Goldplat plc Numbers for the Quarter showed a dramatic turnaround

Gerard Kisbey-Green, CEO of Goldplat, commented: “Overall the production numbers for the Quarter were good and importantly, showed a dramatic turnaround when compared to the previous quarter. Goldplat Recovery had a very good Quarter and this momentum has carried through to the current quarter. Although the situation in Ghana has improved, our teams are focussed on improving the predictability of sourcing material, including from within Ghana, elsewhere in West Africa as well as South America. Unfortunately, Kilimapesa continues to report poor results and the Company hopes to progress financing discussions to a point where plans can be shared with the market and our investors during the current quarter.

“While we reported very positive production and sales numbers for the Quarter, unfortunately we don’t expect this to be sufficient to make up financially for the continued losses at Kilimapesa and poor first quarter of the financial year– this will be reflected in the Interim announcement scheduled for 25 February 2019.”

Goldplat plc (LON:GDP), the AIM quoted gold producer, with international gold recovery operations located in South Africa and Ghana and a gold mine in Kenya, today announced an operational update for the three months ended 31 December 2018 (the ‘Quarter’ or ‘Q2 2019’).

Overview

57% increase in gold equivalent ounces produced from the previous quarter to 9,648 ounces (Q1 2019: 6,138 ounces) and a 4% decrease year-on-year (Q2 2018: 10,022 ounces) demonstrating a return to planned production levels.

16% year-on-year increase in gold equivalent ounces sold and transferred during the Quarter due to higher production to 10,178 ounces (Q2-2018: 8,794 ounces).

As was forecast at the end of the previous quarter, production levels at Goldplat Recovery during the period returned to normal levels with both the by-product sections as well as the carbon-in-leach (‘CIL’) circuits exceeding planned production. This was due to the sourcing of material from clients returning to normal as well as the focus on processing built-up inventory in the plant during the period.

Production at Gold Recovery Ghana improved on the previous quarter due to a number of local Ghanaian contracts being processed and increased sourcing from South America. During the Quarter a major West African client with substantial material available from a number of operations agreed to send a trial batch of material to Gold Recovery Ghana and this is expected to be processed during the current quarter, as soon as export logistics and legalities have been finalised.

Sourcing sufficient quantities of material for processing in Ghana remains erratic and an area of strategic priority.

At Kilimapesa, production was further reduced, according to plan. In the last update it was reported that a strategy had been implemented to put the mine on care and maintenance by the end of November 2018 should a transaction to secure funding not be in progress. Progress in respect of a possible transaction during the Quarter enabled management to take the decision not to proceed to care and maintenance to date.

Production for the Quarter

Goldplat Plc Consolidated 2nd Qtr 2nd Qtr 2nd Qtr 2nd Qtr 6 months 6 months
Dec-18 Dec-18 Dec-17 Dec-17 Dec-18 Dec-18
Equivalent Gold Equivalent Gold Equivalent Gold Equivalent Gold Equivalent Gold Equivalent Gold
Kg Oz kg oz kg Oz
Gold Equivalent Production            
Goldplat Recovery   219   7 034   198   6 380   351  

11 285

Gold Recovery Ghana   55   1 757   75   2 408   76   2 443
Kilimapesa Gold   27    857   38   1 234   64   2 058
Total   301   9 648   311   10 022   491  

15 786

Gold Equivalent Sold            
Goldplat Recovery   185   5 932   113   3 639   279   8 970
Gold Recovery Ghana   41   1 319   65   2 089   60   1 929
Kilimapesa Gold   36   1 174   47   1 498   71   2 283
Total   262   8 425   225   7 226   410  

13 182

Gold Equivalent Transferred            
Goldplat Recovery   55   1 762   49   1 568   75   2 411
Total   55   1 762   49   1 568   75   2 411
Gold Equivalent Sold and Transferred            
Goldplat Recovery   240   7 694   162   5 207   354  

11 381

Gold Recovery Ghana   41   1 319   65   2 089   60   1 929
Kilimapesa Gold   36   1 174   47   1 498   71   2 283
Total   317  

10 187

  274   8 794   485  

15 593

Goldplat Recovery (Pty) Ltd (‘GPL’), South Africa

10% increase year on year (‘YoY’) to 7,034 ounces (Q2 2018: 6,380 ounces of gold and gold equivalents produced during the quarter).
During Q1 2019 production from both by product circuits as well as the CIL circuits was significantly below plan and it was reported that these levels were returning to normal during Q2 2019. Production levels during the Quarter showed an increase of 65% on the previous quarter (Q1 2019: 4,251 ounces).
48% increase YoY of gold sold and transferred to 7,694 ounces during the Quarter (Q2 2018: 5,207 ounces) and an increase of 109% on the previous quarter (Q1 2019: 3,687 ounces).
Production from the by-product and the CIL sections was higher than expected due to the return to expected supply of material from clients, as well as a concerted effort to process inventory on site.

Large volumes of inventory, not including strategic stockpiles, were processed during the Quarter, monetising inventory previously “dormant” due to the nature of the material or economics of final processing. This clean-up has continued into the second quarter.

Test work on the large CIL stockpile material continued during the period with a trial campaign yielding opportunities for upgrading this material should it be decided to process all or part of the stockpile in the future.

The process to secure West Pit 3 for deposition is still awaiting finalisation with the Department of Mineral Resources before GPL can move forward to finalise the design and other requirements.

The alternative option for reprocessing and final deposition of the Tailings Storage Facility (‘TSF’) continues to be evaluated.

Supply of material containing PGMs including woodchips and other by product material was enhanced with a contract being concluded with one of the major producers. This will allow a degree of flexibility going forward in processing either gold containing or PGM containing woodchips so as to optimising some of the lower grade circuits.

Gold Recovery Ghana Limited (‘GRG’), Ghana

27% decrease year on year of gold and gold equivalents produced during the Quarter to 1,757 ounces (Q2 2018: 2,408 ounces), production did however increase by 156% compared to the preceding quarter (Q1 2019: 686 ounces).

27% decrease YoY of gold sold and transferred to 1,319 ounces during the Quarter (Q2 2018: 2,089 ounces).

Two contracts in Ghana were re-initiated during the Quarter and supply of small batches of material from South America continued.

A one-off small but very high-grade batch of material was also received from a South American client and processed during the Quarter.

Following prolonged negotiations with a major gold producer with operations in West Africa, the producer has agreed to deliver a trial batch of material to GRG once export logistics and legalities have been finalised.

Sourcing material for GRG remains erratic and difficult to predict and continues to be of the prime strategic focus areas for management.

Kilimapesa Gold (‘KPG’), Kenya

KPG produced 857 ounces of gold and gold equivalents (Q2 2018: 1,234 ounces) with 1,174 ounces of gold sold (Q2 2018: 1,498 ounces) on KPG’s own account during the Quarter.

The Company took the decision not to put operations on care and maintenance at the end of November 2018 despite continuing losses due to progress on discussions regarding securing funding.

Plant throughput has been decreased further and costs reduced in order to try to minimise losses during these financing discussions. Grades from the underground mine as well as from purchased tailings were lower than planned during the Quarter.

Anumso Gold Project, (‘Anumso’) Ghana

The initial expenditure of US$1.5 million that was required to be made by 31 October 2018 has been verified and Ashanti has exercised the initial option to take up 51% of Goldplat’s interest in the project. Ashanti has notified Goldplat that they will not elect the Subsequent Option for an additional 24% of the project and the parties will, according to the agreement, form a Joint Venture to manage the project going forward. Details regarding structure will be announced once decided and concluded.

Click to view all articles for the EPIC:
Or click to view the full company profile:
Facebook
Twitter
LinkedIn
Goldplat plc

More articles like this

Goldplat plc

Gold gains on weaker dollar

Gold prices edged higher on Monday, as softer U.S. jobs data cemented hopes of further fiscal stimulus and pressured the dollar, although bullion’s gains were capped by higher Treasury yields. Spot gold was up 0.2% at

Goldplat plc

Gold up over US stimulus progress

Gold was up on Wednesday morning in Asia, amid growing hopes of further U.S. stimulus measures. Gold futures were up 0.41% at $1,840.95 by 12:39 AM ET (5:39 AM GMT). Democrat lawmakers in the U.S. Senate began

Goldplat plc

Gold to still hit $2,300 in 2021

All precious metals will see solid gains this year, but the likeliest best performers will be silver, followed by platinum and gold, said Frederic Panizzutti, managing director at MKS. Despite a slower start to the year,

Goldplat plc

Gold price recovers

Gold prices edged higher on Monday, recovering from a near seven-week low, as prospects of a massive US coronavirus relief aid outweighed a stronger dollar and lifted bullion’s appeal as an inflation hedge. Spot gold advanced

Goldplat plc

Gold steadies as weaker stocks offset stronger dollar

Gold prices steadied on Tuesday as Asian stocks traded lower, dragged by political unrest in Washington and rising global COVID-19 cases, outweighing a firmer dollar and U.S. Treasury yields. Spot gold was little changed at $1,845.19

Goldplat plc

Gold firms as Democrat-led US Senate boosts stimulus hopes

Gold prices rose on Thursday as a Democrat sweep of Georgia’s Senate runoffs boosted expectations of additional U.S. stimulus, although soaring Treasury yields held back bullion below a two-month high scaled in the previous session. Spot

Goldplat plc

Gold rallies over 1%

Gold prices in India rose more than 1 percent on January 4 tracking a positive trend in international spot prices, which hit an eight-week high as global  COVID-19 cases spiked and countries pushed for more lockdowns

Goldplat plc

Goldplat provides an update on the sale of Kilimapesa

Goldplat plc (LON:GDP), the AIM quoted gold producer, with international gold recovery operations located in South Africa and Ghana and an a held for sale underground mining operation in Kenya, has provided an update on the sale

Goldplat plc

Goldplat Investor and Analyst conference call

Goldplat plc (LON:GDP), the AIM quoted gold producer with international  gold recovery operations located in South Africa and Ghana, has announced that following its announcement on 09 December 2020, the Company will hold an investor and analyst conference call

Goldplat plc

Gold prices climb to 1-1/2-month high

Gold prices today jumped as much as 1% (Monday) to a near one-and-a-half-month high, driven by news that an agreement on a long-awaited U.S. fiscal stimulus deal had been reached. Spot gold rose 0.8% to $1,896.39

Goldplat plc

Gold rallies to near 6-week high

Gold prices rallied Thursday, with a steep decline in the U.S. dollar, the Federal Reserve’s ongoing loose monetary policy and expectations for a new fiscal stimulus package from Washington lifting bullion to its highest finish in

Goldplat plc

Gold up on Tuesday

Gold was up on Tuesday morning in Asia, with COVID-19 cases continuing to increase and overshadowing the start of COVID-19 vaccine inoculations in the U.S and Canada. Negotiations over the latest U.S. stimulus measures continue. Gold

Goldplat plc

Gold gains on weaker dollar

Gold edged up on Friday as the dollar held near a two-and-a-half-year low, offsetting concerns over delays in a U.S. coronavirus package. Spot gold rose 0.1% to $1,837.21 per ounce by 0531 GMT. U.S. gold futures

Goldplat plc

Gold trades higher today

Gold prices rose marginally in Indian markets on December 7 morning, tracking a muted trend in international spot prices. On the Multi-Commodity Exchange (MCX), February gold contracts were trading higher by 0.19 percent at Rs 49,266

Goldplat plc

Gold trades higher on weak dollar

Gold was trading higher on December 4, tracking a positive trend in international spot prices on a weak dollar and stimulus hopes. On the Multi-Commodity Exchange (MCX), February gold contracts were trading higher by 0.17 percent

Goldplat plc

Gold jumps 2% today

Gold jumped more than 2% on Tuesday, rebounding from a five-month low in the last session, and silver soared over 6%, as the dollar slid, with U.S. stimulus bets adding to bullion’s appeal as an inflation

Goldplat plc

Gold gains today

Gold prices rose on Thursday, aided by a weaker dollar, as investors bet that grim U.S. jobs data and surging COVID-19 cases worldwide would spur authorities to announce further stimulus measures. Spot gold rose 0.5% to