Goldplat makes progress on simplification of company structure

(Sharecast News) - South Africa and Ghana-focussed gold producer Goldplat updated the market on the proposed simplifying of its structure to reduce costs on Monday.

The AIM-traded firm said that as part of the exercise, the 74% holding of the group in Goldplat Recovery (GPL), the South African gold recovery operation, had been transferred from the intermediate holding company Gold Minerals Resources to Goldplat.

It said that was part of a larger programme to remove the intermediate holding company in the group and its associated administrative costs, and also to create an improved tax structure.

As a result of the double tax treaty in place between the UK and South Africa, dividends declared out of GPL to Goldplat would be taxed at a rate of 5%, rather than the rate of 20% that applies between Guernsey and South Africa.

"I am pleased to report that we are progressing the restructuring programme to optimise the value our shareholders can get from future cash flow generated in the recovery operations," said chief executive officer Werner Klingenberg.

At 1532 GMT, shares in Goldplat were down 0.95% at 7.87p.