Goldplat Plc (LON:GDP) CEO Gerard Kisbey-Green talks to DirectorsTalk about preliminary results for the year ended 30th June. Gerard talks through the highlights of the results, explains how they managed to turn the company around, how they are positioned for diversification and growth and plans for development in 2017.
Operations Report
In the Goldplat Plc 2015 annual report I said that we had laid the foundations for a turnaround of the Group’s performance and a return to operational robustness and profitability. In FY 2016 we have laid the foundations for growth and diversification. I am pleased to report that all the initiatives of FY 2015 as well as those for the first half of FY 2016 have borne fruit, resulting in a marked return to profitability and a more robust balance sheet. The Group produced 37,666 ounces of gold during the year (FY 2015: 30,524 ounces). This reflects a marked increase in production from recovery operations to 35,661 ounces (FY 2015: 28,246 ounces), whilst Kilimapesa produced 2,005 ounces (FY 2015: 2,278 ounces).
The Group spent £1,284,000 during the period, largely financed internally, on a comprehensive programme to refurbish and replace obsolete plant and to acquire new infrastructure and equipment. The majority of the projects begun in FY 2015 were completed during the first half of FY 2016.
With the completion of most of these capital programmes, the Group turned to a new set of priorities during the second half of the year:
to focus on the material procurement function, which included appointing appropriate staff across all operations, broadening the geographic sources and diversity of materials acquired, and re-defining the Group’s procurement contract structures to more accurately reflect its business and the prevailing economic landscape
to focus on the potential business opportunities we believe are available in South America. This has included establishing relationships with local partners, appointing a team to take this initiative forward, and the trial processing of sample material at our plant in Ghana
to return Kilimapesa to profitability; the Board approved a plan to return Kilimapesa to profitability during FY 2017. We believe that this, and potential investment opportunities currently being considered with third parties, will significantly strengthen the Group.
A major risk identified during the previous financial year was the Group’s historical relationship with only one refiner, Rand Refinery, which we termed the “single refiner” risk. In the year under review the company identified and subsequently formalised relationships with a number of international refiners to both process concentrates and refine dore gold. Aurubis Refinery in Germany was used during the year to assist in processing the backlog of concentrate stock that had resulted from difficulties experienced with Rand Refinery during FY 2015.
Areas of Strategic Focus
