Goldplat plc - Quarterly Operational Update - Q3 31 March 2020
Goldplat plc / Ticker: GDP / Index: AIM / Sector: Mining & Exploration
('Goldplat', the 'Group' or 'the Company')
Quarterly Update - Update on the third quarter ended
Goldplat plc, the AIM listed gold producer, with international gold recovery operations located in South Africa and Ghana and an underground mining operation in Kenya, is pleased to announce an operational update for the third quarter ended
· The South African operations maintained profitability and achieved an operating profit for the third quarter ended
· Following the directive issued by the South African government in response to the worldwide Covid-19 pandemic, GPL was placed on care on maintenance 5 days prior to quarter-end which impacted production and reduced profitability for the quarter;
· Lower grade contaminated material was processed through one of the carbon-in-leach ('CIL') circuits in
· Production at GPL restarted at a reduced output on
· GPL is subject to formula-based taxation in
· The Ghanaian operation maintained its improved production levels achieved during the first two quarters of the year and achieved an operating profit for the third quarter of
· The Ghanaian operation was not required to close due to Covid-19 pandemic. However, not all circuits could be operated at full capacity towards the end of March and in April. Operations should return to normal capacity during May we expect that GRG will make up for most of the lost production during the last quarter.
· Apart from regular material supplied from mining companies in
· With the increase in stability in supply of raw material to GRG, although the sourcing risk remains high, focus can now shift to improve processing rates, recoveries and margins.
· The processing of tailings at Kilimapesa gold plant was stopped from
· Operating losses at Kilimapesa third quarter ended
· The current Covid-19 pandemic have stalled some discussions with funding partners to re-capitalize this valuable exploration and mining asset.
· We continue to seek a buyer for the Anumso gold project. The initial discussions we had did not materialise and we have engaged other parties that might be interested.
· The Group continues to benefit from the higher gold spot price.
· The impact of improvement in plant operational efficiencies and cost reduction continues, with some of these being invested into analysis and testing to improve recoveries and increase material availability for the future.
· The cash and cash equivalents on hand at date of the announcement was £3,200,000. The Scipion loan balance is
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. We have made progress during the last quarter on all of these key initiatives:
· Improvement in gold recoveries from lower grade contaminated material have been achieved with further initiatives to optimize to continue. In line with this a further 18 to 24 months of material have been secured, increasing visibility to more than 36 months in
· We continue to build strategic partnerships within the mining industry and with benefits from these already materialising.
· The investment into larger tailings storage facility ("TSF") and additional mill and leaching capacity to enable us to reprocess our current TSF have been evaluated. An application has been submitted for a new tailings site, the outcome of which is expected towards
· Increased investment into sourcing initiatives and test work on a wider range of materials, including PGM discards, continues with some new, albeit small revenue streams already identified.
More feedback on these initiatives will be provided to the market as outcomes becomes clearer.
The Covid-19 pandemic has changed the world as we know it. While we are pleased that our South African operation could restart on a reduced basis, with plans to increase production to full capacity shortly, the health and safety of our employees remain our highest priority. Whilst in operation, in whichever jurisdiction, we will continue to protect the business, employees, and the general population by complying with heightened hygiene measures, restrictions on site visits and travel in general, amongst others during this challenging period the world is experiencing."
For further information visit www.goldplat.com, follow on Twitter @GoldPlatPlc or contact:
Colin Aaronson /
James Joyce / Jessica Cave WH Ireland Limited 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.
This information is provided by RNS, the news service of the
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