GoldPlat Regulatory News (GDP)

19 Feb 2007 07:01

Goldplat plc19 February 2007 Goldplat plc / Ticker: GDP / Index: AIM / Sector: Mining & Exploration 19 February 2007 Goldplat plc ('Goldplat' or 'the Company') Interim Results Goldplat plc, the AIM-traded producer of gold and platinum group metals ("PGM")recovered from by products of the mining process, is pleased to announce itsinterim results for the six months ended 31 December 2006. Overview • Goldplat successfully listed on AIM in July 2006 raising £1.5m. • Acquired Goldplat Recovery, a South African producer of gold and PGMs recovered from by-products of the mining industry. • Established complementary processing plant in Ghana to service the West African gold mines. • For the six month period generated pre-tax profits of £273,763 on revenues of £2,121,476 compared to the corresponding period to 31 December 2005 for Goldplat Recovery of pre-tax profits of £62,756 on revenues of £1,866,533. • Contract signed with AngloGold Ashanti's Obuasi mine to treat fine carbon. • MoU signed with International Gold Exploration AB to enter into a strategic alliance for gold projects on the African continent, which will form the subject matter of potential future joint ventures. • Granted the opportunity by Busitema Mining Cie Ltd ('Busitema') to conduct due diligence operations and feasibility studies with the view of entering into an agreement with regards to gold prospects in Uganda. Goldplat's Chief Executive Demetri Manolis said, "Since our successful flotationin July 2006, we have delivered on our promise to shareholders. Not only are weoptimising the production at our recovery plant in South Africa, but we havealso established a new processing plant in Ghana and signed a long term contractwith a major producer. Also in Ghana, our legal structure is in place with allnecessary permits including free zone status with its accompanying taxationbenefits. "Our next step will be to enter the mining arena and establish a gold producingunit as a main priority. Our focus will now be on these mining projects as Ibelieve this is the best way to achieve growth." For further information visit www.goldplat.com or contact: Goldplat plcBrian Moritz, Chairman Tel: 07976 994300Demetri Manolis, Chief Executive Tel: +27 11 423 1203 Mobile: +27 82 454 7392 HB CorporateEdward Hutton Tel: +44 (0)20 7510 8600Luke Cairns St Brides Media and Finance LimitedIsabel Crossley Tel: +44 (0)20 7242 4477 CHAIRMAN'S STATEMENT I am pleased to announce Goldplat's inaugural interim results for the periodended 31 December 2006. The first phase of our strategy was to develop our recovery business, producinggold and platinum group metals ("PGM") recovered from by-products, such aswoodchips, fine carbon and grease, of the mining process. In line with this,our South African operation continues to mature, strengthening its relationshipswith blue-chip clients and producing sustainable profits, while our newly openedGhana operation is coming into production for the untapped West African Region. The next phase, which we are now focused on, is to seek gold miningopportunities within the African Continent by identifying projects and bringingthese into production in the shortest possible time. To this end we haveentered into talks with interested parties in Uganda, South Africa, Kenya,Mozambique, Ghana and Tanzania. I believe this strategy will result in rapidgrowth of Goldplat. Goldplat Recovery (Pty) Ltd The excellent performance of Goldplat Recovery (Pty) Ltd in South Africa is inaccordance with our medium term plan and we expect this performance to continuefor the second six months of this financial year. We have continued ourprocurement programme by strengthening our agreements with the major mininghouses and have healthy reserves. Gold Recovery Ghana Limited In October 2006 we acquired a 4.25 acre plot in the free zone area in Tema,Ghana, to develop a complementary recovery plant. The first phase ofconstruction to facilitate the processing of mill liners was completed inDecember 2006 and is now in operation. We are currently obtaining quotes for thesecond phase of construction, which will entail the erection and commissioningof a milling and carbon in leach plant. The Company is building its presence in the area and is already working with anumber of mining companies. Importantly, in January 2007 it renewed itscontract with AngloGold Ashanti's Obuasi to treat its fine carbon up to March2008. We expect that this contract will be ongoing and will be renewed foranother similar term at the end of this period. Gold Projects We have made considerable progress in pursuance of our intention to create asuccessful junior mining house focussed on gold production assisted by revenuesecured from our recovery business. We are not interested in greenfieldexploration and will only seek to acquire rights to mine ore bodies with up totwo million ounces of contained gold, which we believe can be brought intoproduction in the short term. In line with this we are looking at a number of projects across Africa. Themost advanced of these are: 1. We have signed a memorandum of understanding with International Gold Exploration AB (IGE), a Swedish company listed in Oslo, which is expected to lead to a strategic alliance covering gold and other mining projects, primarily in East Africa. Due diligence has commenced on one gold mining prospect in Kenya. 2. We have recently been afforded the opportunity to conduct due diligence operations and feasibility studies on the gold mining properties of Busitema in Uganda. We believe the rapid progress, which has been made since flotation onidentifying mining projects will bring positive results in the near future. Financial Results I am pleased to report pre-tax profits of £273,763 for the half year ended 31December 2006. These profits were generated from our South African recoveryplant, which achieved revenues of £2,121,476. The Group had not beenestablished in the same period of 2005, but the results for the South Africansubsidiary are given by way of comparison. The interim profits for 2005 do notreflect the corporate overheads required for a public company, which reduced theinterim profit for 2006 by some £54,000. The increased profits have also beenachieved despite a substantial weakening in the South African Rand, thusreducing their value expressed in sterling. With a continuing strong performancefrom the South African subsidiary and a first contribution from Ghana theDirectors look forward to the full year results with confidence. No dividend is proposed. The profits will be retained for further expansion ofthe Company's operations and to accelerate our growth strategy. Outlook The Board believes that a confluence of trends provides a unique opportunity forGoldplat to grow its recovery businesses and to expand into gold mining throughthe acquisition of interests in known deposits, resulting in the opportunity forrapid increases in shareholder value. Brian MoritzChairman19 February 2007 Income statementFor the six months ended 31 December 2006 6 months ended 6 months ended 31 December 2006 31 December 2005 (unaudited) (unaudited) Goldplat plc Goldplat Recovery Group Company £ £ Revenue 2,121,476 1,866,553Cost of Sales (1,630,097) (1,617,524)Gross Profit 491,379 249,029 Administrative expenses (224,589) (185,205)Operating profit before finance costs 266,790 63,824 Finance income 12,188 2,471Finance expense (5,215) (1,539)Net financing income 6,973 932 Profit before tax 273,763 64,756 Income tax expense (99,294) -Profit for the period 174,469 64,756 Basic and diluted earnings per share (see note 2) 0.17p See Note 2 • All of the Company's activities are classed as continuing. • Basis of preparation The interim results have been prepared on the basis of the accounting policiesset out in the notes to the financial information. The comparative figuresrepresent the results of the trading subsidiary only as this company was notpart of the Goldplat Group during that period. The interim financial information, which has been approved by the directors, isunaudited and has not been subject to independent review as defined in theAuditing Practices Board Bulletin 1999/4 and do not constitute full statutoryaccounts as defined in section 240 of the Companies Act. Balance sheetAt 31 December 2006 31 December 2006 31 December 2005 (unaudited) (unaudited) Goldplat plc Goldplat Recovery Group Company £ £Assets Property, plant and equipment 1,636,364 1,719,740Goodwill 5,017,818Total non-current assets 6,654,182 1,719,740 Inventories 313,026 274,508Trade and other receivables 633,296 394,335Cash and cash equivalents 722,563 69,544 Total current assets 1,668,885 738,387 Total assets 8,323,067 2,458,127 Equity Issued capital 1,040,000 309Share premium 6,105,754 822,021Retained earnings 156,805 643,048Translation Reserve (91,494) 152,490 Total Equity 7,211,065 1,617,868 Liabilities Provisions 24,992 28,154Interest -bearing loans and borrowings 54,917 26,928Deferred tax liabilities 386,643 347,185 Non-Current Liabilities 466,552 402,267 Trade and other payables 446,569 328,486 Interest -bearing loans and borrowings 83,819 50,152Bank overdraft 115,062 59,354 Total Current Liabilities 645,450 437,992 Total Liabilities 1,112,002 840,259 Total Equity and Liabilities 8,323,067 2,458,127 Cash flow statementFor the period ended 31 December 2006 31 December 2006 31 December 2005 (unaudited) (unaudited) Goldplat plc Goldplat Recovery Group Company £ £ Cash flows from operating activitiesCash generated/(absorbed) from operations 233,698 (1,683)Financing income 12,188 2,615Financing costs (5,215) (1,629)Income taxes paid (99,294) (45,788)Net cash from operating activities 141,377 (46,485) Cash flows from investing activitiesProceeds from sale of property, plant and equipment 18,354 2,331Acquisition of property, plant and equipment - Additions to expand operations (370,924) (188,270)Net cash outflow from investing activities (352,570) (185,939) Cash flows from financing activitiesProceeds from issue of shares 1,500,000Listing expenses paid (329,000)Investment in subsidiary (500,000)Instalment sale liabilities 95,657 57,636 Raised 124,271 82,433 Repaid (28,614) (24,797)Net cash from financing activities 766,657 57,636 Net increase/(decrease) in cash and cash equivalents 555,464 (174,788) Cash and cash equivalents at beginning of period 31,130 184,968Effect of exchange rate fluctuations on cash held 20,907 10Cash and cash equivalents at end of period 607,501 10,190 Notes to the financial informationFor the period ended 31 December 2006 1. Accounting Policies 1.1.Basis of preparation of the financial statements The financial information has 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. 1.2 Property, plant and equipment 1.2.1 Owned assets Items of property, plant and equipment are stated at historical cost lessaccumulated depreciation (see below) and impairment losses. The cost of themining assets includes the costs of dismantling and removing the items andrestoring the site on which they are located. Where parts of an item of property, plant and equipment have different usefullives, they are accounted for as separate items of property, plant andequipment. 1.2.2 Leased assets Leases in terms of which the Company assumes substantially all the risks andrewards of ownership are classified as finance leases. The owner-occupiedproperty acquired by way of finance lease is stated at an amount equal to thelower of its fair value and the present value of the minimum lease payments atinception of the lease, less accumulated depreciation and impairment losses. 1.2.3 Subsequent costs The Company recognises in the carrying amount of an item of property, plant andequipment the cost of replacing part of such an item when that cost is incurredif it is probable that the future economic benefits embodied with the item willflow to the Company and the cost of the item can be measured reliably. All othercosts are recognised in the income statement as an expense as incurred. 1.2.4 Depreciation Depreciation is charged to the income statement on a straight-line basis overthe estimated useful lives of each part of an item of property, plant andequipment. Land and buildings are not depreciated. The residual value, if significant, is reassessed annually. Surpluses/(deficits) on the disposal of mining assets, plant and equipment arecredited/(charged) to income. The surplus or deficit is the difference betweenthe net disposal proceeds and the carrying amount of the asset. 1.3 Inventories Raw materials are valued at the lower of cost and net realisable value on theweighted average basis, and includes costs incurred in acquiring the inventoriesand bringing them to their existing location and condition. Work-in-progress comprises materials in the process of being converted from rawmaterials to finished goods. Work-in-progress is valued at the lower of cost andnet realisable value on the weighted average basis. Precious metals inventories include bullion on hand, gold and platinum in process. Bullion on hand, gold and platinum in process represent production on hand afterthe smelting process, gold contained in the elution process, gold loaded carbonin the CIL and CIP processes, gravity concentrates, platinum group metals (PGM)concentrates and any form of precious metal in process where the quantum of thecontained metal can be accurately determined. It is valued at the averageproduction cost for the period, including amortisation and depreciation. Stores and materials consist of consumable stores and are valued at the lower ofaverage cost or net realisable value. Inventories are stated at the lower of cost and net realisable value. Netrealisable value is the estimated selling price in the ordinary course ofbusiness, less the estimated costs of completion and selling expenses. 1.4 Interest-bearing borrowings Interest-bearing borrowings are recognised initially at fair value lessattributable transaction costs. Subsequent to initial recognition,interest-bearing borrowings are stated at amortised cost with any differencebetween cost and redemption value being recognised in the income statement overthe period of the borrowings on an effective interest basis. 1.5 Provisions A provision is recognised in the balance sheet when the Company has a presentlegal or constructive obligation as a result of a past event, and it is probablethat an outflow of economic benefits will be required to settle the obligation.If the effect is material, provisions are determined by discounting the expectedfuture cash flows at a pre-tax rate that reflects current market assessments ofthe time value of money and, where appropriate, the risks specific to theliability. 1.6 Revenue Revenue from the sale of precious metals is recognised in the income statementwhen the significant risks and rewards of ownership have been transferred to thebuyer excluding Value Added Tax, investment income and other non-operatingincome. 2. Earnings per Share The calculation of earnings per share is based on the following profits andnumber of shares. Period to 31 December 2006 Profit for the financial period £174,469 No of sharesAverage number of shares 104,000,000Earnings per share 0.17p The Group had not been established at 31 December 2005 so it is not possible toprovide meaningful earnings per share figures for the comparative period This information is provided by RNS The company news service from the London Stock Exchange