Interim Results Goldplat plc / Ticker: GDP / In
Post# of 301275
Goldplat plc / Ticker: GDP / Index: AIM / Sector: Mining & Exploration 20 February 2017 Goldplat plc ('Goldplat' or 'the Company') Interim Results
Goldplat plc, the AIM listed gold producer, with international gold recovery operations located in South Africa and Ghana and a gold mine in Kenya, announces its interim results for the six months ended 31 December 2016.
Overview
- Continued increase in profitability with a profit before tax of £1,334,000 for the six months ended 31 December 2016 (6 months ended 31 December 2015: profit of £395,000)
- Overall gold and gold equivalent production for the six-month period of 21,317 ounces (six months ended 31 December 2015: 17,457 ounces)
- 16,653 gold equivalent ounces were sold and transferred during the six months ended 31 December 2016 (six months ended 31 December 2015: 17 875 ounces)
- Completion of installation of the first stage of the new processing plant at Kilimapesa Mine
- Resolution of the preliminary findings by the Kenyan Revenue Authorities into specific Kilimapesa tax affairs
- The renewal of the gold license at Gold Recovery Ghana for the standard period of three (3) years
Chairman's Statement
I am delighted to report that Goldplat has continued to improve its profitability during the period under review. Our portfolio of core assets consists of two gold recovery operations in South Africa and Ghana, recovering gold from by-products of the mining process and the Kilimapesa gold mine in Kenya.
Key issues and initiatives during the period under review have been the implementation of the decision to proceed with an additional, larger, processing plant at Kilimapesa; the renewal of the gold license in Ghana; progress towards the conclusion of the dispute with the Rand Refinery; continued focus on sourcing of material including progress on the evaluation of the viability of importing material from South America, and seeking resolution on the tax claim by the Kenyan Revenue Authorities over Kilimapesa.
I am pleased to report a profit before tax of £1,334,000 for the six months ended 31 December 2016. This marks a 238% increase from the £395,000 reported for the comparable six-month period ended 31 December 2015 and compares extremely favourably to the £1,942,000 we reported for the full year (FY 2016). At the operating level the profit was £1,009,000 (compared to an operating profit of £245,000 for the six months ended 31 December 2015 and an operating profit of £1,172,000 for FY 2016). Cash and cash equivalents at the end of the period stood at £885,000 (compared to £729,000 at the end of December 2015 and £2,148,000 at end of FY 2016).
With regard to group production and sales, overall gold and gold equivalent production for the six-month period ended 31 December 2016 was 21,317 ounces (compared to 17,457 ounces produced in the period ended 31 December 2015 and 37,666 ounces produced in FY 2016). Total gold and gold equivalent sold and transferred for the period was 16,653 ounces (compared to 17,875 ounces in the period ended 31 December 2015 and 40,763 ounces in FY 2016). The difference between the gold and gold equivalent produced and the total gold and gold equivalent sold and transferred during the six months ended 31 December 2016 is primarily a result of the material being held back in Ghana pending the renewal of the Gold License, which was received on 23 December, 2016. The following table summarises gold production, transfers and sales for the period per operation:
| Goldplat Plc Consolidated | 6 Months December 2016 Equivalent Gold oz | 6 Months December 2015 Equivalent Gold oz | 12 Months ending June 2016 Equivalent Gold oz |
| Gold and gold equivalent Production | |||
| Gold Recovery Ghana | 7 588 | 4 694 | 6 883 |
| Kilimapesa Gold | 1 190 | 932 | 2 005 |
| Goldplat Recovery | 12 539 | 11 831 | 28 778 |
| Total | 21 317 | 17 457 | 37 666 |
| Gold and gold equivalent Sold | |||
| Gold Recovery Ghana | 2 443 | 5626 | 8 964 |
| Kilimapesa Gold | 1 093 | 932 | 1 999 |
| Goldplat Recovery | 9 838 | 8 198 | 16 575 |
| Total | 13 374 | 14 756 | 27 538 |
| Gold and gold equivalent Transferred | |||
| Goldplat Recovery | 3 279 | 3 119 | 13 225 |
| Total | 3 279 | 3 119 | 13 225 |
| Gold and gold equivalent Sold and Transferred | |||
| Gold Recovery Ghana | 2 443 | 5 626 | 8 964 |
| Kilimapesa Gold | 1 093 | 932 | 1 999 |
| Goldplat Recovery | 13 117 | 11 317 | 29 800 |
| Total | 16 653 | 17 875 | 40 763 |
Goldplat Recovery (Pty) Ltd ('GPL'), South Africa
Key initiatives for the period at GPL:
- Sourcing of sufficient quantity of the right quality material
- Resolution of the Rand Refinery dispute
- Progressing discussions regarding the use of an old disused pit on adjacent land, for tailings deposition
- Renegotiation of contracts with most clients to mitigate the effect of changes introduced by Rand Refinery
Production of 12,539 ounces of gold and gold equivalents for the six-month period ended 31 December 2016 was up when compared to the 11,831 ounces of gold and gold equivalents for the six months ended December 2015 but down compared to the 28,778 ounces of gold and gold equivalents produced during FY 2016. However, based on the amount of consignment material on site and the production schedule the produced ounces for the FY 2017 is expected to exceed that of FY 2016.
The Independent review of the Rand Refinery dispute is nearing completion, and the board remains confident of a favourable outcome.
Discussions continue to progress regarding the use of an old disused open-pit, on land adjacent to our plant, for tailings deposition. All stakeholders have agreed to sterilise the open-pit adjacent to our plant, and the Department of Mineral Resources has agreed to issue a directive for the pit to be used for tailings deposition. It is our plan that the pit will be used as a final deposition site for current production and will also enable the reprocessing of the estimated 80,000 ounces of gold resource in our stock dams. Final approval is expected during FY2017.
Towards the end of the interim period Rand Refinery changed the repayment terms of our contracts and GPL is in the process of re-negotiating terms with suppliers to mitigate the effects of these changes. This process is proceeding well and continues.
As a result of the strengthened Strategic Sourcing team, smaller precious metal producers are now being visited to source by-products in addition to those received from the large mining companies. Volumes at the smaller operators are lower compared to the larger mining companies but increases our footprint as service provider of choice.
Goldplat Recovery Ghana ('GRG'), Ghana
Key initiatives during the period at GRG:
- Renewal of the gold licence
- Removal of material from on-site tailings dump to address rehabilitation requirements and create significant space for plant expansion
- Sourcing of material, including the evaluation of the viability of importing material from South America
Production for the six months to 31 December 2016 was 7,588 ounces of gold and gold equivalents (compared to a total of 6,883 ounces produced during FY2016 and 4,694 ounces produced for the six months to 31 December 2015). Gold and gold equivalents sold during the period amounted to 2,443 ounces (compared to 8,964 ounces during FY2016 and 5,626 ounces for the six months to 31 December 2015). The decrease in sales was due to GRG keeping back containers which were ready for export pending the renewal of the gold license.
The gold license was renewed and officially signed on the 23rd of December 2016 by the Honourable Minister (announcement 20 December, 2016). The licence is valid for a period of three (3) years provided certain milestones are achieved relating to the construction of an elution plant.
One of the two spare 4-tonne elution columns acquired from DRD Gold (together with the 4-tonne elution column installed at GPL in FY 2016), will be installed in Ghana. The costing of the project has not been completed, but is estimated to be around USD2,000,000. The new license conditions require that the elution plant be commissioned by June 2018. Planning of the project is in progress and initial shipments of materials and equipment were made during the period.
During the period under review, roughly one third of the decommissioned tailings storage facility was successfully removed as part of our rehabilitation plan for the site. This process is ongoing and once completed will have addressed an environmental rehabilitation requirement, and will free up a significant land footprint to be utilised by GRG for additional plant as and when required.
Marketing efforts in Ghana are focussed on expanding our client base in West Africa.
In addition to treating material from within the region, we plan to position our Ghanaian plant as an international hub to treat material from other parts of Africa and South America in the medium term. Proposals sent to clients in South America are currently pending and we look forward to providing feedback during the next operational update. Trials on material from South America are ongoing and continue to yield positive results
Kilimapesa Gold
Significant progress has been made at our Kilimapesa gold mine in this period. Production of 1,190 ounces of gold and gold equivalents for the six-month period ended 31 December 2016 was up when compared to the 932 ounces for the six months ended December 2015 and 2,005 ounces for FY 2016. The increase in production is a result of improved efficiencies in the existing plant.
The decision was taken during FY2016 to invest in increased processing capacity at Kilimapesa in order to bring the operations to profitability, including the construction of an additional processing plant, in three discrete stages, and a new tailings facility both in close proximity to the Kilimapesa Hill. This has been the focus of attention during the six-month period and progress on the key work streams to achieve this turnaround have included:
- The shipment to Kilimapesa and installation of substantial parts of the Ghanaian plant during the period under review.
- The purchase of two matching used mills, one of which was installed at the new plant (with the second planned to be installed during stage three and the mill from Ghana serving as a spare).
- The completion of stage one installation, which does not include the crusher circuit, during the period with commissioning having commenced on 23 December, 2016.
- Establishing a stockpile of crushed material suitable and sufficient for processing through the new plant until stage two commissioning is completed.
- Starting the construction of the civils and fabrication of three additional carbon-in-leach ("CIL") tanks for installation and commissioning with the crusher circuit during stage two which is planned for completion in April 2017. (The second mill together with a further three additional CIL tanks will be installed in Stage three, potentially during H1 2018 to bring total processing capacity to 6,000 tonnes per month)
- The construction of the new tailings facility progressed well during the period with the key cut and a borrow-pit being completed - sufficient for commissioning of stage one of the new plant and for production during stage two installation and commissioning.
- A tailings consultant assisted in the re-design of the tailings facility at the existing plant, increasing the life of this facility to six-nine months. This is expected to allow for production at the current plant to continue at improved recovery efficiencies and better profitability during FY 2017.
The underground workings at Kilimapesa Hill are being prepared for the increased production levels required to maintain plant throughput at the new plant once fully commissioned. This has included comprehensive sampling and mapping of all existing underground workings in order to create a 3-D model for planning purposes. A Kempe drill was procured for underground exploration drilling - this will be commissioned once a new compressor has been acquired and delivered to site.
At Kilimapesa Hill, good progress was made with underground development: In Adit Bull, vein three was intersected and a fourth vein was found. Drives East and West on vein three were started. Fourteen working places are now available which, given correct machinery and labour, should provide the ability to develop ore blocks quickly enough to allow development to stay ahead of production. A front-end loader has been procured and should be commissioned during H2 2017.
The second outlet at Teng-Teng was completed and a mono-winch installed which will allow limited underground exploration to continue whilst the incline shaft is deepened and arrangements are made for direct tipping of ore into a hopper in the incline. Application for a mining license at Teng-Teng will begin during H2 FY2017.
Aside from the current operational initiatives, talks with potential investors or joint venture partners continue, primarily with the aim of procuring additional resources within the region and for further exploration drilling to increase the resource on Kilimapesa's exploration permit.
Investment in the new processing facility at Kilimapesa has been funded (apart from limited equipment leases) from within Goldplat plc's subsidiaries and various forms of debt capital raising are being contemplated to repay these loans and restructure the group balance sheet.
Preliminary findings by the Kenyan Revenue Authority ("KRA") on the 2010 to 2013 tax affairs has been resolved and the principle amount of £58,000 has been settled during the period.
Exploration and Development Portfolio
An earn-in option agreement over the Anumso Gold Project in Ghana was concluded with TSX-listed Ashanti Gold Corp during the period (see announcement of 15 September 2016). The agreement provides Ashanti with the exclusive option to earn 75% of Goldplat's 90% interest in Anumso in two instalments expending an aggregate of US$3,000,000 on the project. Ashanti have a 6-month due diligence period during which they have the right to terminate the agreement. This period ends in mid-March 2017.
Various parties are reviewing the Nyieme project in Burkina Faso and any progress in this regard will be communicated if and when appropriate.
Outlook
Significant progress can be reported subsequent to 31 December 2016:
- The independent expert appointed to review the Rand Refinery Silver project submitted his report to the two parties in February 2017 and good progress was made at a working meeting with Rand Refinery to consider the findings of the report.
- Commissioning of the first stage of the new processing plant at Kilimapesa was completed on 6 February 2017 and the plant was officially opened by the Cabinet Secretary for Mining, Kenya, Honourable Dan Kazungu, on 15 February, 2017
- The material held in Ghana, pending issuance of the renewed Gold License, was all shipped during January 2017
- Initial planning and design work for the installation of an elution plant at GRG began following the renewal of the Ghanaian gold license (see announcement of 20 December, 2016)
- A further extensive trip to South America was completed in January 2017. A report will now be compiled which will be used to determine Goldplat's strategy for potential sourcing of material into GRG and potentially GPL.
Conclusion
The focus, enthusiasm and ambition of Goldplat's management team has continued to deliver strong improvements in production and financial results, with good progress on key initiatives. We are mindful that this progress is made with the assistance of our partners in South Africa, Kenya and Ghana and we believe Goldplat in turn is making a significant contribution in terms of employment, skills transfer and fiscal contribution. Focus for the remainder of FY2017 will be on completion of Stage two of the new plant at Kilimapesa; concluding the strategy for sourcing material in South America and West Africa to deliver the growth strategy for GRG; and continuing to seek efficient and acceptable alternative sources of debt capital to enable repayment of goods and services to Group subsidiaries and to restructure the Group balance sheet.
Matthew Robinson Chairman 20 February 2017
GOLDPLAT PLC
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE SIX MONTHES ENDED 31 DECEMBER 2016
| Notes | 6 months 31-Dec-16 (unaudited) £'000 | 6 months 31-Dec-15 (unaudited) £'000 | 12 months 30-Jun-16 (audited) £'000 | |||||||||
| Continuing operations | ||||||||||||
| Revenue | 14,415 | 10,673 | 20,185 | |||||||||
| Cost of sales | (12,293) | (9,472) | (17,177) | |||||||||
| Gross profit | 2,122 | 1,201 | 3,008 | |||||||||
| Administrative expenses | (1,113) | (956) | (1,836) | |||||||||
| Results from operating activities | 1,009 | 245 | 1,172 | |||||||||
| Finance income | 614 | 171 | 809 | |||||||||
| Finance costs | (289) | (21) | (39) | |||||||||
| Net finance income | 325 | 150 | 770 | |||||||||
| Income before tax | 1,334 | 395 | 1,942 | |||||||||
| Taxation | 6 | (401) | (203) | (534) | ||||||||
| Income for the period | 933 | 192 | 1,408 | |||||||||
| Other comprehensive income/(expense) | ||||||||||||
| Exchange translation | 1,184 | (511) | 489 | |||||||||
| Other comprehensive income/(expense) for the period, net of tax | 1,184 | (511) | 489 | |||||||||
| Total comprehensive income/(loss) for the period | 2,117 | (319) | 1,897 | |||||||||
| Income/(Loss) attributable to: | ||||||||||||
| Owners of the Company | 742 | (11) | 946 | |||||||||
| Non-controlling interests | 191 | 203 | 462 | |||||||||
| Income for the period | 933 | 192 | 1,408 | |||||||||
| Total comprehensive income/(loss) attributable to: | ||||||||||||
| Owners of the Company | 1,926 | (522) | 1,435 | |||||||||
| Non-controlling interests | 191 | 203 | 462 | |||||||||
| Total comprehensive income/(loss) for the period | 2,117 | (319) | 1,897 | |||||||||
| Earnings per share - continuing operations | ||||||||||||
| Basic earnings per share (pence) | 0.56 | 0.11 | 0.84 | |||||||||
| Diluted earnings per share (pence) | 0.51 | 0.10 | 0.76 | |||||||||
GOLDPLAT PLC
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2016
| Notes | 31-Dec-16 (unaudited) £'000 | 31-Dec-15 (unaudited) £'000 | 30-Jun-16 (audited) £'000 | |||||||||
| Assets | ||||||||||||
| Property, plant and equipment | 7 | 7,079 | 4,475 | 5,404 | ||||||||
| Intangible assets | 8 | 9,825 | 9,389 | 9,726 | ||||||||
| Proceeds from sale of shares in subsidiary | 1,480 | 1,093 | 1,271 | |||||||||
| Non-current cash deposit | 194 | 218 | 160 | |||||||||
| Non-current assets | 18,578 | 15,175 | 16,561 | |||||||||
| Inventories | 9 | 11,719 | 8,063 | 7,747 | ||||||||
| Trade and other receivables | 10 | 8,880 | 4,773 | 6,255 | ||||||||
| Cash and cash equivalents | 11 | 885 | 729 | 2,148 | ||||||||
| Current assets | 21,484 | 13,565 | 16,150 | |||||||||
| Total assets | 40,062 | 28,740 | 32,711 | |||||||||
| Equity | ||||||||||||
| Share capital | 12 | 1,675 | 1,685 | 1,675 | ||||||||
| Share premium | 11,441 | 11,498 | 11,441 | |||||||||
| Exchange reserve | (5,034) | (7,218) | (6,218) | |||||||||
| Retained earnings | 11,711 | 9,873 | 10,953 | |||||||||
| Equity attributable to owners of the Company | 19,793 | 15,838 | 17,851 | |||||||||
| Non-controlling interests | 2,437 | 1,984 | 2,246 | |||||||||
| Total equity | 22,230 | 17,822 | 20,097 | |||||||||
| Liabilities | ||||||||||||
| Obligations under finance leases | 13 | 214 | 161 | 157 | ||||||||
| Provisions | 15 | 445 | 106 | 383 | ||||||||
| Deferred tax liabilities | 594 | 452 | 510 | |||||||||
| Non-current liabilities | 1,253 | 719 | 1,050 | |||||||||
| Taxation | 367 | 30 | 153 | |||||||||
| Interest bearing borrowings | 14 | - | 91 | 55 | ||||||||
| Obligations under finance leases Bank overdraft | 13 11 | 186 50 | 129 - | 129 92 | ||||||||
| Trade and other payables | 16 | 15,976 | 9,949 | 11,135 | ||||||||
| Current liabilities | 16,579 | 10,199 | 11,564 | |||||||||
| Total liabilities | 17,832 | 10,918 | 12,614 | |||||||||
| Total equity and liabilities | 40,062 | 28,740 | 32,711 | |||||||||
The notes below are an integral part of this condensed consolidated interim financial report.
The financial statements of Goldplat plc, company number 05340664, were approved by the Board of Directors and authorised for issue on 20 February, 2017. They were signed on its behalf by:
Ian Visagie, Financial Director
GOLDPLAT PLC
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 31 DECEMBER 2015
| Attributable to owners of the Company | |||||||||||||||||||||||||||||||||||
| Share capital £'000 | Share premium £'000 | Exchange reserve £'000 | Retained earnings £'000 | Total £ '000 | Non-controlling interests £'000 | Total equity £'000 | |||||||||||||||||||||||||||||
| Balance at 1 July 2015, as previously reported | 1,685 | 11,498 | (6,707) | 9,868 | 16,344 | 1,893 | 18,237 | ||||||||||||||||||||||||||||
| Total comprehensive income for the period | |||||||||||||||||||||||||||||||||||
| Profit for the period | - | - | - | (11) | (11) | 203 | 192 | ||||||||||||||||||||||||||||
| Total other comprehensive income | - | - | (511) | - | (511) | - | (511) | ||||||||||||||||||||||||||||
| Total comprehensive income for the period | - | - | (511) | (11) | (522) | 203 | (319) | ||||||||||||||||||||||||||||
| Transactions with owners of the Company, recognised directly in equity | |||||||||||||||||||||||||||||||||||
| Contributions by and distributions to owners of the Company | |||||||||||||||||||||||||||||||||||
| Share based payment transactions | - | - | - | 16 | 16 | - | 16 | ||||||||||||||||||||||||||||
| Total contributions by and distributions to owners of the Company | - | - | - | 16 | 16 | - | 16 | ||||||||||||||||||||||||||||
| Changes in ownership interests in subsidiaries | |||||||||||||||||||||||||||||||||||
| Non-controlling interests in subsidiary dividend | - | - | - | - | - | (112) | (112) | ||||||||||||||||||||||||||||
| Total transactions with owners of the Company | - | - | - | - | - | (112) | (112) | ||||||||||||||||||||||||||||
| Balance at 31 December 2015 (unaudited) | 1,685 | 11,498 | (7,218) | 9,873 | 15,838 | 1,984 | 17,822 | ||||||||||||||||||||||||||||
GOLDPLAT PLC
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED 31 DECEMBER 2015
| Attributable to owners of the Company | ||||||||||||||||||||||||||||||||||||
| Share capital £'000 | Share premium £'000 | Exchange reserve £'000 | Retained earnings £'000 | Total £ '000 | Non-controlling interests £'000 | Total equity £'000 | ||||||||||||||||||||||||||||||
| Balance at 1 January 2016 | 1,685 | 11,498 | (7,218) | 9,873 | 15,838 | 1,984 | 17,822 | |||||||||||||||||||||||||||||
| Total comprehensive income for the period | ||||||||||||||||||||||||||||||||||||
| Profit for the period | - | - | - | 957 | 957 | 259 | 1,216 | |||||||||||||||||||||||||||||
| Total other comprehensive income | - | - | 1,000 | - | 1,000 | - | 1,000 | |||||||||||||||||||||||||||||
| Total comprehensive income for the period | - | - | 1,000 | 957 | 1,957 | 259 | 2,216 | |||||||||||||||||||||||||||||
| Transactions with owners of the Company recognised directly in equity | ||||||||||||||||||||||||||||||||||||
| Contributions by and distributions to owners of the Company | ||||||||||||||||||||||||||||||||||||
| Share based payment transactions Cancellation of treasury shares | - (10) | - (57) | - - | 56 67 | 56 - | - - | 56 - | |||||||||||||||||||||||||||||
| Total contributions by and distributions to owners of the Company | (10) | (57) | - | 123 | 56 | - | 56 | |||||||||||||||||||||||||||||
| Changes in ownership interests in subsidiaries | ||||||||||||||||||||||||||||||||||||
| Non-controlling interests in subsidiary dividend | - | - | - | - | - | 3 | 3 | |||||||||||||||||||||||||||||
| Total transactions with owners of the Company | - | - | - | - | - | 3 | 3 | |||||||||||||||||||||||||||||
| Balance at 30 June 2016 (audited) | 1,675 | 11,441 | (6,218) | 10,953 | 17,851 | 2,246 | 20,097 | |||||||||||||||||||||||||||||
The notes below are an integral part of this condensed consolidated interim financial report.
GOLDPLAT PLC
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED 30 JUNE 2016
| Attributable to owners of the Company | ||||||||||||||||||
| Share capital £'000 | Share premium £'000 | Exchange reserve £'000 | Retained earnings £'000 | Total £ '000 | Non-controlling interests £'000 | Total equity £'000 | ||||||||||||
| Balance at 1 July 2016 | 1,675 | 11,441 | (6,218) | 10,953 | 17,851 | 2,246 | 20,097 | |||||||||||
| Total comprehensive income for the period | ||||||||||||||||||
| Profit for the period | - | - | - | 742 | 742 | 191 | 933 | |||||||||||
| Total other comprehensive income | - | - | 1,184 | - | 1,184 | - | 1,184 | |||||||||||
| Total comprehensive income for the period | - | - | 1,184 | 742 | 1,926 | 191 | 2,117 | |||||||||||
| Transactions with owners of the Company recognised directly in equity | ||||||||||||||||||
| Contributions by and distributions to owners of the Company | ||||||||||||||||||
| Share based payment transactions | - | - | - | 16 | 16 | - | 16 | |||||||||||
| Total contributions by and distributions to owners of the Company | - | - | - | 16 | 16 | - | 16 | |||||||||||
| Changes in ownership interests in subsidiaries | ||||||||||||||||||
| Non-controlling interests in subsidiary dividend | - | - | - | - | - | - | - | |||||||||||
| Total transactions with owners of the Company | - | - | - | - | - | - | - | |||||||||||
| Balance at 31 December 2016 (unaudited) | 1,675 | 11,441 | (5,034) | 11,711 | 19,793 | 2,437 | 22,230 | |||||||||||
The notes below are an integral part of this condensed consolidated interim financial report.
GOLDPLAT PLC
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE SIX MONTHS ENDED 31 DECEMBER 2016
| Notes | 6 months 31-Dec-15 (unaudited) £'000 | 6 months 31-Dec-15 (unaudited) £'000 | 12 months 30-Jun-16 (audited) £'000 | |||||||||||||
| Cash flows from operating activities | ||||||||||||||||
| Results from operating activities | 1,009 | 261 | 1,172 | |||||||||||||
| Adjustments for: | ||||||||||||||||
| - Depreciation | 327 | 220 | 514 | |||||||||||||
| - Amortisation | 112 | 90 | 192 | |||||||||||||
| - Loss on sale of property, plant and equipment | 8 | 39 | 62 | |||||||||||||
| - Equity-settled share-based payment transactions | 16 | 16 | 72 | |||||||||||||
| - Foreign exchange differences | 161 | (374) | (421) | |||||||||||||
| 1,633 | 252 | 1,591 | ||||||||||||||
| Changes in: | ||||||||||||||||
| - inventories | (3,972) | (336) | (20) | |||||||||||||
| - trade and other receivables | (2,625) | (1,468) | (2,950) | |||||||||||||
| - trade and other payables | 4,841 | 2,393 | 3,579 | |||||||||||||
| - provisions | 62 | (15) | 244 | |||||||||||||
| Cash generated from/(used in) operating activities | (61) | 826 | 2,444 | |||||||||||||
| Finance income | 614 | 171 | 809 | |||||||||||||
| Finance cost | (289) | (21) | (39) | |||||||||||||
| Taxes paid | (138) | (146) | (342) | |||||||||||||
| Net cash from/(used in) operating activities | 126 | 830 | 2,872 | |||||||||||||
| Cash flows from investing activities | ||||||||||||||||
| Proceeds from sale of property, plant and equipment | 5 | 34 | 94 | |||||||||||||
| Enhancement of exploration and development asset | - | (59) | (110) | |||||||||||||
| Acquisition of property, plant and equipment | (1,160) | (623) | (1,284) | |||||||||||||
| Non-current cash deposit | (34) | 15 | 73 | |||||||||||||
| Net cash used in investing activities | (1,189) | (633) | (1,227) | |||||||||||||
| Cash flows from financing activities | ||||||||||||||||
| Payment of interest bearing borrowings | (55) | (69) | (105) | |||||||||||||
| Payment of finance lease liabilities | (103) | (29) | (114) | |||||||||||||
| Net cash used in financing activities | (158) | (98) | (219) | |||||||||||||
| Net increase/(decrease) in cash and cash equivalents | (1,221) | 99 | 1,426 | |||||||||||||
| Cash and cash equivalents at beginning of period | 2,056 | 630 | 630 | |||||||||||||
| Cash and cash equivalents at end of period | 11 | 835 | 729 | 2,056 | ||||||||||||
The notes below are an integral part of this condensed consolidated interim financial report.
GOLDPLAT PLC
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL REPORT FOR THE SIX MONTHS ENDED 31 DECEMBER 2016
- General information
This condensed consolidated interim financial information does not comprise statutory accounts within the meaning of section 434 of the Companies Act 2006. Statutory accounts for the year ended 30 June 2016 were approved by the Board of Directors and have been delivered to the Registrar of Companies. The audit report on those accounts: their report was unqualified, did not draw attention to any matters by way of emphasis and did not contain a statement under section 498(2) or (3) of the Companies Act 2006. 2. Basis of preparation a. Statement of compliance The annual financial statements of Goldplat plc (the 'Company') are prepared in accordance with IFRSs as adopted by the European Union. The condensed consolidated set of financial statements included in this half-yearly financial report has been prepared in accordance with International Accounting Standard 34 'Interim Financial Reporting', as adopted by the European Union.
b. Going concern The directors are satisfied that the Company has sufficient resources to continue in operation for the foreseeable future, a period of not less than 12 months from the date of this report. Accordingly, they continue to adopt a going concern basis in preparing the consolidated financial statements.
- Significant accounting policies
The accounting policies applied in this condensed consolidated interim financial report are the same as those applied in the Group's consolidated financial statements as at and for the year ended 30 June 2016.
- Operating segments
Information about reportable segments For the six months ended 31 December 2016 (unaudited)
| Recovery operations £'000 | Mining and exploration £'000 | Adminis-tration £'000 | Reconciliation to Group figures £'000 | Group £'000 | ||||||
| External revenues | 13,343 | 1,072 | - | - | 14,415 | |||||
| Inter-segment revenues | 278 | - | - | (278) | - | |||||
| Total revenues | 13,621 | 1,072 | - | (278) | 14,415 | |||||
| Reportable segment profit/(loss) before tax | 1,849 | (712) | 194 | 3 | 1,334 | |||||
| Segment assets | 26,552 | 3,846 | 30,217 | (20,554) | 40,062 | |||||
| Segment liabilities | 17,334 | 3,333 | 4,649 | (7,484) | 17,832 | |||||
For the six months ended 31 December 2015 (unaudited)
| Recovery operations £'000 | Mining and exploration £'000 | Adminis-tration £'000 | Reconciliation to Group figures £'000 | Group £'000 | |||||
| External revenues | 10,014 | 659 | - | - | 10,673 | ||||
| Inter-segment revenues | 2,289 | - | - | (2,289) | - | ||||
| Total revenues | 12,303 | 659 | - | (2,289) | 10,673 | ||||
| Reportable segment profit/(loss) before tax | 1,222 | (477) | (368) | 18 | 395 | ||||
| Segment assets | 16,651 | 6,415 | 29,158 | (23,484) | 28,740 | ||||
| Segment liabilities | 11,287 | 5,156 | 4,798 | (10,323) | 10,918 | ||||
For the twelve months ended 30 June 2016 (audited)
| Recovery operations £'000 | Mining and exploration £'000 | Adminis-tration £'000 | Reconciliation to Group figures £'000 | Group £'000 | |||||
| External revenues | 18,625 | 1,560 | - | - | 20,185 | ||||
| Inter-segment revenues | 4,707 | - | - | (4,707) | - | ||||
| Total revenues | 23,332 | 1,560 | - | (4,707) | 20,185 | ||||
| Reportable segment profit/(loss) before tax | 2,696 | (762) | (12) | 20 | 1,942 | ||||
| Segment assets | 20,093 | 7,463 | 29,702 | (24,547) | 32,711 | ||||
| Segment liabilities | 12,973 | 6,273 | 4,830 | (11,462) | 12,614 | ||||
- Seasonality of operations
The Group is not considered to be subject to seasonal fluctuations.
- Income tax expense
Income tax expense is recognised based on management's best estimate of the weighted average annual income tax rate expected for the full financial year applied to the pre-tax income of the interim period. The Group's consolidated effective tax rate in respect of continuing operations for the six months ended 31 December 2016 was 20.00% (six months ended 31 December 2015: 20.00%; twelve months ended 30 June 2016: 20.00%).
- Property, plant and equipment
Acquisitions and disposals During the six months ended 31 December 2016, the Group acquired assets with a cost, excluding capitalised borrowing costs of £1,377,000 (six months ended 31 December 2015: £623,000; twelve months ended 30 June 2016: £1,365,000). Assets with a carrying amount of £13,000 were disposed of during the six months ended 31 December 2016 (six months ended 31 December 2015: £73,000; twelve months ended 30 June 2016: £156,000), resulting in a loss on disposal of £8,000 (six months ended 31 December 2015: £39,000; twelve months ended 30 June 2016: £62,000), which is included in 'administrative expenses' in the condensed consolidated statement of comprehensive income.
- Intangible assets and goodwill
| 6 months 31-Dec-16 (unaudited) £'000 | 6 months 31-Dec-15 (unaudited) £'000 | 12 months 30-Jun-16 (audited) £'000 | |||||||
| Cost | |||||||||
| Balance at beginning of period | 12,467 | 11,922 | 11,922 | ||||||
| Additions | - | 59 | 110 | ||||||
| Impairment | - | - | (42) | ||||||
| Foreign exchange translation | 125 | 245 | 477 | ||||||
| Balance at end of period | 12,592 | 12,226 | 12,467 | ||||||
| Amortisation and impairment losses | |||
| Balance at beginning of period | 2,741 | 2,753 | 2,753 |
| Amortisation Impairment | 112 - | 90 - | 192 (42) |
| Foreign exchange translation | (86) | (6) | (162) |
| Balance at end of period | 2,767 | 2,837 | 2,741 |
| Carrying amounts | |||
| Balance at end of period | 9,825 | 9,389 | 9,726 |
| Balance at beginning of period | 9,726 | 9,169 | 9,169 |
- Inventories
| 6 months 31-Dec-16 (unaudited) £'000 | 6 months 31-Dec-15 (unaudited) £'000 | 12 months 30-Jun-16 (audited) £'000 | |||||||
| Consumable stores | 1,172 | 915 | 1,094 | ||||||
| Raw materials | 586 | 473 | 347 | ||||||
| Precious metal on hand and in process | 9,683 | 6,572 | 6,124 | ||||||
| Broken ore | 278 | 103 | 182 | ||||||
| 11,719 | 8,063 | 7,747 | |||||||
- Trade and other receivables
| 6 months 31-Dec-16 (unaudited) £'000 | 6 months 31-Dec-15 (unaudited) £'000 | 12 months 30-Jun-16 (audited) £'000 | |||||||
| Trade receivables | 6,948 | 3,119 | 4,546 | ||||||
| Other receivables | 1,932 | 1,654 | 1,709 | ||||||
| 8,880 | 4,773 | 6,255 | |||||||
- Cash and cash equivalents
| 6 months 31-Dec-16 (unaudited) £'000 | 6 months 31-Dec-15 (unaudited) £'000 | 12 months 30-Jun-16 (audited) £'000 | |||||||
| Bank balances | 885 | 729 | 2,148 | ||||||
| Bank overdrafts used for cash management purposes | 885 (50) | 729 - | 2,148 (92) | ||||||
| Cash and cash equivalents in the statement of cash flows | 835 | 729 | 2,056 | ||||||
- Capital and reserves
| Issue of ordinary shares | |||||||||
| 6 months 31-Dec-16 (unaudited) | 6 months 31-Dec-15 (unaudited) | 12 months 30-Jun-16 (audited) | |||||||
| On issue at beginning of period Cancellation of treasury shares | 167,441,000 - | 168,441,000 - | 168,441,000 (1,000,000) | ||||||
| On issue at end of period | 167,441,000 | 168,441,000 | 167,441,000 | ||||||
| Authorised - par value £0.01 | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | ||||||
| Issue of ordinary shares | |||||||||
| 6 months 31-Dec-16 (unaudited) £'000 | 6 months 31-Dec-15 (unaudited) £'000 | 12 months 30-Jun-16 (audited) £'000 | |||||||
| On issue at beginning of period | 1,675 | 1,685 | 1,685 | ||||||
| Shares cancelled in year | - | - | (10) | ||||||
| On issue at end of period | 1,675 | 1,685 | 1,675 | ||||||
Dividends The following dividends were declared and paid by the Company:
| 6 months 31-Dec-16 (unaudited) £'000 | 6 months 31-Dec-15 (unaudited) £'000 | 12 months 30-Jun-16 (audited) £'000 | |||||||
| Nil pence per qualifying ordinary share | - | - | - | ||||||
- Obligations under finance leases
Six months ended 31 December 2016 (unaudited)
| Currency | Interest rate nominal | Year of maturity | Face value £'000 | Carrying amount £'000 | ||||||||||||
| Finance lease liabilities | ZAR | 10.5% | 2017/18 | (400) | (400) | |||||||||||
| Total Interest-bearing liabilities | (400) | (400) | ||||||||||||||
Six months ended 31 December 2015 (unaudited)
| Currency | Interest rate nominal | Year of maturity | Face value £'000 | Carrying amount £'000 | ||||||||||||
| Finance lease liabilities | ZAR | 9.75% | 2016/17 | (290) | (290) | |||||||||||
| Total Interest-bearing liabilities | (290) | (290) | ||||||||||||||
Twelve months ended 30 June 2016 (audited)
| Currency | Interest rate nominal | Year of maturity | Face value £'000 | Carrying amount £'000 | |||||||||||||
| Finance lease liabilities | ZAR | 10.5% | 2017/18 | (286) | (286) | ||||||||||||
| Total Interest-bearing liabilities | (286) | (286) | |||||||||||||||
- Interest bearing borrowings
Six months ended 31 December 2016 (unaudited)
| Currency | Interest rate nominal | Year of maturity | Face value £'000 | Carrying amount £'000 | ||||||||||||
| Interest bearing borrowings | - | - | - | - | - | |||||||||||
| Total Interest-bearing liabilities | - | - | ||||||||||||||
Six months ended 31 December 2015 (unaudited)
| Currency | Interest rate nominal | Year of maturity | Face value £'000 | Carrying amount £'000 | ||||||||||||
| Interest bearing borrowings | ZAR | 9.75% | 2016 | (91) | (91) | |||||||||||
| Total Interest-bearing liabilities | (91) | (91) | ||||||||||||||
Twelve months ended 30 June 2016 (audited)
| Currency | Interest rate nominal | Year of maturity | Face value £'000 | Carrying amount £'000 | |||||||||||||
| Interest bearing borrowings | ZAR | 10.5% | 2018 | (55) | (55) | ||||||||||||
| Total Interest-bearing liabilities | (55) | (55) | |||||||||||||||
- Provisions
| 6 months 31-Dec-16 (unaudited) £'000 | 6 months 31-Dec-15 (unaudited) £'000 | 12 months 30-Jun-16 (audited) £'000 | ||||||||||
| Environmental obligation | ||||||||||||
| Balance at beginning of period | 383 | 121 | 121 | |||||||||
| Provisions made during the period | - | 5 | 244 | |||||||||
| Foreign exchange translation | 62 | (20) | 18 | |||||||||
| 445 | 106 | 383 | ||||||||||
The provision relates to a requirement to rehabilitate the land owned in South Africa upon cessation of the mining lease.
- Trade and other payables
| 6 months 31-Dec-16 (unaudited) £'000 | 6 months 31-Dec-15 (unaudited) £'000 | 12 months 30-Jun-16 (audited) £'000 | |||||||
| Trade payables | 3,298 | 2,440 | 2,666 | ||||||
| Amounts received in advance | - | - | 1,107 | ||||||
| Accrued expenses | 12,678 | 7,509 | 7,362 | ||||||
| 15,976 | 9,949 | 11,135 | |||||||
- Share options
Reconciliation of outstanding share options
| 6 months ended 31-Dec-16 (unaudited) | 6 months ended 31-Dec-15 (unaudited) | |||||||||||
| Number of options | Exercise price | Number of options | Exercise price | |||||||||
| Outstanding at beginning of period | 18,500,000 | 8,500,000 | ||||||||||
| Granted during the period | - | - | 11,000,000 | 3.125p | ||||||||
| Outstanding at end of period | 18,500,000 | 19,500,000 | ||||||||||
| 12 months ended 30-Jun-16 (audited) | ||||||||||||
| Number of options | Exercise price | |||||||||||
| Outstanding at beginning of period | 8,500,000 | |||||||||||
| Granted during the period Lapsed during the year | 11,000,000 (1,000,000) | 3.125p | ||||||||||
| Outstanding at end of period | 18,500,000 | |||||||||||
The weighted average exercise price of the exercisable options is £0.0660 (31 December 2015: £0.0864; 30 June 2016: £0.0660).
The weighted average remaining contractual life of the options outstanding as at 31 December 2016 is 3 years 112 days (31 December 2015: 1 year 360 days; 30 June 2016: 3 years 292 days).
18. Fair values The fair values of financial instruments such as interest-bearing loans and borrowings, finance lease liabilities, trade and other receivables/payables are substantially identical to carrying amounts reflected in the statement of financial position. **ENDS**
For further information, visit www.goldplat.com, follow on Twitter @GoldPlatPlc or contact:
| Gerard Kisbey-Green | CEO Goldplat plc | Tel: +27 (71) 8915775 |
| Colin Aaronson / Jen Clarke / Daniel Bush | Grant Thornton UK LLP (Nominated Adviser) | Tel: +44 (0) 20 7383 5100 |
| Andrew Raca / Justin McKeegan | VSA Capital Limited (Broker) | Tel: +44 (0) 20 3005 5000 |
| Charlotte Page / Susie Geliher | St Brides Partners Ltd (Financial PR) | Tel: +44 (0) 20 7236 1177 |
The information contained within this RNS is considered to be inside information prior to its release. About Goldplat Goldplat plc is an AIM quoted gold recovery services company with two market leading operations in South Africa and Ghana. The Company's strategy is focussed on utilising cash flow generated from its flagship gold recovery operations to self-fund the sustainable growth and expansion of its niche gold recovery business model. At the Company's gold recovery operations Goldplat is targeting greater market exposure through the sourcing of new material, both from the wider African continent and internationally, for processing at its established recovery operations. 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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