logo-loader
RNS
Goldplat PLC

Interim results for the six months ended 31 December 2017

/ Ticker: GDP / Index: AIM / Sector: Mining & ExplorationGoldplat plc


26 February 2018('' or 'the Company')Goldplat plcGoldplatInterim results for the six months ended31 December 2017

, the AIM listed gold producer, with international gold recovery operations located in and and a gold mine in , announces its interim results for the six months ended .Goldplat plcSouth AfricaGhanaKenya31 December 2017

Overview

Chairman's Statement

I am delighted to report that continues to deliver into its stated strategic objectives at its various operating subsidiaries. Our portfolio of core assets consists of two gold recovery operations in and , which recover gold from by-products of the mining process providing mines with an environmentally friendly and cost-efficient way of removing waste material, and the in Kenya.  Having built a strong gold production profile, our focus is now to greatly increase output and profitability, leveraging our established African operations to support clients globally.GoldplatSouth AfricaGhanaKilimapesa Gold Mine

Key issues and initiatives during the period under review have been the resolution of the dispute between GPL and ; securing of feed material at GPL for the carbon-in-leach ('CIL') circuits; the installation of an elution plant at GRG; completion of Plant 2 construction, commissioning and achievement of sustainable production and profitability at KPG; and continued focus on sourcing of material from new locations, including the broader African continent and .Rand RefinerySouth America

Revenues of £18,270,000 for the period represent a 27% increase on last year (6 months ended : £14,415,000), in line with increased gold production and sales for the period. In line with this, I am pleased to report that operating profit increased by 56% to £1,578,000 (6 months ended : profit of £1,009,000). Profit before tax of £832,000 for the six months ended decreased 39% (6 months ended : profit of £1,354,000) having been negatively impacted upon by exchange rate fluctuations and consequent finance costs.31 December 201631 December 201531 December 201731 December 2016

The net finance expense from continued operations of £746,000 includes a £438,000 unrealised foreign exchange loss on inter-company loans and receivables as well as £68,000 interest paid on the Scipion loan and £143,000 paid on pre-financing of receivables. Trade receivables include a provision for bad debt of £481,000 relating to the dispute, of which £149,000 was accounted for in the previous years. Rand Refinery

Cash and cash equivalents at the end of the period stood at £918,000 (compared to £835,000 at the end of and £2,650,000 at end of FY 2017). The decrease from year-end FY 2017 can be primarily attributed to the acquisition, for cash, of a strategic stockpile of material for GRG as well as the ongoing repayment of the Scipion Loan (£505,000 during the period).                     December 2016

With regard to group production and sales, overall gold and gold equivalent production for the six-month period ended was 20,246 ounces (compared to 21,317 ounces produced in the period ended and 42,857 ounces produced in FY 2017). Total gold and gold equivalent sold and transferred for the period was 21,783 ounces (compared to 16,653 ounces in the period ended and 40,285 ounces in FY 2017). The difference between the gold and gold equivalent produced and the total gold and gold equivalent sold and transferred during the six months ended is primarily a result of the roughly 1,000 ounces of gold produced at GRG during FY 2017 being sold early in the period to . The following table summarises gold production, transfers and sales for the period per operation:31 December 201731 December 201631 December 201631 December 201731 December 2017

('GPL'Goldplat Recovery (Pty) Ltd),South Africa

Key initiatives for the period at GPL:

Production of 13,968 ounces of gold and gold equivalents for the six-month period ended was up when compared to the 12,539 ounces of gold and gold equivalents for the six months ended .31 December 2017December 2016

During the period, terms of a settlement of the dispute between GPL and were agreed and a Memorandum of Understanding ('MOU') was signed by the two parties early in (see announcement of ). The MOU contained terms agreed to for inclusion in a Settlement Agreement, including agreement on an undisclosed amount to be paid by to GPL in full and final settlement of the dispute. The Settlement agreement was also signed by the two parties on (see announcement of ). The finalisation of this represents a significant achievement, freeing up valuable management time to focus on the core operations of our business.Rand RefineryRand RefineryJanuary 201812 January 201822 February 201822 February 2018

A large stockpile of raw material was purchased during the period to secure production through the CIL circuits. Metallurgical test work to optimise recoveries from this stockpile is ongoing. The gold content of our current raw material at the end of the period is estimated to exceed 1,000 kg (in excess of 32,000 oz) of gold for the first time since 2013, highlighting the focus and energy the sourcing team has put into finding the right materials for the operation.

Progress in securing the West 3 Pit for final tailings deposition (which will allow re-processing of the stock dam to begin) has been slow during the period with the and the current owners of the pit working on legal requirements for reclassification of the status of the pit. Whilst this process is outside of GPL's control, continues to engage with both parties. GPL is also investigating alternative options for final tailings deposition. During the latter part of the period, GPL started the refurbishment and configuration of its flotation circuit to allow the pilot plant test work programme for the Tailings Storage Facility material to commence - first results are expected in Q3 FY 2018. Department of Mineral ResourcesGoldplat

Gold Recovery Ghana ('GRG'),Ghana

Key initiatives during the period at GRG:

Production for the six months to was 3,597 ounces of gold and gold equivalents (compared to a total of 7,588 ounces produced for the six months to and 10,031 ounces produced during FY 2017). The reduction in production is largely a result of a large-one off contract last year greatly increasing production for the comparative period.  Furthermore, despite the apparent decrease, production is in line with the year plan and the nature of the material being processed means that profitability is higher and financial results for GRG are therefore expected to remain in line with budget.31 December 201731 December 2016

Whilst production targets for the year remain on track, our strategic focus continues to be on sourcing sufficient by-product material and increasing capacity if required to enable the increase in output to roughly 20,000 ounces of gold within 2-3 years.  Commissioning of the elution plant began during the period as planned and is ongoing. Final completion of the ancillary infrastructure is expected by the end of with the first gold pour and official opening of the plant planned for .February 2018March 2018

Good progress has been made during the period with sourcing of material from outside , including shipments from and elsewhere in as well as . Regular and sustainable shipments are now being received from three different South American producers.GhanaWest AfricaAfricaSouth America

During the period the previously acquired second-hand Fluidised Bed Incinerator arrived in Tema.  The unit is intended mainly for the treatment of lower grade materials being sourced from , and once installed is designed to increase incinerator throughput by circa 33%.South America

Alongside our efforts to increase market reach, we have also identified an opportunity to maximise the environmental value of our recovery services and are currently in talks with the Government of regarding a potential project to clean-up artisanal tailings in-country.  In support of this, a pilot plant was delivered to during the period to test and reprocess artisanal material. The Government has subsequently decided to delay the project pending formalisation of a coordinated programme of the artisanal tailings clean-up and the simultaneous rehabilitation of land in the test area. A steering committee has been set up to manage these efforts and a GRG Board member is a member of this committee.  We look forward to continuing to work with the Government to finalise plans for this potential work partnership.GhanaGhana

Finally, looking at future growth plans, most of the material from the previous tailings storage facility on site has now been removed and the area has been levelled. This has freed up significant land for expansion and has also reduced potential environmental liabilities significantly. Before any future construction on this area is embarked upon, ground preparation work will need to completed.

Kilimapesa Gold ('KPG'),Kenya

Key initiatives during the period at KPG:

Production of 2,681 ounces of gold and gold equivalents for the six-month period ended was up when compared to the 1,190 ounces for the six months ended and 3,408 ounces for FY 2017.  The increase in production is a result of the successful build-up of production at Plant 2 as well as increased ore mined in the Kilimapesa underground mine. Despite the production increases, KPG had a slightly disappointing second quarter, mainly due to lost production as a result of disruption to diesel supplies (resulting from election-related political unrest) as well as problems relating to the importing of critical parts for the primary crusher. The crusher issue has subsequently been resolved.31 December 2017December 2015

A second diesel generator was installed at the new Plant 2, to provide additional power for the mill to increase the overall production throughput.  Increased diesel storage capacity has been installed, an additional diesel supplier with more reliable delivery routes has been engaged, and steps are being put in place to begin the process of installing grid power to Plant 2 that will reduce the overall power generation cost significantly.

Furthermore, during the period permission was granted to export gravity concentrates quarterly (previously only authorised to export once per year), which should improve cashflow. A refurbished drier is being shipped from GPL to KPG to enable beneficiation of concentrates to be completed efficiently on-site without the need to export to .South Africa

National elections caused modest production disruptions during the period (with employees having to take time off to vote) and the ongoing protests and unrest associated with the elections continue to cause disruptions to diesel supply.

All agreements with land owners and the local community have been successfully renegotiated. In anticipation of the eventual closure of Plant 1, site preparation has begun for new accommodation closer to the mine and Plant 2.

A local Kenyan national has been appointed as plant manager at Plant 2, replacing the South African expatriate who has completed his time at KPG.  In addition, local nationals have been employed in the administrative function, again to replace the previous South African expatriate.

KPG remains on track to achieve planned production of 5,800 oz of gold in FY 2018, despite the poor production in the second quarter.

('Anumso')Anumso Gold Project

In executed an earn-in option agreement with Ashanti Gold Corp. ('Ashanti'), a listed company, which gives Ashanti the option for a earn-in to the .  On it was agreed to extend the Vesting Date of the Initial Option period by six months to (refer to announcement of the Modification of the option terms made on and the announcement of the Anumso Gold Project Earn-in Option Agreement made on ).  September 201616 January 201831 October 201816 January 201815 September 2016GoldplatTSX-Venture ExchangeAnumso Gold ProjectUS$3 million

Whilst the Vesting Date has been extended, Ashanti continues to make good progress in advancing the project.  During the period Ashanti announced metallurgical test work results, which demonstrated encouraging recoveries. The soil sampling on the project continues and extensive trenching is planned to begin in .February 2018

Post-Period End

Significant progress can be reported subsequent to :31 December 2017

Outlook

Profits from operating activities continue to improve and to produce the cashflows to enable us to invest in positioning businesses for the future.  We continue to place great emphasis on improving longer term visibility for our gold recovery operations by stockpiling materials for future processing and expanding our sources for such materials.  The initiatives in and across the wider African gold-producing areas to source such materials are encouraging.  We continue to deliver on our plans to develop operations at Kilimapesa to deliver meaningful profitability and whilst we might continue encounter issues beyond our control, the outlook is positive.Goldplat'sSouth America

ChairmanMatthew Robinson

26 February 2018

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOMEFOR THE SIX MONTHES ENDED31 DECEMBER 2017

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

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITIONAS AT31 DECEMBER 2017

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

The financial statements of , company number 05340664, were approved by the Board of Directors and authorised for issue on .  They were signed on its behalf by:Goldplat plc23 February 2018

, DirectorWerner Klingenberg

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITYFOR THE SIX MONTHS ENDED31 DECEMBER 2016

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

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITYFOR THE SIX MONTHS ENDED30 JUNE 2017

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

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITYFOR THE SIX MONTHS ENDED31 DECEMBER 2017

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

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWSFOR THE SIX MONTHS ENDED31 DECEMBER 2017

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

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL REPORTFOR THE SIX MONTHS ENDED31 DECEMBER 2017

            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 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.            30 June 2017
 

The annual financial statements of (the 'Company') are prepared in accordance with IFRSs as adopted by the .  The condensed consolidated set of financial statements included in this half-yearly financial report has been prepared in accordance with International Accounting Standard 34 'Interim Financial Reporting', as adopted by the .Goldplat plcEuropean UnionEuropean Union

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.

            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 2017

Information about reportable segments

For the six months ended (unaudited)31 December 2017

   For the six months ended (unaudited)31 December 2016

For the twelve months ended (audited)30 June 2017

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

            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 Group's consolidated effective tax rate in respect of continuing operations for the six months ended was 19.00% (six months ended : 20.00%; twelve months ended : 19.75%).               31 December 201731 December 201630 June 2017

The discontinued operations did not have a tax impact.      

                                    During the six months ended , the Group acquired assets with a cost, excluding capitalised borrowing costs of £1,212,000 (six months ended : £1,377,000; twelve months ended : £2,056,000).                         Assets with a carrying amount of £15,000 were disposed of during the six months ended (six months ended : £13,000; twelve months ended : £109,000), resulting in a loss on disposal of £8,000 (six months ended : £8,000; twelve months ended : £4,000), which is included in 'administrative expenses' in the condensed consolidated statement of comprehensive income.                            Acquisitions and disposals





31 December 201731 December 201630 June 201731 December 201731 December 201630 June 201731 December 201630 June 2017

Trade receivables include a provision for bad debt of £481,000 of which, £149,000 was raised in the previous years. 

             

             

            The following dividends were declared and paid by the Company: Dividends

                         Six months ended (unaudited)31 December 2017

            Six months ended (unaudited)31 December 2016

                         Twelve months ended (audited)30 June 2017

                         
 

                         Six months ended (unaudited)31 December 2017

            Six months ended (unaudited)31 December 2016

                         Twelve months ended (audited)30 June 2017

             

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

Reconciliation of outstanding share options

The weighted average exercise price of the exercisable options is £0.0660 (: £0.0660; : £0.0660).The weighted average remaining contractual life of the options outstanding as at is 2 years 117 days (: 3 years 112 days; : 2 years 301 days).31 December 201630 June 201731 December 201731 December 201630 June 2017

                         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.             

On executed an earn-in option agreement (the "Agreement") with Ashanti Gold Corp. ("Ashanti") (formerly ) which gives Ashanti the option for a earn-in to in (the "Project").14 September 2016GoldplatGulf Shore Resources LtdGoldplat'sAnumso Gold ProjectUS$3 millionGhana

On Ashanti exercised its initial option to earn into the in ("Anumso" or the "Project") under the terms of the option agreement between and Ashanti.30 March 2017Anumso Gold ProjectGoldplatGhana

Ashanti has the right to earn 75% of interest in the Project (giving Ashanti 67.5% of the overall Project interest) by expending on exploration over a period of 2.5 years. An initial 51% share of interest will be earned through expending in the first 18 months (the "Initial Option Period"), which includes a six-month review period. This review period is now over and Ashanti has elected to continue with the Agreement. Ashanti is obliged to either expend on the Project within the Initial Option Period, or pay the deficiency to .Goldplat'sGoldplat'sGoldplatUS$3 millionUS$1.5 millionUS$1.5 million

Should Ashanti meet the expenditure condition within the Initial Option Period and receive 51% of interest in the Project (45.9% of the overall Project interest), it will have the option to earn an additional 24% share of interest (21.6% of the overall Project interest) by expending an additional in the following 12 months period, or by paying the deficiency to .Goldplat'sGoldplat'sGoldplatUS$1.5 million

  • The Group reports an operating profit for the six-month period of £1,578,000 (six months ended : £1,009,000).  ('GPL') performed exceptionally well, Kilimapesa Gold ('KPG') showed major improvements (despite production stoppages during the election period) and reduced substantial historical losses to near break-even, whilst Gold Recovery Ghana ('GRG'), which performed exceptionally well during the six months ended , reported lower profits in-line with forecast, not having the benefit during this period of the large clean-up performed for a major producer during 2016. 31 December 201631 December 2016Goldplat Recovery (Pty) Ltd
  • Exchange rate fluctuations, especially on intercompany loans and receivables, resulted in unrealised foreign exchange losses impacting on profit before tax, reported at £832,000 for the period under review (six months ended : profit of £1,354,000).   31 December 2016
  • GPL and KPG increased production of gold and gold equivalents for the period, whilst GRG reported lower ounces produced during the period under review, in-line with forecast, not having the windfall of the clean-up during the period. 31 December 2016
  • The production of gold and gold equivalents for the six months' period under review of 20,246 ounces (six months ended : 21,317 ounces) compares favourably with the year forecast. 31 December 2016
  • The Group has maintained a healthy cash reserve of £918,000 (: £835,000) notwithstanding the repayment of interest bearing borrowings of £505,000 and GPL investing £800,000 in precious metals raw materials stockpiles.31 December 2016
  • Capital expenditure of £1,009,000 for the period was primarily spent on the expansion of operations at GRG by way of the installation of an elution plant, with capital expenditure in and substantially completed for the foreseeable future. South AfricaKenya
  • The elution plant in is in the commissioning stage and commercial production is imminent.  Ghana
  • GPL and have reached full and final settlement in the dispute between the two companies, paving the way for the revival of the long relationship with which we trust will continue for the benefit of both parties.Rand RefineryRand Refinery
  • Sourcing of sufficient quantity of the right quality material, and specifically securing material for the carbon in leach ('CIL') circuits
  • Resolution of the disputeRand Refinery
  • Progressing plans for the processing of the stock dam and selection of a site for subsequent final tailings deposition
  • Installation and commissioning of the new elution plant and ancillary infrastructure
  • Tailings retreatment project in conjunction with the government
  • Continued diversification of sourcing material from outside ofGhana
  • Production from the of sufficient quality and quantity to keep Plant 2 operating at capacity and profitablyKilimapesa Hill Mine
  • Mitigation of exposure to diesel and difficulties experienced in diesel supply
  • The Settlement agreement between GPL and was entered into on .Rand Refinery22 February 2018
  • Mr was elected as President of the following the resignation of Mr . This is seen as very positive for the country and has already agreed with the Chamber of Mines to postpone a application to review the Mining Charter.Cyril RamaphosaJacob ZumaPresident RamaphosaRepublic of South AfricaHigh Court
  • Good progress continues regarding sourcing of material for GRG with a delayed shipment of by-product material on-route to GRG from an existing East African client and a very successful trip to in likely to yield a number of new clients.PeruFebruary 2018
  • In the re-elected president has embarked upon a cabinet re-shuffle, including the appointment of a new Cabinet Secretary for the .KenyaMinistry of Mining and Petroleum
Goldplat Plc Consolidated6 months6 months6 months6 monthsYear endingYear ending
December 2017December 2017December 2016December 2016June 2017June 2017
Equivalent GoldEquivalent GoldEquivalent GoldEquivalent GoldEquivalent GoldEquivalent Gold
kgozkgOzkgOz
Gold Equivalent Production     
Goldplat Recovery43413,96839012,53991529,418
Gold Recovery Ghana1123,5972367,58831210,031
Kilimapesa Gold832,681371,1901063,408
Total62920,24666321,3171,33342,857
Gold Equivalent Sold 
Goldplat Recovery35511,4203069,83870222,570
Gold Recovery Ghana1464,693762,4432598,327
Kilimapesa Gold852,720341,0931003,215
Total58618,83341613,3741,06134,112
Gold Equivalent Transferred 
Goldplat Recovery922,9501023,2791926,173
Total922,9501023,2791926,173
Gold Equivalent Sold and Transferred 
Goldplat Recovery44714,37040813,11789428,743
Gold Recovery Ghana1464,693762,4432598,327
Kilimapesa Gold852,720341,0931003,215
Total67821,78351816,6531,25340,285
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.Source: via Globenewswire

Goldplat plc









       Notes

 6 months31-Dec-17(unaudited)£'000


 6 months31-Dec-16(unaudited)£'000


 12 months30-Jun-17(audited)£'000


Continuing operations          
Revenue       18,270 14,415 31,650
Cost of sales      (15,117) (12,293) (26,454)
Gross profit       3,153 2,122 5,196
Administrative expenses     (1,575) (1,113) (2,286)
Results from operating activities   1,578 1,009 2,910
Finance income     174 614 22
Finance costs     (920) (269) (96)
Net finance (expense)/income   (746) 345 (74)
Profit before tax     832 1,354 2,836
Taxation   6 (359) (401) (860)
Profit for the period from continuing operations 473 953 1,976
Discontinued operations      
Loss for the period from discontinued operations 7 - (20) (1,012)
Profit for the period 473 933 964
Other comprehensive income      
Exchange translation 37 1,184 1,025
Other comprehensive income for the period, net of tax37 1,184 1,025
Total comprehensive income for the period 510 2,117 1,989
Profit from continued operations attributable to:      
Owners of the Company   189 762 1,348
Non-controlling interests   284 191 628
Profit for the year   473 953 1,976
Profit from operations attributable to:        
Owners of the Company   189 742 336
Non-controlling interests   284 191 628
Income for the period   473 933 964
Total comprehensive income attributable to:     
Owners of the Company   226 1,926 1,361
Non-controlling interests   284 191 628
Total comprehensive income for the period 510 2,117 1,989
Earnings per share      
Basic earnings per share (pence)    0.11 0.44 0.20
Diluted earnings per share (pence)   0.11 0.43 0.19
Earnings per share - continuing operations      
Basic earnings per share (pence)    0.11 0.46 0.81
Diluted earnings per share (pence)   0.11 0.44 0.78
  

       Notes



 31-Dec-17(unaudited)£'000

 31-Dec-16(unaudited)£'000

 30-Jun-17(audited)£'000

Assets          
Property, plant and equipment   8 7,815 7,079 7,181
Intangible assets   9 8,512 9,825 8,707
Proceeds from sale of shares in subsidiary  1,306 1,480 1,424
Non-current cash deposit     - 194 201
Non-current assets     17,633 18,578 17,513
Inventories   10 8,918 11,719 8,962
Trade and other receivables   11 14,306 8,880 12,003
Cash and cash equivalents   12 1,183 885 2,650
Current assets     24,407 21,484 23,615
Total assets     42,040 40,062 41,128
           
Equity          
Share capital   13 1,675 1,675 1,675
Share premium     11,441 11,441 11,441
Exchange reserve     (5,156) (5,034) (5,193)
Retained earnings     11,494 11,711 11,305
Equity attributable to owners of the Company 19,454 19,793 19,228
Non-controlling interests     2,692 2,437 2,673
Total equity     22,146 22,230 21,901
           
Liabilities          
Obligations under finance leases 14 276 214 229
Provisions   16 453 445 446
Deferred tax liabilities     493 594 584
Non-current liabilities     1,222 1,253 1,259
           
Taxation     94 367 211
Interest bearing borrowings   15 667 - 1,172
Obligations under finance leasesBank overdraft
 1412
 157265
 18650
 154-
Trade and other payables   17 17,489 15,976 16,431
Current liabilities     18,672 16,579 17,968
Total liabilities     19,894 17,832 19,227
Total equity and liabilities     42,040 40,062 41,128
Attributable to owners of the Company    
    

   

 Sharecapital£'000



 Share premium£'000


 Exchange reserve£'000


  Retained earnings£'000


  Total£ '000




Non-controlling interests£'000
  Total equity£'000


 
Balance at , as previously reported1 July 2016 1,675 11,441 (6,218) 10,953 17,851 2,246 20,097 
                  
Total comprehensive income for the period               
Profit for the period    - - - 742 742 191 933 
Total other comprehensive income   - - 1,184 - 1,184 - 1,184 
Total comprehensive income for the period - - 1,184 742 1,926 191 2,117 
                   
Transactions with owners of the Company, recognised directly in equity            
                  
Contributions by and distributions to owners of the Company            
Share based payment transactions   - - - 16 16 - 16
Total contributions by and distributions to owners of the Company   - - - 16 16 - 16
                  
Changes in ownership interests in subsidiaries              
Non-controlling interests in subsidiary dividend - - - - - - -
Total transactions with owners of the Company - - - - - - -
                  
Balance at (unaudited)31 December 2016  1,675 11,441 (5,034) 11,711 19,793 2,437 22,230
Attributable to owners of the Company    
    

   

 Sharecapital£'000



 Share premium£'000


 Exchange reserve£'000


  Retained earnings£'000


  Total£ '000




Non-controlling interests£'000
  Total equity£'000


 
Balance at1 January 2017    1,675 11,441 (5,034) 11,711 19,793 2,437 22,230 
Total comprehensive income for the period               
Profit/(loss) for the period    - - - (406) (406) 437 31 
Total other comprehensive income/(expense) - - (159) - (159) - (159) 
Total comprehensive income for the period  - - (159) (406) (565) 437 (128) 
                   
Transactions with owners of the Company recognised directly in equity            
                  
Contributions by and distributions to owners of the Company             
Share based payment transactions   - - - - - - - 
 Total contributions by and distributions to owners of the Company 



   - - - - - - - 
Changes in ownership interests in subsidiaries              
Non-controlling interests in subsidiary dividend - - - - - (201) (201)
Total transactions with owners of the Company - - - - - (201) (201)
                  
Balance at (audited)30 June 2017  1,675 11,441 (5,193) 11,305 19,228 2,673 21,901
Attributable to owners of the Company   
    

   

 Sharecapital£'000



 Share premium£'000


 Exchange reserve£'000


  Retained earnings£'000


  Total£ '000




Non-controlling interests£'000
  Total equity£'000


Balance at1 July 2017    1,675 11,441 (5,193) 11,305 19,228 2,673 21,901
Total comprehensive income for the period                
Profit for the period    - - - 189 189 284 473
Total other comprehensive income   - - 37 - 37 - 37
Total comprehensive income for the period   - - 37 189 226 284 510
                  
Transactions with owners of the Company recognised directly in equity           
                 
Contributions by and distributions to owners of the Company            
Share based payment transactions   - - - - - - -
Total contributions by and distributions to owners of the Company   - - - - - - -
                  
Changes in ownership interests in subsidiaries              
Non-controlling interests in subsidiary dividend - - - - - (265) (265)
Total transactions with owners of the Company - - - - - (265) (265)
                  
Balance at (unaudited)31 December 2017  1,675 11,441 (5,156) 11,494 19,454 2,692 22,146
        Notes



 6 months31-Dec-17(unaudited)        £'000


 6 months31-Dec-16(unaudited)           £'000


 12 months30-Jun-17  (audited)         £'000


Cash flows from operating activities          
           
Result from continued operating activities   1,578 1,009 2,910
Result from discontinued operating activities   - (20) (1,012)
Adjustments for:          
-  Depreciation     437 327 650
-  Amortisation     110  

 112 224
-    Write off development cost   - - 980
-  Loss on sale of property, plant and equipment   8 8 4
-  Equity-settled share-based payment transactions   - 16 16
-  Foreign exchange differences  41 161 303
      2,174 1,613 4,075
Changes in:          
-  inventories     44 (3,972) (1,215)
-  trade and other receivables     (2,303) (2,625) (5,748)
-  trade and other payables     1,058 4,841 5,296
-  provisions     - 62 -
Cash generated from/ (used in) operating activities  973 (81) 2,408
           
Finance income     174 614 22
Finance cost     (920) (269) (96)
Taxes paid     (476) (138) (805)
Net cash from/ (used in) operating activities   (249) 126 1,529
 Cash flows from investing activities

          
Proceeds from sale of property, plant and equipment 7 5 105
Enhancement of exploration and development asset (17) - (157)
Acquisition of property, plant and equipment   (1,069) (1,160) (1,756)
Non-current cash deposit   194 (34) (41)
Net cash used in investing activities     (885) (1,189) (1,849)
 Cash flows from financing activities

          
Proceeds from drawdown of interest bearing borrowings - - 1,538
Payment of interest bearing borrowings  (505) (55) (421)
Payment of finance lease liabilities  (93) (103) (203)
Net cash used in financing activities   (598) (158) 914
           
Net increase/(decrease) in cash and cash equivalents  (1,732) (1,221) 594
Cash and cash equivalents at beginning of period   2,650 2,056 2,056
Cash and cash equivalents at end of period 12 918 835 2,650
      Recovery operations£'000


 Mining and exploration£'000


 Adminis-tration£'000


Reconciliation to Group figures£'000
  Group£'000




External revenues  15,6292,641--18,270
Inter-segment revenues  1,692--(1,692)-
Total revenues   17,3212,641-(1,692)18,270
      
Reportable segment profit/(loss) before tax1,557(81)(666)22832
Segment assets29,7692,13730,674(20,540)42,040
Segment liabilities19,1373,2175,005(7,465)19,894
      
      Recovery operations£'000


 Mining and exploration£'000


 Adminis-tration£'000


Reconciliation to Group figures£'000
  Group£'000




External revenues  13,3431,072--14,415
Inter-segment revenues  278--(278)-
Total revenues   13,6211,072-(278)14,415
      
Reportable segment profit/(loss) before tax1,849(692)19431,354
Reportable segment profit/(loss) before tax of discontinuing operation-(20)--(20)
Segment assets26,5523,84630,217(20,553)40,062
 Segment liabilities  

17,3343,3334,649(7,484)17,832
      Recovery operations£'000


 Mining and exploration£'000


 Adminis-tration£'000


Reconciliation to Group figures£'000
  Group£'000




External revenues  28,5003,150--31,650
Inter-segment revenues  5,648--(5,648)-
Total revenues   34,1483,150-(5,648)31,650
      
Reportable segment profit/(loss) before tax of continuing operation4,365(1,133)(428)322,836
Reportable segment profit/(loss) before tax of discontinuing operation-(1,012)--(1,012)
Segment assets27,7311,73931,241(19,583)41,128
Segment liabilities17,3562,6875,681(6,497)19,227
 
  1. Discontinued operations
  6 months31-Dec-17(unaudited)£ '000


6 months31-Dec-17(unaudited)£ '000


12 months30-Jun-17(audited)£ '000


 
 Administrative expenses- - 10 
 Net finance loss- 20 47 
 Write off development cost of Nyieme- - 955 
 Loss for the period from discontinued operations- 20 1,012 
 Basic earnings/(loss) per share (pence)- (0.01) (0.60) 
 Diluted earnings /(loss) per share (pence)- (0.01) (0.59) 
       
          





6 months31-Dec-17(unaudited)£'000


6 months31-Dec-16(unaudited)£'000


12 months30-Jun-17(audited)£'000


Cost   
Balance at beginning of period11,57012,46712,467
Additions17-157
Write-off--(976)
Foreign exchange translation(110)125(78)
Balance at end of period11,47712,59211,570
Amortisation and impairment losses   
Balance at beginning of period2,8632,7412,741
AmortisationImpairment
110-
112-
224-
Foreign exchange translation(8)(86)(102)
Balance at end of period2,9652,7672,863
 Carrying amounts

   
Balance at end of period8,5129,8258,707
Balance at beginning of period8,7079,7269,726
        

6 months31-Dec-17(unaudited)£'000


6 months31-Dec-16(unaudited)£'000


12 months30-Jun-17(audited)£'000


Consumable stores 1,5641,1721,202
Raw materials 1,934586644
Precious metal on hand and in process5,2569,6836,898
Broken ore164278218
 8,91811,7198,962
        

6 months31-Dec-17(unaudited)£'000


6 months31-Dec-16(unaudited)£'000


12 months30-Jun-17(audited)£'000


Trade receivables6,0176,94810,421
Other receivables8,2891,9321,582
 14,3068,88012,003
        

6 months31-Dec-17(unaudited)£'000


6 months31-Dec-16(unaudited)£'000


12 months30-Jun-17(audited)£'000


Bank balances 1,1838852,650
  Bank overdrafts used for cash management purposes

1,183(265)
885(50)
2,650-
Cash and cash equivalents in the statement of cash flows9188352,650
Issue of ordinary shares 

     
  

       

6 months31-Dec-17(unaudited) 



6 months31-Dec-16(unaudited)

12 months30-Jun-17(audited) 



On issue at beginning of period 167,441,000167,441,000167,441,000
On issue at end of period 167,441,000167,441,000167,441,000
Authorised -  par value £0.011,000,000,0001,000,000,0001,000,000,000
Issue of ordinary shares 

     
  

       

6 months31-Dec-17(unaudited)£'000


6 months31-Dec-16(unaudited) £'000


12 months30-Jun-17(audited)£'000


On issue at beginning of period 1,6751,6751,675
On issue at end of period 1,6751,6751,675
        

6 months31-Dec-17(unaudited)£'000


6 months31-Dec-16(unaudited)£'000


12 months30-Jun-17(audited)£'000


Nil pence per qualifying ordinary share ---
      

    Currency



Interestratenominal

Year of maturity 

Face value£'000
Carrying amount£'000
               
Finance lease liabilities     KES 14.0% 2023 (374) (374)
Finance lease liabilities     ZAR 10.5% 2019 (59) (59)
Total Interest-bearing liabilities           (433) (433)
               
      

    Currency



Interestratenominal

Year of maturity 

Face value£'000
Carrying amount£'000
               
Finance lease liabilities     KES 14.0% 2023 (312) (312)
Finance lease liabilities     ZAR 10.5% 2018 (88) (88)
Total Interest-bearing liabilities           (400) (400)
      

    Currency



Interestratenominal

Year of maturityFace value£'000
Carrying amount£'000
               
Finance lease liabilities     KES 14.0% 2023 (273) (273)
Finance lease liabilities     ZAR 10.5% 2019 (110) (110)
Total Interest-bearing liabilities           (383) (383)
      

    Currency



Interestratenominal

Year of maturity 

Face value£'000
Carrying amount£'000
               
Interest bearing borrowings     USD 9.5% plus 1 yr LIBOR2018 667 667
Total Interest-bearing liabilities           667 667
               
      

    Currency



Interestratenominal

Year of maturity 

Face value£'000
Carrying amount£'000
               
Interest bearing borrowings     - - - - -
Total Interest-bearing liabilities           - -
      

    Currency



Interestratenominal

Year of maturityFace value£'000
Carrying amount£'000
               
Interest bearing borrowings     USD 9.5% plus 1 yr LIBOR 2018   1,172 1,172
Total Interest-bearing liabilities           1,172 1,172
            
 
         





 6 months31-Dec-17(unaudited)£'000


 6 months31-Dec-16(unaudited)£'000


 12 months30-Jun-17(audited)£'000


Environmental obligation      
Balance at beginning of period 446 383 383
Provisions made during the period - - -
Foreign exchange translation 7 62 63
  453 445 446
        

6 months31-Dec-17(unaudited)£'000


6 months31-Dec-16(unaudited)£'000


12 months30-Jun-17(audited)£'000


Trade payables3,9603,2983,751
Amounts received in advance6,985-6,334
Accrued expenses6,54412,6786,346
 17,48915,97616,431
    6 months ended31-Dec-17(unaudited)

6 months ended31-Dec-16(unaudited)

   Number of optionsExercise priceNumber of options Exercise price
Outstanding at beginning of period18,500,000 18,500,000  
Granted during the period--- -
Outstanding at end of period 18,500,000   18,500,000  
      12 months ended30-Jun-17(audited)



     Number of options Exercise price
Outstanding at beginning of period  18,500,000  
Granted during the periodLapsed during the year
  --
 -
Outstanding at end of period     18,500,000  






  1. General information
  1.  Basis of preparation
  2. Statement of compliance
  1. Going concern
  1. Significant accounting policies
  1. Operating segments
  1. Seasonality of operations
  1. Income tax expense
  1. Property, plant and equipment
  1. Intangible assets and goodwill
  1. Inventories
  1. Trade and other receivables
  1. Cash and cash equivalents
  1. Capital and reserves
  1. Obligations under finance leases
  1. Interest bearing borrowings
  1. Provisions
  1. Trade and other payables
  1. Share options
  1. Fair values
  1. Group Entities

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of...

FOR OUR FULL DISCLAIMER CLICK HERE

25 min read