates

(122)

59

(63)

Balance at end of period

11,322

11,566

11,444

 

Amortisation and impairment losses

 

 

 

Balance at beginning of period

3,243

3,045

3,045

Amortisation

-

111

222

Effect of movement in exchange rates

(7)

(3)

(24)

Balance at end of period

3,236

3,153

3,243

 

Carrying amounts

 

 

 

Balance at end of period

8,086

8,413

8,201

Balance at beginning of period

8,201

8,462

8,462

 

9.       Inventories

 

 

 

 

 

 

 

 

6 months

31-Dec-19

(unaudited)

£'000

6 months

31-Dec-18

(unaudited)

£'000

12 months

30-Jun-19

(audited)

£'000

Consumable stores

 

1,059

1,349

1,231

Raw materials

 

2,037

2,075

1,996

Precious metal on hand and in process

4,819

4,259

2,574

Broken ore

11

35

41

 

7,926

7,718

5,842

 

10.     Trade and other receivables

 

 

 

 

 

 

 

 

6 months

31-Dec-19

(unaudited)

£'000

6 months

31-Dec-18

(unaudited)

£'000

12 months

30-Jun-19

(audited)

£'000

Trade receivables

5,763

4,727

6,124

Other receivables

1,581

2,320

1,794

 

7,344

7,047

7,918

 

 

 

 

11.     Cash and cash equivalents

 

 

 

 

 

 

 

 

6 months

31-Dec-19

(unaudited)

£'000

6 months

31-Dec-18

(unaudited)

£'000

12 months

30-Jun-19

(audited)

£'000

Bank balances

 

2,070

1,000

2,368

 

Bank overdrafts used for cash management purposes

2,070

(89)

1,000

(1)

2,368

(560)

Cash and cash equivalents in the statement of cash flows

1,981

999

1,808

 

12.     Capital and reserves

 

Issue of ordinary shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6 months

31-Dec-19

(unaudited)

 

6 months

31-Dec-18

(unaudited)

 

12 months

30-Jun-19

(audited)

 

On issue at beginning of period

 

167,441,000

167,441,000

167,441,000

On issue at end of period

 

167,441,000

167,441,000

167,441,000

Authorised -  par value £0.01

1,000,000,000

1,000,000,000

1,000,000,000

                   

 

Issue of ordinary shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6 months

31-Dec-19

(unaudited)

£'000

6 months

31-Dec-18

(unaudited)

 £'000

12 months

30-Jun-19

(audited)

£'000

On issue at beginning of period

 

1,675

1,675

1,675

On issue at end of period

 

1,675

1,675

1,675

                   

 

Dividends

No dividends were declared or paid by the Company during the periods.

 

13.     Earnings per share

 

Basic earnings per share

The calculation of basic earnings per share at 31 December 2019 was based on the profit attributable to owners of the Company of £219,000 (31 December 2018: Loss £1,133,000; 30 June 2019: Loss £2,234,000), and weighted average number of ordinary shares outstanding of 167,441,000 (31 December 2018: 167,441,000; 30 June 2019: 167,441,000)

 

Diluted earnings per share

The calculation of diluted earnings per share at 31 December 2019 was based on the profit attributable ordinary shareholders of £219,000 and weighted average number of ordinary shares outstanding after adjustment for the effect of all dilutive potential ordinary shares of 167,441,000. Diluted earnings per share at 30 June 2019 and 30 June 2018 have not been calculated as the effect would be antidilutive.

 

14.     Obligations under finance leases

 

Six months ended 31 December 2019 (unaudited)

 

 

 

 

 

 

 

 

 

 

Currency

Interest

rate

nominal

Year of maturity

 

Face value

£'000

Carrying amount

£'000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Finance lease liabilities

 

 

 

 

 

KES

 

10.25%

 

2023

 

288

 

288

Finance lease liabilities

 

 

 

 

 

ZAR

 

10.75%

 

2022

 

161

 

161

Total Interest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

449

 

449

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six months ended 31 December 2018 (unaudited)

 

 

 

 

 

 

 

 

 

 

Currency

Interest

rate

nominal

Year of maturity

 

Face value

£'000

Carrying amount

£'000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Finance lease liabilities

 

 

 

 

 

KES

 

10.5%

 

2023

 

410

 

410

Finance lease liabilities

 

 

 

 

 

ZAR

 

10.5%

 

2021

 

86

 

86

Total Interest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

496

 

496

 

Twelve months ended 30 June 2019 (audited)

 

 

 

 

 

 

 

 

 

 

Currency

Interest

rate

nominal

Year of maturity

Face value

£'000

Carrying amount

£'000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Finance lease liabilities

 

 

 

 

 

KES

 

10.25%

 

2023

 

320

 

320

Finance lease liabilities

 

 

 

 

 

ZAR

 

10.25%

 

2021

 

44

 

44

Total Interest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

364

 

364

 

 

 

 

 

15.     Interest bearing borrowings

 

Six months ended 31 December 2019 (unaudited)

 

 

 

 

 

 

 

 

 

 

Currency

Interest

rate

nominal

Year of maturity

 

Face value

£'000

Carrying amount

£'000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest bearing borrowings

 

 

 

 

 

USD

 

9.75% plus 1 yr LIBOR

2020

 

1,388

 

1,388

Total Interest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

1,388

 

1,388

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six months ended 31 December 2018 (unaudited)

 

 

 

 

 

 

 

 

 

 

Currency

Interest

rate

nominal

Year of maturity

 

Face value

£'000

Carrying amount

£'000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest bearing borrowings

 

 

 

 

 

USD

 

9.5% plus 1 yr LIBOR

 

2019

 

838

 

838

Total Interest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

838

 

838

 

Twelve months ended 30 June 2019 (audited)

 

 

 

 

 

 

 

 

 

 

Currency

Interest

rate

nominal

Year of maturity

Face value

£'000

Carrying amount

£'000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest bearing borrowings

 

 

 

 

 

USD

 

9.5% plus 1 yr LIBOR

 

2019

 

528

 

528

Total Interest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

16.     Provisions

 

 

 

 

 

 

 

 

 

 

 

6 months

31-Dec-19

(unaudited)

£'000

 

6 months

31-Dec-18

(unaudited)

£'000

 

12 months

30-Jun-19

(audited)

£'000

Environmental obligation

 

 

 

 

 

 

Balance at beginning of period

 

633

 

417

 

417

Increase in provision

 

-

 

-

 

211

Effect of foreign exchange movements

 

(20)

 

(4)

 

5

 

 

613

 

413

 

633

The provision relates to a requirement to rehabilitate the land owned in South Africa upon cessation of the mining lease.

 

17.       Trade and other payables

 

 

 

 

 

 

 

 

6 months

31-Dec-19

(unaudited)

£'000

6 months

31-Dec-18

(unaudited)

£'000

12 months

30-Jun-19

(audited)

£'000

Trade payables

2,878

3,128

3,895

Amounts received in advance

2,516

1,262

2,878

Accrued expenses

5,796

6,488

4,653

 

11,190

10,878

11,426

 

18.       Share options

 

Reconciliation of outstanding share options

 

 

 

 

6 months ended

31-Dec-19

(unaudited)

6 months ended

31-Dec-18

(unaudited)

 

 

 

 

Number of options

 

Number of options

 

 

 

Outstanding at beginning of period

5,666,667

 

 18,500,000

 

 

 

Lapsed during the period

-

 

(7,500,000)

 

 

 

Granted during the period

3,000,000

 

-

 

 

 

Outstanding at end of period

 

8,666,667

 

 

 

11,000,000

 

 

 

 

 

 

 

 

12 months ended

30-Jun-19

(audited)

 

 

 

 

 

 

Number of options

 

 

 

Outstanding at beginning of period

 

 

18,500,000

 

 

 

Lapsed during the period

 

 

(7,500,000)

 

 

 

Forfeited on resignation of director

 

 

(5,333,333)

 

 

 

Outstanding at end of period

 

 

 

 

 

5,666,667

 

 

                               

The weighted average exercise price of the exercisable options is £0.0310 (31 December 2018: £0.03125; 30 June 2019: £0.0313).

 

The weighted average remaining contractual life of the options outstanding as at 31 December 2019 is 2 years 191 days (31 December 2018: 2 years 171 days; 30 June 2019: 1 year 271 days).

18.       Fair values

 

The fair values of financial instruments such as interest-bearing loans and borrowings, finance lease liabilities, trade and other receivables/payables are substantially identical to carrying amounts reflected in the statement of financial position.

 

19.       Group entities

 

            On 14 September 2016 Goldplat executed an earn-in option agreement (the "Agreement") with Ashanti Gold Corp. ("Ashanti") (formerly Gulf Shore Resources Ltd).

On 5 November 2018, Ashanti provided notice to Goldplat that it intended to exercise its 51% option on Anumso Gold Project.  On 27 December 2018, Ashanti informed Goldplat that it will not elect the subsequent option for an additional 24% of Anumso Project.

Goldplat analysed the total and nature of the earn-in expenditure and approved that the US$1,500,000 spent is sufficient for 51% option exercised. The two companies are currently finalizing the shareholders agreement and once done additional shares in Anumso will be issued to Ashanti.  As the agreement has not been finalized and the additional shares has not been issued, the issue of additional shares and the compensation for the shares of an exploration asset to the value of US$1,5 million have not been recognized in the annual report.

 

 

 


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
 
END
 
 
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Quick facts: Goldplat PLC

Price: 5.5

Market: AIM
Market Cap: £9.34 m
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