Goldplat (LSE:GDP) — Investor Presentation

0:01 Good afternoon, ladies and gentlemen, and welcome to the GOLDPLAT PLC investor presentation. Throughout this recorded presentation, investors will be in listen only mode. Questions are encouraged. They can be submitted at any time via the q and a tab that's just situated on the right hand corner of your screen. Please just simply type in your questions and press send. The company may not be in a position to answer every question it receives during the meeting itself. However, the company can review all questions submitted today, and we'll publish those responses where it's appropriate to do so on the Investor Meet company platform. Before we begin, I would like to submit

0:33 the following poll which will just appear on your screens now. And I would now like to hand you over to CEO Werner Klingenberg. Werner, good afternoon, sir. Well, good evening, Jake, out of South Africa. I must say it's good to to be with you again and it's good to talk to investors and potential investors again tonight.

0:57 Yes I think I mean I'll I'll jump straight into it. I think in the benefit of those that's not too familiar with GOLDPLAT. I think I will start on slide five and maybe just explain to to everyone exactly what GOLDPLAT is. And also who we are not. I think we are trading under the mining sector name. And we have been in mining in the past but I think it's important to understand that that GOLDPLAT's focus is more around providing services to the mining industry. Current active mining as well as historic mining. And we look at basically recovering value or recovering gold mainly from byproducts or material left behind by historical mining.

1:53 And we've got operations in South Africa. We've got operations in Ghana. Where we process the material. We receive from different types of clients. And we also source material out of South America. So we've got sourcing focused on Africa as well as South America at this point in time. And our clients is is actually quite diverse. A majority of our clients obviously the current clients on the byproduct side is your blue chip big gold mining groups in Africa we're finding that some of those bigger groups are selling some of their lower assets to smaller companies or operators. Which is also clients of ours.

2:39 And in in South Africa we also do a little bit of PGMs at this point in time. And then if we look at the historical mining industry we get material from either current clients that has footprints that needs to be cleaned up. Or even old mine sites where there's land owners that still has material on their premises. That's been left behind by mining industry. We remove this material and we process it through our sites in South Africa and then in Ghana. And as explained, I mean that material we get can vary quite significantly. In the end, what we focused on is whether it's either gold bearing or PGM bearing and whether we can process it profitably or economically through our current setup.

3:27 We do a lot of work in terms of material. We receive to see if we can upgrade or make material economical through different ways and means. And I think that in the end is where our benefit to the market is. We've got quite a diverse processes where we process this material through. As you'll see on the slide, the material we we process is either fine carbons which is used in the primary mining sector to recover the gold from the ore. The mill liners that is obviously used to mold the the ore fine and to liberate the gold. We also process wood chips specifically in South Africa where it comes from underground pillar support.

4:14 And if you then go down the list you see more of the stuff where it's after operations. Plant cleanups, surface sources where you've got old mine sites and there's been run off and either fly areas has been contaminated or certain rock dumps was left behind either as waste material that still contain gold. And we then process that material. Through our circuits. In South Africa we have got carbon in lead circuits. And if you don't understand what exactly that is please ask a question. And I'll address that towards the end. But it's basically the main process currently being applied in the gold mining industry in terms of recovering gold from low grade surface sources.

5:00 We also then have various screening incinerating units as well as gravity units that we use to also recover value. From the material we receive from the primary mining industry. In Ghana that is all we focus on. We only focus on primary mining clients. We don't get historical material that we process through CIL circuits. There we only apply CIL gravity methods, screening and a few other to to actually generate the concentrates that we then either sell to the smelters in Europe or in South Africa or we then generate a gold bullion ball through illusion and smelting process and that we then send to refineries in South Africa as well.

5:49 So I think that's sort of in a nutshell what we currently do. We are not in mining. We don't have a resource. As a normal mining client does have. Our resource is basically the clients that we've got in industry. The relationship we've built up over the last twenty years. And the ability we have to process that material. And we'll talk a little bit more about that later. If we then jump more towards the beginning of the slides, you'll see that we we are cash generative business from a operating point of view. I'll take you a bit through the cash flow of the last financial period towards the end.

6:34 And we are focusing on recovering value as I've indicated from the previously mined material. We've got quite a big geographical reach. Our clients is is spread around Africa and South America. We we get strong supply these days out of South America as well. Specifically out of Argentina, out of Brazil. We have received material out of Peru before. In Africa, currently we're getting material out of the Ivory Coast, Ghana, DRC and also then obviously in South Africa. We've received material out of Mali, Sudan, Tanzania in the past. So that's one aspect that I also would like to explain is that because we're working in different countries in terms of moving the material. We're working with material that's gold bearing. Obviously it's not just about engaging with clients. It's also about engaging with governments to make sure they're comfortable with our transparent processes.

7:35 To to be able to handle that material transparently for their own comfort to make sure gold is ensiphoned out of their countries without their knowledge. And we've built up quite well we've we've built up quite a clear process and we work closely together with governments in Africa specifically where we take material cross border and it has worked quite successful successfully in the past. So if we then look at the the metals we're trading in, we're trading mainly in gold as I say. We do do a bit of PGMs in South Africa. And we're looking at ways of expanding that. And I think if we if we look at at the team we've got in South Africa in the last period we've appointed the CFO and the COO as well.

8:29 CEO is metallurgist. And both of them has got more than twenty years of experience in operating mines in Africa. And we look at the whole of the board a bit later. And then we we have as most of you are aware of obviously the TSF in South Africa. That we've built up through the processing of our material through our CIL that still contains around 82, zero ounces of gold. In and that's per jaw compliant resource done in 2016. Since then we've probably put around 800, zero tonnes additional onto that dump. So there's about two. 2,000,000 tonnes there. And once we've have certainty around the economics and how we going to process it. Again we'll talk about that now.

9:23 We'll probably will then update that resource as well and and share that with the market. If we then quickly look at our key data I think I've indicated we've been listed since 2006. The company has been probably operating for more than twenty years. We're currently trading at a share price of 6 P. It's a market cap roughly of 10,000,000. And we'll look at the income statement later. But that's on on a profitability of roughly 3,000,000. So at the moment our price earning ratios is between three and four. Trading actually quite low and as you can see on that share price graph it has been coming down quite significantly since March. It actually topped around December at around twelve P.

10:09 Then the board as I discussed Gerard Kemp is our non executive chairman. He's been in the industry for a very long time. Started off in mining. Went into investment banking. He's got a lot of experience and he's still quite active in the industry through his consulting business. You've got myself, a CEO. Then we've got two shareholders. The one in the subsidiary. Although he's got some shares on the top as well. And then our major shareholder Martin Oy on the board. Martin Oy's got 28. 8%. Of the business. And then Gerald Kisby Green, same as Harad Kemp, has always been in the industry. He's a mining engineer. He went into investment banking. He's got years, multiple years of experience. So I think the board is quite strong. I've already discussed the appointment of Douglas and Brent in 2000 or in in the prior year.

11:02 And I think with their support there's a lot of value that can still be created inside of GOLDPLAT. We've already gone through slide four. If we then move to slide five, I think then the thing to realise is that I mean GOLDPLAT actually plays quite a unique role within the industry. Obviously it's extremely important for us to make sure the way we source the material is responsible is is is responsible. To do so we follow the LBMA responsible gold guidance. We're not a member of them. But we do follow their guidance and we did audit it on a bi annual basis.

11:49 By accredited audit firm to to just check that we are following the necessary controls. But apart from making sure that our sourcing is responsible, we also believe that we play quite important role in the circular economy. From an environmental perspective. But if you look at the circle economy the one thing is is that's always explained. Obviously you've got the extraction to start with. You've got the recovery of that metal. You've got the manufacturing into a product. You've got the product being used and then that product needs to be recycled. But the reality is in the extraction phase, in the manufacturing phase, in the product generation phase, there will always be waste being generated.

12:34 And GOLDPLAT plays the role of taking that waste, making sure we extract value out of it, to, to ensure that whatever extraction happened beginning, maximum recovery comes from that. And that's the basically the role we play. And we believe from environmental perspective we provide quite a good economical solution. To to industry. Okay. If we then just in a nutshell I think this is more just indicating our constant performance over the last five years. Although it is fluctuating. The important thing is is we've been managing to achieve profitability. From our recovery businesses in June 2019 and 2020 we still had some mining operations or discontinued mining operations in our income statement. This has been stripped out here. So it's only reflecting the recovery business.

13:32 And as you can see we've been continuously generating profits out of this business. And

13:41 and I believe that sort of indicates our ability to continue to generate profits in the future and providing services to the mining industry. Because that's in the end where our resources and where our ability is to process is to be able to deliver the services required to industry. If we then go and look at the split between where we currently operating, you've got a picture there of the gold recovery plant in South Africa. With the CIL circuits and our and our cyanide tank in the front. And you can see in the past year we've done £33,000,000 operating profit in South Africa and in the gold recovery business $28,000,000.

14:26 So currently our profitability between the two subsidiaries actually quite split quite evenly. We sourcing material out of Africa. We sourcing material out of South America. We'll talk about how we're looking at diversifying the business a little bit later. But I guess the key is that our main focus is on making sure our primary business, our stronghold for the last twenty years is where we want to be. And that in the end is maximising value out of South Africa and Ghana. If we look at the sustainability of sourcing in South Africa, that remains our main focus. I think we're covering basically all the major producers in South Africa's material apart from one and that is where our main focus is is to to get the other major play in South Africa's material that will really assist us in terms of creating additional sustainability.

15:26 In South Africa from a byproducts point of view. I think it's important to understand in South Africa we basically have three major type of material. Two of it's being generated by the current mining industry. And then one is being generated by well generated in the past. So that is byproducts. It's wood chips and then it is contaminated surface sources. Now if we look at byproducts and wood chips that's being produced by the current industry and each of those basically adds roughly depending on the quarter, 30% to our to our operating

16:08 profitability. So the current clients supports the wood chips and the byproducts whereby then on the low grade surface sources we already have secured quite significant amount of material that's on-site which is roughly one. Five to two years of material. And we've got an agreement with DRD of material to for another two and a half years. Taking us more than four years of material that's available for processing through our low grade circuit which is encouraging. And then the rest obviously we need to support by continuous proper service delivery relationships and the contracts that's in place. Now if I spoke about a little bit about diversifying in South Africa we're looking at obviously South Africa's quite a minerals rich camp country.

17:02 And our current focus is on PGMs. It has been for a long time. We are doing material in PGMs. We're not looking at low grade material. There's a few companies in South Africa already looking at tilings from the chrome industry or the PGM industry for processing. We look more to any waste or byproducts being generated by the PGM industry to add value there. We've done an investment that you're aware of in a company green coal technologies that's got technology to recover fine coal of old slurry dumps. Our interest there was basically two fold. The one is with the technology we actually currently also using in our gold recovery operation and getting the value for what we've invested into that plant from that.

17:53 And secondly, we also looking for an opportunity where you've got a bigger resource availability which obviously from the the tonnes and tonnes of fine coal study that's available in South Africa. We see that there's a potential opportunity but that we're still investigating. We we will inform the market if we if we get to a point where we believe this will be economical but this is still very much in the process of of evaluation. As indicated some money has been invested into a PGM flotation plant. But that is more than two years ago and we also utilising that on the gold side.

18:38 Then I've already spoken about the tailings facility. On the tailings facility side we we've identified the optimal route for processing the tailings facility. I think what it's important to understand is is and I'm not sure if if everybody is aware of it. I mean firstly 2,000,000 tonnes of materials. Quite a significant amount of tonnes. The grade is around one. 78 grams a tonne. The recovery is obviously lower than what you'll what you'll find. It's already been processed. We're working with quite a refractory ore to start with. So the material that's not been recovered through our initial processes is not necessarily that easy to liberate and to recover afterwards. So we will need to process it at quite a significant volume.

19:26 To be able to to create economical environment whereby the cost per tonne is of such for us to process it. Now if you start processing at that volume, you need a bigger plant. Apart from that, you also then need quite a bigger tailings facility to be able to deposit it on. Now the easiest for us to do this was to rather send this material to a third party that's already got a big facility, that's already got a tiring facility to process. And that's why we've engaged with DRD in terms of processing it through their plant. At this moment I think there is a pipeline that DRD is in the process of constructing closer to where we are and then there is I can't remember the kilometres but there's still an area where we need to get final what to use license approval.

20:25 That process is is in place as we've indicated in the annual report as well. And I hope that there's going to be some movement in the next quarter or so where we can start putting proper timelines around all of this to the market and the market will then have comfort in terms of what will happen when. But it's definitely progressing quite well over the last six six months. Then we have constructed additional TSF in South Africa that gives us roughly six years of capacity. That is still in the commissioning phase. Close to completion now. And that is really what gave us the ability to look at our old TSF and say well how are we going to process this? If there's any more questions around that happy to answer towards the end.

21:15 If we then look at the Gold Recovery Ghana operation it is quite different than South Africa. The focus is the only on primary mining. We get mainly fine carbon carbon sludges. We also do get lower grade material like mill liners. We also get some other screen discards that are still containing gold that we process. And again what what is important maybe at this point in time to highlight. We get a lot of different material. And the contract terms for all of that material also differ quite significantly. High grade material, our margins is quite low. Our payment terms is is less is obviously more important in terms of the cash hold up that we'll see on the balance sheet that that creates.

22:07 Then if you look at the lower grade material, there's not that amount of gold in that material. It doesn't necessarily drive the turnover but it's a lot more profitable or gross profit on it is is a lot higher. And the amount of cash you need to invest on day one is a lot lower just because the value of it is is a lot lower. And that also then results in the fluctuation that you will see sometimes from year to year, quarter to quarter in in our operating margins is that depending on how many high grade material we process, there will be a big fluctuation on our GP margins. So our plant has the capacity to handle sufficient amount of material.

22:57 And it's it's it's really I think we've got I won't say we've got extra capacity but we also always have more capacity to handle material. In process of we we close to finalising the flotation plant that we've spoken about. And the flotation gravity circuit is is mainly just there to try and maximise the recoveries from the tails of some of the material we've processed in the past. And and we believe we'll be able to generate quite good value out of that for for a year or two and then to process material as we generate it in the future. The focus has always been in in Ghana on sourcing. Whether it's in South America or whether it's in West Africa. It's all about the relationships.

23:46 And it's all about relationships not just with the clients but also with the governments as I explained earlier. We've got good feed on the through the first six months out of Ivory Coast which is encouraging and it seems like that will continue. We've got good amount of material coming out of South America as well.

24:08 Out of out of Argentina. So so that that is quite positive. The challenges to growth remains obviously being able to increase our reach into the different countries. There is other gold gold mining destinations in Africa. That we that we also trying to to open up. Some of them do have certain policies that that requires only bullion to be exported. But we believe we make a good head head way there. And in the interim we still getting decent amount of material to support Ghana into the future as well. In South America we are looking at at putting or buying land there.

25:01 I think the first thing for us is just to get a address. In South America which is important. We've been there for more than five years. We've seen successful results. We do see a lot of low grade material that you can't ship economically to to Ghana. That that will be available. And we would like to provide a a fuller solution to to to the the mining industry in South America whereby we can assist them with lower grade material as well as the high grade material. But the reality is is we'll do it exactly the same as what we've done in Ghana. In the sense that we will start off very slowly. We will sort of minimise our investment as to what we require at that point in time. We probably will not build a full Ghana plant there. We will start maybe only building screening from the screening we might add incineration and so we will move on.

26:03 Until we build up a plant. So the intention is not to invest a lot of our own cash flow there straight away. If we look at the financial results over the last year, it has been a challenging year. I think there's a few things that's impacted us. The one thing has been obviously the light shedding that we're experiencing in South Africa. We also had some delays. Well it actually became quite significant delays in at one of our smelters in Europe. Most of that value now has been received. And then we also had a delay on our gold license towards the end of the previous financial period.

26:49 In Ghana which delayed the export of material to to Europe. And that resulted in significant working capital lock up. In inventory as well as in debtors as you will see if I go to the balance sheet now. But it also impacted the turnover number there which I believe could have even been higher. But also our gross profits. Specifically the load shedding has had an impact on that. Where we couldn't run continuously as we usually do in South Africa. We probably lost between 20 to 25%. Since since ja almost February last year. So it's it's it's almost a year later.

27:41 But even though we still manage to do decent profit from operating activities of $43,000,000. Again if you compare that to our current market cap of 10,000,000, I think there's still a lot of value with inside of GOLDPLAT. Our PE is is is at three. Six P on the back of basic earnings. The share of $1.67 against the share price of 6 P. So I still believe that's quite encouraging. On the balance sheet you can clearly see the lock up that I've explained. Trade and other receivables moving from 10,000,000 to 29,000,000. And then we've got basically networking capital lock up of roughly $78,000,000 as well.

28:37 And I think if we if we look at the at at maybe at the working capital lock up of $78,000,000. We it's basically our current assets less our current liabilities that we're looking at. We've got most of that value is well about 3,000,000 of that value is sitting in cash. Then the rest of it will mainly be then in lower grade material as well as in in debtors and inventory. I think what you'll see is is that we make we utilise a pre financing entity.

29:26 That assist us in terms of when we when we ship material they pre finance us the material based on the bill of laning. On the way to the smelter. So although we haven't had the final sale concluded and payment from the smelter, we do get a lot of value from them. And that assists us in terms of being able to pay clients. And at the moment we we do have situations where we get material, we pay the client and then we waiting for the final settlement from the smelter later on. This has been necessitated because we operating in South America processing in in Africa whereby obviously people want to see some cash flowing sooner and not wanting to wait the full term of six to nine months before the final value is being generated.

30:22 We also have the same situation in Africa where materials being moved cross border and the client wants to see some security in terms of cash flow earlier. Okay. If we then look at the cash flow quickly. I think what for me in the cash flow what's important that I want to highlight is just that in the in the year we've been able to generate again operating cash flow of roughly $33,000,000. And that has been taken up in the last financial year by capital spend of one. Nine million. You can see that's almost a million up from the previous year. Of $8.50 and that was driven because of the construction of the new tariff facility in South Africa which is completed now.

31:13 Furthermore our payments on interest bearing borrowings was a million higher than the previous period. That related to a year and a half ago. We did a deal with the minorities in South Africa where we bought back roughly 17% of their shares because they wanted to sell it and we we believe to show the value in in buying back their shares. We currently buying back the debt. The good news is there's roughly £800,000 left on that on that date and then that cash flow requirement will disappear. We however do have some cash flow that still will need to be paid. We're spending around £1,000,000 on generators that will be installed.

31:59 I think we've indicated to the market by end of January. Where to to be able to have a backup as a result of the fluctuation in electricity supply in South Africa. We have decided to invest that money to have that ability to switch on as and when we require and we'll keep the market up to date to that. But I mean the way we see it is that we had significant amount of lockup that we are starting to see releasing during the first half of twenty twenty four. Which will obviously give us a bit more of a stable base and clarity. We're seeing some of the capital falling away.

32:46 And some of these interest bearing borrowings is also coming to an end. Not not that it's a lot in terms of our current balance sheet. It's less than 10% of our capital employed. So we should be in a position where we've got clearer view of cash flow and looking at the ways we can potentially distribute that to shareholders and I'll talk about that a little bit later. So in summary our strategic focus remains on sustainability of sourcing material in the recovery operations. That I've indicated more than once now. I think what is important also is that it's also a license to operate is key for us in strategic. We've seen in the last year how that can hamper you even sort of the impact in the lies we had around the TSF.

33:36 Also had an impact on the group in in in one way or another. So first critical sustainability of sourcing material. Making sure our license to operate is secured as much as possible. We've spoken about continuing our market efforts in West Africa and South America. We've spoken about increasing commodity diversity. But if I need to go and rank this obviously I'll put the increase of production through the processing of our TSF on top of that and then returning surplus cash flow to shareholders. I'll put even above that in a sense that we are looking at as a board to make sure that where we extract value through our processes in the industry that we operate.

34:28 Which can sometimes fluctuate. We want to make sure we we distribute value to shareholders where we can. And obviously long term we also want to look at ways of making use of our skill to expand the business. And to create a business that's a bit more diversified. Where the sustainability is obviously even more secured. Yes, I've said, I've said quite a lot now, I think, Jake, I'm sure there's still a few questions, maybe things I haven't addressed, but I'm happy to take that now. And sorry for the disruption in the middle. Perfect, Werner, thank you very much indeed, for your presentation this afternoon. If I may, will just bring back up your, your camera there.

35:19 Ladies and gentlemen, please do continue to submit your questions just by using the Q and A tab that's situated on the right hand corner of your screen. But just while the team take a few moments to review those questions that were submitted already, I would like to remind you that a recording of this presentation along with a copy of the slides and the published q and a can be accessed via your investor dashboard. Werner, as you can see there in the q and a tab, we have received a number of questions, that were both submitted throughout your presentation, this afternoon as well as those that were pre submitted ahead of today's event. So if I may just hand back to you just to read out those questions and give your responses where it's appropriate to do so and then I'll pick up from you at the end. Thank you. Okay, thank you Jake. I see the questions has moved a bit. I'm going to start from the top as I see it here. I think the first question is when will shareholders find out about the financial details of the TSF on the DRD deal?

36:12 Very very important question. If I was a shareholder that would have been on top of my mind as well. As indicated previously I mean it's down to two things. The the one is is obviously the water use license. The second one is actually the most important one. Even if we don't have the water use license but we have fixed commercials with DRD. We can communicate that saying it's subject to. So the most important thing is around getting the final commercials with DRD finalised. There is definitely engagements. There's definitely movements there. But if if we could provide clearer guidelines we would have. But yes I think it's it's it's definitely progressing.

37:03 Then the next question is quite a long question. I'm gonna try and summarize it. I think it basically comes down to saying well we've got quite niche complicated business that requires different types of plant and machinery and what is basically our plans around Brazil and I'm gonna add the second question as well. What is our brand around coal? And I think through the presentation I try to make sure that I think the one thing maybe out of the RNS you tend to list a lot of different things. So here's 10 points. Two of those points. One will be Brazil. One will be coal. So 20% of what is in the RNS might reflect the opportunity around diversification.

37:49 I think the important thing to note is that our focus is on maximising the extraction of value from our current operating assets as a start. Without that we can't do anything else. I mean that's partly why we've got Douglas the COO that joined us as well focusing specifically around the operations of these circuits. And primary for us will then remain the the tailings facility and and also just securing our our base feed of material. So I think the question goes down to how much cost are we gonna invest? We will invest the amount of money that we believe at that point in time we can justify that we will be able to to return to investors on a short to medium term.

38:50 So I think at the moment we are not looking at a lot in in Brazil. It's a $103,120,000 pounds for the for for a piece of land. Then we'll do the second assessment. If we then look at the coal. We've done investments. Maybe there's another 25 to £50,000 that might need to be invested to test whether we can get we comfortable with the recovery on the fine coal before we do do make further investments. I think it's important to say that however for both of those we still believe it's encouraging. It's quite a good opportunity to find ways of saying well we've got the ability to extract value from these type of resources.

39:38 Let's see if we can do it in other commodities. Let's see if we can do it in other jurisdictions. I think there's value in terms of what we're trying to do. But we definitely not going to throw a whole business or the farm behind behind that. Is there a possibility of dividends? I think I tried to answer the question but probably not from that angle. I think in the end the company is sitting on 3,000,000 cash. The value of the company is 10,000,000. We traded at twelve P. We moved down to six P. I I think it's quite again a good questions from from from the shareholders to ask is to say well if we not seeing the share price increasing are we going to see some value being returned to us? You are profitable.

40:32 And the reality is is over the last eighteen months we had a few things that happened. It was obviously the the lock up due to material at the smelter. The load shedding created uncertainty that make visibility quite difficult in terms of decision making sometimes. Then you also have the situation around the licensing that we needed to get through. So once one or two of those stuff is stabilised our intention is definitely to look at how we can distribute value to shareholders. And Then I think the one question again is is why are we going into coal? There's is this not a resource too far?

41:21 Again I mean we got involved for more than one reason to start with. I think the intention would have been again to establish something where we could recover value on a low capital base. Which is important. We don't have plans to go and invest into something that's more than our market cap. And we believe that we can see good value from that and more importantly big resources that is visible, can be quantified, which is something maybe that's hampering our share price at this point in time because our resources is basically on relationships and it's something that I think the shareholders sometimes find difficult to to evaluate.

42:10 So there is that sort of complement that the fine coal processing will definitely bring to GOLDPLAT PLC. Can we get an update on the generators please? I think I spoke about what the plans around that is. And if if there's any additional changes we probably will definitely make that in our quarterly update. Could you provide an operational and financial update for the latest quarter end of December? I think normally we bring that we we release the quarterly results towards the last week, first week following the quarter end. And we definitely working on that and looking forward to share that information with you.

43:02 Is there 800,000 tonnes of additional material on the TSF since the joke of the same grade on the existing TSF? Obviously we haven't determined what the grade on that material is. It's it's the same type of material we processed and that we've deposited there. But yes we definitely added 800,000 tonnes of material onto that TSF. I think I've indicated, ja, another question around the digital generators. I think I've I've handled that. Is DRD handling the pipeline application? Yes, that's that's under their their guidance.

43:49 They're doing the submission. And they also got the necessary servitudes for the pipelines in place. So if we look at the question around the Kilimapesa smelter royalty, I think we've got it valued at its net present value in our financial statements roughly around £600,000. If if you look at the performance of Kilimapesa and Caracol at the moment there is not a lot of that. Ugh. Sorry. I say 3,000,000. I'm talking about $15,000,000. That was the total transaction value was 3,000,000. So the $1,500,000 is shown in our books roughly at £600,000.

44:48 And that receivable will probably happen over a long time. It's only a 11% net royalty. And currently I think the production in is at the rate. It will probably will take some time. If there's not a lot of additional expansion. But I think we did mention all the variables around that inside the annual report. That is on our website. As the selling of the TSF to DRD being considered. I think in the end there's some a lot of things that you need to evaluate before you can move this type of assets.

45:36 And we are willing to consider anything if we believe in the end it's to the value of the shareholder. Whether it is getting getting money sooner. Whether it's dealing with certain uncertainties and risk in the future. We will definitely look at that. But as I've indicated we are in discussion with them and hopefully we'll be able to share more to the market soon. Okay. Okay, some questions. Then there's questions around obviously the high receivables and payables due to refinery delays. It wasn't just the refinery delays.

46:23 It was also partly due to the refinery delays. We couldn't export some material. And then we also had the situation with the license in Ghana that impacted that as well. And then thirdly, we also had value sourcing where we had high value coming in, but we couldn't move that quickly enough. All of that in the end impacted on on that high balances. The balances has definitely come down. It's definitely reduced. We have received volumes, good volumes also in the first half of this period. So I think in terms of normalized once we actually release the first half figures you'll be able to have a clear indication around that. And we also see if we can give you a bit more guidance when we do quarter two operating update.

47:27 Okay. What guidance can we expect for financing costs associated with the extended refining pipeline? I think that that information will be shared also in the quarterly updates once we finalise the figures. Then there's a question again around share buybacks and returning value. Obviously once the board feel comfortable with the current position of the company we will look at advice of distributing any surplus cash flow. If there's any considering what other capital requirements there is.

48:15 Will we be able to recover gold, silver and uranium? We will not recover uranium from the tiling facility. That will not be the intention. You need a total different plant and obviously licensing for that. The material that will be moved to DRD. Only gold and silver will be recovered. But most most of the values obviously lie in the gold. Okay. I think if if we look at the delays experienced in Ghana around material that's been exported.

49:11 Obviously we've moved a lot of material and a lot of sales has gone through in the first quarter. And and we'll see then some of the completion of those transactions happening in the second quarter. Whereby we get final results and can then do our final estimations on the sales figures. 800 ks debt. Can we expect that to be paid off end of the fiscal year? Definitely. The term, I think it's end of October, maybe beginning November, it will be done. Go, we spoken about the rhenium. Okay then there's questions around dividends.

50:04 And and again I mean I think the the shareholders needs to understand obviously the changes that has happened in GOLDPLAT over the last ten years. The specific questions asked around returning of value and when is that actually going to happen and it hasn't happened in the last ten years. I think ten years ago we declared a dividend on certain business in Ghana that went extremely well. Obviously the focus has been for a long period of time of generating value out of mining, something we left in 2019, 2020. After that we looked at stabilising the balance sheet of the business. One of the ways of doing that and dealing with the intercompany debt was buying back minority shares. That was roughly £38,000,000 worth of transaction.

50:57 Which happened two years ago. So in essence we went and used value of the shareholders by acquiring additional stake in GOLDPLAT. And so that was one of the ways we added value over the last, let's say five years, which is quite a significant amount and additional stake in GOLDPLAT itself. We then returned, can't recall the figure now. I think it's roughly £400 through share buybacks. I think roughly eighteen months ago. And then since then we've gone through one or two events. Some of them were external. By certain impacts whether it was on smelters, whether it's load shedding in South Africa.

51:43 That we wanted to get our our our hands around and making sure that that that we comfortable and we've got stability and then after after that we can then definitely return to what our thinking was eighteen months ago. So from that perspective I think our mindset around returning value is a lot different than what it was. Let's say eight years ago, where the focus was on growing the mining sector, with inside of GOLDPLAT. Okay, then there's a lot of opinionated questions which which I appreciate but I'm not going to be able to answer one or two of them. I think in the end for me if if if I look at the GOLDPLAT business, we're trading at a PE of three or 3.6, which is quite low.

52:55 We're showing operating cash flow. We've been showing that for numerous amount of years. We're showing strong business in South Africa and Ghana, Even with all of these hiccups that we had in the previous year. So for me the main focus is is making sure that that primary business keeps on running as it's running. If we can then add the recoveries on the TSF to that, I believe we can extract sufficient value for the shareholders in the long term. And I think we need to back our own ability and skills and what we've learned over the last thirty years and see how we can apply that either in the gold industry or even in other industries as time goes along. But until we make any of those types of investments, obviously the focus is current business and on the shareholders.

53:52 Okay. I hope that answer also a few of the other questions. I think I've addressed everything now. If there's nothing more Perfect. Werner, absolutely. If I may just jump back in there. Thank you very much indeed for addressing all of those questions that came in from investors this afternoon. And of course, if there are any further questions that do make their way through, we'll, of course, give them back to you immediately after the presentation has ended just for you to review and to then add any additional responses, of course, where it's appropriate to do so, and we'll publish all those responses out on the platform. But, Werner, perhaps before really just looking to redirect those on the call to provide you their feedback, which I know is particularly important to yourself and the company. If I could please just ask you for a few closing comments to wrap up with that would be great.

54:38 Okay, well thank you Jake. I think maybe towards the end I've already sort of just added my view of of where we are. I think I mean obviously I'm looking forward to to to giving an update in terms of quarter two and a half year towards the end of the month beginning of next month. And I think hopefully we can with us being over this working capital lock up, we can start looking at at at giving better guidance in terms of what our cash flow is, what the surpluses are and how we look at spending that with inside the near future. And yes.

55:25 Thank you very much for everybody joining tonight. Perfect Werner, that's great and thank you once again for updating investors this afternoon. Could I please ask investors not to close this session as you'll now be automatically redirected the opportunity to provide your feedback in order that the management team can really better understand your views and expectations. This will only take a few moments to complete, but I'm sure it'd be greatly valued by the company. On behalf of the management team of GOLDPLAT PLC, we would like to thank you for attending today's presentation. That now concludes today's session. So good evening to you all.