CEO Q&A with Gerard Kisbey-Green at Goldplat plc (LON:GDP)

Goldplat plc (LON:GDP) Chief Executive Officer Gerard Kisbey-Green caught up with DirectorsTalk for an exclusive interview to discuss their operational update for the three months ended 31st March 2018.

 

Q1: Gerard, we are chatting this morning about Goldplat’s third quarter operational results, what are the highlights, in your opinion?

A1: I think the highlights of the quarter, which we can of course discuss in more detail, firstly the final conclusion of the Rand Refinery dispute, secondly the completion of the elution plant and related infrastructure at Gold Recovery Ghana and the fact that production is in line with the corresponding quarter in the 2017 financial year.

 

Q2: Production of just short of 7,000 ounces of gold, on an annualised basis, it doesn’t quite get you to your production targets for the year, is this of concern?

A2: It is somewhat of a concern and it’s an interesting question. We are in a similar situation to where we were last year at this time, I think it’s important for investors to understand that the recovery business, and in particular on the by-products side of the business, essentially relies on a series of one-off consignments of material. The commercial terms of any consignment are governed by the bilateral contract, but few contracts actually dictate volumes or frequency of delivery, as such, we receive material pretty much at the discretion of the client.

So, this is why we need to diversify our client base as much as we can, to ensure a more regular and consistent flow of by-product material. Right now, we have two large contracts which we are waiting to complete and for one of them to be processed during the final quarter, and if successful on one of them this should bring the production up to plan. Again, this is a very similar situation we had last year where a big consignment came through in the last quarter and we made our production targets.

 

Q3: What exactly is the impact of the elution plant at Gold Recovery Ghana?

A3: Having the infrastructure to elute and to smelt on-site in Ghana not only fulfils the requirements set out in the licence renewal but it makes economic sense for GRG and Goldplat and in fact, the local community.

With further beneficiation to gold Dore bars being carried out in-country, additional employment opportunities are created, cost savings are achieved for GRG and various other spin-off benefits. In addition, the addition of this infrastructure adds to the ability to expand Goldplat’s recovery operations using GRG as a hub and is in line with Goldplat’s strategic growth initiatives.

 

Q4: How are you progressing at Kilimapesa?

A4: I think that it’s fair to say that we are dealing with challenges relating to grades and costs, it’s pretty much a “chicken and egg” kind of situation there where we are reluctant to spend money until we are comfortably making profits on a sustainable basis, but at the same time we need to spend money to address issues. So, take the conversion to grid power as an example, diesel is a major component of our variable costs, and the supply of diesel itself is erratic, as we experienced during election-related disruptions during 2017.

So, the decision is whether to invest in conversion to grid power with the expectation that this will get us to sustained profitability or wait to prove profitability first, of course, the grid power example is one of many and they all need to be aggregated. At the end of the day, it’s not how much gold we produce that is relevant but how much profit we make so there is always the tug-of-war between capital expenditure, volume and profitability. I think as a team, we’re very focussed on sorting this out.

 

Q5: We’ve discussed the Rand Refinery dispute numerous times over the years, now that it has played out are there any final comments?

A5: I think just to say that we’re very relived that it’s all concluded and in our favour in terms of the fact that they paid us an undisclosed amount of money. More significantly, in hindsight, the whole issue did highlight for us I think a number of various risks that we had in the business that we weren’t really focussing on. As a result, we’ve addressed these risks so that the business is in a better state than it was before the dispute arose.

So, Goldplat are back doing business with the Rand Refinery which in many senses is good and we’ve said before that it makes economic sense to do certain business with them and for them to do certain business with us. So, we’re there now, we’ve de-risked our business and let’s move forward.

Click to view all articles for the EPIC:
Or click to view the full company profile:
Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Goldplat plc

More articles like this

Goldplat plc

Gold gains on weaker dollar

Gold prices edged higher on Monday, as softer U.S. jobs data cemented hopes of further fiscal stimulus and pressured the dollar, although bullion’s gains were capped by higher Treasury yields. Spot gold was up 0.2% at $1,816 per

Goldplat plc

Gold up over US stimulus progress

Gold was up on Wednesday morning in Asia, amid growing hopes of further U.S. stimulus measures. Gold futures were up 0.41% at $1,840.95 by 12:39 AM ET (5:39 AM GMT). Democrat lawmakers in the U.S. Senate began debate on a

Goldplat plc

Gold to still hit $2,300 in 2021

All precious metals will see solid gains this year, but the likeliest best performers will be silver, followed by platinum and gold, said Frederic Panizzutti, managing director at MKS. Despite a slower start to the year, gold is

Goldplat plc

Gold price recovers

Gold prices edged higher on Monday, recovering from a near seven-week low, as prospects of a massive US coronavirus relief aid outweighed a stronger dollar and lifted bullion’s appeal as an inflation hedge. Spot gold advanced 0.6% to

Goldplat plc

Gold steadies as weaker stocks offset stronger dollar

Gold prices steadied on Tuesday as Asian stocks traded lower, dragged by political unrest in Washington and rising global COVID-19 cases, outweighing a firmer dollar and U.S. Treasury yields. Spot gold was little changed at $1,845.19 per ounce

Goldplat plc

Gold firms as Democrat-led US Senate boosts stimulus hopes

Gold prices rose on Thursday as a Democrat sweep of Georgia’s Senate runoffs boosted expectations of additional U.S. stimulus, although soaring Treasury yields held back bullion below a two-month high scaled in the previous session. Spot gold advanced

Goldplat plc

Gold rallies over 1%

Gold prices in India rose more than 1 percent on January 4 tracking a positive trend in international spot prices, which hit an eight-week high as global  COVID-19 cases spiked and countries pushed for more lockdowns despite vaccine

Goldplat plc

Goldplat provides an update on the sale of Kilimapesa

Goldplat plc (LON:GDP), the AIM quoted gold producer, with international gold recovery operations located in South Africa and Ghana and an a held for sale underground mining operation in Kenya, has provided an update on the sale of Kilimapesa.