Goldplat Plc, (AIM: GDP) the AIM listed Mining Services Group, with international gold recovery operations located in South Africa and Ghana, servicing the African and South American Mining Industry, is pleased to announce its unaudited interim results for the six months ended 31 December 2022 ('H1 2022').
Goldplat continued to achieve profitable results for the six months ended 31 December 2022. Highlights include: Achieving operating profit for H1 2022 of GBP2,813,000 (H1 2021: GBP3,334,000), after the impact of the electricity cuts, by the electricity provider in South Africa, on production in the second quarter in South Africa, the loss on the sale of Caracal shares (GBP45,000) and the decrease in valuation of the net smelter royalty (GBP107,000); Even after considering the impacts mentioned above, a net profit from continued operations attributable to owners of the company was maintained at GBP1,742,000 (H1 2021: GBP2,071,000); Fully diluted earnings per share for the six-month period remained above 1 pence per share at 1.02 pence per share (H1 2021: 1.19 pence per share); The group cash balance remained strong at GBP2,826,000 (30 June 2022: GBP3,895,000) and During the period the Company spent GBP802,000 (H1 2021: GBP313,000) on capital expenditure, mainly on construction of a new tailings facility ('TSF') in South Africa and refurbishment of one of the circuits.
Werner Klingenberg, CEO of Goldplat commented: 'I am pleased with the continued strong operating results achieved by the group, considering some of the difficult circumstances we've experienced during the second quarter in South Africa.'
Contact:
Tel: +27 (0) 82 051 1071
Email: goldplat@flagstaffcomms.com
The information contained within this announcement is deemed to constitute inside information as stipulated under the retained EU law version of the Market Abuse Regulation (EU) No. 596/2014 (the 'UK MAR') which is part of UK law by virtue of the European Union (Withdrawal) Act 2018. The information is disclosed in accordance with the Company's obligations under Article 17 of the UK MAR. Upon the publication of this announcement, this inside information is now considered to be in the public domain.
Chairman's Statement
I am pleased to report continued strong results from our gold recovery operations, with profit for the half year of GBP1,839,000 (H1 2021: GBP2,217,000) and an all-in, fully diluted EPS for the half year of 1.02 pence (H1 2021: 1.19 pence).
Our portfolio of core assets consists of two gold recovery operations, in South Africa and Ghana, with plans to extend this to Brazil. These operations recover gold and platinum group metals ('PGM') from by-products of current and historical mining processing, thereby providing mines with an environmentally-friendly and cost-efficient way of removing waste material.
Revenue decreased by 3% to GBP20,597,000 (H1 2021: GBP21,326,000), with the Ghanaian and South African recovery operations recording a decrease in revenue of 7% and 1% respectively.
The decrease in operating profit to GBP2,813,000 (H1 2021: GBP3,334,000) is mainly due to the impact of the electricity cuts, by the electricity provider in South Africa, on production in the second quarter in South Africa. The results were also impacted by the loss on the sale of Caracal shares and the decrease in valuation of the net smelter royalty (explained below).
At the beginning of the period, Goldplat held a 5.52% interest indirectly in Caracal PLC ('Caracal') valued at GBP727,000 and a 1% net smelter royalty capped at United States Dollar 1.5 million in Kilimapesa (the Kenyan Gold Mining Company it sold to Caracal) valued at GBP698,000.
During the H1 period, all shares in Caracal were sold for GBP682,000, at a loss of GBP45,000. We also reviewed and decreased the valuation of the net smelter royalty by GBP107,000, as a result of the lower than expected production profile at Kilimapesa even though the future gold price outlook has improved.
The net financing cost fluctuates from period to period due largely to the fluctuation in the intergroup unrealised foreign exchange losses or gains, which is driven by the movement of Ghana Cedi, the South African Rand and the British Pound against the United States Dollar in which intergroup balances are denominated.
GOLDPLAT PLC 
