Gold Recovery and Mining Development in Africa - Corporate Presentation: Interim Results February 2016
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Gold Recovery and Mining Development in Africa Corporate Presentation: Interim Results February 2016
Disclaimer
These presentation materials (the “Presentation Materials”) are being distributed in the UK only to persons having professional
experience in matters relating to investments and who are investment professionals as specified in Article 19(5) of the Financial
Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Financial Promotion Order”), or high net worth companies,
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Corporate Presentation – February 2016: Gold Recovery and Mining Development in Africa 2
Goldplat – at a glance
African- AIM quoted gold producer – produced 17,457oz of gold for the six months ended 31
focussed December 2015 (c.15,000oz for own account) from the recovery of by-products of mining
Producer operations as well as primary gold mining
Niche Market leading cash generative gold recovery operations in South Africa and Ghana with
recovery “Responsible Gold” accreditation provides solid business foundation with growth potential
operations
Gold Goldplat has a JORC compliant resource of 1.013Moz (82,000oz tailings at South African gold
Mining Recovery, 671,000oz at Kilimapesa Gold Mine in Kenya; 167,000oz at Anumso in Ghana;
93,000oz at Nyieme in Burkina Faso)
Profit before tax of £395,000 for the six months ended 31 December 2016 (6 months 2014:
Profitable loss of £377,000) – results mark a return to net profitability underpinning success of
turnaround strategy. Additional capital projects planned to further increase profitability
Corporate Presentation – February 2016: Gold Recovery and Mining Development in Africa 3
Key Data
Market AIM Board
Ticker GDP Brian Moritz Non-Exec Chairman
Gerard Kisbey-Green Chief Executive Officer
Share price (Mid) 4.9p (18.02.16)
Ian Visagie Finance Director
Shares in issue 167 million Hansie van Vreden Chief Operating Officer
Market Cap £8.1 million Nigel Wyatt Non-Executive Director
Management Team
NOMAD/Broker SP Angel
Werner Klingenberg Group Financial Manager
Joint Broker VSA Capital
%
Major Shareholders (top 5)
Holding
Chase Nominees Limited (Fidelity International) 10.06
Fitel Nominees Limited 7.97
Barclayshare Nominees Limited 6.82
HSDL Nominees Limited 6.82
HSDL Nominees Limited 6.50
Directors / Key Management 2.06
Corporate Presentation – February 2016: Gold Recovery and Mining Development in Africa 4
Goldplat – Asset Register
Gold Recovery Operations
• South Africa – GPL, dominant gold recovery
operation with blue chip mining clients & strong
organic growth
• Ghana – GRG, geared towards primary mining
by-products. Strategically well-situated as a
regional hub to process material from elsewhere
in Africa as well as elsewhere in the world
BURKINA GHANA
• Burkina Faso - Midas Gold SARL (“Midas”), site FASO
with potential to build a second West African gold KENYA
recovery operation
Gold Mining and Exploration
• Kenya - Kilimapesa Gold Mine, JORC resource
of 671,446oz Au. In production - 932oz of gold
produced for 6 months ended 31 December 2015 .
Capital project in progress to upgrade processing SOUTH
capacity AFRICA
Corporate Presentation – February 2016: Gold Recovery and Mining Development in Africa 5
Goldplat – Strategy
Build on the success of the gold recovery businesses in South Africa and Ghana
Develop a hub in West Africa to serve the region as well as to process material from the international market
including the America’s
Continue reducing costs to ensure profitability in low USD gold price environment
Invest in processing equipment and technology to continue to develop in-house capacity to bring more
material through the value chain to bullion
Eliminate losses at Kilimapesa Gold Mine
Crystallise value from the current mining and exploration portfolio
Corporate Presentation – February 2016: Gold Recovery and Mining Development in Africa 6
Results
For the 6 months ended
31 December 2015
• Highlights
• Gold production,
sales and stock
• Financial Results
Corporate Presentation – February 2016: Gold Recovery and Mining Development in Africa 7
H1 FY 2016 – MAJOR ACHIEVEMENTS
Stock situation A return to net
stabilised profitability
Critical capital
JORC-compliant
projects
resource defined
completed and
on the TSF
funded internally
Corporate Presentation – February 2016: Gold Recovery and Mining Development in Africa 8
Financial Results – H1 FY 2016
6 months 6 months 12 months
31 Dec 2015 31 Dec 2014 30 Jun 2015 Goldplat has undertaken a number
(unaudited) (unaudited) (unaudited) of operational initiatives to bolster
£’000 £’000 £’000 revenue generation and return the
Company to profitability
Revenue 10,673 8,054 16,628
Cost of sales (9,472) (7,952) (15,660) Profitability
• December 2015 operating profit
Gross profit 1,201 102 968
of £245,000 compared to FY 2015
Administration expenses (956) (929) (1,679) loss of £711,000
• Profit before tax of £395,000 for
Operating profit before net 245 (827) (711) the six months ended 31
finance income December 2015 (a turnaround
from a 6 month 2014 loss of
Profit/(Loss) before tax 395 (377) (796)
£377,000 and FY 2015 loss of
Profit/(Loss) after tax 192 (417) (892) £796,000)
EPS – Basic 0.11 (0.25) (0.53) Inventories
EPS - Diluted 0.10 n/a n/a
• Inventories included precious
metals on hand and in process of
8,900oz to the value of
approximately £6.5 million
Net finance income
Operating Net cash Profit before Net Asset • Net finance income of £150,000
profit of position tax of Value (FY 2015: £36,000) relates mostly
£245,000 £729,000 £395,000 £28.7 million to foreign exchange movements
Corporate Presentation – February 2016: Gold Recovery and Mining Development in Africa 9
Gold production, sales and stock
Half
Half Year Year Year
Turnaround strategy yielding positive results: Year 6
6 month ended 30 ended 30
Goldplat Plc Consolidated month
total June 2015 June 2015
Production total
oz total kg total oz
• 17,457oz gold produced overall for 6 month period kg
ended December 2015 – increased compared to FY Total gold production
2015: 30,525oz gold
Gold Recovery Ghana (‘GRG’) 146 4,694 190 6,111
• Increase driven by increase in production at GRG to
Kilimapesa Gold 29 932 71 2,278
4,694oz gold vs FY 2015 of 6,111oz
Goldplat Recovery, SA (‘GPL’) 368 11,831 688 22,135
• Production at GPL of 11,831oz in line with previous year Total 543 17,457 949 30,525
and production at Kilimapesa of 932oz slightly down Gold Sold
Sales / Transferred Gold Recovery Ghana (‘GRG’) 175 5,626 80 2,578
• 17,875oz gold sold / transferred overall for 6 month
Kilimapesa Gold 29 932 64 2,073
period ended December 2015 – increased against FY
2015: 24,904oz gold Goldplat Recovery, SA (‘GPL’) 255 8,198 514 16,530
Total 459 14,756 658 21,181
• Results reflect increase in in-house elution capacity and
material delivered to Aurubis Metal Transfers to clients*
Goldplat Recovery, SA (‘GPL’) 97 3,119 116 3,723
• GRG sold 5,626oz for 6 months period ended
Total 97 3,119 116 3,723
December 2015 vs 2,578oz for FY2015
Total sold/transferred
• GPL sales and transfers also increased - 11,317oz for 6
months period ended December 2015 vs 20,253oz FY Gold Recovery Ghana (‘GRG’) 175 5,626 80 2,578
2015
Kilimapesa Gold 29 932 64 2,073
Goldplat Recovery, SA (‘GPL’) 352 11,317 630 20,253
Production and sales expected to continue at current Total 556 17,875 774 24,904
rates, to build on the success of H1 *NB. Not all gold produced directly translates to revenues – some returned to clients
Corporate Presentation – February 2016: Gold Recovery and Mining Development in Africa 10Gold Recovery
• Gold recovery
process/overview/business
• South Africa
• Ghana
Corporate Presentation – February 2016: Gold Recovery and Mining Development in Africa 11Goldplat Recovery – “What do we do?”
• ‘Gold recovery’ is the recovery of gold from by-products of the mining
process including woodchips, mill liners, fine carbon, slags, sludges and
waste grease
• Provides an economic method for mines to dispose of waste materials
and adhere to environmental obligations
• Supplier base consisting of blue-chip, private and local producers
• Revenues generated out of gold sales from gold bullion and concentrates
produced (NB. not all gold produced directly translates to revenues –
some will be returned to clients “metal accounts”)
Second Rotary Kiln
• Exposure to gold price can be managed through adjusting purchasing
contracts in line with gold price and by management of gold sales -
processing costs remain exposed to inflation and need to be managed
and controlled to maintain margins
• Recovery plant comprises industry standard processing technology
including crushers, mills, carbon in leach, james tables and elution plant
combined with flotation plant, rotary kilns and fluid bed incinerators
• Barriers to entry include an experienced management team and
workforce with ability to process diverse by-product material optimally
through the various processing circuits and to apply the technologies to
maximise recoveries Mill steel liners
Corporate Presentation – February 2016: Gold Recovery and Mining Development in Africa 12Goldplat Recovery Ltd, South Africa (‘GPL’)
• Produced 11,831oz of gold for the 6 months ended 31 December 2015 (FY
2015: 22,135oz Au)
• 11,317oz gold sold / transferred for the 6 months ended 31 December
2015
• 8,198oz sold for own account (FY 2015: 16,530oz)
• 3,119oz transferred to clients’ metal accounts (FY 2015: 3,723oz)
• January 2016 defined a JORC resource at its Tailings Storage Facility
• 1.43Mt gold at a grade of 1.78g/t Au, which implies a total 82koz of gold
• 216koz of silver and 193klbs uranium, which provides additional upside opportunity
• In-house elution capacity significantly expanded by improving
efficiency and utilisation of existing infrastructure and the installation New induction furnace at GPL
of a 4-tonne elution column – daily elution throughput expanded from
1,5 tonnes to in excess of 8 tonnes
• Completed a number of essential capital projects – all funded internally
• Trial project underway to assess opportunity to diversify into the
prospective Platinum Group Metals - procurement contracts with PGM
producers are being negotiated and sources of material being investigated
• Delivery of material to Aurubis Refinery in Germany continues and whilst
Rand Refinery in South Africa is once again processing material on a limited
basis. Capital projects - Tailings re-
treatment CIL plant
Corporate Presentation – February 2016: Gold Recovery and Mining Development in Africa 13GPL, South Africa - Capital projects completed
Goldplat has undertaken and continues to initiate a number of capital
projects to increase operating capacity and improve profitability
• The first of three 4-tonne Elution Columns acquired from DRD Gold
commissioned at GPL in November 2015, increasing average daily elution
throughput capacity from approximately 1.5 tonne per day to in excess of
8 tonnes per day
New cyanide storage facility
• New woodchip wash plant completed and commissioned in August 2015.
This has allowed for an additional 2kg of gold production per month from
the extensive existing wood chip stockpiles
• Installation of an on-site weighbridge completed December 2015 –
significantly improves the control of material deliveries into the various
treatment circuits to yield modest operating cost savings
New wash plant
• New liquid cyanide storage facility commissioned during FY 2015 and the
first delivery of liquid cyanide has been made by a local South African
supplier
• Low-grade circuit mill was replaced and commissioned in mid-September
2015
• A new pumping station has been commissioned at the tailings retreatment
carbon-in-leach (‘CIL’) plant to increase the volume of material to be
pumped to the tailings facility
New Low Grade mill
Corporate Presentation – February 2016: Gold Recovery and Mining Development in Africa 14Gold Recovery Ghana Ltd - Ghana (GRG)
• 4,694oz gold produced 6 months ended 31 December 2015 (FY
2015: 6,111oz)
• 5,626oz gold sold (FY 2015: 2,578oz)
• Located in the free port of Tema in Ghana with a tax free status
until end of 2016 and favourable rates thereafter
• GRG’s primary operation is its Spiral and Incinerator Section,
which recovers gold from high grade fine carbon & rubber mill
liners
• New shotblast facility installed and commissioned December GRG spiral section
2015 – represents a new business activity and additional revenue
stream. Contracts for sourcing material signed post December
2015 and deliveries of liners have commenced
• CIL circuit currently being loaded for shipping to Kilimapesa in
Kenya – free up space for potential new revenue streams
• A 4-tonne elution column planned to be moved from GPL and
installed at GRG subject to capital availability
GRG identified as a significant growth opportunity, with plans to
source material to process from both West Africa and South
America GRG incinerator section
Corporate Presentation – February 2016: Gold Recovery and Mining Development in Africa 15Mining &
Exploration
• Kenya
• Ghana and Burkina
Faso
Corporate Presentation – February 2016: Gold Recovery and Mining Development in Africa 16Kilimapesa Gold Mine - Kenya
• Kilimapesa has a JORC compliant resource of
8,715,291 tonnes at 2.40 g/t for 671,446oz gold
• Mining the Kilimapesa Hill area and processes
material from artisanal sources
• 932oz of gold produced for 6 months ended 31
December 2015 (FY 2015: 2,278oz; 6 months ended:
31 December 2014: 1,081oz)
Total Resource ( 1 g/t cut-off)
• 932oz gold sold for 6 months ended 31 December
2015 (FY 2015: 2,073oz) Within Veins and Host
Resource
Classification Contained
• Reason for the decrease in gold production due to a Tonnes Au Grade g/t
Au Oz
decrease in tailings procurement
Measured 626,678 3.05 61,462
• Current operations constrained by size and
efficiency of existing processing facility – Indicated 1,337,250 2.86 123,190
development plans underway
Total 1,963,928 2.92 184,652
Inferred 6 751 363 2.24 486,794
Total 8,715,291 2.40 671,446
Corporate Presentation – February 2016: Gold Recovery and Mining Development in Africa 17Kilimapesa Development
• Ground for a new processing facility and tailings deposition site
secured and plant designs complete
• Two-phased expansion plan to commence Q3 FY2016, to be
completed by Q2 FY2017:
1. Move CIL plant from GRG to new Kilimapesa site
2. Construct interim tailings facility to serve the CIL plant
• Re-opening of Adit D completed and on-reef development begun
• A second outlet to Adit Bull has commenced on-reef – once
completed a new mining block will be opened up between Adit
Bull and Adit D levels, providing production flexibility Adit Bull
• Teng-Teng decline shaft and reef drives de-watered end of FY
2015 – on-reef exploration has commenced with encouraging gold
grades reported by previous owners being confirmed from initial
limited and early stage exploration work
• A Knelson concentrator has been installed and is ready for trials at
the existing processing facility
• Local bank facility of $250,000 in place for financing of equipment
related to the production and processing expansion
• Discussions are on-going with third parties regarding future
development and financing of Kilimapesa
Kilimapesa plant
Corporate Presentation – February 2016: Gold Recovery and Mining Development in Africa 18Exploration Portfolio – Ghana & Burkina Faso
• Total JORC compliant exploration mineral
resource of 3,940,000 tonnes at 2.05 g/t Au for
259koz
BURKINA FASO
• 92,000oz Au Nyieme project is located on the
246km2 exploration licence area located in
southern Burkina Faso - 3 of 11 prospective target
areas explored to date
• In light of political problems in Burkina Faso, no
immediate or near-term development plans /
capital commitments
GHANA
Exploration Resources
• 167,000oz Au Anumso project is located on the Project Tonnes Au Grade Oz Au
29km2 exploration license in the highly (g/t)
prospective Ashanti Region of the Republic of
Anumso 2,545,000 2.04 166,865
Ghana
Nyieme 1,395,000 2.06 92,588
• Preliminary talks underway with third parties
regarding potential partnerships to realise value Total 3,940,000 2.05 259,453
Corporate Presentation – February 2016: Gold Recovery and Mining Development in Africa 19Goldplat – Investment Case
“We remain focussed on seeking the most cost efficient and sustainable
operational methods to maximise profitability”
Cash generative, gold recovery company with a
strong portfolio of recovery assets from which to Exposure to gold with limited mining risk
generate growth and return to profitability
Market leaders in Africa for the recovery of gold Additional upside opportunity within the silver and
from by-products of primary mining operations PGM markets
Significant expansion potential of gold recovery
operations in Africa and internationally Operational initiatives implemented to enhance
business offering and positively impact future
contracts, profits and cash flows - including
Monetising opportunities for mining and Responsible Gold accreditation
development portfolio in Kenya
Corporate Presentation – February 2016: Gold Recovery and Mining Development in Africa 20Goldplat - Contacts
Gerard Kisbey-Green
CEO
gkisbeygreen@goldplat.com
+27 (071) 8915775
South African Office
Daveyton Road,
UK Office Public Relations
PO Box 40
52-53 Conduit Street, St Brides Partners Ltd
Benoni 1500,
London, Tel: +44 (0) 20 7236 1177
South Africa
W1S 2YX Email:
Tel: +27 (0) 11 749 6300
Email: info@goldplat.com info@stbridesparnters.co.uk
Fax: +27 (0) 11 749 6324
Email: info@goldplat.com
Corporate Presentation – February 2016: Gold Recovery and Mining Development in Africa 21Appendix
Corporate Presentation – February 2016: Gold Recovery and Mining Development in Africa 22The Board – Proven Track Record
Brian is a Chartered Accountant and former Senior Partner of Grant Thornton, London. He formed Grant Thornton's
Capital Markets Team, which floated over 100 companies on AIM under his chairmanship. In 1995 he retired to
Brian Moritz
concentrate on bringing new companies to the market as a director. He focuses on mining companies, primarily in
Non- Exec
Africa, and was formerly Chairman of African Platinum PLC and Metal Bulletin PLC as well as currently being
Chairman Chairman of several junior mining companies. Brian is a member of the audit and remuneration committees of the
Company and is responsible for corporate governance issues and compliance with AIM.
Gerard has built an expansive career in the mining and related financial industry, spanning over 28 years. After
Gerard Kisbey- graduating as a Mining Engineer in South Africa in 1987, Gerard gained extensive experience working in various
Green management positions for a number of the larger South African mining companies, including Rand Mines Group.
CEO Gerard subsequently spent 17 years in the financial markets, including five years as a mining equity analyst and 12
years in mining corporate finance.
Hansie is a qualified Metallurgist who has a solid understanding of the Company’s gold recovery operations having
Hansie Van Vreden worked as General Manager of GPL, and Managing Director of GPL and GRG gold recovery operations. Prior to
COO joining Goldplat, Hansie worked at several AngloGold Ashanti operations in South Africa and Australia. Hansie is a
graduate from Stellenbosch University, South Africa.
Ian is a chartered accountant who has worked in senior positions in the mining industry since 1990. A South African
Ian Visage citizen he trained as a Chartered Accountant with KPMG in its Pretoria office. Having gained post-qualifying
Finance Director experience with KPMG he moved into a mining environment in 1990 when he joined Consolidated Modderfontein
Mines Limited as Financial Manager. In 1992, he joined Gravelotte Mines Limited as Financial Manager and Goldplat
Recovery in March 1997 as Financial Director.
Mr. Wyatt has over 40 years of experience in the mining arena, having held senior positions in a number of mining
and engineering companies, primarily in Southern Africa. This includes acting as Group Marketing Director of a De
Nigel Wyatt
Beers subsidiary group, which was responsible for supplying specialised materials, engineering and technology to
Non-Exec Director the industrial and mining sectors. Following this he was Commercial Director of Dunlop Industrial Products (Pty) Ltd,
South Africa. Nigel is a mining engineer and a graduate of the Camborne School of Mines, England.
Corporate Presentation – February 2016: Gold Recovery and Mining Development in Africa 23Goldplat – Structure
Goldplat Plc
Gold Mineral
Resources Ltd
Golplat Recovery Gold Recovery Kilimapesa Gold Nyieme Expl. Anumso
Midas Gold SARL
(Pty) Ltd Ghana Limited Ltd Project Expl. Project
(Burkina Faso)
(South Africa) (Ghana) (Kenya) (Burkina Faso) (Ghana)
100%
74% 100% 100% 100% 100%
Gold Recovery Operations Gold Exploration & Development
Corporate Presentation – February 2016: Gold Recovery and Mining Development in Africa 24You can also read
