Goldplat reports continued profitability

Goldplat Plc has released its operational update for the three months ended 31 March 2016 for its two market leading gold recovery businesses in South Africa and Ghana, and its Kilimapesa Gold Project in Kenya, reporting  total gold production of 7,252 ounces, continued profitability and steady progress on priority capital projects.

Goldplat Recovery Pty Limited ('GPL') - South Africa

- During the quarter GPL produced 4,864 ounces of gold of which a total of 3,365 ounces were sold for own account and 975 ounces were returned to clients by way of metal transfers
- Operating Profit for the quarter was £845,000, bringing the 9-month year to date Operating Profit to £1,535,000 (unaudited)
- The Tailings Storage Facility ('TSF') re-processing project is progressing well with focus during the quarter on the research into metallurgical recovery optimisation.  Due to the complexity of the metallurgical research work, it is expected to be completed towards the end of May 2016, following which the economic assessment, design, production and processing plans will be undertaken
- During the quarter, the Company commenced a silver toll recovery project for Rand Refinery to which the high grade circuit and approximately half of the increased elution capacity was dedicated. This project has continued into the current quarter. The project cost was front end loaded and although all revenues thus far have been recognised, the cash amounts due will be collected in the current quarter and further profits realised
- The majority of the concentrates produced during the period went to Rand Refinery in South Africa, reducing the turnaround time significantly, with the balance of the ashes and carbon sent to Aurubis in Germany
- The recently installed 4-tonne elution column continues to operate at capacity with improvements being made on a continual basis providing greater flexibility and capacity to procure and process material
- Awarded a contract with Anglogold Ashanti's Geita mine in Tanzania
- Appointments of a new General Manager and Strategic Sourcing Manager for GPL are progressing well and should be finalised in the current quarter
- Annual wage negotiations were successfully concluded

Gold Recovery Ghana ("GRG") - Ghana

- During the quarter 1,885 ounces of gold were produced at GRG with 2,391 ounces being sold
- The profitability continues with an operating profit of £156,000 for the quarter, bringing the 9-month year to date Operating Profit to £458,000 (unaudited)
- The renewal of the Gold and Environmental Protection Agency licences are in progress and are expected to be concluded during the current quarter
- With the expansion of Kilimapesa being prioritised, the timing of the new elution plant project at GRG has been pushed out and a new commissioning date is being negotiated with the Ghanaian Authorities
- Commissioning of the shotblast facility was completed and production is underway
- The CIL plant has been deconstructed and containerised, and is being loaded for transport to Kilimapesa during the current quarter
- Subsequent to the resolution of backlog stock issues, relationships with clients in Ghana have normalised and new material deliveries are expected to return to normal
- Constructive discussions relating to sourcing by-product material from potential South American clients continue - this forms part of Goldplat's stated diversification and growth strategy for GRG
- A new collective bargaining agreement was signed and annual wage negotiations concluded successfully

Kilimapesa Gold ("Kilimapesa") - Kenya

- Kilimapesa produced 503 ounces of gold during the quarter of which 442 ounces were sold
- This resulted in an operating loss for the period of £169,000 (unaudited), bringing the 9-month year to date Operating Loss to £501,000. Monthly losses relative to the previous 6 month period were reduced  by improving gold yields
- In preparation for the installation of the CIL plant (from Ghana) the Environmental Impact Assessment for the new plant, office and tailings deposition sites has been approved. Civil construction is expected to begin during the current quarter
- Processing of artisanal tailings from the licence area recommenced during the quarter
- Limited production of high grade ore from on-reef exploration at Teng Teng continued during the quarter and plans are underway to prepare for a Mining Licence application
- The Knelson concentrator plant trials are underway at the Kilimapesa plant. On completion the equipment will be re-installed and commissioned at the new plant site and is expected to contribute to revenues during the current quarter
- A new collective bargaining agreement was signed and annual wage negotiations were successfully completed

Gerard Kisbey-Green, Chief Executive Officer of Goldplat, commented, "This has been another good quarter for Goldplat. I am pleased to report continued profitability at the recovery operations and decreased losses at Kilimapesa. Good progress was made on major projects, including the Kilimapesa plant project and the GPL tailings storage facility. Finally I would like to congratulate all stakeholders for the successful completion of annual wage negotiations at all subsidiaries.  Whereas the financial results reflect the performances of the operating subsidiaries only, it is pleasing to report that, including all holding company and non-operating subsidiary costs, the Group remained profitable during the quarter."

Goldplat plc is an AIM-listed, profitable, debt-free gold recovery services company with two market leading operations in South Africa and Ghana. The Company also has a small gold mining and exploration portfolio in Kenya, Ghana and Burkina Faso. Ghana currently has 45 mining projects covering 5 commodities and hosts 32 mining and exploration companies.

Figure 10 visualizes the number of exploration projects operating in Ghana. The largest share of current mining projects is exploration-based and account for 27 (or 61%) of the total 45 projects recorded. Current exploration projects comprise four of the five main commodities produced by Ghana; gold makes up 90%, while oil, manganese and diamonds represent 3% respectively.
Figure 10 also reveals the phases that Ghana’s exploration projects are in. Exploration projects can be classified into 4 phases: pre feasibility, grassroots, feasibility and bankable. Most projects in Ghana are in the feasibility stage. 

These statistics offer an inside preview of the Mining in Ghana 2016 report compiled by Mining Analytix. This comprehensive synopsis details facts and figures on mining exploration in Ghana, including strategic insight into the structure of mining activities. Key findings of the report yield essential information for those seeking to gain in-depth analysis of Ghana’s mining market. 

For more information on the mining industry of Ghana, please visit the Mining Analytix Reports page by clicking here. Standard Country and Commodity Reports are available online as well as a subscription service to our database of mining activity across Africa. Mining Analytix Reports are the most dependable source of mining information available for the region. Each report is the result of professional research conducted by a team of leading industry researchers within a single publication and provides a precise picture of the current state of affairs. 

About Mining Analytix
Mining Analytix, the research division of African Mining, is a proudly South African market research company that conducts structural research to deliver holistic insights into the African mining industry. Mining Analytix also conducts integrated research in order to deliver a 360° view of the mining industry, with a specific focus on the African continent.