Business
Update: Management Team, Licensing and Electricity
Update: Management Team, Licensing and Electricity.
About this update from Goldplat Plc
[{"type":"text","content":"\n\nGoldplat plc / Ticker: GDP / Index: AIM / Sector: Mining & Exploration\n31 May 2023\nGoldplat plc\n('Goldplat' or the 'Company')\nUpdate on senior management team, licensing and electricity\nGoldplat 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 provide an update on the strengthening of the Group management team, the finalisation of the renewal of Gold Recovery Ghana (\"GRG\") gold license and the electricity supply in South Africa.\n \nDuring May, the Group appointed a Chief Operating Officer, Douglas Davidson, to focus specifically on improving and strengthening current operations. Douglas is a Metallurgical Engineer with 26 years of experience in the mining industry of which 23 years have been in the diamond industry, mainly in Namibia and Lesotho. Douglas Davidson has extensive operational experience built up in operating large plants for De Beers, Namdeb and Namakwa Diamonds. He has held various senior positions including Group Metallurgical Lead and Mine Manager at these companies as well as serving on the Executive Committee at Namdeb. He has led multi-disciplinary operational teams to identify, develop and implement value accretive and risk mitigating initiatives to improve overall business performance.\nIn Ghana, the renewal of GRG's gold license has been finalised and the export of product has started, but we expect that most of this material will only arrive at customers in July 2023. As a result, the sales will only be recognised in the next financial period.\nThe electricity shortages in South Africa continue and we have lost 28% of hours available during the first 2 months of Q4, compared to 20% in Q3, as a result. Due to the increased uncertainty of supply in the medium term, we have made a decision to invest in diesel generators which will be able to sustain operations in South Africa during electricity cuts. The capital cost of these investments will be GBP750,000 and will be financed over 36 months with one of our local banks. We estimate that it will take 12 - 14 weeks to receive and install these generators. Based on 25% of available hours expected to be lost during the next 24 months, we expect that the capital cost will be recovered withi...