Goldplat plc / Ticker: GDP / Index: AIM / Sector: Mining &
Exploration
25
March 2024
Goldplat
plc
('Goldplat' or the
'Company')
Interim results for the
six-month period ended 31 December 2023
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
unaudited interim results for the six months ended 31 December 2023
('H1 2023').
Goldplat continued to achieve
profitable results for H1 2023. Highlights include:
· Strong
operating profit for H1 2023 of £2,967,000 (H1 2022: £2,813,000),
which is particularly gratifying considering the circumstances
noted below;
· Revenue increasing by 82% to £37,402,000 (H1 2022:
£20,597,000), with the Ghanaian recovery operations recording an
increase in revenue of 167% and the South African operations a
decrease in revenue of 9% respectively;
· A net
profit from continued operations attributable to owners of the
company of £1,171,000 (H1 2022: £1,742,000);
· Fully
diluted earnings per share for the six-month period was 0.70 pence
per share (H1 2022: 1.02 pence per share);
· The
group net cash balance remained strong at £1,689,000 (30 June 2023:
£2,782,000); and
· During
the period the Company spent £793,000 (H1 2022: £802,000) on
capital expenditure, mainly on construction of a new tailings
storage facility ('TSF') in South Africa and refurbishment of one
of the circuits.
Werner Klingenberg, CEO of Goldplat
commented: "I am pleased with the continued strong operating
results achieved by the group, considering some of the difficult
circumstances we've experienced during the first half of the year
in South Africa."
For further information visit
www.goldplat.com, follow on Twitter @GoldPlatPlc or
contact:
Werner Klingenberg
|
Goldplat plc
(CEO)
|
Tel: +27 (0) 82 051 1071
|
Colin Aaronson / Samantha Harrison /
Enzo Aliaj
|
Grant Thornton UK LLP (Nominated
Adviser)
|
Tel: +44 (0) 20 7383 5100
|
James Bavister / Andrew de
Andrade
|
WH Ireland Limited
(Broker)
|
Tel: +44 (0) 207 220 1666
|
Tim Thompson / Mark Edwards / Fergus
Mellon
|
Flagstaff Strategic and Investor
Communications
|
Tel: +44 (0) 207 129 1474
goldplat@flagstaffcomms.com
|
Chairman's Statement
I am pleased to report on positive
results from our gold recovery operations, with operating profit
for the half year of £2,967,000 (H1 2022: £2,813,000). This was on
the back of revenue increasing by 82% to £37,402,000 (H1 2022:
£20,597,000), with the Ghanaian recovery operations recording an
increase in revenue of 167% and the South African operations a
decrease in revenue of 9% respectively.
The increase in revenue in Ghana was
mainly due to the quantity of high grade, low margin material sold
during the period which had either built up due to delays in our
exports while our export license was finalised during the 2nd half
of the previous financial period or material only supplied during
the period.
As a result of the 82% increase in
revenue, the amount pre-financed during the 6-month period
increased significantly. This together with a circa 3% increase in
interest rates to circa 11% (an effective 38% increase), resulted
in a significant increase in interest paid which amounted to
£827,000 (H1 2022: £75,504).
The foreign exchange loss of
£456,000, an increase of £334,000 from H1 2022, was mainly due to
the Ghana Cedi weakening by 5% against the United States Dollar
between July and December 2023.
Net interest paid of £888,000 (H1
2022: £202,000) includes £69,300 (H1 2022: £116,000) interest paid
to Nedbank on the repayment of the loan incurred to repurchase
minority shares in South Africa. As at the end of December 2023,
the outstanding value of the loan with Nedbank was
£767,000.
The decrease in the Group accrued
tax expense is the result of a higher level of taxable income
during the period in Ghana than in South Africa, where we are
charged a beneficial rate of 15% due to Gold Recovery Ghana being
part of the Free Zone Trade Area in Ghana.
As a result, net profit decreased to
£1,169,000 (H1 2022: £1,839,000) and an all-in, fully diluted EPS
for the half year of 0.70 pence (H1 2022: 1.02 pence).
To ensure the repayment of
intercompany debt owed by the Group to GPL, a total dividend of
£995,000 has been declared by GPL during the period of which
£270,000 has been repaid to GPL.
Working capital
|
Goldplat
Recovery
|
Goldplat
Recovery Ghana
|
Goldplat
Group
|
|
31 Dec '23
|
30 Jun '23
|
31 Dec '23
|
30 Jun '23
|
31 Dec '23
|
30 Jun '23
|
|
£ '000
|
£ '000
|
£ '000
|
£ '000
|
£ '000
|
£ '000
|
Inventory
|
4
616
|
5
185
|
8
810
|
14
365
|
13
464
|
20
134
|
Trade and other
receivables
|
6
134
|
14
744
|
14
935
|
14
438
|
21
449
|
29
205
|
Trade and other payables
|
5
701
|
13
679
|
20
772
|
28
193
|
27
616
|
43
196
|
Cash and cash equivalents
|
366
|
421
|
1
087
|
2
350
|
1
689
|
2
782
|
Cash and cash equivalents at the end
of the period decreased to £1,689,000 (30 June 2023: £2,782,000).
The decrease of £1,093,000 is largely because of a decrease in
trade payables during the period.
During the period we reduced the
level of built up inventory and trade and other receivables, with
the cash received mainly used to settle amounts owed to inventory
suppliers or the invoice financing creditor (refer note
14).
As indicated in the paragraph above,
inventory decreased from 30 June 2023, by £6,670,000 of which
£5,555,000 relates to the sale of built-up inventory in Ghana as
explained above.
Trade and other receivables also
decreased from 30 June 2023 by £7,756,000 due to the large volumes
of sales made close to the end of the financial period,
specifically in Ghana, being realised in the first half of the
current financial year.
Goldplat Recovery (Pty) Ltd
Revenue in South Africa decreased by
9% to £9,549,000 (H1 2022: £10,460,000) due to production being
impacted by electricity cuts by the electricity provider in South
Africa as well as a reduction in by-products received from current
mining operations due to changes in their production profile. As a
result, the operating profit for the period reduced to £300,000 (H1
2022: £1,040,000).
As a result of delays experienced at
the smelter in Europe in the previous financial year, South
Africa's half year results were further materially impacted as an
unusually large quantity of material for processing through gravity
circuits was held in stock at the end of June 2023; this material
contained a lower percentage of gold than estimated. While the
percentage of contained gold varies from month to month, the
unusually large quantity of material held in inventory meant that
there was a disproportionate effect on the half year with a
significantly lower quantity of gold than expected being recovered
from our gravity circuits.
Apart from the circa £600,000
shortfalls experienced on the gravities, we continued to see a
reduction in by-products received from current mining operations.
The focus therefore remains to increase our by-product market share
in South Africa and to gain access to neighbouring
countries.
With the new TSF being commissioned,
we are focussing on the work required to commence the processing of
our old tailings facility which has a JORC Resource of 81,959
ounces, at a DRD Gold process facility. Total capital spent during
H1 was £361,000 of which £319,000 was on the TSF.
We estimate that we will require a
further £500,000 (not including £750,000 to be spent on the
generators over the next 12 to 18 months) to be spent on repairing
and maintaining current operations, on completing the TSF and
improving the environmental impacts of our current operations. The
company anticipates this to be funded from internally generated
cashflow.
We are working with DRD Gold to find
the most economical methods to reprocess the TSF and to receive
environmental approval for a pipeline which will be required to
transport material to one of their facilities for
processing.
Gold Recovery Ghana
Ghana experienced an exceptional
half year driven by strong supplies during the first half of the
current financial year and the sale of inventory that built up as a
result of delayed exports whilst our export license was finalised
during the 2nd half of the previous financial period.
Ghana received the benefit during
the period of good supply of material, with consignments treated
from Ghana, Côte d'Ivoire and South America. Our focus remains on
building on the momentum in South America and Côte d'Ivoire and
opening other jurisdictions in West Africa.
As a result of this strong
performance, the operating margin increased, in part the result of
increased half year revenue of £26,711,000 (H1 2022: £10,007,000).
Net operating profit increased by 50% to £2,966,000 (H1 2022:
£1,982,000). During the period, GRG spent £432,000 on capital
expenditure to expand processing capacity in the plant.
Based on the increase in the number
of clients in South America, it has become more important to expand
into South America and we will continue to do so on a measured
basis. We made an initial investment of £7,000 and plan to make a
further investment of £65,000 for property. Although we have
identified the area, the negotiations for the property are still
ongoing.
Outlook
The strategy of the Company, which
also drives the key performance indicators of management, is to
generate value for shareholders by creating sustainable cash flow
and profitability through:
• growing its customer base in Southern Africa, West Africa,
South America and further afield;
• forming strategic partnerships with
other industry participants;
• leveraging its role in the circular economy to diversifying
into processing of platinum group metals ("PGM"), coal and other
commodities contained in 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-ton, TSF.
Due to the continuing uncertainty of
electricity supply in the medium term, we decided to invest in
diesel generators which will be able to sustain operations in South
Africa during electricity cuts as announced on 31 May 2023. During
January, it became apparent that due to miscommunication between
the supplier of the generators and the manufacturer, the shipping
of the generators has been delayed and the project will only be
completed in Q4 of the current financial year.
The Company will remain focused on
sharing future cashflows with shareholders, specifically
distributing surplus cash to shareholders where not required for
growth in line with key initiatives or managing specific
risks.
Gerard Kemp
Chairman
25 March 2024
Statements of Financial Position
|
|
Group
|
Group
|
Group
|
Figures in £ '000
|
Notes
|
31 December
2023
|
30 June
2023
|
31 December
2022
|
Assets
|
|
|
|
|
Non-current assets
|
|
|
|
|
Property, plant and
equipment
|
4
|
5
944
|
5
265
|
5
111
|
Right-of-use assets
|
|
324
|
352
|
416
|
Intangible assets
|
5
|
4
664
|
4
664
|
4
664
|
Investments in subsidiaries, joint
ventures and associates
|
6
|
1
|
1
|
1
|
Investments
|
|
80
|
63
|
145
|
Receivable on Kilimapesa
sale
|
7
|
571
|
571
|
556
|
Other loans and
receivables
|
8
|
149
|
145
|
183
|
Total non-current assets
|
|
11 733
|
11 061
|
11 076
|
Current assets
|
|
|
|
|
Inventories
|
9
|
13
464
|
20
134
|
13
648
|
Trade and other
receivables
|
10
|
21
449
|
29
205
|
20
456
|
Current tax assets
|
|
-
|
58
|
-
|
Receivable on Kilimapesa
sale
|
7
|
30
|
30
|
35
|
Other loans and
receivables
|
8
|
19
|
19
|
-
|
Cash and cash equivalents
|
11
|
1
762
|
2
977
|
2
826
|
Total current assets
|
|
36 724
|
52 423
|
36 965
|
Total assets
|
|
48 457
|
63 484
|
48 041
|
Equity and liabilities
|
|
|
|
|
Equity
|
|
|
|
|
Share capital
|
12
|
1
678
|
1
678
|
1
678
|
Share premium
|
12
|
11
562
|
11
562
|
11
562
|
Capital Redemption Reserve
|
12
|
53
|
53
|
53
|
Retained income
|
|
13
499
|
12
328
|
11
272
|
Foreign exchange reserve
|
|
(9
315)
|
(9
401)
|
(7
311)
|
Total equity attributable to owners of the
parent
|
|
17 477
|
16 220
|
17 254
|
Non-controlling interests
|
|
962
|
1
033
|
1
026
|
Total equity
|
|
18 439
|
17 253
|
18 280
|
Liabilities
|
|
|
|
|
Non-current liabilities
|
|
|
|
|
Provisions
|
13
|
760
|
743
|
778
|
Deferred tax liabilities
|
|
540
|
531
|
908
|
Long-term borrowings
|
15
|
-
|
285
|
865
|
Lease liabilities
|
|
52
|
37
|
54
|
Total non-current liabilities
|
|
1 352
|
1 596
|
2 605
|
Current liabilities
|
|
|
|
|
Provisions
|
13
|
57
|
207
|
207
|
Trade and other payables
|
14
|
27
616
|
43
196
|
25
535
|
Current tax liabilities
|
|
27
|
-
|
254
|
Current portion of long-term
borrowings
|
15
|
767
|
898
|
978
|
Lease liabilities
|
|
126
|
139
|
181
|
Bank overdraft
|
11
|
73
|
195
|
1
|
Total current liabilities
|
|
28 666
|
44 635
|
27 156
|
Total liabilities
|
|
30 018
|
46 231
|
29 761
|
Total equity and liabilities
|
|
48 457
|
63 484
|
48 041
|
The notes below are an integral part
of this condensed consolidated interim financial report.
Statements of Profit or Loss and Other Comprehensive
Income
Figures in £ `000
|
Notes
|
Group
6 month
period ended
31 December
2023
|
Group
12 month
period ended
30 June
2023
|
Group
6 month
period ended
31 December 2022
|
Revenue
|
|
37
402
|
41
881
|
20
597
|
Cost of sales
|
|
(32
905)
|
(34
459)
|
(16
704)
|
Gross profit
|
|
4 497
|
7 422
|
3 893
|
Other income
|
|
(6)
|
(96)
|
-
|
Administrative expenses
|
|
(1
524)
|
(3
021)
|
(1
080)
|
Profit from operating activities
|
|
2 967
|
4 305
|
2 813
|
Finance income
|
|
25
|
68
|
8
|
Finance costs
|
|
(913)
|
(1
238)
|
(210)
|
Foreign exchange
|
|
(456)
|
289
|
(122)
|
Profit before tax
|
|
1 624
|
3 424
|
2 489
|
Income tax expense
|
16
|
(455)
|
(356)
|
(650)
|
Profit for the period
|
|
1 169
|
3 068
|
1 839
|
Profit for the period attributable to:
|
|
|
|
|
Owners of Parent
|
|
1
171
|
2
798
|
1
742
|
Non-controlling interest
|
|
(2)
|
270
|
97
|
|
|
1 169
|
3 068
|
1 839
|
Other comprehensive income net of tax
|
|
|
|
|
Components of other comprehensive income that will be
reclassified to profit or loss
|
|
|
|
|
Exchange differences on translation relating to the
parent
|
|
|
|
|
Gains / (losses) on exchange
differences on translation
|
|
86
|
(3
231)
|
(1
135)
|
Total Exchange differences on translation
|
|
86
|
(3 231)
|
(1 135)
|
Exchange differences relating to the non-controlling
interest
|
|
|
|
|
(Losses)/Gains on exchange
differences on translation
|
|
24
|
(203)
|
(38)
|
Total other comprehensive income that will be reclassified to
profit or loss
|
|
110
|
(3 434)
|
(1 173)
|
Total other comprehensive (expense)/income net of
tax
|
|
110
|
(3 434)
|
(1 173)
|
Total comprehensive income
|
|
1 279
|
(366)
|
666
|
Comprehensive income attributable to:
|
|
|
|
|
Comprehensive income, attributable to
owners of parent
|
|
1
258
|
(432)
|
606
|
Comprehensive income, attributable to
non‑controlling interests
|
|
21
|
66
|
60
|
|
|
1 279
|
(366)
|
666
|
Earnings per share from continuing and discontinuing
operations attributable to owners of the parent during the
period
|
|
|
|
|
Basic earnings per share
|
|
|
|
|
Basic earnings per share
|
17
|
0.70
|
1.67
|
1.03
|
Diluted earnings per share
|
|
|
|
|
Diluted earnings per share
|
17
|
0.70
|
1.65
|
1.02
|
The notes below are an integral part
of this condensed consolidated interim financial report.
Statements of Changes in Equity - Group
Figures in £ '000
|
|
Share
Capital
|
Share
premium
|
Share Redemption
Reserve
|
Foreign
currency translation 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 income
|
|
-
|
-
|
-
|
(3
231)
|
-
|
(3
231)
|
(203)
|
(3
434)
|
Total comprehensive income for the
period
|
|
-
|
-
|
-
|
(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 period
|
|
-
|
-
|
-
|
-
|
1
171
|
1
171
|
(2)
|
1
169
|
Other comprehensive income
|
|
-
|
-
|
-
|
86
|
-
|
86
|
24
|
110
|
Total comprehensive income for the
period
|
|
-
|
-
|
-
|
86
|
1
171
|
1
257
|
22
|
1
279
|
Non-controlling interests in
subsidiary dividend
|
|
-
|
-
|
-
|
-
|
-
|
-
|
(93)
|
(93)
|
Balance at 31 December 2023
|
|
1 678
|
11 562
|
53
|
(9 315)
|
13 499
|
17 477
|
962
|
18 439
|
|
Notes
|
12
|
12
|
12
|
|
|
|
|
|
The notes below are an integral part
of this condensed consolidated interim financial report.
Statements of Cash Flows
Figures in £ `000
|
Notes
|
Group
6 month
period ended
31 December 2023
|
Group
12 month
period ended 30 June
2023
|
Group
6 month
period ended
31 December 2022
|
Net
cash flows from operations
|
|
1 489
|
4 511
|
1 340
|
Finance cost
|
|
(888)
|
(521)
|
(324)
|
Finance income
|
|
-
|
-
|
-
|
Income taxes paid
|
|
(380)
|
(647)
|
(755)
|
Net
cash flows from operating activities
|
|
221
|
3 343
|
261
|
Cash
flows used in investing activities
|
|
|
|
|
Proceeds from sale of Caracal
Gold
|
|
-
|
727
|
682
|
Acquisition of investments
|
|
(17)
|
|
(145)
|
Other cash payments to acquire equity
or debt instruments of other entities
|
|
-
|
(126)
|
-
|
Proceeds from sales of property,
plant and equipment
|
|
-
|
30
|
-
|
Purchase of property, plant and
equipment
|
|
(793)
|
(1
911)
|
(802)
|
Cash
flows used in investing activities
|
|
(810)
|
(1 280)
|
(265)
|
Cash
flows used in financing activities
|
|
|
|
|
Repayment of capital portion of
interest-bearing borrowings
|
|
(445)
|
(1
620)
|
(552)
|
Principal paid on lease
liabilities
|
|
(57)
|
(287)
|
(196)
|
Payment of dividend to
non-controlling interest
|
|
(93)
|
(185)
|
(152)
|
Cash
flows used in financing activities
|
|
(595)
|
(2 092)
|
(900)
|
Net
decrease in cash and cash equivalents
|
|
(1 184)
|
(29)
|
(904)
|
Cash and cash equivalents at
beginning of the period
|
|
2
782
|
3
895
|
3
895
|
Foreign exchange movement on opening
balance
|
|
91
|
(1
085)
|
(165)
|
Cash
and cash equivalents at end of the period
|
11
|
1 689
|
2 782
|
2 826
|
The notes below are an integral part
of this condensed consolidated interim financial report.
Notes to the Consolidated Financial
Statements
1.
General information
This condensed consolidated interim
financial information does not comprise statutory accounts within
the meaning of section 434 of the Companies Act 2006. Statutory
accounts for the year ended 30 June 2023 were approved by the
Board of Directors and have been delivered to the Registrar of
Companies. The auditors report on those accounts: their report was
unqualified, did not draw attention to any matters by way of
emphasis and did not contain a statement under section 498(2) or
(3) of the Companies Act 2006.
2.
Basis of preparation
Statement of compliance
The interim consolidated financial
statements have been prepared in accordance with IAS 34 Interim
Financial Reporting and the AIM rules and in accordance with the
accounting policies of the consolidated financial statements for
the year ended 30 June 2023. They do not include all disclosures
that would otherwise be required in a complete set of financial
statements and should be read in conjunction with the last annual
report. The statutory financial statements for the year ended 30
June 2023 were prepared in accordance with UK - adopted
international accounting standards, the AIM Rules for Companies and
the Companies Act 2006 applicable to companies reporting under the
International Financial Reporting Standards ("IFRS"). They have
been filed with the Registrar of Companies. The auditors' report on
those financial statements was unqualified.
Going concern
The directors have assessed that the
group is able to continue in business for the foreseeable future
with neither the intention nor the necessity of liquidation,
ceasing trading or seeking protection from creditors pursuant to
laws or regulations and thus have adopted the going concern basis
in preparing these financial statements.
The assessment of the going concern
assumption involves judgement, at a particular point in time, about
the future outcome of events or conditions which are inherently
uncertain. The judgement made by the directors included the
availability of and the ability to secure material for processing
at its plants in South Africa and Ghana, the impact of loss of key
management, outlook of commodity prices and exchange rates in the
short to medium term and changes to regulatory and licensing
conditions.
3.
Significant accounting policies
The accounting policies applied in this
condensed consolidated interim financial report are the same as
those applied in the Group's consolidated financial statements as
at and for the year ended 30 June 2023.
4.
Property, plant and equipment
During the six months ended 31
December 2023, the Group acquired assets with a cost, excluding
capitalised borrowing costs, of £793,084 (six months ended 31
December 2022: £802,000; twelve months ended 30 June 2023:
£1,911,000).
5.
Intangible assets
Intangible assets at the end of the
period relate only to goodwill which relate to the investment held
in Gold Minerals Resources Limited. The balance is supported by the
combined ongoing gold recovery operations in South Africa and
Ghana. During the six months ended 31 December 2023 the goodwill
balance has not been impaired (six months ended 31 December 2022:
£nil; twelve months ended 30 June 2023: £nil).
6.
Investments in subsidiaries, joint ventures and
associates
The
amounts included on the statements of financial position comprise
the following:
Figures in £ '000
|
Group
31 December
2023
|
Group
30 June
2023
|
Group
31 December
2022
|
Investment in joint
ventures
|
1
|
1
|
1
|
7.
Receivable on Kilimapesa sale
Receivable on Kilimapesa sale incorporates the following
balances:
The receivable relates to the 1% net
smelter royalty on production of Kilimapesa up to a maximum of
USD1,500,000.
Figures in £ '000
|
Group
31 December
2023
|
Group
30 June
2023
|
Group
31 December
2022
|
Non-current assets
|
571
|
571
|
556
|
Current assets
|
30
|
30
|
35
|
|
601
|
601
|
591
|
Other financial assets are
recognised initially at the fair value, including transaction
costs. The asset will subsequently be measured at fair value and
are grouped into levels 1 to 3 based on the degree to which the
fair value is observable. The financial assets from the Kilimapesa
sale has unobservable inputs and is therefore included in level
3.
8.
Other loans and receivables
Other loans and receivables comprise the following
balances
Figures in £ '000
|
Group
31 December
2023
|
Group
30 June
2023
|
Group
31 December
2022
|
Aurelian Capital Proprietary
Limited
|
168
|
164
|
183
|
As part of the share repurchase of
minority interest in GPL, the balance that was outstanding from the
minorities, Amabubesi (Pty) Ltd, for the original purchase of the
shares, was repaid. However, when additional shares was issued to
Aurelian, it was agreed that a portion of the proceeds will be
recoverable from future dividends. The balance outstanding has been
included at discounted value of future proceeds recoverable from
dividends.
9.
Inventories
Inventories comprise:
Figures in £ '000
|
Group
31 December
2023
|
Group
30 June
2023
|
Group
31 December
2022
|
Raw materials
|
2
362
|
2
462
|
2
958
|
Consumable stores
|
940
|
1
054
|
1
123
|
Precious metals on hand and in
process
|
10
162
|
16
618
|
9
567
|
|
13 464
|
20 134
|
13 648
|
Inventories are initially recognised
at cost, and subsequently at the lower of cost and net realisable
value. Cost comprises all costs of purchase, costs of conversion
and other costs incurred in bringing the inventories to their
present location and condition. Weighted average cost is used to
determine the cost of ordinarily interchangeable items.
10.
Trade and other receivables
Trade and other receivables comprise:
Figures in £ '000
|
Group
31 December
2023
|
Group
30 June
2023
|
Group
31 December
2022
|
Trade receivables
|
19
925
|
27
645
|
19
060
|
Trade receivables
impairment
|
(19)
|
(114)
|
-
|
Trade receivables - net
|
19
906
|
27
531
|
19
060
|
Sundry debtors
|
-
|
1
|
-
|
Prepaid expenses
|
59
|
77
|
65
|
Deposits
|
1
|
-
|
1
|
Other receivables
|
1
335
|
1
404
|
924
|
Value added tax
|
148
|
192
|
406
|
|
21 449
|
29 205
|
20 456
|
11.
Cash and cash equivalents
11.1 Cash and cash equivalents included in current
assets:
Figures in £ '000
|
Group
31 December
2023
|
Group
30 June
2023
|
Group
31 December
2022
|
Cash
|
|
|
|
Balances with banks
|
1
762
|
2
977
|
2
826
|
11.2 Overdrawn cash and cash equivalents included in current
liabilities
Figures in £ '000
|
Group
31 December
2023
|
Group
30 June
2023
|
Group
31 December
2022
|
Bank overdrafts
|
(73)
|
(195)
|
(1)
|
12.
Share capital
Authorised and issued share capital
Figures in £ '000
|
Group
31 December
2023
|
Group
30 June
2023
|
Group
31 December
2022
|
Issued
|
|
|
|
Ordinary shares
|
1
678
|
1
678
|
1
678
|
|
1 678
|
1 678
|
1 678
|
Share premium
|
11
562
|
11
562
|
11
562
|
|
13 240
|
13 240
|
13 240
|
13.
Provisions
Provisions comprise:
Figures in £ '000
|
Group
31 December
2023
|
Group
30 June
2023
|
Group
31 December
2022
|
Environmental obligation
|
760
|
743
|
778
|
In terms of section 54 of the
regulations of the Minerals Resource and Petroleum Act of 2002, in
South Africa, a Quantum of Financial Provisioning is required for
activities performed under the mining lease. Quantum of Financial
Provisioning requires a detailed itemization of actual costs
relating to the premature closure, decommissioning and final
closure and post closure management. The Company makes use of an
independent consultant to calculate the detail itemized actual
current costs for rehabilitation and to evaluate any critical
estimates and assumptions. The Quantum of Financial Provisioning
has been approved by the Department of Minerals Resources in South
Africa. The Company has insured the obligation and has ceded the
proceeds from the policy to the Department of Minerals Resources.
The movement in the current financial year is due solely to foreign
exchange.
Figures in £ '000
|
Group
31 December
2023
|
Group
30 June
2023
|
Group
31 December
2022
|
Other provisions
|
57
|
207
|
207
|
Current portion
|
57
|
207
|
207
|
|
817
|
950
|
985
|
Other provisions relate to certain
tax claims in the Group subsidiaries.
14.
Trade and other payables
Trade and other payables comprise:
Figures in £ '000
|
Group
31 December
2023
|
Group
30 June
2023
|
Group
31 December
2022
|
Trade creditors
|
4
810
|
5
974
|
3
856
|
Anumso license accrual
|
369
|
369
|
-
|
Accrued liabilities
|
10
603
|
17
799
|
9
406
|
Invoice financing creditor
|
11
834
|
19
054
|
12
273
|
Total trade and other
payables
|
27 616
|
43 196
|
25 535
|
15.
Long term borrowings
During the prior year, through GPL,
the Group entered into a ZAR denominated bank facility of ZAR 60
million (approximately £3.02 million) with Nedbank, to finance the
repurchase of shares from minorities in South Africa. The bank
facility is repayable monthly over 36 months and attracts interest
at 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 Company entered into a limited suretyship
for ZAR 60 million, in favour of Nedbank. The facility is subject
to various covenants, requiring certain levels of free cashflow,
profitability, solvency and equity levels.
Long term borrowings comprise:
Figures in £ `000
|
Group
31 December
2023
|
Group
30 June
2023
|
Group
31 December
2022
|
Nedbank
|
767
|
1
183
|
1
843
|
Non-current portion of long term
borrowings
|
-
|
285
|
865
|
Current portion of long term
borrowings
|
767
|
898
|
978
|
|
767
|
1 183
|
1 843
|
16.
Income tax expense
Income tax expense is recognised
based on management's best estimate of the weighted average annual
income tax rate expected for the full financial year applied to the
pre-tax income of the interim period. The tax charges for the
period arises in South Africa, Ghana and on declaration of
dividends from South Africa. The effective income tax rate in GPL
was 20.5% (six months ended 31 December 2022: 21%), GRG was 15%
(six months ended 31 December 2022: 14%) and the withholding tax
rate on dividends declared was 5% (six months ended 31 December
2022: 5%).
17.
Earnings per share
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:
Figures in £ '000
|
Group
31 December
2023
|
Group
30 June
2023
|
Group
31 December
2022
|
Profit for the period attributable
to owners of the company
|
1
171
|
2
798
|
1
742
|
Earnings used in the calculation of basic earnings per share
for continuing operations
|
1 171
|
2 798
|
1 742
|
Weighted average number of ordinary
shares used in the calculation of basic earnings per share
('000s)
|
167
783
|
167
783
|
168
837
|
Weighted average number of ordinary
shares used in the calculation of diluted earnings per share
('000s)
|
168
438
|
169
682
|
170
037
|
18.
Capital Commitments
Due to the continuing uncertainty of
electricity supply in the medium term, we have committed to invest
£750,000 in diesel generators which will be able to sustain
operations in South Africa during electricity cuts. The investment
will be financed through an asset financing facility from a local
bank. As the generators have not been delivered as yet, the asset
and liability have not been recognised in the Statements of
Financial Position.
19.
Segment information
19.1 Segment revenues
Figures in £ '000
|
Total segment
revenue
|
Period ended 31 December 2023
|
|
South African Recovery
Operations
|
9
549
|
West African Recovery
Operations
|
26
711
|
South American Recovery
Operations
|
1
106
|
Administration and Other
|
36
|
Group revenue
|
37 402
|
Period ended 30 June 2023
|
|
South African Recovery
Operations
|
26
959
|
West African Recovery
Operations
|
14
814
|
South American Recovery
Operations
|
100
|
Administration and Other
|
8
|
Group revenue
|
41 881
|
Period ended 31 December 2022
|
|
South African Recovery
Operations
|
10
460
|
West African Recovery
Operations
|
10
007
|
South American Recovery
Operations
|
130
|
|
20 597
|
19.2 Other incomes and expenses
Figures in £ `000
|
Depreciation
|
Finance
cost
|
Finance
income
|
Segment profit/(loss) before
tax
|
Taxation
|
Period ended 31 December 2023
|
|
|
|
|
|
South African Recovery
Operations
|
(215)
|
(259)
|
90
|
131
|
(155)
|
West African Recovery
Operations
|
(55)
|
(1
101)
|
60
|
1
925
|
(280)
|
South American Recovery
Operations
|
-
|
(16)
|
-
|
31
|
(4)
|
Administration
|
-
|
(74)
|
19
|
516
|
(47)
|
Reconciliation to group
figures
|
-
|
1
|
(66)
|
(979)
|
30
|
Total other incomes and expenses
|
(270)
|
(1 448)
|
104
|
1 624
|
(455)
|
Period ended 30 June 2023
|
|
|
|
|
|
South African Recovery
Operations
|
(468)
|
(456)
|
(13)
|
2
808
|
96
|
West African Recovery
Operations
|
(109)
|
(1
022)
|
597
|
1
965
|
(355)
|
South American Recovery
Operations
|
-
|
13
|
-
|
(214)
|
(7)
|
Administration
|
-
|
(154)
|
-
|
871
|
(90)
|
Reconciliation to group
figures
|
-
|
(1)
|
155
|
(2
006)
|
-
|
Total other incomes and expenses
|
(578)
|
(1 620)
|
739
|
3 424
|
(356)
|
Period ended 31 December 2022
|
|
|
|
|
|
South African Recovery
Operations
|
(220)
|
(170)
|
89
|
1
318
|
(278)
|
West African Recovery
Operations
|
(57)
|
(40)
|
-
|
2
304
|
(322)
|
South American Recovery
Operations
|
-
|
-
|
-
|
(88)
|
(3)
|
Administration
|
-
|
(81)
|
-
|
599
|
(47)
|
Reconciliation to group
figures
|
-
|
81
|
(81)
|
(1
644)
|
-
|
Total other incomes and expenses
|
(277)
|
(210)
|
8
|
2 489
|
(650)
|