Goldplat plc, the AIM listed gold producer, is pleased to announce its interim results for the six months ended 31 December 2007.
- Pre-tax profits up 128% to £624,000 (2006: £273,000)
- Excellent continued results at South African recovery plant
- New recovery plant in Ghana completed and now operating at full capacity - further expansion planned
- Gold mining permissions in place at 50% owned joint venture in Kenya with processing expected to commence in the second half of 2008
- New South African joint venture company established, in which the Company has a 74% interest, to take advantage of mining opportunities in South Africa
Goldplat's Chief Executive Demetri Manolis said, "This has been another successful period for the Company following progress being made across all our projects in South Africa , Ghana and Kenya . Operations at our recovery plant in South Africa have gone from strength to strength, resulting in a marked improvement in our pre-tax profits, which I believe will only be significantly enhanced following the completion of construction at our new plant in Ghana . With the development of our first gold mining project gaining momentum, to the extent that we hope to commence processing later in 2008, I believe we are very well placed to build on this financial performance and create further value for our investors. Additionally, we continue to evaluate other mining projects across Africa to expand our business, particularly in South Africa where we recently formed a joint venture company with a Black Economic Empowerment ('BEE') partner, which I look forward to updating shareholders on in the future."
For further information visit www.goldplat.com or contact:
Demetri Manolis, CEO Goldplat plc, Tel: +27 11 423 1203, Mob: +27 82 454 7392
James Joyce WH Ireland Limited, Tel: +44 (0)20 7220 1666
Isabel Crossley St Brides Media & Finance Ltd, Tel: +44 (0)20 7242 4477
It gives me great pleasure to report on Goldplat's progress and financial results for the six months ended 31 December 2007.
The pre-tax profit for the period rose 128% to £624,000 (2006: £273,000), achieved without any material contribution from our recovery plant in Ghana , which the Company completed in December 2007. The board is looking at this level of profitability as a platform for further growth.
Gold Recovery (Pty) Limited
The profit being reported is directly due to the excellent results achieved at our recovery plant in South Africa , having invested in new and upgraded existing machinery during 2007. At the same time, stocks of materials for processing have increased to record levels. Industrial relations remain good, as does the Company's safety record. In accordance with the board's strategy, the potential of the South African business should be considered to be maximised, and future increases in profits are planned to come from other areas.
Gold Recovery Ghana Limited
The construction of our new recovery plant in Ghana was completed during the period, and from the beginning of 2008 has been operating at full capacity. Notably, materials for processing have been acquired which will satisfy requirements for a number of years. The next planned expansion at the Company's plant in Tema free port is the construction of a new line comprising dryer, spirals and furnace to process fine carbon. The cost, estimated at £100,000, will be paid from positive cash flow on trading in Ghana .
KilimaPesa Gold (Pty) Limited
The 50% owned joint venture in Kenya is intended to be Goldplat's first mining venture, capitalising on our team's extensive gold mining experience, in particular, that of our CEO, Demetri Manolis . All permissions required for mining are in place and a budget for plant refurbishment has been agreed. Processing is expected to commence in the second half of 2008, with gold being extracted from existing tailings, some 5,000 tonnes of material acquired from local artisanal miners, as well as ore produced during the mine development phase.
We recently announced that Goldplat had formed a new joint venture company in South Africa with Johannesburg Stock Exchange listed Vunani Group (Proprietary) Limited ('Vunani'). The Company, through its wholly owned subsidiary Gold Mineral Resources Limited, holds a 74% interest in the joint venture company. Vunani is authorised as a BEE entity, which will enable the new company to acquire mining opportunities in South Africa . To this end, initial discussions for the acquisition of such assets are already taking place.
Goldplat's strategy is to increase profits and shareholder value with the minimum of equity dilution. The operations and prospects outlined above reflect this strategy and the financial results demonstrate its successful implementation to date. The board looks forward to the future with confidence.
Recently there has been considerable press comment about political problems in Kenya and power disruption affecting the mining industry in South Africa . While these are matters outside Goldplat's control, I would like to stress that the Company has not experienced any troubles in Kenya and in South Africa we are cushioned from the possible effects of temporary closure of deep mines by our levels of stocks, averaging about two years usage.
Finally, these excellent results have been achieved through the hard work and dedication of our employees, and I wish to thank them for their efforts.
Brian Moritz Chairman
Goldplat is a profitable, African gold recovery services company . . .More info...
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