The following amendment has been made to the Operations Update announcement released on 16 December 2014 at 11.01a.m.
In the following paragraph ‘H2 of 2015’ should read ‘early in 2015’: “The delays in deliveries to Rand Refinery has had an effect on the Company's cash flows and profitability to the extent that stocks will be held as at 31 December 2014, but this is expected to be normalised early in 2015.”
All other details remain unchanged.
The full amended text is shown below.
Goldplat plc, the AIM listed African gold producer, announces an operations update for its gold recovery businesses in South Africa and Ghana.
- Increasing production of gold bullion and correspondingly reduce product sold in concentrates from its two gold recovery operations to provide greater sales flexibility
- Entered into a toll-treatment agreement with a local mine in South Africa to acquire dedicated elution capacity to increase gold bullion production
- Intention to increase in-house elution capacity at GPL, South Africa - purchased an elution plant to be re-erected and commissioned, targeted to be operational towards the end of H1 2016
- GPL continues to perform satisfactorily on the back of the successful implementation of various initiatives made by the Company during FY 2014
- Spirals and incinerator section which processes fine carbon operating at full capacity, at GRG Ghana - focus remains to continue to expand the spirals and incinerator section both locally and internationally
- Remain on track to report a Group operating profit for FY 2015
In order to increase the value added to the Group's products the Directors have decided to increase its production in gold bullion and correspondingly reduce product sold in concentrate or other form. To achieve this objective the Group has entered into a toll-treatment agreement with a local mine in South Africa to acquire dedicated elution capacity. Under this arrangement material from Goldplat Recovery ('GPL') is being processed and material from Gold Recovery Ghana ('GRG') will also be processed in the near future. The intention is for Goldplat Recovery Pty ('GPL') to increase its in-house elution capacity, and to that end, GPL has purchased an elution plant to be re-erected and commissioned at the Benoni site, with a view to being operational towards the end of H1 2016.
GPL is in discussions with Rand Refinery, to redefine the relationship between the two companies for the longer term benefit of both. Initiatives taken by GPL as detailed above, as well as arrangements with other refineries with respect to certain materials, will allow the processing of the material currently not being processed at Rand Refinery. The effect is to increase the volume of bullion bars supplied to the Rand Refinery for final processing.
The delays in deliveries to Rand Refinery has had an effect on the Company's cash flows and profitability to the extent that stocks will be held as at 31 December 2014, but this is expected to be normalised early in 2015.
GPL continues to perform satisfactorily on the back of the successful implementation of various initiatives made by the Company during FY 2014.
The upgrading of GPL's rotary kilns to reduce electricity consumption and improve the quality of ash produced is progressing well and remains on target to be completed at the end of March 2015. The metallurgical efficiency project on the carbon-in-leach ('CIL') circuits is continuing and on track to deliver the expected improvements.
GRG is working together with the Environmental Protective Agency ("EPA") and submitted a revised Environmental Management Plan following the enforcement notice issued in August 2014. The EPA is satisfied with the progress thus far.
The spirals and incinerator section is now operating at full capacity, and the focus remains to continue to expand the spirals and incinerator section of the business both locally and internationally.
GRG's toll-processing agreement with Endeavour Resources will not be pursued as all indications are that permits will only be issued to local Ghanaians to toll-process through a 3rd party processor.
The Directors remain confident that Goldplat is on track to report an operating profit for FY 2015.
* * ENDS * *
For further information visit www.goldplat.com or contact:
|Ian Visagie, CEO||Goldplat plc||Tel: +27 (82) 671 2078|
|Ewan Leggat/Katy Birkin||SP Angel Corporate Finance LLP||Tel: +44 (0) 20 3463 2260|
|Andrew Raca/Justin McKeegan||VSA Capital||Tel: + 44 (0)20 3005 5000|
|Felicity Edwards/Charlotte Heap||St Brides Media & Finance Ltd||Tel: +44 (0) 20 7236 1177|
Goldplat plc, is an AIM-listed cash generative, debt free gold recovery services company with two market leading operations in South Africa and Ghana. The Company's strategy is focussed on utilising its robust cash flow generated from flagship gold recovery operations in Africa to self-fund sustainable growth and expansion of niche gold recovery business model. The Company also has a small gold mining and exploration portfolio in Kenya, Burkina Faso and Ghana and is evaluating various opportunities to create value or monetise these assets.
Goldplat is a profitable, African gold recovery services company . . .More info...
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