Goldplat plc, the AIM listed African gold producer, announces that significant progress has been achieved at its gold recovery businesses in South Africa (Goldplat Recovery (Pty) Limited ‘GPL’) and Ghana (Gold Recovery Ghana Limited ‘GRG’) to counter the direct and indirect consequences of its third party refining partner, Rand Refinery in South Africa, being unable to process certain by-product material for the Company. This inability to process has severely impacted both profits and cashflows of the Company during the past nine months.
- Goldplat has secured sources for processing all backlog material arising from the inability of Rand Refinery to process certain materials – target to clear all backlog by December 2015:
- Contract with Aurubis Refinery (‘Aurubis’), located in Germany to process by-product material – 5 month pipeline from shipping to gold production now full and cash from this material has begun flowing to Goldplat
- Rand Refinery has started to process a small amount of certain categories of the backlog materials on a limited basis to assist in clearing the backlog
- Operational and engineering efficiencies have been introduced to the elution plant at GPL which is now eluting 3 tonnes of material per day (versus 2 tonnes per day previously)
- The inability of Rand Refinery to process backlog material over the past year has also had a serious effect on Goldplat’s ability to secure new material for processing - this situation is now under control and Goldplat is returning to business as usual regarding this issue:
- GRG is once again receiving new material from its existing clients as well as from new sources
- Arrangements are being made to pre-finance a certain amount of the Aurubis pipeline material to alleviate the current cashflow issues if the need arises - terms are being negotiated and final agreement is expected to be concluded shortly
- Additional initiatives to optimise in-house capacity to produce bullion rather than concentrates at both GRG and GPL:
- Elution capacity at GPL to be expanded further - elution plant facility acquired from DRDGOLD has been de-constructed and moved to GPL’s Johannesburg site. The first phase of installation and commissioning (the first of two 4 tonne columns to be installed at GPL), is expected to be completed by October 2015 to further increase elution capacity up to 8 tonnes per day. The second 4 tonne column is planned to be shipped to and installed at GRG in Ghana and the third thereafter at GPL in South Africa.
Goldplat CEO Gerard Kisbey-Green said,"Since my appointment as CEO in February 2015, I am pleased with the progress we have achieved in order to return Goldplat to positive cashflow and profitability. The team have worked hard on finding alternative ways to process backlogged material and mitigate the reliance on our third party refiner, Rand Refinery, including increasing elution capabilities at GPL and GRG which will enable us to produce and sell gold bullion rather than relying on third parties for final processing. Numerous other improvement initiatives such as a new wash-plant, new mill, tailings facility upgrades and extensions to name a few are all progressing very well and Goldplat will report on further progress of these initiatives in the near future. As a consequence of the steps we have taken and the initiatives we are implementing, I am confident with the outlook for all areas of our business and look forward to keeping the market updated on our progress going forward."
Investor Conference Call
In line with the Company’s active investor relations policy, Goldplat are pleased to announce that it is holding an investor call open to all shareholders of the Company which will be held at 12.00 noon UK time on 25 June 2015. The conference call will be hosted by CEO Gerard Kisbey-Green and during the call he will discuss operational and corporate developments made by the Company and will answer queries from shareholders.
To participate in this conference call please register at email@example.com. Upon registration full conference call details will be sent.
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For further information visit www.goldplat.com or contact:
|Gerard Kisbey-Green, 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 Partners Ltd||Tel: +44 (0) 20 7236 1177|
Goldplat plc, is an AIM-listed, 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 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.
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