GoldPlat Regulatory News (GDP)

21 Dec 2006 13:02

Goldplat plc21 December 2006 Goldplat plc / Ticker: GDP / Index: AIM / Sector: Mining & Exploration 21 December 2006 Goldplat plc ('Goldplat' or 'the Group') Preliminary Results Goldplat plc, the AIM-traded producer of gold and platinum group metals ("PGM")recovered from by-products of the mining process, announces its results for theperiod ended 30 June 2006. These results do not include the results of GoldplatRecovery (Pty) Ltd ("Goldplat Recovery"), which was acquired by Goldplat afterthe year end. The results for Goldplat Recovery were announced on 24 October2006. Overview • Listed on AIM in July 2006 having raised £1.5 million • Acquired Goldplat Recovery, a South African producer of gold and PGM's recovered from by-products of the mining process • Increased productivity and profitability of Goldplat Recovery following investment in new and the upgrading of existing machinery • Established complementary processing plant in Ghana to meet the demand from West African gold mines - Gold Recovery Ghana Limited • Strategy to create a junior mining house focused on gold production through the acquisition of known gold deposits - actively reviewing a number of projects in Ghana, Mozambique and Kenya Chairman's Statement The accounts of Goldplat plc are drawn up to 30 June 2006, prior to theadmission to AIM and the acquisition of Goldplat Recovery (Pty) Limited("Goldplat Recovery"). They reflect a period during which the Company agreed toacquire a Tanzanian gold exploration company, Zari Exploration Tanzania PtyLimited. The contract to acquire Zari lapsed on 30 September 2005 andsubsequently the Directors concentrated their efforts on the acquisition ofGoldplat Recovery and Gold Recovery Ghana Limited, and the AIM admission. It gives me great pleasure to report on progress made since listing on AIM inJuly 2006. On listing, Goldplat acquired Goldplat Recovery, a market leading South Africanproducer of gold and PGMs recovered from by-products of the mining process andraised £1.5 million. The Company's stated strategy is to create a junior mininghouse focussed on gold production through a phased development strategy backedby revenue generated from the recovery business. Phase one is to increase the efficiency, flexibility and profitability of theSouth African processing plant. Phase two is to establish a complementaryprocessing plant in Ghana to meet the demand from West African gold mines. Phasethree is to expand into mining through the acquisition of known gold depositswith targets of between 200,000 and 2,000,000 ounces of contained gold. To thisend, your Company has made considerable progress. Beginning with the South African operation, Goldplat Recovery, as announced inOctober 2006, we have made great progress in increasing productivity andprofitability. Following investment in new and the upgrading of existingmachinery and the solving of how to deal with some technically challengingmaterials, the operation is now generating strong cash flow. These improvementswere demonstrated by the results recently released which showed that it wentfrom making a loss after tax of ZAR306,868 for the first nine months, to aprofit after tax of ZAR1,327,674 for the full year. Goldplat Recovery works with all the key operators in South Africa. It operatesfrom a freehold site of 22 hectares near Benoni in Gauteng, South Africa, whereit houses a processing plant and raw material stockpiles. It also has surfacerights over an adjacent 12 hectare site where it has established a tailingsfacility. Mining operators are obliged to dispose of mining by products in anenvironmentally friendly manner, which is where we step in. The Companyacquires raw materials, such as woodchips, fine carbon and waste grease, frommine operators after testing to establish gold or PGM content, moisture content,recoverability and size. The next part of the strategy was to establish a complementary recovery facilityin Ghana. To this end we established Gold Recovery Ghana Limited ("GRG") and inSeptember we acquired a 4.25 acre site in the free zone port of Tema forUSD200,000 cash. Construction of the processing plant is underway andoperations will commence in January 2007 with further expansion to take placeduring 2007. We expect to access raw materials from mines in Mali, Guinea,Burkina Faso, Benin, Cote D'Ivoire, Senegal, the DRC, Mauritania and naturallyGhana too. We are currently building relationships in these areas. GRG hasalready established an initial turnover through agreements with local mines andis exporting fine activated carbon to the plant in South Africa. Once the plantis up and running GRG's first operations will be the cleaning of rubber andsteel liners to produce a concentrate for export. The cleaned aluminium andsteel will be sold locally. The final part of our strategy is to expand into gold mining through theacquisition of known deposits (not greenfield exploration), supported by revenuegenerated from the gold and PGM recovery operations. We are focused onacquiring gold targets of between 200,000 - 2,000,000 ounces of contained gold,which are too small for major mining companies, yet potentially highlyprofitable. The Directors have been actively reviewing a number of projects inGhana, Mozambique and Kenya and are excited about the opportunities available. With its highly profitable recovery business in South Africa, its soon to be inoperation plant in Ghana and balanced risk approach using cash flows fromexisting processing operation to fund development of mining projects, I believethat your Company is in a very strong position to develop its growth strategyand reward its shareholders. The profits from Goldplat Recovery for the first four months of the current yearare in excess of forecasts and bear out the statement in the admission documentthat the outlook for the future is favourable. I would like to thank the management and the rest of the team for their supportthrough the extremely busy listing period and for their successful efforts inboth turning the South African business and establishing the new operation inGhana. Brian Moritz Chairman 19 December 2006 INCOME STATEMENT 30 JUNE 2006 5 months Year ended Ended Note 30 June 31 January 2006 2006 £ £Administrative expenses (9,067) (9,448) OPERATING LOSS (9,067) (9,448) Interest receivable 5 426 425 LOSS BEFORE TAXATION 6 (8,641) (9,023) Taxation 7 - - LOSS FOR THE YEAR (8,641) (9,023) LOSS PER ORDINARY SHAREBasic and diluted 8 0.0017 0.00025 The operating loss for the period arises from the company's continuingoperations. BALANCE SHEET 30 JUNE 2006 30 June 31 January 2006 2006 Note £ £ £ £CURRENT ASSETSCash and cash equivalents 9 16,818 43,915Trade and other receivables 10 24,493 - 41,311 43,915CURRENT LIABILITIESTrade and other payables 11 8,975 2,938 NET CURRENT ASSETS £32,336 £40,977 EQUITY Share capital 12 50,000 50,000Retained losses (17,664) (9,023) TOTAL EQUITY £32,336 £40,977 STATEMENT OF CHANGES IN EQUITY FOR THE PERIOD ENDED 30 JUNE 2006 Share Retained Total Capital earnings equity £ £ £Balance at 1 February 2006 50,000 (9,023) 40,977 Total recognised income and expense for the period - (8,641) (8,641) Balance at 30 June 2006 £50,000 £(17,664) £32,336 CASHFLOW STATEMENT FOR THE PERIOD ENDED 30 JUNE 2006 5 months Year ended ended 30 June 31 January 2006 2006 £ £Cash flows from operating activitiesLoss before tax (8,641) (9,023)Adjustments for:Interest income (426) (425)Increase in trade payables 6,037 2,938Increase in debtors (24,493) - Cash generated from operations (27,523) (6,510) Bank interest received 426 425 Net cash from operating activities (27,097) (6,085) Cash flows from financing activitiesNet proceeds from issue of ordinary share capital - 50,000 Net cash raised in financing activities - 50,000Net (decrease)/ increase in cash and cash equivalents £(27,097) £43,915 Cash and cash equivalents at 30 June 2006 £16,818 £43,915 At 1 Cash At 30 February Flow June 2006 2006 £ £ £Cash and cash equivalents consists of:Cash in hand and at bank (note 9) £43,915 £(27,097) £16,818 NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2006 1. Accounting policies a) Basis of preparation of the financial statements The financial statements have been prepared in accordance with InternationalFinancial Reporting Standards (IFRSs), and IFRIC interpretations endorsed by theEuropean Union, and with those parts of the Companies Act 1985 applicable tocompanies reporting under IFRS. They have been prepared using the historicalcost convention. The preparation of the financial statements requires management to makeestimates and assumptions that affect the reported amounts of revenues,expenses, assets and liabilities, and the disclosure of contingent liabilitiesat the date of the financial statements. If in the future such estimates andassumptions, which are based on management's best judgement at the date of thefinancial statements, deviate from the actual circumstances, the originalestimates and assumptions will be modified as appropriate in the year in whichthe circumstances change. b) New standards and interpretation At the date of authorisation of these financial statements, the followingStandards and Interpretation which have not been applied in these financialstatements were in issue but not yet mandatorily effective: IFRS 7 Financial Instruments: Disclosures IFRS 8 Segment Reporting and the ongoing need for country- by-country reporting IFRIC 7 On Applying the Restatement Approach under IAS29 The directors do not anticipate that the adoption of these statements andinterpretations will have a material impact on the company's financialstatements in the period of initial application. c) Critical accounting judgements and key sources of estimation uncertainty The preparation of financial statements in conformity with generally acceptedaccounting practice requires management to make estimates and judgements thataffect the reported amounts of assets and liabilities as well as the disclosureof contingent assets and liabilities at the balance sheet date and the reportedamount of revenues and expenses during the reported. Estimates and judgements are continually evaluated and are based on historicalexperience and other factors, including expectations of future events that arebelieved to be reasonable under the circumstances. d) Financial instruments Trade and other receivables are measured at initial recognition at fair value,and are subsequently measured at amortised cost using the effective interestmethod. A provision is established when there is objective evidence that theGroup will not be able to collect all amounts due. The amount of any provisionis recognised in the income statement. Cash and cash equivalents comprise cash held by the company and short-term bankdeposits with an original maturity of three months or less. Trade and other payables are initially measured at fair value, and aresubsequently measured at amortised cost, using the effective interest ratemethod. Financial liabilities and equity instruments issued by the group are classifiedin accordance with the substance of the contractual arrangements entered intoand the definitions of a financial liability and an equity instrument. An equityinstrument is any contract that evidences a residual interest in the assets ofthe group after deducting all of its liabilities. Equity instruments issued bythe company are recorded at the proceeds received, net of direct issue costs. e) Taxes Tax expense represents the sum of the tax currently payable and deferred tax. Deferred tax is provided, using the liability method, on temporary differencesbetween the tax bases of assets and liabilities and their carrying amounts, inthe financial statements. Deferred tax assets relating to the carry-forward ofunused tax losses are recognised to the extent that it is probable that futuretaxable profits will be available against which the unused tax losses can beutilised. Current and deferred tax assets and liabilities are offset when the income taxesare levied by the same taxation authority and when there is a legallyenforceable right to offset them. 2. Business and geographical segments For management purposes, the company's main activity is that of a holdingcompany, but, as yet has not commenced to trade. Its activity is wholly withinthe United Kingdom. 3. Financial risk management The company's operations expose it to a variety of financial risks that includeliquidity risk. The company has in place a risk management programme that seeksto limit the adverse effect of such risks on its financial performance. a) Liquidity risk The company reviews its facilities regularly to ensure that it has adequatefunds for operations and expansion plans. 5 months Year ended ended 30 June 31 January 2006 2006 4. Employees and directorsStaff costs, including directorsWages and salaries £ - £3,200 Average monthly number of staff, including directors employed by theCompany during the year No. No. Management and administration 3 3 Key management personnel compensationSalaries and short term employee benefits £ - £3,200 All of the above key management personnel compensation relates to directors' aggregate emoluments 5. Interest receivableBank interest received £426 £425 6. Loss before taxationLoss has been arrived at after charging:Auditors' remuneration for audit services £8,225 £2,938 7. Taxation 30 June 31 January 2006 2006Current taxUK corporation tax on profits for the year £ - £ - Reconciliation of tax expenseLoss before tax (8,641) (9,023) Tax on loss at standard rate of tax (30%) (2,592) (2,707) Losses carried forward 2,592 2,707 Tax expense £ - £ - The company has unrelieved tax losses of approximately £5,299 (31 January 2006:£2,707) to carry forward and offset against future profits from the same trade.No deferred tax asset has been recognised in respect of these losses, as thereis currently insufficient evidence that the asset will be recoverable in theforeseeable future. 8. Loss on Ordinary Shares The calculation of basis and diluted loss per ordinary shares is based on the following lossesand number of shares Period to Period to 30 June 31 January 2006 2006 £ £ Loss for the financial period £(8,641) £(9,023) No of shares No of shares Weighted average number of shares 5,000,000 35,849,623 9. Cash and cash equivalents Cash at bank and in hand £16,818 £43,915 10. Trade and other receivables Prepayments £24,493 £ - 11. Trade and other payables Accruals £8,975 £2,938 12. Called up share capital Authorised:1,000,000,000 ordinary shares of 1p each 10,000,000 1,000,000 Issued and fully paid ordinary shares of 1p each: At 30 June 2006 50,000 On 13 June 2006, the authorised share capital was increased to £10,000,000divided into 1,000,000,000 ordinary shares of £0.01 each. On 11 July 2006 a further 20,000,000 Ordinary shares were subscribed for cashconsideration of 7.5p per share, and 79,000,000 Ordinary shares were subscribedfor non cash consideration of 7.5p per share being the acquisition of the wholeof the issued share capital of Gold Minerals Resources Limited. 13. Related party transactions Capital Ideas is wholly owned by John Woolgar. During the period the companypaid £nil (31 January 2006: £1,600) to Capital Ideas as consultancy fees.There was no amount outstanding at 30 June 2006. Stanford Burgess Limited is a company controlled by David Burgess, the brotherof James Burgess, who served as a director during the period. During the periodthe company paid £nil (31 January 2006: £3,131) to Stanford Burgess Limited inrespect of stationery costs. There was no amount outstanding at 30 June 2006. 14. Ultimate controlling party The ultimate controlling party is the trustees of the Perseus Settlement as abody. 15. Post balance sheet events On 26 July 2006 the company was admitted to the Alternative Investment Market(AIM) on the London stock exchange and raised £1.5 million, before listingexpenses of £300,000, from the placing of 20,000,000 shares at 7.5p per share. Gold Minerals Resources Limited (GMR) is a holding company incorporated inGuernsey, which wholly owns Gold Recovery Ghana Limited (GRG), a companyincorporated in Ghana. The requirement of the conditional contract to acquirethe entire shareholding of Gold Minerals Resources Limited was fulfilled on 26July 2006, for a consideration of 79,000,000 ordinary shares issued at 7.5peach. An amount of £500,000 of the proceeds raised has been used to subscribein cash for 500,000 ordinary shares of £1 each in Gold Mineral Resources Limitedto finance the cash element of the consideration for the acquisition of theentire shareholding in Goldplat Recovery (Pty) Limited, a company incorporatedin South Africa, which recovers gold and platinum group metals from materialconsisting primarily of by-products from gold and platinum mines. The assets and liabilities acquired are as follows: Book / Fair Value GMR Goldplat GRG Total RecoveryFixed assets:Property, plant and equipment - 1,480,899 - 1,480,899 Current assets:Inventories - 222,265 - 222,265Trade and other receivables 100 538,620 29,741 568,461Cash and cash equivalents - 108,301 9,312 117,613 Total assets 100 2,350,085 39,053 2,389,238 Non-Current liabilities:Provisions - 25,650 - 25,650Interest-bearing loans and borrowings - 3,279 - 3,279Deferred tax liabilities - 344,251 - 344,251 Current liabilities:Trade and other payables - 432,069 11,800 443,869Interest-bearing loans and borrowings - 33,343 - 33,343 Total liabilities - 838,592 11,800 850,392 Net Assets 100 1,511,493 27,253 1,538,846 The Directors have reviewed the carrying value of the assets acquired and havedetermined that no fair value adjustments are required. Total consideration 5,925,000Net assets acquired (1,538,846)Goodwill arising on acquisition of GMR group 4,386,154 The balance of funds raised was earmarked for the cost of establishing a goldrecovery plant in Ghana (£450,000), and £250,000 for the evaluating of goldmining opportunities and working capital. In September 2006 Gold Recovery Ghana Limited acquired for US$200,000 anindustrial plot of 4.25 acres in extent in the Heavy industrial area in the FreeZone area in Tema, Ghana. Gold Recovery Ghana Limited has committed a further US$60,000 for the excavationand erection of a building to house a section of the processing facility and afurther US$30,000 for the erection of a boundary wall. The operations of Goldplat Recovery (Pty) Limited has continued in asatisfactory manner and its results will be incorporated in the interim resultsof the company. 16. Basis of presentation The financial information set out in this announcement, which does notconstitute the statutory accounts of the company, is extracted from the auditedstatutory accounts for the period ended 30 June 2006, which were approved by theBoard on 19 December 2006. The auditors have reported on those accounts inaccordance with Section 235 of the Companies Act 1985, their report wasunqualified and did not contain a statement under Section 237(2) or 237(3) ofthe Companies Act 1985. The statutory accounts for the year ended 31 January2006 have been delivered to the Registrar of Companies. Those for the periodended 30 June 2006 will be delivered to the Registrar after the Annual GeneralMeeting to be convened in 2007 . The Annual Report and Accounts will be postedto shareholders on 20 December 2006. Copies will be available from theCompany's registered office, Third Floor, 55 Gower Street, London WC1E 6HQ. * * ENDS * * For further information please visit www.goldplat.com or contact: Brian Moritz Goldplat plc Tel: +44 (0) 7976 994300Demetri Manolis Goldplat plc Tel: +27 11 423 1203 Mob: +27 82 454 7392 Hugo de Salis St Brides Media & Finance Ltd Tel: +44 (0) 20 7242 4477Felicity Edwards St Brides Media & Finance Ltd Tel: +44 (0) 20 7242 4477Luke Cairns HB Corporate Tel: +44 (0) 20 7510 8600 This information is provided by RNS The company news service from the London Stock Exchange