Audited Results for the year ended 30 June 2024

Goldplat plc

20 December 2024

 

Goldplat plc / Ticker: GDP / Index: AIM / Sector: Mining & Exploration

20 December 2024

Goldplat plc

('Goldplat', the 'Group' or 'the Company')

Audited Results for the year ended 30 June 2024

Goldplat plc, (AIM:GDP) the AIM listed Mining Services Group, with international gold recovery operations located in South Africa and Ghana, servicing the African and South American Mining Industry, is pleased to announce its audited results for the year ended 30 June 2024.

Goldplat continued to achieve excellent trading results during the year ended 30 June 2024:

·      Revenue increased by 73.6% to £72.7m (2023: £41.9m)

·      Operating profit increased by 127.0% to £9.8m (2023: £4.3m)

·      Profit for the year increased by 40.9% to £4.3m (2023: £3.1m)

·      Robust cash generation with net cash flows from operating activities of £3.9m (2023: £3.3m)

·      Cash and cash equivalents increased to £3.9m (2023: £2.8m)

·      EPS increased by 50.3% to 2.51p (2023:1.67p)

Werner Klingenberg, CEO of Goldplat commented: "I am pleased with the excellent trading results achieved by the Group this year. These results come despite a number of significant operational challenges in the period. The Board and I are greatly encouraged by the results for the year, and the manner in which the Group has performed, despite these operational challenges.

Looking to the current financial year, I believe Goldplat has a good pathway to follow up with further positive operational performances, and we look forward to reporting on our progress throughout 2025."

The Company's annual report and accounts are available on the Company's website at http://www.goldplat.com/downloads  and hard copies will be posted by 23 December 2024 to shareholders that have elected to receive printed copies.

As announced on 5 December 2024, Resolution 1 to be put to shareholders at the Annual General Meeting of the Company being held on 30 December 2024, to receive the report of the Directors of the Company and the audited financial statements of the Company for the year ended 30 June 2024, will be adjourned in order to give shareholders the requisite notice. The date of the adjourned meeting will be confirmed in due course.

For further information visit www.goldplat.com, follow on X @GoldPlatGDP or contact:

Werner Klingenberg	Goldplat plc (CEO)	Tel: [phone]
Colin Aaronson / Samantha Harrison / Ciara Donnelly	Grant Thornton UK LLP (Nominated Adviser)	Tel: [phone]
James Bavister / Andrew de Andrade	Zeus (Broker)	Tel: [phone]
Tim Thompson / Mark Edwards / Fergus Mellon	Flagstaff Strategic and Investor Communications	Tel: [phone] [e-mail]

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 PLC's precious metals processing facilities combined continued to achieve excellent trading results during the year ended 30 June 2024.

Our portfolio of core assets consists of two gold recovery operations, in South Africa and Ghana, with plans to extend recovery operations to Brazil, servicing the African and South American markets. These operations recover gold and platinum group metals ('PGM') from by-products of current and historical mining processing, thereby providing mines with an environmentally friendly and cost-efficient way of removing waste material.

Looking at the trading results of Goldplat PLC ("the Company" or "Goldplat") and its subsidiaries, together referred to as "the Group", profit for the year remained strong at GBP4,322,000 (2023 - GBP3,068,000). The increase was driven by strong supply to operations in Ghana, improved gold price and reduction in electricity supply cuts in South Africa. This resulted in a return on invested capital (Profit after Taxation divided by Total Equity) of 21.1% (2023 - 17.8%). Cash generation across the Group continued to be robust with net cash flows from operating activities of GBP3,872,000 (2023 - GBP3,343,000) and net year end cash of GBP3,886,000 (2023 - GBP2,781,000).

The results achieved continue to indicate the resilience of our operations and team as well as the diversity in our markets and products with a reduction in supply in South Africa being offset by strong supply in West Africa and South America to the operations in Ghana.

We remain focused on long term visibility of earnings in the recovery businesses by increasing visibility of resources through the strengthening of partnership relationships and improved processing methods. At the same time we are positioning ourselves as a service group focused on key elements of primary producers' Environmental, Social and Governance (ESG) initiatives. Our key focus will remain on extracting value from gold bearing by-products whilst we investigate broadening the commodity spaces in which we operate and add value.

As indicated in the prior year, the Company will continue to return cash in excess of operating and development requirements to shareholders. Due to the capital invested into a new tailings storage facility ("TSF") in South Africa and future capital requirements to maintain operations as well as processing of the old TSF, the Company did not distribute any cash to shareholders during the year. We will continue to evaluate this position and, when appropriate, will distribute cash through either share repurchases or dividends, whichever the Board believes will add the most value, to our shareholders.

Goldplat has a pivotal role to play in the circular economy that extends from the extraction of minerals to re-processing of what would typically be dumped as waste materials, and to responsible mining and business practices that underpin Goldplat as a sustainable partner for large mining groups.

As referred to in the Strategic Report, the business has adopted certain sustainability reporting principles in the current year including profiling material matters through the application of double materiality and linking these material issues to strategic responses and performance metrics.

As a starting point, we have conducted materiality assessments to identify where our highest level of sustainability impact could be and in turn, linking these matters to our strategic response, policies and performance management. We are committed to creating measurable value for all our stakeholders towards a just and sustainable socio-economically future.

Goldplat will continue developing its integrated sustainability strategy and reporting practices. This process is ongoing, and the Board will continue to monitor our obligations and make sure that we meet or exceed expectations as we continue to create and preserve value for all our stakeholders.

We look forward to continuing to build on the successes of the past few years and increasingly realising and growing the intrinsic value of Goldplat. I wish to thank all Goldplat employees, as well as my fellow directors, our advisors, our shareholders, as well as all of our other stakeholders for their efforts as we look forward to the coming years with enthusiasm.

Gerard Kisbey-Green

Chairman

20 December 2024

CEO Report

Overview of operations

Goldplat is a mining services company, specialising in the recovery of gold and other precious metals, from by-products, contaminated soil and other precious metal bearing material from mining and other industries. Goldplat has a pivotal role to play in the circular economy that extends from the extraction of minerals to re-processing of what would typically be dumped as waste materials. Goldplat has two market leading operations in South Africa and Ghana focused on providing an economic method for mines to dispose of waste materials while at the same time adhering to their environmental obligations.

Goldplat has been providing these services for more than 20 years, mainly to the mining industry in Africa, but more recently also in South America. 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's recovery operations recover circa 2,000 ounces (of gold and other metals) monthly through various circuits and under different contracts. The number of ounces is dependent on the type and volume of material supplied and the grade, recovery, margins and terms of contracts and can differ significantly based on the nature of the material supplied and processed. At a minimum, 70% of material produced is exposed to the fluctuation in gold price, with the remainder of the production being offset by corresponding changes in raw materials costs. Due the factors mentioned above, margins tend to fluctuate month to month.

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 Southern Africa, West Africa, South America and further afield;

·    strengthening its license to operate in the jurisdictions in which it operates;

·    forming strategic partnerships with other industry participants;

·    leveraging its role in the circular economy including by diversifying into processing of platinum group metals ("PGM") and other commodities contaminated material;

·    ensuring the sustainability of its operations from an environmental, social and governance perspective; and

·    optimising the value to be extracted from the processing of its 2.2-million-tonne 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.

The Group follows the responsible gold guidelines as set-out by the London Bullion Mark Association ("LBMA") and our processes are audited on a bi-annual basis, to provide further comfort to its suppliers, partners and customers.

Goldplat has a JORC defined resource (see the announcement dated 29 January 2016 for further information) over part of its active TSF at its operation in South Africa of 1.43 million tonnes at 1.78g/t for 81,959 ounces of gold.

Since the resource estimate was completed, more than 800,000 tonnes of material have been deposited on the TSF, at grades of circa 1.45g/t.

Operating results

The recovery operations had exceptional strong results with profit after tax attributable to owners of the Company of GBP4,208,000 (2023 - GBP2,798,000), an increase of 50.4% from the previous financial year.

The increase was driven by strong supply to operations in Ghana, improved gold price and reduction in electricity supply cuts in South Africa.

The Group has been focused on the recovery operations to increase visibility of earnings through:

·    Growing its customer base and its raw material supply on site;

·    Securing its license to operate through maintaining licenses and contained conditions;

·    Getting necessary approvals for the processing of our old TSF in South Africa;

·    Securing and extending our role in the circular economy by expanding our business into other commodities.

Growing the customer base

During the year the Group secured additional supplies of material in Ghana and South America, whilst retaining all major woodchips and byproduct suppliers. The increase performance in Ghana is directly attributable to the strong growth in suppliers of by‑products. A major supplier is defined as a supplier that supplied a material amount of raw material to the operations during the last financial year.

We received low-grade surface sources for processing through our CIL circuits in South Africa from mainly one supplier during the period. Through the agreement with the supplier in previous years we have been able to create a greater visibility of supply of future material as well as reducing the amount of low-grade surface sources on site and the attendant cash requirement. The nature of the materials to be removed will vary in terms of the gold grade contained and the recoverability of the gold contained through our circuits. The analysis and processing of these materials to date has indicated that it will be viable to remove and process at current costs and price parameters. However, the potential supply from this one supplier which is for more than three years, remains dependent on grade of gold contained, recoverability of the gold contained, costs and price parameters. We are also engaging other suppliers to increase visibility of supply.

Securing pipeline and developing alternative reclamation resources	Units	2024		2023
Product type		South Africa	Ghana	South Africa	Ghana
Low-grade surface sources	Number	4	0	1	0
Woodchips	Number	8	0	6	0
By-products	Number	11	24	5	12

The percentage contribution from different feed products to operating margins in South Africa does fluctuate from month to month and contribution from each has been changing. In the past, on average each product type contributed a third of the margins for Goldplat Recovery SA ("GPL"), highlighting each product's significance to the operations. Although the contribution always fluctuates, we have seen a decline in value of by-products, specifically woodchips received from industry which has resulted in a reduction in turnover & margins in South Africa. In Ghana, Gold Recovery Ghana ("GRG") margin is derived only from the different types of by-products generated by current mining activities.

Although GPL has retained all contracts during the year, 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 woodchips and by‑products received.

As a result, GPL's focus is to increase its share of the market in South Africa, securing the business of those major mining groups in South Africa it is not servicing currently and looking to neighbouring countries to supplement current feedstock (although production in these countries is limited).

Ghana's focus remains on opening up the West African market, although the environment has become more challenging with the export of gold concentrate being stopped by the authorities of a few African countries.

The Group continues to investigate and research different types of discard and waste sources from industry to increase the flexibility in the types of material it processes.

License to operate

Due to the nature of the recovery services the Group provides and the commodities we recover, we require various licenses to operate and need to comply with the conditions of these licenses.

During the year the group continued to invest the necessary funds to maintain these licenses and to ensure our operations comply with these licenses.

During the year GRG renewed the Minerals Commission - License to Purchase and Deal in Gold and the Environmental Protection Authority License. The delay in the renewal of the License to Purchase and Deal in Gold in Ghana had a significant impact on GRG's ability to export material towards the end of the prior year.

The Department of Water and Sanitation of the Republic of South Africa authorised the water use license of GPL during June 2022 which includes the extraction and use of water in its recovery processes and the impact of its disposal of tailings on a new TSF, according to the conditions set out in the license, which is valid for 12 years. This has enabled GPL to construct a new TSF that will provide an additional five years of deposition capacity.

Towards the end of the period, it has become clear that the focus and preference of the authorities in Ghana is on local beneficiation of concentrate. This has necessitated our business in Ghana to start recovering gold in concentrates locally in the form of dore bars, which can then be sold to international refiners. To increase capacity and processes to do this will require investment of circa GBP900,000 and approval of processes and plant by Environmental and Mining Departments. We have made the relevant submission and are working with authorities to improve our processes for local beneficiation.

Set out below is a summary of some of the major licenses required by operations to operate in current jurisdictions:

License to operate	Valid until	2024		2023
		South Africa	Ghana	South Africa	Ghana
Current licenses	November 2040	Precious Metals Refining License*		Precious Metals Refining License*
	January 2029	Air Emissions License		Air Emissions License
	Expired	Mining Right (expired* May 2023)		Mining Right (expired* May 2023)
	Annual	Radio-active License		Radio-active License
	2034	Water Use License		Water Use License
	Annual	Precious Metals Import Permit		Precious Metals Import Permit
	Annual	Precious Metals Export Permit		Precious Metals Export Permit
	Annual		Ghana Freezone Authority		Ghana Freezone Authority
	May 2026		Minerals Commission - License to Purchase and Deal in Gold		Minerals Commission - License to Purchase and Deal in Gold
	18 December 2025		Environmental Protection Authority License		Environmental Protection Authority License
	New application	Waste License		Waste License

*     GPL does not require a mining right in South Africa to continue its operation and is conducting its operations under a Precious Metals Refining License which only expires in November 2040. As GPL does not have an identified mineral deposit and does not extract any ore from a mineral deposit, it could not renew its mining right per the Department of Mineral Resources and Energy ('DMRE'). We have applied to the relevant Government authorities to convert the existing environmental management plan in place to an integrated environmental authorization and waste management license. We have received a response that no change is required from us at this point, however for clarity, we are still pursuing the change to an integrated environmental authorization and waste management license.

Circular economy

Goldplat has a pivotal role to play in the circular economy that extends the extraction of minerals to re-processing of what would typically be dumped as waste materials. It also extends to responsible mining and business practices that underpin Goldplat as a sustainability partner for large mining groups.

During the year all of our operating profit was derived from the processing of discards or waste materials from historic or current mining activities.

Goldplat believes that it can extend this pivotal role it is participating in the circular economy to the gold industry in South America and into other commodities.

We still hold a strategic 15% shareholding in a fine coal recovery technology company. Goldplat has an option to invest an additional GBP1.5m, which will increase our shareholding in that business to above 50%. This investment would be used to operationalise the technology through the construction of a fine coal washing plant in Mpumalanga, South Africa. This option would provide us diversification in our recovery operations into a different commodity, namely coal, of which significant resources are available in South Africa, with opportunities not just for processing but also for environmental rehabilitation. Based on management's evaluation, although the project remains feasible, we do not believe the timing is correct to make this investment given our current focus on increasing cash availability and shareholder return.

The Group's acquisition of land in South America at a value of circa GBP120,000 has taken longer than expected due to the timing of regional approvals that were required. The decision to acquire land was driven by the need to establish an address in South America from which we can service our clients. In time we plan to establish operational plant capacity in Brazil to provide solutions for lower grade material not processable at our other plants due to the cost of transport to those facilities.

Tailings Facility

The new TSF at GPL was constructed adjacent to the current TSF and was completed in August 2023 and commissioned during the year. The new TSF has sufficient capacity to store the tailings we will produce in our current operations for a further five years.

The new TSF has been constructed by using regulated synthetic liner and design drainage which should enable a greater quantity of process water to be re-used in the plant and reduce seepage and contamination of ground water.

The new TSF allows us to divert all deposition from the current facility, which will provide us with the ability to use the current facility to recover the JORC resource through DRDGOLD. The processing of our old TSF remains dependent on land owner consent and the approval of the water use license over certain areas for the installation of a pipeline to the DRDGOLD process facility. We aim to have the final application submitted before the end of January 2025, subject to land owner consent. The approval process normally takes 365 days from submission.

DRDGOLD and Goldplat Plc are currently in the process of evaluating different variables that will impact on the processing of the TSF, as well as the commercials of doing so; this process will be completed alongside the water use license. To enable us to process the current TSF through a DRDGOLD facility, we will require landowner consent, approval to install a pipeline to this DRDGOLD processing facility (as indicated in paragraph above) and will need to finalise commercial agreements with DRDGOLD.

Electricity Supply

During the year, the South African operation lost circa 11% of its production hours due to electricity supply outages, which has had a significant impact on our lower grade circuits. However, since April 2024, no electricity supply outages have been experienced or are expected in the near future.

During the period, as a result of uncertainty of electricity supply in the medium term, we invested in the diesel generators which will be able to sustain operations in South Africa during electricity cuts. The capital cost of this investment was GBP812,000 and was financed over 36 months with one of our local banks.

Anumso Gold Project - Ghana ('AG')

The gold mining license under the Anumso Gold ('AG') project expired during March 2021 and was not 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 operation during the 2021 year. In that year we were informed that mineral right fees since 2013 were outstanding, which is still being disputed. None of the joint venture partners intend to capitalise the AG project to settle the claim and current AG liabilities exceed its assets by the minerals right fees outstanding. The Company's share of outstanding minerals right fees is GBP369,000 and this has been accrued in prior years.

Outlook

Our focus during the year has been, and will continue to be:

·    to open up and expand our market share in West Africa and into the rest of Africa;

·   to acquire land in Brazil, and expand our service delivery, specifically on lower grade material in Brazil and elsewhere in South America;

·    expand local beneficiation in Ghana;

·    increase our market share in South Africa and increase our client base in neighbouring countries;

·    to reduce the cost of production, specifically on our CIL circuits in South Africa;

·    to agree commercial terms on the reprocessing of the TSF with DRDGOLD and finalise the regulatory requirements to allow us to pump material through a pipeline to the DRDGOLD facility;

·   leveraging our strength and capabilities through the processing of other precious metals and commodities.

The recovery operations have nearly always been cashflow generative and during the year we have utilised some of this cashflow to build the new TSF in South Africa, repay the share repurchase loan in South Africa and support working capital levels in Ghana. The Company will remain focused on sharing future cashflows with shareholders, specifically distributing any cash surplus (above Group's operational requirements and growth plans) to shareholders. After the end of the period, most cash has been used to sustain inventory levels in Ghana, whilst we increase our local beneficiation capacity.

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 continue investing capital into processing PGM's.

We are working with DRDGOLD to find the most economic methods 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 seek materials in wider geographic areas. We shall also keep looking beyond our current recovery operations for further opportunities to apply our skillsets and resources.

Short-term (2025 - 2026)	Medium-term (2027 - 2029)	Long-term (2030 and beyond)
·    Invest and improve local beneficiation solutions of gold concentrates in Ghana.	·    Expand our service delivery in South America.	·    Diversifying into other commodities
·    Approval of landowners and authorities for construction of pipeline required for processing of old TSF through DRDGOLD.
·    To reduce the of cost of production, specifically on our CIL circuits in South Africa.

Conclusion

The last few years have seen a lot of changes in Goldplat's business as we have set out to increase sustainability and growth of our recovery operations. 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 their resilience and how they have embraced the changes and remained focused on the opportunities they bring. This year we have seen the benefit of these changes and the Board is looking forward to building on this year's successes, creating opportunities from the ever changing environment and returning value to shareholders.

Werner Klingenberg

Chief Executive Officer

20 December 2024

CFO Report

Financial Highlights

·    Revenue increased by 73.6% to GBP72.7m (2023 - GBP41.9m)

·    Operating profit increased by 127.0% to GBP9.8m (2023 - GBP4.3m)

·    Cash and cash equivalents increased to GBP3.9m (2023 - GBP2.8m)

Overview

Goldplat delivered another year of solid financial results despite increased electricity supply cuts in South Africa, a reduction in by‑product material supply, gravity shortfalls in the first half of the financial year and inflationary pressures.

Revenue increased by 73.6% to GBP72,691,000, due to more gold sold as a result of an increase in high-grade low-margin batches processed in Ghana and an increase in the average gold price during the year to USD2,076/oz (2023 - USD1,829/oz).

The margins of the Group depend upon the volume, quality and type of material received, the metals contained in such material, processing methods required to recover the metals, the final recovery of metals from such material, the contract terms, metals prices and foreign currency movements. During the year, the gross profit margin remained 17.7%, with the high volume of high-grade low-margin batches processed in Ghana offset by lower gold production in South Africa which was due to a reduction in by-product material supply and the impact of electricity supply cuts. This was exacerbated by foreign exchange losses, which increased by GBP1,819,000.

The table below on the operating performance of Goldplat (excluding foreign exchange gains & losses, finance cost and taxes) reflects the ability of the recovery operations in South Africa and Ghana to produce profitably at various gold prices and production levels for the last 5 years.

	2024	2023	2022	2021	2020
Average Gold Price per oz in US$ for the year	2,076	1,829	1,833	1,846	1,560

	GBP'000	GBP'000	GBP'000	GBP'000	GBP'000
Revenue	72,691	41,881	43,222	35,400	24,809
Gross Profit	12,843	7,422	9,994	6,199	7,312
Other (Loss)/Income	38	(96)	53	56	0
Administrative Costs	3,110	3,021	2,332	1,694	1,977
Operating Profit Before Finance Costs	9,771	4,305	7,715	4,561	5,335

Financial review

The major functional currencies for the Group subsidiaries are the South African Rand (ZAR) and the 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, the average ZAR and GHS weakened against the Pound Sterling by 9.9% and 15.0% respectively. The exchange rates as at the end of the year are used to convert the balance in the Statement of Financial Position. As set out in the table below, the ZAR closing rate appreciated and GHS closing rate depreciated by -3.6% and 32.3% respectively, which resulted in the GBP1,939,000 loss on exchange differences on translation during the year.

		2024 GBP	2023 GBP	Variance %
South African Rand (ZAR)	Average	23.57	21.43	10.0%
Ghanaian Cedi (GHS)	Average	15.76	13.7	15.0%
South African Rand (ZAR)	Closing 30 June 2024	23.02	23.87	-3.6%
Ghanaian Cedi (GHS)	Closing 30 June 2024	19.32	14.60	32.3%

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 our sales are recognised. The average exchange rates for the year used in the conversion of operating currencies against the USD during the year under review are set out in the table below:

		2024	2023	Variance
		USD	USD	%
South African Rand (ZAR)	Average	18.72	17.78	5.3%
Ghanaian Cedi (GHS)	Average	12.51	11.37	10.0%

Personnel

Personnel expenses increased by 1.4% to GBP5,289,000 (2023 - GBP5,214,000) during the year mainly due to an increase in the number of production personnel from 415 to 423 and the annual salary increases in South Africa and Ghana. We spent a total of GBP87,000 on various training programmes for our personnel.

Net finance costs

The net finance loss for the year can be broken down into the following:

	2024	2023
Interest component	GBP	GBP
Interest receivable	102,000	69,000
Interest payable	(218,000)	(283,000)
Interest on pre-financing of sales	(1,604,000)	(956,000)
Intercompany foreign exchange income/loss	(18,000)	510,000
Operating foreign exchange losses	(2,040,000)	(221,000)
Net Finance Costs	(3,778,000)	(881,000)

Net finance costs increased to GBP3,778,000 (2023 - GBP881,000) during the year as a result of:

Increase in foreign exchange losses in operations from GBP221,000 to GBP2,040,000. During the current year we had a large foreign exchange loss in Ghana due to the depreciation of the GHS against the USD during that year. As we pre-finance a portion of our sales to the smelters, the exchange rate on the day we receive most of our funds was lower than the exchange rate on the day we recognise the sale in our records.

The interest payable on borrowings relates to the buy-back of the minority share in GPL during the previous years.

Taxation

During the year the income tax expense increased by 369%. This has resulted in an increase in the effective tax rate from 10.4% to 28%, which was driven by the following:

Ghana:

·    Increase in GRG profits before taxation from GBP1,965,000 to GBP5,234,000.

·    GRG is registered as a Free Zone company in Ghana and was taxed at 15% (2023: 15%) during the year.

South Africa:

·    Decrease in the mining taxation rate from 9.84% for GPL, to 0%, due to a change in the mining tax rate formula and a decrease in taxable mining profits;

·    GPL did incur non-mining taxable income relating to interest on the GMR intercompany loan which was charged at the South African Company Tax rate of 27%;

During the year, the dividend from GPL to the Company incurred a withholding dividend taxation charge of 5%. The withholding dividend tax for the year was GBP58,000 (2023 - GBP69,000).

Other comprehensive income

During the year the Group experienced a loss in foreign exchange translation reserve of GBP1,081,000 and was primarily made up of:

·    Foreign exchange translation loss in GRG of GBP1,642,000 as a result of devaluation of the GHS during the year against the GBP by 15.0%; and

·    Foreign exchange translation profit in GPL of GBP403,000 as a result of devaluation of the ZAR during the year against the GBP by 9.9%.

Property, plant & equipment

During the year we spent GBP939,000 on the acquisition and construction of plant and equipment, mainly at GPL in South Africa.

We incurred GBP492,000 in GPL, with the main contributors to the capital expenditure in the current year being capital incurred on the new generator project of GBP424,000.

We incurred GBP447,000 in GRG, of which GBP440,000 related to the new milling, gravity and flotation circuit to increase recoveries from material received. This plant started operating in Q3 of the 2024 financial year.

Intangible Assets

The intangible assets relate to the goodwill on the investment held in Gold Mineral Resources Limited ("GMR") and GPL. 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 the financial statements.

Right-of-use asset

The right-of-use assets increased during the year by GBP652,000. The primary reason for the increase is due to the generator project financed with a value of GBP812,000 in GPL.

The Group acquired plant and machinery and vehicles on finance leases for GBP920,000.

The remainder of the changes relate to amortisation for the year and foreign exchange movements.

Receivable on Kilimapesa sale

GMR is entitled to receive a further 1% net smelter royalty on all production from Kilimapesa up to a maximum of $1,500,000, on any future production from Kilimapesa. As at the end of the year, based on estimated future production at Kilimapesa, GBP714,000 is receivable. Refer to note 7 of the financial statements.

Loan receivable

As part of the repurchase of the minority's share of GPL in the 2022 year, shares were also issued to a new minority in South Africa, Aurelian, a portion of which is payable from dividend proceeds. The balance outstanding is GBP164,000.

Inventories

The decrease of GBP8,050,000 in the inventory balance, relates mainly to a decrease of GBP6,181,000 in inventory at GRG.

	2024	2023
	GBP	GBP
Precious Metals on Hand and in Process	9,039,000	16,618,000
Raw Materials	1,874,000	2,462,000
Consumable Stores	1,172,000	1,054,000
	12,084,000	20,134,000

The decrease in GRG inventory relates mainly to precious metals on hand and in process sold in the current financial year as the inventory held by the refiners was finalised and sold.

The raw material stock is only held in South Africa, and relates to the low-grade material processed through our Carbon-In-Leach ('CIL') circuits. With the agreement reached with DRDGOLD, by which we can remove and process materials on DRDGOLD premises, we have not just increased the availability of raw material for processing, but also put GPL in a position to operate with lower levels of raw materials at our premises.

Trade and other receivables

The Group's trade and other receivables fluctuates based on grade and volume of batches and material processed during different periods of the year in the two operating entities.

Apart from the gold bullion produced in South Africa, on which payment is received within 14 days, for the remainder of the concentrates we produce, the payment terms on average are between 4 to 6 months.

During the year, the trade and other receivables decreased by GBP7,501,000, of which GBP1,245,000 relates to a decrease in GRG and GBP6,547,000 to a decrease in GPL.

The decrease in GRG and GPL was mainly due to the finalisation of exports at the smelters that built up in the previous financial year.

Deferred tax liabilities

The deferred tax liabilities increased during the year from GBP531,000 to GBP616,000. The tax rate remained the same as the previous year but deferred tax, specifically relating to property, plant and equipment, increased during the year.

Interest bearing borrowings

In 2022, GPL entered into a ZAR denominated bank facility of ZAR 60 million (approximately GBP3.02 million) with Nedbank, to finance the repurchase of shares from minorities in South Africa. The full ZAR 60 million was drawn during the first half of the prior year and the principal on the bank facility is repayable monthly over 36 months. The interest payable on the facility is the South African Prime Rate plus 1.75%.

GPL provided security over its debtors as well as a negative pledge over its moveable and any immovable property, with a general notarial bond registered over all movable assets. The Group entered into a limited suretyship for ZAR 60 million, in favour of Nedbank.

The balance outstanding on the reporting date was GBP296,000 of which GBP296,000 is repayable in the next 12 months.

Trade and other payables

The decrease in trade and other payables of GBP17,252,000, was mainly driven by the finalisation of export batches at the smelter in Europe.

In general, we pay our suppliers before we recover the value from material processed and delivered to smelters or refiners. Suppliers are either paid in full or a percentage of the balance is paid with the balance retained until we receive our final results from refiners or smelters. We receive external funding for material delivered to smelters to finance this gap between receipts and payments. During the year the balance funded decreased as batches from the prior year were finalised and settled.

Conclusion

Looking forward, we expect inventory, trade and other payables and trade and other receivables to increase in the first two quarters, specifically in Ghana, as the Ghanaian operation is going through a business model change with the requirement to beneficiate all concentrates to doré gold bars in‑country.

Goldplat will continue to critically review and assess its cost structures and remain focused on generating cash to fund our capital spend on compliance projects as well as creating value for our shareholders.

Brent Doster

Chief Financial Officer

20 December 2024

Statements of Financial Position - Group

			Group	Group
Figures in £'000			2024	2023
Assets
Non-current assets
Property, plant and equipment			5,481	5,265
Right-of-use assets			1,004	352
Intangible assets			4,664	4,664
Investment in subsidiary or associate			1	1
Unlisted investments			1	63
Receivable on Kilimapesa sale			610	571
Other loans and receivables			159	145
Total non-current assets			11,920	11,061
Current assets
Inventories			12,084	20,134
Trade and other receivables			21,704	29,205
Current tax assets			-	58
Receivable on Kilimapesa sale			104	30
Other loans and receivables			21	19
Cash and cash equivalents			4,108	2,977
Total current assets			38,021	52,423
Total assets			49,941	63,484
Equity and liabilities
Equity
Share capital			1,678	1,678
Share premium			11,562	11,562
Capital Redemption Reserve			53	53
Retained income			16,530	12,328
Foreign exchange reserve			(10,436)	(9,401)
Total equity attributable to owners of the parent			19,387	16,220
Non-controlling interests			1,080	1,033
Total equity			20,467	17,253
Liabilities
Non-current liabilities
Provisions			742	743
Deferred tax liabilities			616	531
Interest bearing borrowings			-	285
Lease liabilities			518	37
Loan from group company			-	-
Total non-current liabilities			1,876	1,596
Current liabilities
Provisions			329	207
Trade and other payables			25,944	43,196
Current tax liabilities			394	-
Interest bearing borrowings			296	898
Lease liabilities			413	139
Bank overdraft			222	195
Total current liabilities			27,598	44,635
Total liabilities			29,474	46,231
Total equity and liabilities			49,941	63,484

Statements of Profit or Loss and Other Comprehensive Income - Group

		Group	Group
Figures in £'000		2024	2023
Revenue		72,691	41,881
Cost of sales		(59,848)	(34,459)
Gross profit / (loss)		12,843	7,422
Other income / (loss)		38	(96)
Administrative expenses		(3,110)	(3,021)
Profit from operating activities		9,771	4,305
Finance income		102	69
Finance costs		(3,880)	(950)
Profit before tax		5,993	3,424
Income tax expense		(1,671)	(356)
Profit for the year		4,322	3,068
Profit for the year attributable to:
Owners of Parent		4,208	2,798
Non-controlling interest		114	270
		4,322	3,068
Other comprehensive loss net of tax
Exchange differences on translation relating to the parent
Losses on exchange differences on translation		(1,081)	(3,231)
Total Exchange differences on translation		(1,081)	(3,231)
Exchange differences relating to the non-controlling interest
Losses on exchange differences on translation		38	(203)
Total other comprehensive income that will be reclassified to profit or loss		(1,043)	(3,434)
Total other comprehensive loss net of tax		(1,043)	(3,434)
Total comprehensive income / (loss)		3,279	(366)
Comprehensive (loss) / income attributable to:
Comprehensive income / (loss), attributable to owners of parent		3,128	(432)
Comprehensive income, attributable to non-controlling interests		151	66
		3,279	(366)
Earnings per share attributable to owners of the parent during the year
Basic earnings per share
Basic earnings per share		2.51	1.67
Diluted earnings per share
Diluted earnings per share		2.49	1.65

Statements of Changes in Equity - Group

Figures in £'000	Share Capital		Share premium	Capital Redemption Reserve		Foreign exchange reserve		Retained income	Attributable to owners of the parent	Non- controlling interests		Total
Balance at 1 July 2022	1,678		11,562	53		(6,170)		9,530	16,653	1,150		17,803
Changes in equity
Profit for the year	-		-	-		-		2,798	2,798	270		3,068
Other comprehensive loss	-		-	-		(3,231)		-	(3,231)	(203)		(3,434)
Total comprehensive income for the year	-		-	-		(3,231)		2,798	(433)	67		(366)
Non-controlling interests in
subsidiary dividend	-		-	-		-		-	-	(184)		(184)
Balance at 30 June 2023	1,678		11,562	53		(9,401)		12,328	16,220	1,033		17,253
Balance at 1 July 2023	1,678		11,562	53		(9,401)		12,328	16,220	1,033		17,253
Changes in equity
Profit for the year		-	-		-		-	4,208	4,208	114	4,322
Other comprehensive loss		-	-		-		(1,081)	-	(1,081)	38	(1,043)
Increase (decrease) due to adjustments		-	-		-		46	(6)	40	-	40
Total comprehensive		-	-		-		(1,035)	4,202	3,167	152	3,319
income for the year
Non-controlling interests in subsidiary dividend		-	-		-		-	-	-	(105)	(105)
Balance at 30 June 2024		1,678	11,562		53		(10,436)	16,530	19,387	1,080	20,467

Statements of Cash Flows - Group

			Group	Group
Figures in £'000			2024	2023
Net cash flows from operations			4,629	4,511
Finance cost paid			(128)	(521)
Finance income received			21	-
Income taxes paid			(650)	(647)
Net cash flows from operating activities			3,872	3,343
Cash flows used in investing activities
Proceeds from sale of Caracal			-	727
Other cash payments to acquire equity or debt			-	(126)
instruments of other entities
Loan issued to Green Coal Technologies			(16)	-
Proceeds from sale of property, plant and equipment			4	30
Acquisition of property, plant and equipment			(923)	(1,911)
Cash flows used in investing activities			(935)	(1,280)
Cash flows used in financing activities
Payment of interest-bearing borrowings			(909)	(1,620)
Repayments of other financial liabilities			-	-
Repayment of leases			(259)	(287)
Payment of dividend by subsidiary to non- controlling interest			(105)	(185)
Cash flows used in financing activities			(1,273)	(2,092)
Net increase / (decrease) in cash and cash equivalents			1,664	(29)
Cash and cash equivalents at beginning of the year			2,781	3,895
Foreign exchange movement on opening balance			(559)	(1,085)
Cash and cash equivalents at end of the year			3,886	2,781

Accounting Policies

1. General information

Goldplat plc is a public company limited by shares domiciled and registered in England and Wales.

The address of the Company's registered office is Salisbury House, London Wall, London, the United Kingdom EC2M 5PS. The Group primarily operates as a producer of precious metals on the African continent.

2. Basis of preparation and summary of significant accounting policies

Statement of compliance

The consolidated and separate financial statements have been prepared in accordance with UK - adopted International Accounting Standards ("IAS") and the Companies Act 2006 as applicable to entities reporting in accordance with IAS; 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, 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 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 and separate financial statements in conformity with UK - adopted IAS 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 GBP4,664,000 (2022: GBP4,664,000)

·    Inventory - precious metals on hand and in process to the value of GBP9,039,000 (2023: GBP16,618,000)

·    Rehabilitation provision GBP742,000 (2023: GBP743,000)

·    Useful economic lives

·    Estimated revenue to the value of GBP17,660,000 (2023: GBP27,531,000)

3. Share capital, premium and redemption reserve

3.1 Authorised and issued share capital

	Group	Group
Figures in £'000	2024	2023
Issued
Ordinary shares	1,678	1,678
	1,678	1,678
Share premium	11,562	11,562
	13,240	13,240

3.2 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.

Capital Redemption Reserve

Portion of share capital repurchased by the Company.

4. Employee benefits expense

	Group	Group
Figures in £'000	2024	2023
Wages and salaries	4,708	4,416
Performance based payments	245	522
National insurance and unemployment fund	75	64
Skills development levy	41	43
Medical aid contributions	85	36
Group life contributions	66	64
Provident funds	69	69
Total	5,289	5,214
The average number of employees (including directors) during the year was:
Directors	7	5
Administrative personnel	44	38
Production personnel	423	415
	474	458

Directors emoluments	Executive	Non-executive	Total
2024
Wages and salaries	253	-	253
Fees	-	135	135
Other benefits	3	-	3
Total	256	135	391
2023
Wages and salaries	178	-	178
Fees	-	141	141
Other benefits	62	-	62
Total	240	141	381

Emoluments disclosed above include the following amounts paid to the highest director:

	2024	2023
Emoluments for qualifying services	190	240

Key management apart from the Directors, the emoluments paid to key management personnel amounted to 2024: GBP735,000 (2023: GBP793,000).

5. Earnings per share

5.1 Basic earnings per share

The earnings and weighted average number of ordinary shares used in the calculation of basic earnings per share are as follows:

	Group	Group
Figures in £'000	2024	2023
Earnings used in the calculation of basic earnings per share	4,208	2,798
Weighted average number of ordinary shares used in the calculation of basic earnings per share	167,783	167,783

5.2 Diluted earnings per share

The earnings used in the calculation of diluted earnings per share are as follows:

	Group	Group
Figures in £'000	2024	2023
Earnings used in the calculation of basic earnings per share	4,208	2,798
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	167,783	167,783
Adjusted for - Dilutive effect of share options	1,452	1,899
Weighted average number of ordinary shares used in the calculation of diluted earnings per share	169,235	169,682

6. Related parties

6.1 Other related parties

Entity name	2024 Holding		2023 Holding
Gold Mineral Resources Limited	100%	Direct	100%	Direct
Goldplat Recovery (Pty) Ltd	91%	Direct	91%	Direct
Gold Recovery Ghana Limited	100%	Indirect	100%	Indirect
Anumso Gold Limited	49%	Indirect	49%	Indirect
Nyieme Gold SARL	100%	Indirect	100%	Indirect
Midas Gold SARL	100%	Indirect	100%	Indirect
Gold Recovery Brasil Recuperacao	100%	Direct	100%	Direct
Gold Recovery Peru SAC	100%	Indirect	100%	Indirect
GRG Tolling Ltd	100%	Indirect	100%	Indirect

Major inter-company transactions

	Nature of transaction	2024	2023
Goldplat Recovery to Gold Recovery Ghana	Goods, equipment and services supplied	412	679
Goldplat Recovery to Gold Mineral Resources	Goods, equipment and services supplied	-	91
Goldplat Recovery to Gold Mineral Resources	Interest received	(125)	(149)
Goldplat Recovery to Gold Recovery Ghana	Sale of precious metals	203	-
Goldplat Recovery to Gold Recovery Ghana	Management fees	85	-
Goldplat Plc to Gold Mineral Resources	Management fees	272	25
Goldplat Recovery to Aurelian Capital	Trade and other payables	1	1
Goldplat Recovery to Aurelian Capital	Dividends Receivable - Aurelian	164	150
Goldplat Recovery to Aurelian Capital	Management fees	15	17
Goldplat Plc	Directors	135	141

7. Subsequent events

Goldplat plc was involved in a process of arbitration dispute resolution ("ADR") in Kenya with respect to a claim that was brought forward against Kilimapesa Gold (Pty) Limited, a subsidiary of Caracal Gold Plc, as agent of Gold Minerals Resources Limited (subsidiary of Goldplat Plc), regarding the sale of Kilimapesa by Gold Minerals Resources Limited to Caracal Gold in 2022.

Per the ADR, the Company has agreed to settle USD320,000 and has provided for the amount in full as at 30 June 2024. As of November 2024, the amount owing by Gold Mineral Resources Limited had been settled in full.

GPL terminated the engagement of a number of employees in 2017, after which the company won The Commision for Conciliation, Mediation and Arbitration ("CCMA") case. The employees took the matter for review to the Labour Court where the Labour Court ruled in favour of the employees in July 2024. The Company has subsequently appealed the ruling and awaits the final outcome. As at 30 June 2024, GPL has provided for the possible cash outflow of GBP21,000 post year-end.

Goldplat plc awarded 200,000 restricted shares to each of Brent Doster, Chief Financial Officer and to Douglas Davidson, Chief Operating Officer on 2 July 2024. The restricted share awards will vest at nil cost to the employee after 1 July 2025 if the individual is still employed by the Company on that date.

There are no other events subsequent to 30 June 2024 that will have a material effect on the consolidated financial statements.

 

END