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Goldplat plc

Goldplat Plc “Significant increase in operating profitability”

Goldplat plc LON:GDP , the AIM listed gold producer, announced its preliminary
results for the year ended 30 June 2017 (‘FY 2017’).

Operations / Corporate

— Significant increase in operating profitability from continuing
operations in FY 2017 following the successful turnaround strategy at
Kilimapesa Gold Mine, meaning by the end of the last quarter of the year,
all operations were operating profitably

— Increased gold equivalent production highlights the continued and steady
growth of the business – Goldplat produced 42,857 ounces of gold during
the year, marking a 13.7% increase on 2016 (2016: 37,666 ounces), which
follows a 23.3% increase from 2015

— Recovery operations produced 39,449 gold equivalent ounces (2016:
35,661 ounces)

— Kilimapesa Mine produced 3,408 ounces of gold (2016: 2,005 ounces)
– the increased processing capacity was only seen towards the end
of FY 2017 meaning further upside expected with in excess of
5,800oz targeted during FY 2018

— Actual sales were 40,285 gold equivalent ounces (2016: 40,763 ounces)

— 34,112 gold equivalent ounces sold for own account (2016: 27,538
ounces)

— 6,173 gold equivalent ounces transferred to clients (2016: 13,225
ounces)

— Committed to maintaining active growth strategy to build production and
profitability:

— Gold recovery:

— Work well advanced to increase geographical reach, by
establishing Ghana as an international recovery hub, with
material already being imported from elsewhere in Africa
and South America and opportunities identified in North
America

— Opportunity to diversify metal focus – platinum group
metals trials continuing in South Africa

— Potential to maximise environmental value by offering
mining “clean-up” services processing by-products with
contaminants such as mercury – investigating a major
project with the Ghanaian Government to assist in the
clean-up of artisanal mining tailings

— Primary mining:

— Focussed on driving increased production at Kilimapesa

— Targeting expansion by considering opportunities to gain
interests in producing or near-production assets

— Non-core exploration portfolio:

— TSX quoted Ashanti Gold Corp has the option to earn up to 75% of
Goldplat’s interest in the Anumso Gold Project in Ghana by
expending US$3million on exploration work at the project

— Strategic decision to write off Nyieme Gold Project in Burkina
Faso having found the project to be too small scale to be
economically viable

— Matthew Robinson appointed as Chairman – bolsters the experienced
management team

Financials

— 140% increase in operating profit from continuing operations to
GBP2,910,000 (2016: GBP1,212,000)

— 43% increase in profit before tax from continuing operations to
GBP2,836,000 (2016: GBP1,988,000)

— Strong performance continues to be reported at the Group’s recovery
subsidiaries:

— Goldplat Recovery (Pty) Ltd – South Africa – 36% increase in
profit after tax to GBP2,420,000 (2016: GBP1,777,000)

— Gold Recovery Ghana Limited – Ghana – 169% increase in profit
after tax to GBP1,177,000 (2016: GBP437,000)

— Kilimapesa Gold (Pty) Limited reported a net loss of GBP1,100,000 for the
year (2016: loss of GBP711,000) as the benefits of increased production
capacity were only realised during the second half of FY 2017. In FY 2017
revenue increased to GBP3,150,000 (2016: GBP156,000), with operating
profit achieved towards the end of the year

— Nyieme exploration project discontinued and development cost of
GBP955,000 written-off, with no cashflow impact in current period.

— Total comprehensive income for the year still higher than comparative
year at GBP1,989,000 (2016: GBP1,897,000)

— Net cash position of GBP2,650,000 as at 30 June 2017 (GBP2,056,000 as at
30 June 2016)

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Disclaimer: Statements in this article should not be considered investment advice, which is best sought directly from a qualified professional.