Business
Audited Results for the year ended 30 June 2024
Audited Results for the year ended 30 June 2024.
About this update from Goldplat Plc
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: +27 (0) 82 051 1071 Colin Aaronson / Samantha Harrison / Ciara Donnelly Grant Thornton UK LLP (Nominated Adviser) Tel: +44 (0) 20 7383 5100 James Bavister / Andrew de Andrade Zeus (Broker) Tel: +44 (0) 203 829 5000 Tim Thompson / Mark Edwards / Fergus Mellon Flagstaff Strategic and Investor Communications Tel: +44 (0) 207 129 1474 [email protected] 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.