t
| Date | 23 Dec 2021 |
| Time | 15:09:00 |
| Category | Results |
| ID | 6740W |
Goldplat plc / Ticker: GDP / Index: AIM / Sector: Mining & Exploration
23 December 2021
The following amendments have been made to the 'Audited Results for the year ended 30 June 2021' announcement released on 22 December 2021 at 12:37 under RNS No 5242W.
In the Operations and Finance Report, below the 14th paragraph, in the first table the following figures for the 2021 financial period were incorrect and have been amended as follows - Gross Profit was adjusted to 6,199 (previously 6,614), Administrative Expenses was adjusted to 1,694 (previously 2,147), Operating Profit before Finance Cost adjusted to 4,561 (previously 4,523).
The correct figures were disclosed in the Statement of Profit & Loss and Other Comprehensive Income.
All other details remain unchanged.
The full amended text is shown below:
Goldplat plc
('Goldplat', the 'Group' or 'the Company')
Audited Results for the year ended 30 June 2021
Goldplat plc, the AIM listed gold producer, with international gold recovery operations located in South Africa and Ghana, is pleased to announce its audited results for the year ended 30 June 2021.
The Company's annual report and accounts, will be available on the Company's website at http://www.goldplat.com/downloads and hard copies will be posted this week to shareholders that have elected to receive printed copies.
As announced on 3 December 2021, the resolution to receive the accounts that was included in the notice of AGM taking place on 31 December 2021 is being adjourned and a further meeting to receive the accounts early in the new year will be convened in due course.
For further information visit www.goldplat.com, follow on Twitter @GoldPlatPlc or contact:
|
Werner Klingenberg
|
Goldplat plc (CEO)
|
Tel: +27 (0) 82 051 1071 |
|
Colin Aaronson/George M Grainger
|
Grant Thornton UK LLP (Nominated Adviser) |
Tel: +44 (0) 20 7383 5100
|
|
Jessica Cave / Andrew de Andrade
|
WH Ireland Limited (Broker)
|
Tel: +44 (0) 207 220 1666
|
|
Tim Thompson / Mark Edwards / Fergus Mellon |
Flagstaff Strategic and Investor Communications |
Tel: +44 (0) 207 129 1474 |
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
Goldplat's two precious metals processing facilities, in South Africa and Ghana, have had a productive year to 30 June 2021 achieving very creditable trading results, whilst the planned simplification of the group structure, to which I referred last year, has now largely been completed.
Looking at trading results, profit for the year was GBP2,179,000 (2020 - Loss GBP1,965,000). The improvement reflects the point that the Group is now carrying much reduced material costs of discontinued operations. Looking at like-for-like profitability from continuing operations, profit for the year was GBP2,749,000, as against GBP3,305,000 in 2020. Even though activity levels in 2021 were higher than in 2020, with turnover up 43 per cent. year-on-year, we encountered higher input costs and tighter margins in South Africa in 2021, compensated to a large extent by strong results in Ghana. Cash generation across the Group continued to be robust with net cash flows from operating activities of GBP2,309,000 (2020 - GBP3,380,000) and net year end cash of GBP3,459,000 (2020 - GBP3,146,000).
With regard to the planned simplification of the group structure, we have now: removed the South African operation out of the intermediate Guernsey holding company, thereby reducing materially the Groups' tax cost; increased our holding in the South African operation from 74 per cent. to over 90.63 per cent., thereby increasing the Group's share of its profits; and completed the disposal of the Kilimapesa gold mine for an equity and royalty consideration, thereby removing any requirement to provide funding or management resources. Together, these moves leave us with a profitable, cash generative, precious metals processing business and a clear path for cash surplus to the Group's operational requirements and growth plans to be passed up to shareholders.
There have been a number of changes to the composition of the Board over the last year. We were very pleased to welcome Martin Ooi to the Board in October 2021. Martin has been a substantial and supportive shareholder of the Company for a number of years and his perspective will make a valuable contribution to the Group's strategy. In May 2021, Hansie van Vreden left us as Chief Operating Officer to take up appointment as CEO of a specialist mining services company. Given the depth of the Group's management structure, the disposal of the Kilimapesa gold mine, and the appointment of Ayanda Ntsho, a non-main board finance director, it was concluded that the functions of COO would be absorbed into the existing management structure. Following the AGM held in December 2020, Ian Visagie, who had been a director at the Group's admission to AIM in 2006, ceased to be a director. Earlier this month Nigel Wyatt advised the company of his intention to step down after 8 years as an independent non-executive director, and we thank him for his contribution over those years. Given this, we will now conduct a review to determine the appropriate composition of the Board.
Goldplat operates in a well regulated industry and this regulation includes environmental impact, particularly in terms of air, water and site rehabilitation. We are pleased to note that we qualify for the London Stock Exchange's Green Economy Mark, one of only 48 companies on AIM to be so classified. Operating in South Africa and Ghana, we are also very mindful of our legal and social obligations to operate with the participation of local communities. We are also aware that there is much still to do in terms of firstly analysing, quantifying and reporting on our environmental and social impact and then secondly improving and refining our operations, in a manner which we believe investors will increasingly expect.
The teams in South Africa, Ghana and South America have been as productive as ever in pursuit of Goldplat's strategy notwithstanding the constraints of Covid. I thank all Goldplat's employees, as well as our advisors and my fellow directors, for their efforts as we look forward with enthusiasm.
Matthew Seymour Robinson
Chairman
21 December 2021
Operations and Finance Report
Overview
Goldplat plc is a gold recovery services company with two market leading operations in South Africa and Ghana focused on recovering gold and other precious metals from by-products, contaminated soil and other gold bearing material from mining and other industries, providing an economic method for mines to dispose of waste materials while at the same time adhering to their environmental obligations.
During the prior period, the Company classified its gold mining and exploration portfolio at Kilimapesa in Kenya as a disposal group held for sale and its equity interest in the Anumso exploration project in Ghana as a discontinued operation. During the year under review the sale of Kilimapesa in Kenya was completed, with the Company retaining a holding of a 9.2 per cent. interest indirectly in the project and a 1 per cent. net smelter royalty, capped at USD1.5 million. The mining right in the Anumso exploration project expired during the current period and as indicated, was not renewed.
Goldplat has a JORC defined resource (see the announcement dated 29 January 2016 for further information) over part of its active Tailings Storage Facility ('TSF') at its operation in South Africa of 1.43 million tons at 1.78g/t for 81,959 ounces of gold. Since the resource estimate was made a further 500,000 tons of material have been deposited on the TSF.
Goldplat's extraction processes and multiple process lines enable it to keep materials separate, which provides a high degree of flexibility when proposing a solution for a particular type of material. The processes which are employed include roasting in a rotary kiln, crushing, milling, thickening, flotation, gravity concentration, leaching, CIL, elution and smelting of bullion.
Goldplat recovery operations recover between 1,800 ounces to 2,400 ounces monthly through its various circuits and under different contracts. The grade, recovery, margins and terms of contracts can differ significantly based on the nature of the material supplied and processed. At a minimum, 50 per cent. of material produced is exposed to the fluctuation in the gold price, with the remainder of the production being offset by corresponding changes in raw material costs.
The strategy of the company, which also drives the key performance indicators of management, is to return value to the shareholders by creating sustainable cash flow and profitability through: growing its customer base in South Africa, West Africa and further afield; increasing its ability to process lower grade contaminated material through investing into and improving processing methods; forming strategic partnerships with other industry participants; diversifying into processing of platinum group metals ("PGM") contaminated material; and finding a final deposition site for, and optimising the processing of, the TSF.
Goldplat's highly experienced and successful management team has a proven track record in creating value from contaminated gold and other precious metals-bearing material.
Introduction
During the current period, the Company exited its exploration and mining portfolio and largely completed the process of restructuring and positioning the Group, to optimize the returns to shareholders from its gold recovery businesses in South Africa and Ghana.
During the period, the recovery operations continued to deliver good returns with operations in Ghana increasing its profits from operating activities by 256 per cent. continuing the progress made in developing the market for supply of material in West Africa and supported by supply out of South America. The West African market still has growth potential but remains dependent on getting approval for export of material from neighbouring countries.
The operations in South Africa had another good production period, but its operating results were impacted by a decreasing gold price throughout the year (although they were higher than prior year), and an increase in price of raw material and other costs. It still delivered operating profits for the period of GBP3.22 million on the back of exceptional results in the previous period (2020 - GBP5.62 million). The sustainable profitability was as a result of increasing the customer base and industry relationships during the past
2 periods, investments made into plant improvements, improving operating efficiencies and achieving cost reductions. Additionally, the South African operation has been investing into potential growth areas, specifically through research and analysis of other raw materials for processing and the reprocessing of the TSF material and Platinum Group Metals ('PGM').
The operations throughout the group have benefitted from a strong gold price during the period of USD1,846/oz (2021 - USD1.560/oz). However, the increase in gold price, and specifically the declining exchange rate during the period in South Africa, did contribute to an increase in the cost of raw material and reduction of margins.
The table below on the operating performance of the continuing operations of the group indicates the ability of the recovery operations in South Africa and Ghana to produce profitably at various gold prices and production levels. The margins of the recovery business are exposed to the volume, quality and type of material received, the gold contained in such material, processing methods required to recover the gold, the final recovery of gold from such material, the contracts terms and gold price.
Management's key focus in the recovery operations remains to increase visibility of earnings through growing its customer base and contracted supplying raw material and on site.
|
|
2021 |
2020 |
2019 |
2018 |
2017 |
|
Average Gold Price per oz in |
|
|
|
|
|
|
US$ for the year |
1,846 |
1,560 |
1,263 |
1,293 |
1,258 |
|
Average GBP/US Dollar exchange rate for the year |
1.367 |
1.2603 |
1.294 |
1.28 |
1.2678 |
|
Average Gold Price per kg in GBP for the year |
44,110 |
39,798 |
31,377 |
32,475 |
31,912 |
|
|
GBP'000 |
GBP'000 |
GBP'000 |
GBP'000 |
GBP'000 |
|
Revenue |
35,400 |
24,809 |
21,769 |
28,962 |
28,501 |
|
Gross Profit |
6,199 |
7,312 |
3,114 |
5,703 |
5,644 |
|
Administrative expenses |
(1,694) |
(1,682) |
(861) |
(1,389) |
(1,008) |
|
Operating Profit before |
|
|
|
|
|
|
Finance Cost |
4,561 |
5,335 |
2,253 |
4,313 |
4,636 |
Continued operations
Goldplat Recovery (Pty) Limited - South Africa - ('GPL')
The operations in South Africa had another good production period, but its operating results were impacted by a decreasing gold price, that started off high at the beginning of the financial period and, increases in the price of raw material and other costs. Revenues increased by 10.8 per cent. to GBP17.62 million (2020 - GBP15.9 million), mainly as a result of the increase in the average gold price year-on-year. The profits from operating activities however decreased to GBP3.22 million on the back of exceptional results in the previous period (2020 - GBP5.62 million). The decrease in operating profitability was as a result of increase in raw material cost in the higher gold market as well as other operating costs.
By-products (carbon, woodchips, liners and other by-products)
Consolidation continues in the South African gold industry; mines are closing or are becoming more efficient in their processing, resulting in reduced volumes and grade of by-products received. GPL continued to deliver services to clients signed during previous financial periods and extended its service delivery contract with one of its major suppliers during the period for another 3 years. The risk of supply remains due to the short-term nature of contracts. The focus remains on improving the service provided to the mines, with the aim of increasing the term of the contracts.
Low grade materials
The low-grade material processed through GPL's carbon-in-leach circuits ('CIL') is surface material that has been contaminated by more than 100 years of gold mining in South Africa. The gold grade in this material
is between 1 to 4 grams a ton (average 2 grams per ton). During the period we have maintained the stock of low-grade material available for processing, on contract and on-site to more than 2 years.
With improved mining and processing methods and focus on the environment, significant tonnages of these types of materials are not being generated, and what is being generated, is processed through the mines' own plants before closure. As a result, the quantities of such materials available to GPL will reduce. Nevertheless, GPL believes there are still numerous sources available, although these will be of a lower grade and/or generate lower recoveries.
GPL continue to make changes to its circuit to increase its ability to extract value from these lower grade materials.
During the year under review we installed and completed the following improvements in the plant:
· We have expanded our pre-treatment facility further through the installation of a jig for GBP94,000, which increased our ability to separate and discard preg-robbing carbons contained in material before the mill, through the use of density medium processes, to enable the company to increase the yield, and improve margins, by processing lower grade material. As a result, we continued to purchase materials of this nature, which are more readily available, which assisted us in maintaining our low-grade materials we currently have on site.
· A further GBP45,000 was incurred on a rotaspiral to reduce carbon in slurry after the mill and before leaching.
The Company is also currently building a strategic partnership in industry to determine if it could provide a service of doing toll processing for smaller mining operations that do not have sufficient plant capacity, skill and deposition facilities. Inline with this strategy, we agreed, after the end of the financial period, with West Wits Mining Limited (ASX: WWI) to process material from their early mine programme through our plant on a toll treatment basis. The initial programme will last approximately 6 months with material processed through our largest CIL circuit, with the option to extend.
Condition and reprocessing of the TSF
We continued to invest money to monitor, extend and increase capacity within GPL's TSF and incurred GBP118,000 for this purpose. During the period we have also incurred GBP428,000 to do pre-construction of an adjoining TSF whilst we are in the process of applying for permitting. GPL will need to invest a further GBP300,000 during the following financial period in establishing this tailings facility and we expect to finance this from operational cash flow. We have made changes to our water use license application to the Department of Water and Sanitation and resubmitted the application at the end of October 2021. We require the application to be approved to complete the construction of the adjoining TSF and expect this by the end of February 2022 if not sooner.
Through research and development in the prior year, we decided that it will be optimal to reprocess the TSF off-site through a large third-party plant and we submitted an application for environmental approval in October 2021 for the construction of a pipeline, which could provide us with the ability to pump and process material off-site. We estimate that the approval of the application will take approximately 12 months and during this time we will continue discussions with other third parties.
The option of reprocessing the TSF material at our premises remains but this will require us to invest in a new plant and more importantly get an appropriate final deposition site approved and established.
Gold Recovery Ghana Limited - Ghana ('GRG')
GRG focusses on the processing and recovery of gold from mine by-products and serves the industry in Ghana, West Africa, South America and other parts of Africa.
The sourcing efforts in West Africa and further afield continued to benefit the Group through increased supply of material from our current suppliers. The increase in feed material resulted in revenues increasing from GBP8,909,000 during the period to GBP17,778,000. As a result, GRG increased its profitability, posting an operating profit before finance cost of GBP2,574,000 (2020 - GBP724,000). The results for the year continue to reflect the sourcing risk to which GRG is subject.
Due to the lengthy period it takes to extract value from material (60 to 210 days), from when material leaves the mines to when gold is recovered and subsequently sold, GRG obtains financing to settle payment to the mines earlier. The working capital finance cost for the period for GRG was GBP148,000 (2020 - GBP154,000). A further finance cost of GBP110,000 (2020 - GBP125,000) was incurred at Group level to support working capital in Ghana.
Major investments made in Ghana in prior years has positioned GRG well to service its customers.
The following initiatives will continue to manage and reduce the risk of procurement of sufficient materials for Ghana:
· Expanding the successes achieved in Mali to other mines in Mali, Ivory Coast and Burkina Faso. Some of these efforts have been delayed due to the Covid-19 travel restrictions. In Burkina Faso, the case relating to the export of fine carbon material is still pending and partly delaying any further export of material. Our engagement with mine management and government officials on different levels has continued, with the aim of increasing our footprint to ensure regular supply. Specific progress in this regard has been made during the quarter in Cote d'Ivoire.
· To support the sourcing and export of material to GRG, subsidiaries have been incorporated in Peru and Brazil during the period, and we will be looking to establish a site in Brazil during the next financial period at an estimated cost of USD300,000, none of which has been committed. This should assist us in increasing our presence and service delivery in South America and specifically allow us to source and process lower grade material, which is not feasible to transport to our other facilities.
· To reduce the risk to the Ghana operation, we continue to evaluate our options for processing of artisanal tailings material, including the possibility of finding a partner in country, whilst continuing to seek permission from the Minerals Commission to restart in some form the processing and/or tolling of tailings material.
Discontinued operations
Kilimapesa Gold (Pty) Limited - Kenya ('KPG')
The sale of KPG was completed during April 2021 to Mayflower Gold Investments Limited ('Mayflower').
The initial consideration receivable by Gold Mineral Resources Ltd ("GMR"), Goldplat's subsidiary, was in the form of a secured debenture of USD1,500,000, to be satisfied by cash and/or the issue of shares to that value in Papillon Holdings plc ('Papillon') payable on Papillon's re-admission to trading on the LSE following completion of the RTO, with 30 per cent. (USD450,000) of the initial consideration payable in cash.
Subsequent to period end, on 31 August 2021, Papillon Holdings plc, renamed as Caracal Gold plc ("Caracal"), had its ordinary shares commence trading on the Main Market for listed securities of the London Stock Exchange plc ('LSE') under the ticker GCAT with a contemporaneous dual listing on the Frankfurt Stock Exchange, which followed the completion of the reverse takeover of Mayflower Gold. GMR received 103,846,153 shares (which represented 7.17 per cent. of its issued share capital) in Caracal on 31 August 2021, which represented 70 per cent. of the initial consideration of the sale of KPG to Mayflower. On 3 November 2021, the Company agreed with Caracal to take up the remainder of the initial share consideration on the sale of Kilimapesa at the initial listing price of Caracal and as a result, received a further 32 878 000 shares in lieu of a cash payment of US$450,000, increasing the Group's shareholding in Caracal to 9.2 per cent. at the time.
GMR is entitled to receive a further 1 per cent. net smelter royalty on all production from Kilimapesa up to a maximum of $1,500,000, on any future production from Kilimapesa.
During the period the Company has incurred or written-off money outstanding from Kilimapesa to the value of GBP186,000 which has been included under loss from discontinued operations.
Anumso Gold Project - Ghana ('AG')
The gold mining license under the Anumso Gold ('AG') project expired during March 2021 and has not been renewed as was the intention of the Company and the joint venture partner, Desert Gold Ventures Inc. The investment in AG was disclosed as a discontinued operations during the prior year. During the period we
have been informed that mineral right fees since 2013 is outstanding, which is being disputed. None of the joint venture partners has intends to capitalise AG project to settle the claim and current AG liabilities exceed its assets by the minerals right fees outstanding. The Company share of outstanding minerals right fees is GBP369,000 and this has been included under loss from discontinued operations.
Additional financial review
The major functional currencies for the Group subsidiaries are South African Rand (ZAR) and Ghana Cedi (GHS) whilst the presentation currency of the group is Pounds Sterling (GBP).
The average exchange rates for the year are used to convert the Statement of Profit or Loss and Other Comprehensive Income for each subsidiary to Sterling. As set out in the table below, there it can be seen that the average ZAR and GHS weakened against the Pound Sterling, 3.49 per cent. and 10.73 per cent. respectively.
The exchange rate as at end of the period are used to convert the balance in the statement of Financial Position. As per below table, it can be seen that the ZAR strengthened by 7.39 per cent. and the GHS weakened 13.67 per cent. against the Pound Sterling.
|
|
|
2021 |
2020 |
Variance % |
|
South African Rand (ZAR) |
Average |
20.73 |
20.03 |
-3.49% |
|
Ghanaian Cedi (GHS) |
Average |
7.84 |
7.08 |
-10.73% |
|
South African Rand (ZAR) |
As at 30 June 2021 |
19.80 |
21.38 |
7.39% |
|
Ghanaian Cedi (GHS) |
As at 30 June 2021 |
8.15 |
7.17 |
-13.67% |
Apart from the gold price the Group's performance is impacted by the fluctuation of its functional currencies against the USD in which a majority of its sales are recognised. The average exchange rates for the year used in the conversion of operating currencies against the USD during the period under review are set out in the table below.
2021 2020 Variance
USD USD %
|
South African Rand (ZAR) |
15.42 |
15.91 |
-3.08% |
|
Ghanaian Cedi (GHS) |
5.82 |
5.61 |
3.74% |
The 27 per cent. increase in the personnel expenses to GBP4,396,000 (2020 - GBP3,446,000) during the period, was mainly as a result of the increase of production personnel in South Africa from 249 to 292. These increases were as a result of additional plant constructed and to be operated and also to manage Covid-19 protocols.
|
The net finance loss/income for the period can be broken into: |
|
|
|
|
2021 |
2020 |
|
Interest component |
'000 |
'000 |
|
Interest receivable |
- |
174 |
|
Interest payable on lease liabilities |
(21) |
(10) |
|
Interest payable on borrowings |
(110) |
(124) |
|
Interest on creditors |
(219) |
(270) |
|
Interest on bank overdraft |
(16) |
(6) |
|
Intercompany foreign exchange (expense)/profit |
(513) |
971 |
|
Other foreign exchange expense |
(30) |
(404) |
|
Net finance (loss)/Income |
(909) |
331 |
The net finance loss of GBP909,000 (2020 - Income GBP331,000) includes a foreign exchange loss of GBP543,000 (2020 - gain GBP567,000). The large fluctuation in foreign exchange loss and gain from period to period, relate mainly to the intercompany loan between Group subsidiaries and GPL, which is dominated in USD. With the ZAR strengthening against the USD during the current period by 17 per cent., a foreign
exchange loss of GBP882,000 (2020 - gain GBP913,000) was recognized in GPL. The pound Sterling only weakened by 12 per cent. against the USD during the current period resulting in an foreign exchange profit in GMR on conversion of the intercompany loans & receivables of GBP357,000 (2020 - loss of GBP133,000).
The net impact of intercompany balance movement in Group was foreign exchange loss of GBP513,000, against a gain during the previous period of GBP971,000.
The intention of the Group is to reduce intercompany loan balance during the period to reduce the impact of the significant fluctuation between reporting currencies and the currencies loans are denominated in.
During the period the interest payable on borrowings reduced from GBP124,000 to GBP110,000 as a result of repayment of most of the debt during the fourth quarter of the financial year. We have also managed to reduce the interest on creditors through utilisation of our own cash balances during the period, from GBP270,000 to GBP219,000. The increase in interest on lease liabilities, GBP21,000 (2020 - GBP10,000) is as a result in additional machinery procured on this basis in GPL during the period and detail in this regard is disclosed in annual report.
Taxation
As a result of the decrease in the taxable profits and the increase in capital expenditure incurred during the period in GPL, together with the reduction in dividends declared from GPL during the period, the taxation expenses in the Group decreased by 62 per cent. GPL is taxed under a mining tax formula in South Africa, which results in a lower percentage of tax when profits are lower and capital expenditure higher. During the period, GPL was taxed at a percentage of 23.48 per cent. (2020 - 28.98 per cent. ) and recorded a tax expense of GBP435,000 (2020 - GBP712,000) with no tax losses to offset.
GRG is registered as a Free Zone company in Ghana and is currently taxed at the rate of 15 per cent. of taxable profits.
Withholding taxation paid during the period on dividends declared from South Africa, was GBP80,307 (2020 - GBP226,000). The Withholding Taxation Rate changed from 20 per cent. to 5 per cent. during the period as a result of the shareholding of GPL changing from GMR registered in Guernsey to Goldplat Plc (the Company). The withholding tax is not recoverable by the Group.
Other comprehensive income
During the period the Company experienced a gain in foreign exchange translation reserve of GBP966,000 (2020 - Loss of GBP1,394,000). Similar to the prior year, the movement in the reserve was mainly impacted by the fluctuation in the ZAR and Pound Sterling exchange rate between reporting date. Year-on-year the ZAR strengthened by 7.5 per cent. against the pound sterling (after depreciating 19 per cent. during the previous period), resulting in a foreign exchange gain on translation of GPL of GBP984,000 (2020 - Loss of GBP1,882,000).
Property, plant & equipment
The increase in property plant and equipment of GBP1,132,000 during the period was due primarily to:
- The GBP428,000 incurred on the pre-construction of the adjoining tailings facility, together with the GBP78,000 incurred on the monitoring and extension of current tailings facility in GPL;
- The GBP94,000 incurred on the jig to increase our ability to process high carbon, lower grade material;
- The GBP153,000 increase in the environmental asset is as a result of the increase in the environmental provision during the period reflecting the increase in future cost of rehabilitation of operations in South Africa.
No capital expenditure was incurred during the period in GRG.
Intangible Assets
The intangible assets relate to the goodwill in the investment held in GMR. The balance has been assessed for impairment by establishing the recoverable amount through a value-in-use calculation, the detail of which has been disclosed in annual report.
Right-of-use asset
The right-of-use assets increased during the period by GBP218,000, mainly due to the acquisition of heavy-duty vehicles operating at the GPL plant.
The remainder of the changes relate to amortisation for the year and foreign exchange movements as indicated in annual report.
Loan receivable
The GMR loan receivable from the South African minority shareholders on the acquisition of shares are denominated in ZAR. The reduction during the loan period of GBP25,000 relates to the repayment of GBP74,000 from dividends declared by GPL to GMR. The remainder of the movement related to the strengthening of the ZAR against the Pound Sterling by 7.4 per cent.
Subsequent to the end of the period, the outstanding balance was set off in full as part of the share repurchase agreement between GPL and its minorities to repurchase a portion of the minorities share.
Investment in Joint Venture
The gold mining license under the Anumso Gold ('AG') project expired during March 2021 and has not been renewed as was the intention of the Company and the joint venture partner, Desert Gold Ventures Inc. The investment in AG was disclosed as a discontinued operations during the prior year. During the period we have been informed that mineral right fees since 2013 is outstanding, which is being disputed. None of the joint venture partners intends to capitalise AG project to settle the claim and current AG liabilities exceed its assets by the minerals right fees outstanding. The Company share of outstanding minerals right fees is GBP369,000 and have been included under loss from discontinued operations.
Inventories
The increase of GBP2,001,000 in the inventory balance, relates mainly to an increase of GBP1,770,000 in inventory at GPL.
The increase in GPL inventory balance related to:
· A GBP1,284,000 increase in raw material purchased for the Carbon-In-Leach ('CIL') circuits, which constituted a 65 per cent. increase from the prior period, however the dry tonnage of resources on site only increased by 21 per cent. With the improvements at the pre-treatment facility and the separation of carbonaceous material before the mill, the amount of material processed increased by between 20 per cent. to 25 per cent. on a monthly basis. The increase in raw material is driven by an increase in transport costs, high-grade material purchases and the increase in cost of raw material due to the increase in gold price over the last 18 months.
· A GBP447,000 increase in precious metals on hand, mainly due to a GBP310,000 increase in gravity concentrates generated in our milling circuits. This is due to higher percentage of gold recovered through our gravity processing units at the time and this gravity material not sold before the end of the year.
The remainder of the increase relates to an increase in precious metals on hand and in process at GRG driven by increase in supply during the year.
Trade and other receivables
The increase of GBP8,527,000 in the trade and other receivable balance, has been primarily as a result of: GPL
· GBP1,774,000 increase in concentrates at smelters which was driven by increase in percentage of gravity concentrates generated in GPL circuits and processing of build-up supply of low-grade material on our premises during the last quarter.
GRG
· GBP5,673,000 increase in concentrates at smelters which was driven by high grade batches of material received from suppliers during the 3rd and 4th quarter of the year.
Provisions
In terms of section 54 of the regulations of the Minerals Resource and Petroleum Act of 2002, in South Africa, a Quantum of Financial Provisioning is required for activities performed under mining lease. The Quantum was reassessed the during the current period and increased by GBP204,000. The remainder of the movement of GBP238,000 during the period related to the strengthening of the ZAR against the Pound Sterling by 7.4 per cent.
Deferred tax liabilities
The decrease in the deferred tax liability was as a result of the unrealised foreign exchange loss raised on the GMR intercompany loan with GPL, as a result of the strengthening of the ZAR against the USD during the period. The unrealised loss will only attract tax when it is realised, however the deferred tax liability has been adjusted during the current period. Further to this, the deferred tax liability increases as a result of GBP1,391,000 capital expenditure incurred on the property, plant and equipment and right-for-use assets acquired in GPL during the period, which was amortized fully for tax purposes, although limited depreciation was levied during the prior period on these assets.
Interest bearing borrowings
During the period the Group reduced the interest-bearing borrowings from Scipion by GBP970,000, from GBP1,004,000 to GBP33,000. The remaining balance was settled in full subsequent to year-end and the facility has been cancelled. During the period the borrowings attracted interest of GBP110,000 (2020 - GBP124,000).
Trade and other payables
The increase in trade payables of GBP7,980,000 during the period is linked to the increase in debtors, specifically material delivered at smelters and inventory, specifically material shipped and not yet delivered at smelters, on which funding has been received to enable us to settle suppliers.
As indicated under trade and other payables, the increase linked to high value gravity concentrates produced in the last quarter and high value batches received from suppliers. The funding received is recorded under invoice financing creditor and increased by GBP5,522,000 to GBP6,910,000 during the period.
Contingencies
The Ghana Revenue Authority (GRA) has conducted an audit on the company for the years 2014 to 2018 and is provisionally claiming a remaining GHS5,670,303.99 (GBP723,253) as a result of their review. We have objected this preliminary assessment and have resolved a number of issues but have not been able to get closure on the matter neither have we received a final assessment. We have been engaging with the GRA through our auditor and other legal/tax advisers. At the time of this report we are satisfied that we have accounted for and accrued all taxation liabilities for which the company is liable.
Outlook
As per the outlook of the previous financial period, the focus during the period has been, and will continue to be, on:
· finding structures best to return value to shareholders from continued profitability;
· investing into research and development to identify different processing methods and equipment to maximize value from sources available;
· expanding our environmental services delivery to industry; and
· identifying opportunities for growth in the recovery operations by investment into other locations and into additional equipment in our current operation, as well as enhancing operational efficiencies. This should enable the processing of lower grade material at current operations and at different locations closer to the source. Further to the above, we will continue to leverage on relationship in industry to increase long-term visibility through increase of resources and available sources we can process.
The recovery operations have nearly always been cashflow generative and subsequent to the period end we have utilized some of this cashflow to increase the Company's shareholding in GPL and the size of the Group. The Company will remain focused on sharing future cashflows with shareholders, specifically distributing cash surplus to the Group's operational requirements and growth plans to shareholders.
During the 2021 financial period the South African operations will need to complete its investment into a new tailings facility at cost of GBP300,000 and we expect to finance this from operational cash flow.
The focus for Ghana remains on sourcing material from West Africa, South America and the other regions, whilst re-positioning GRG to process lower grade material sourced from within Ghana. In line with this, the Group will establish a site in Brazil to enable it to source and process lower grade material in South America.
The South African operations will continue to serve the South African gold industry and will focus on sustaining profitability from old mining clean-ups and as part of its diversification strategy will invest GBP250,000 of capital into processing PGM's during the period. We will look towards reaching an agreement during the period with a third party in the area to reprocess TSF (which has a JORC Compliant Resource of 81,959 ounces) and receiving environmental approval for a pipeline which will be required to transport material to a facility for processing.
Goldplat recognises the cyclical nature of the recovery operations as well as the risks inherent in relying on short-term contracts for the supply of materials for processing, particularly in South Africa where the gold industry is in slow longer term decline.
These risks can be mitigated by improving our operational capacities and efficiencies to enable us to treat a wider range of lower grade materials and leveraging on our strategic partnerships in industry to increase security of supply. We will continue to see materials in wider geographic areas. We shall also keep looking beyond our current recovery operations for further opportunities to apply our skillsets and resources.
Conclusion
Goldplat's business has always involved change and opportunity, I would like to compliment Goldplat's employees, its advisors, my fellow directors and the Company's shareholders not just for their efforts and support, but for how they have embraced the changes and remained focused on the opportunity it brings. The board is looking forward to building on this year's successes, creating opportunity from the ever-changing environment and returning value to shareholders.
Werner Klingenberg
Director
21 December 2021
|
Statement of Financial Position |
Group |
Group |
|
Figures in £ `000 |
2021 |
2020 |
|
Assets |
|
|
|
Non-current assets |
|
|
|
Property, plant and equipment |
4,568 |
3,900 |
|
Right-of-use assets |
574 |
|
|
Intangible assets |
4,664 |
4,664 |
|
Investments in subsidiaries, joint ventures and associates |
1 |
1 |
|
Receivable on Kilimapesa sale |
606 |
- |
|
Other loans and receivables |
636 |
661 |
|
Loan to group company |
- |
- |
|
Total non-current assets |
11,049 |
9,582 |
|
Current assets |
|
|
|
Inventories |
8,433 |
6,432 |
|
Trade and other receivables |
13,003 |
4,476 |
|
Receivable on Kilimapesa sale |
58 |
- |
|
Cash and cash equivalents |
3,459 |
3,140 |
|
Total current assets |
24,953 |
14,048 |
|
Non-current assets or disposal groups classified as held for sale |
- |
3,380 |
|
Total current assets |
24,953 |
17,428 |
|
Total assets |
36,002 |
27,010 |
|
Equity and liabilities |
|
|
|
Equity |
|
|
|
Share capital |
1,698 |
1,675 |
|
Share premium |
11,491 |
11,441 |
|
Retained income/(accumulated loss) |
6,846 |
5,167 |
|
Foreign exchange reserve |
(5,258) |
(6,224) |
|
Total equity attributable to owners of the parent |
14,777 |
12,059 |
|
Non-controlling interests |
3,637 |
3,057 |
|
Total equity |
18,414 |
15,116 |
|
Liabilities |
|
|
|
Non-current liabilities |
|
|
|
Provisions |
787 |
549 |
|
Deferred tax liabilities |
792 |
919 |
|
Lease liabilities |
110 |
145 |
|
Loan from group company |
- |
- |
|
Total non-current liabilities |
1,689 |
1,613 |
|
Current liabilities |
|
|
|
Trade and other payables |
15,445 |
7,465 |
|
Current tax liabilities |
128 |
157 |
|
Current portion of long term borrowings |
33 |
1,004 |
|
Lease liabilities |
293 |
206 |
|
Loan from group company |
- |
- |
|
Total current liabilities |
15,899 |
8,832 |
|
Liabilities included in disposal groups classified as held for sale |
- |
1,449 |
|
Total current liabilities |
15,899 |
10,281 |
|
Total liabilities |
17,588 |
11,894 |
|
Total equity and liabilities |
36,002 |
27,010 |
The financial statements of Goldplat plc, company number 05340664, were approved by the Board of Directors and authorised for issue on 21 December 2021. They were signed on its behalf by: Werner Klingenberg, Director.
Werner Klingeberg
21 December 2021
Statement of Profit or Loss and Other Comprehensive Income
Group Group
Figures in £ `000 2021 2020
Revenue 35,400 24,809
Cost of sales (29,201) (17,497)
Gross profit 6,199 7,312
Other income 56 -
Administrative expenses (1,694) (1,682)
Impairment loss - (295)
Profit/(loss) from operating activities 4,561 5,335
Finance income - 1,067
Finance costs (909) (736)
Profit/(loss) before tax 3,652 5,666
Income tax expense - continuing operations (903) (2,361)
Profit/(loss) from continuing operations 2,749 3,305
Loss from discontinued operations (570) (5,270)
Profit/(loss) for the year 2,179 (1,965)
Profit/(loss) for the year attributable to:
Owners of Parent 1,679 (3,137)
Non-controlling interest 500 1,172
2,179 (1,965)
Other comprehensive income net of tax
Components of other comprehensive income that will be reclassified to profit or loss
Exchange differences on translation relating to the parent
Gains/(losses) on exchange differences on translation 719 (1,394)
Exchange reserve reclassified on loss of control of Kilimapesa 247 -
Total Exchange differences on translation 966 (1,394)
Exchange differences relating to the non-controlling interest
Gains/(losses) on exchange differences on translation 256 (488)
Total other comprehensive income that will be reclassified
to profit or loss 1,222 (1,882)
Total other comprehensive income net of tax 1,222 (1,882)
Total comprehensive income 3,401 (3,847)
Comprehensive income attributable to:
Comprehensive income, attributable to owners of parent 2,645 (4,531)
Comprehensive income, attributable to non-controlling interests 756 684
3,401 (3,847)
Earnings per share from continuing and discontinuing operations attributable to
owners of the parent during the year
Basic earnings per share
Basic earnings per share from continuing operations 1.32 1.27
Basic loss per share from discontinuing operations (0.34) (3.15)
Total basic earnings/(loss) per share 0.98 (1.87)
Diluted earnings per share
Diluted earnings per share from continuing operations 1.32 1.25
Diluted loss per share from continuing operations (0.33) (3.12)
Total diluted earnings/(loss) per share 0.99 (1.88)
|
Statement of Changes in Equity - Group Figures in £'000 |
Share |
Share premium |
Foreign currency translation reserve |
Retained income/ (accumulated loss) |
Attributable to owners of the parent |
Non- controlling |
Total |
|
Balance at 1 July 2019 |
1,675 |
11,441 |
(4,830) |
8,282 |
16,568 |
2,717 |
19,285 |
|
Changes in equity |
|
|
|
|
|
|
|
|
Loss for the year |
- |
- |
- |
(3,137) |
(3,137) |
1,172 |
(1,965) |
|
Other comprehensive income |
- |
- |
(1,394) |
|
(1,394) |
(488) |
(1,882) |
|
Total comprehensive income for the year |
- |
- |
(1,394) |
(3,137) |
(4,531) |
684 |
(3,847) |
|
Non-controlling interests in subsidiary dividend |
- |
- |
- |
- |
- |
(344) |
(344) |
|
Share based payments |
- |
- |
- |
22 |
22 |
- |
22 |
|
Balance at 30 June 2020 |
1,675 |
11,441 |
(6,224) |
5,167 |
12,059 |
3,057 |
15,116 |
|
Balance at 1 July 2020 |
1,675 |
11,441 |
(6,224) |
5,167 |
12,059 |
3,057 |
15,116 |
|
Changes in equity |
|
|
|
|
|
|
|
|
Profit for the year |
- |
- |
- |
1,679 |
1,679 |
500 |
2,179 |
|
Other comprehensive income |
- |
- |
719 |
- |
719 |
256 |
975 |
|
Exchange reserve released through profit and loss on sale of Kilimapesa |
- |
- |
247 |
- |
247 |
- |
247 |
|
Total comprehensive income for the year |
- |
- |
966 |
- |
2,645 |
756 |
3,401 |
|
Non-controlling interests in subsidiary dividend |
- |
- |
- |
- |
- |
(176) |
(176) |
|
Shares issued from options exercised |
23 |
50 |
- |
- |
73 |
- |
73 |
|
Balance at 30 June 2021 |
1,698 |
11,491 |
(5,258) |
6,846 |
14,777 |
3,637 |
18,414 |
|
Statement of Cash Flows |
Group |
Group |
|
Figures in £'000 |
2021 |
2020 |
|
Net cash flows from/(used in) operations |
4,277 |
4,774 |
|
Finance cost |
(909) |
(736) |
|
Finance income |
- |
1,067 |
|
Income taxes paid |
(1,059) |
(1,725) |
|
Net cash flows from/(used in) operating activities |
2,309 |
3,380 |
|
Cash flows (used in)/from investing activities |
|
|
|
Proceeds from sales of property, plant and equipment |
18 |
9 |
|
Purchase of property, plant and equipment |
(979) |
(356) |
|
Decrease in cash from disposal of non-current assets held for sale |
(6) |
- |
|
Receipt from long term receivable |
74 |
156 |
|
Decrease/(Increase) of loans to subsidiary |
- |
- |
|
Cash flows (used in)/from investing activities |
(893) |
(191) |
|
Cash flows (used in)/from financing activities |
|
|
|
Proceeds from drawdown of interest-bearing borrowings |
- |
973 |
|
Net (repayment) from debt financing (included under trade and other payables) |
- |
(1,490) |
|
Net proceeds from issuing of shares |
73 |
- |
|
Repayment of interest-bearing borrowings |
(872) |
(394) |
|
Interest paid on interest-bearing borrowings |
(99) |
(127) |
|
Principal paid on lease liabilities |
(186) |
(151) |
|
Interest paid on lease liabilities |
(21) |
(40) |
|
Payment of dividend by subsidiary to non-controlling interest |
|
(344) |
|
Payment of dividend to non-controlling interest |
(176) |
- |
|
Cash flows (used in)/from financing activities |
(1,281) |
(1,573) |
|
Net increase in cash and cash equivalents |
135 |
1,616 |
|
Cash and cash equivalents at beginning of the year |
3,146 |
1,807 |
|
Foreign exchange movement on opening balance |
178 |
(277) |
|
Cash and cash equivalents at end of the year |
3,459 |
3,146 |
|
Cashflows from discontinued operations |
- |
5 |
|
|
|
|
Notes to the Accounts
1. Basis of preparation and summary of significant accounting policies
Statement of compliance
The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRSs") as issued by the International Accounting Standards Board ("IASB") , and the Companies Act 2006 as applicable to entities reporting in accordance with IFRS.
Basis of measurement
The consolidated financial statements have been prepared on the historical cost basis, except for derivative financial instruments that have been measured at fair value.
Functional and presentation currency
These consolidated financial statements are presented in Pounds Sterling ("GBP"), which is considered by the directors to be the most appropriate presentation currency to assist the users of the financial statements. All financial information presented in GBP has been rounded to the nearest thousand, except when otherwise indicated.
The Group's subsidiaries' functional currency is considered to be the South African Rand (ZAR), Ghana Cedi (GHS) and the Kenyan Shilling (KES) and the Company's functional currency is Pounds Sterling (GBP) as these currencies mainly influences sales prices and expenses.
Use of estimates and judgements
The preparation of the consolidated financial statements in conformity with IFRS requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised if the revision affects only that period, or in the period of revision and future periods of the revision if it affects both current and future periods.
Critical estimates and assumptions that have the most significant effect on the amounts recognised in the consolidated financial statements and/or have a significant risk of resulting in a material adjustment within the next financial year are as follows:
- Carrying value of goodwill to the value of £4,664,000 (2020: £4,664,000)
- Inventory - precious metals on hand and in process to the value of £4,303,000 (2020: £3,799,000)
- Rehabilitation provision £787,000 (2020: £549,000)
- Useful economic lives
|
2. Share capital 2.1 Authorised and issued share capital |
Group |
Group |
|
Figures in £'000 |
2021 |
2020 |
|
Issued |
|
|
|
Ordinary shares |
1,698 |
1,675 |
|
|
1,698 |
1,675 |
|
Share premium |
11,491 |
11,441 |
|
|
13,189 |
13,116 |
|
2.2 Additional disclosures |
|
|
During the current year, additional shares were issued to current shareholders resulting in an increase in share capital and premium. The transactions are detailed below:
Share Share
Capital Premium
Director Date Movement Movement
Hansie van Vreden 3 July 2020 10,000 21,250
Gerard Kisbey Green 3 July 2020 13,333 28,333
2.3 Reserves
Nature and purpose of reserves
Ordinary shares
All shares rank equally with regard to the Company's residual assets. The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the Company.
Share premium
Represents excess paid above nominal value on historical shares issued.
Exchange reserve
The exchange reserve comprises all foreign currency differences arising from the translation of the financial statements of foreign operations.
Non-controlling interest
Relates to the portion of equity owned by minority shareholders.
3. Employee benefits expense
Non-
Directors emoluments Executive executive Total
2021
Wages and salaries 407 407
Fees 103 103
Other benefits 9 9
Total 416 103 519
2020
Wages and salaries 404 404
Fees 83 83
Other benefits 10 10
Total 414 83 497
Emoluments disclosed above include the following amounts paid to the highest director:
2021 2020
Emoluments for qualifying services 168 164
4. Earnings per share
4.1 Basic earnings per share
Group Group
Figures in £'000 2021 2020
The earnings and weighted average number of ordinary shares
used in the calculation of basic earnings per share are as follows:
Earnings used in the calculation of basic earnings per share for
continuing operations 2,249 2,133
Weighted average number of ordinary shares used in the calculation of
basic earnings per share 169,774 167,441
The earnings used in the calculation of diluted earnings per share
are as follows:
The earnings used in the calculation of basic earnings per share for
continuing operations 2,249 2,133
Earnings used in the calculation of basic earnings per share for
continuing operations (570) (570)
The weighted average number of ordinary shares for the purpose of
diluted earnings per share reconciles to the weighted average number
of ordinary shares used in the calculation of basic earnings
per share as follows:
Weighted average number of ordinary shares used in the calculation
of basic earnings per share 169,774 167,441
Adjusted for
- Dilutive effect of share options 787 3,120
Weighted average number of ordinary shares used in
the calculation of diluted earnings per share 170,561 170,561
|
5. Related parties |
|
Holding |
|
|
Gold Mineral Resources Limited |
|
100% |
Direct |
|
Goldplat Recovery (Pty) Ltd |
|
74% |
Direct |
|
Goldplat Ghana Limited |
|
100% |
Direct |
|
Anumso Gold Limited |
|
100% |
Direct |
|
Nyieme Gold SARL |
|
100% |
Direct |
|
Midas Gold SARL |
|
100% |
Direct |
|
Gold Recovery Brasil Recuperacao |
|
100% |
Indirect |
|
Gold Recovery Peru SAC |
|
100% |
Indirect |
|
GRG Tolling Ltd |
|
100% |
Indirect |
|
Major inter-company transactions |
|
|
|
|
|
Nature of transaction |
2021 |
2020 |
|
Goldplat Recovery to Gold Recovery Ghana |
Goods, equipment and |
|
|
|
|
services supplied |
332 |
103 |
|
Goldplat Recovery to Gold Mineral Resources |
Goods, equipment and |
|
|
|
|
services supplied |
136 |
45 |
|
Goldplat Recovery to Gold Mineral Resources |
Interest received |
(125) |
(166) |
|
Goldplat Recovery to NMT Capital |
Management fees |
4 |
25 |
|
Goldplat Recovery to NMT Group |
Managements fees |
9 |
12 |
|
Goldplat Plc to Gold Mineral Resources |
Management fees |
413 |
322 |
|
Goldplat Plc |
Directors |
98 |
83 |
Related Party Transactions with Mr Sango Ntsaluba
Subsequent to the year-end, the directors decided to increase the Group's interest in GPL, its principal operating subsidiary, from 74 per cent. to 90.63 per cent. through the buy-back by GPL of GPL shares from its minority shareholders. GPL has issued 4.90 per cent. shares in GPL (after the share repurchase) to Aurelian, a company controlled by Mr Sango Ntsaluba, in order to maintain a BEE partner in GPL and to reduce the cost to the Group of the share repurchase transaction.
After the completion of above transactions and cancellation of the repurchased shares, the Group held 90.63 per cent. of GPL (an increase of 16.63 per cent. ), Amabubesi held 4.47 per cent. and Aurelian 4.90 per cent. . Subsequent to above, Amabubesi's remaining shares were repurchased and shares to the same amount and value issued to Aurelian. Aurelian is therefore the only minority partner in South Africa and holds 9.37 per cent. of GPL.
By virtue of their size and because Mr Ntsaluba is both a director of Goldplat and a major shareholder of Amabubesi and Dartingo, both the share repurchases by GPL of 22.33 per cent. of shares held by Amabubesi and Dartingo and the subsequent issue by GPL of shares to Aurelian constituted related party transactions under Rule 13 of the AIM Rules for Companies. The independent directors, being the Goldplat board members with the exception of Mr Ntsaluba, consider, having consulted with the Company's Nominated Adviser, Grant Thornton UK LLP, that the terms of the transactions were fair and reasonable insofar as Goldplat's shareholders are concerned.
6. Subsequent events
Share repurchase of minority shareholding in GPL
The directors decided after the period end, 20 July 2021, to increase the Group's interest in GPL, its principal operating subsidiary, from 74 per cent. to 90.63 per cent. through the buy-back by GPL of GPL shares from its minority shareholders ("the Transaction").
GPL had two minority shareholders, Amabubesi Property Holdings Proprietary Limited ("Amabubesi") and Dartingo Trading 161 Proprietary Limited ("Dartingo"), who respectively held an 11 per cent. and a 15 per cent. interest in GPL. Following a notification received from the two minority shareholders indicating their intention to dispose of their shareholdings, GPL did agree to repurchase all of the Dartingo shareholding and 7.33 per cent. of the shares held by Amabubesi for ZAR 89.3 million (approximately £4.5 million).
Amabubesi and Dartingo are companies connected with Goldplat's Non-Executive Director, Mr Sango Ntsaluba. Subsequent to the Transaction, GPL issued to Aurelian Capital Proprietary Limited ("Aurelian"), a company associated with Mr Ntsaluba, shares amounting to 4.90 per cent. of GPL, at the same valuation as the share repurchase, for ZAR 16 million (approximately £807,000) as described further below. As a result of the Transaction, Goldplat will own 90.63 per cent. of GPL and Mr Ntsaluba will own, directly and indirectly, 9.37 per cent. of GPL.
The consideration for the repurchased shares of ZAR 89.3 million (approximately £4.5 million) was settled in two instalments. The net cost to GPL of the Transaction was ZAR 73.4 million (approximately £3.7 million), and Goldplat's share of the net cost of the Transaction to GPL was be 90.63 per cent. , effectively resulting in its additional 16.63 per cent. interest in GPL costing Goldplat ZAR 66.52 million (approximately £3.35 million).
The Transaction valued GPL at ZAR 400 million (approximately £20.2 million).
Funding Arrangements
The Transaction were financed in part through a South African Rand denominated bank facility of ZAR 60 million (approximately £3.02 million) provided by Nedbank, of which 50 per cent. was drawn within the 30 days and the remainder in 90 days. The remainder of the consideration was settled through a set-off against the existing Amabubesi vendor loan of ZAR 12.6 million (approximately £635,000) outstanding to the Group with the balance paid in cash.
The principal on the bank facility is repayable monthly over 36 months. The interest payable on the facility will be the South African Prime Rate plus 1.75 per cent. .
As a condition of the facility from Nedbank, the Group's facility with Scipion, of £33,000, were settled in full and its securities over GPL will be cancelled. Further to above, GPL did grant security over its debtors as well as a negative pledge over its moveable and any immovable property and a general notarial bond over all movable assets of GPL will be registered. The Group entered into a limited suretyship for ZAR 60 million (approximately £3.02 million), in favour of Nedbank.