Goldplat plc (LON:GDP) Chief Executive Officer Gerard Kisbey-Green caught up with DirectorsTalk to discuss their preliminary results for the year ended 30th June 2016
Q1: Now this morning you announced your preliminary results for the year ended 30th June, Gerard what would be the outstanding features about your results?
A1: I think the outstanding feature is probably the fact that at the end of 2015 we were cash-strapped, we have large inventories mainly as a result of the rand refinery problems, we said at the time that we were positioned for a return to profitability during the financial year 2016 and this has pretty much played out how we planned it. We increased production to over 40,000 ounces, we successfully worked down all of the backlog inventories, we bought the recovery operations back into a cash flow positive situation and we’ve strengthened our balance sheet so we ended the year on a decent amount of cash and our recovery operations back to being profitable.
Q2: So how did you manage this turnaround?
A2: It was a couple of things, mainly a matter of being able to return to normal, and indeed increased, production levels but at the same time working on the backlog stock which accumulated during 2015, we were able to do this really I think as a result of 3 major initiatives: Firstly it was finding alternative destinations for the backlog product material and we plan to already use Aurubis Refinery in Germany as we’ve made public. Secondly establishing a pre-finance facility to help us with the cash flow and we did that through Auramet. Finally the successful commissioning of the 4 tonne elution column plant at GPL which it allowed us to elute a lot of our material ourselves both from South African and Ghanaian operations.
Q3: Where are you now as you proceed with full-year 2017?
A3: I think in a snapshot, at the end of 2015 we said we were positioned for a return to profitability, now we feel we’re positioned for diversification and growth in the following year.
Q4: So where will the diversification and growth come from?
A4: There’s essentially 3 major areas of focus coming into 2017, first one being expanding Kilimapesa and bringing it into operational profitability, the second one is developing Ghana as a hub for business from South and North America as developed elsewhere in Africa and internationally and then finally strengthening and focussing on sourcing an adequate supply of quality materials for our recovery operations.
Q5: Finally then if we turn to your mining ambitions, what plans do you have to develop this in 2017?
A5: We always have a strategy to develop mining alongside the recovery operations or diversifications. Kilimapesa expansion is modest, it won’t get us to the production levels which will diversify the business so we remain on the lookout for I guess meaningful corporate deals where we can acquire or develop a decent sized good quality mining portfolio, as I said before at least equal to our gold production from recovery. I think the point is such opportunities aren’t there to be picked off trees, so to speak, the study will take time, ongoing research and effort, and to the extent it’s a matter of being in the right place at the right time and being prepared to move when opportunities arrive. So we’ll be constantly be on the lookout for such opportunities.