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Corporate Presentation - April 2018
1
PRIMARY MINING
Environmental solution to dispose of by- products from mining activities
Corporate Presentation - April 2018
2
GOLDPLAT AT A GLANCE
‘Green’ Gold Profitable
EBITDA for FY 2017 of
£3.8m
Growing
Price target of 15.3p* – a
107% premium to
the current share price
GOLD RECOVERY
*Price target by WH Ireland as at 26.02.18
Corporate Presentation - April 2018
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KEY DATA
Market AIM Ticker GDP Share price* 7.4p Shares in issue 167 million Market Cap* £12.6 million NOMAD Grant Thornton Broker WH Ireland Financial PR St Brides Partners Major Shareholders (top 5) % Holding Martin Ooi 10.00 Fidelity Investments (held by Chase Nominees Limited) 8.91 HSDL Nominees Limited 8.02 TD Direct Investing Nominees (Europe) Limited 6.30 Fitel Nominees Limited 6.01 Directors / Key Management 2.06 Board Matthew Robinson Non-Executive Chairman Gerard Kisbey-Green Chief Executive Officer Hansie van Vreden Chief Operating Officer Werner Klingenberg Financial Director Ian Visagie Executive Director Nigel Wyatt Non-Executive Director Sango Ntsaluba Non-Executive Director
*As at market close 23.04.18
4 4.5 5 5.5 6 6.5 7 7.5 8 8.5
Corporate Presentation - April 2018
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INVESTMENT CASE
Cash generative and profitable with a clear development path to build production Niche recovery business with an experienced management team and global opportunities being targeted for growth Primary mining operation in Kenya with 670,000oz Resource and growing production Undervalued relative to peers with a price target of 15.3p Targeting 50,000oz Au p.a from gold recovery and 50,000oz Au p.a from primary mining in next 2-3 years Underleveraged with a capacity to raise non-dilutionary capital for growth projects
Two market leading gold recovery operations in South Africa and Ghana, recovering gold from by-products of the mining process:
GOLD RECOVERY: GOLD PRODUCTION WITH A DIFFERENCE
Corporate Presentation - April 2018
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- Africa
- South America
- North America
Gold Recovery Ghana Limited
GHANA
Produced 10,031 oz Au FY 2017 (FY 2016: 6,883oz Au)
Goldplat Recovery (Pty) Limited SA
SOUTH AFRICA
Produced 29,418 oz Au FY 2017 (FY 2016: 28,778oz Au)
SOURCING MATERIALS FROM:
- AFRICA
- SOUTH AMERICA
- NORTH AMERICA
Corporate Presentation - April 2018
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GOLD RECOVERY: THE VALUE PROCESS
CLIENTS
- Blue chip gold
producers
- Platinum group
metal producers
- Other refiners
- Artisanal mining
clean-ups
PROCESSES
Goldplat process the material through various processing circuits to maximise recovery:
- Carbon-in-Leach circuits
- Wash Plants
- Spiral Circuits
- Incinerators
- Shot Blasting
- Rotary Kilns
- Flotation Circuits
- Elution Circuits
PRODUCTION
Revenues generated out of:
- Gold doré
- Silver doré
- Platinum Group Metal
concentrates
- Other ash and concentrates
MATERIALS
Includes:
- fine carbon
- mill liners
- wood chips
- grease
- Plant clean-ups
- Tailings
Mill liners Rotary Kiln Wood chips Wash Plant Elution Column
Corporate Presentation - April 2018
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GOLD RECOVERY: GREEN GOLD PRODUCER
Environmental solution for by- products from mines:
- Extracting metals
from by-products
- Removal of
harmful elements
- Environmentally
friendly deposition
Artisanal Tailings/ Mining Clean-Up
- Re-processing
artisanal tailings
- Pilot plant being
commissioned in Ghana to remove hazardous mercury and cyanide
- Appointed to clean-up
a decommissioned gold operation in South Africa
“Responsible Gold” Accreditation
- GPL & GRG
certified
- Ensures responsible
supply chain of all sourced material
- Adheres to the
London Bullion Market Association's 'Responsible Gold Guidance' and the World Gold Council certification of 'Conflict-Free' gold
A partner of the United Nations Environment Programme’s Global Mercury Partnership (Minamata Convention)
- Working together to
reduce the harmful impact of mercury pollution
Low Energy Footprint
- Research underway
into pyrolysis to further reduce energy consumption
- Lower energy usage
per gold production
- unce
- Trial project underway for
Platinum Group Metals
- By-products being sourced from
elsewhere in Africa
- Metallurgical test work being
undertaken on TSF JORC compliant resource of 81,959oz Au, 216,094oz Ag and 193,276 lb uranium oxide
- Looking to secure an old disused
- pen-pit for tailings deposition
- Q2 FY 2018 started the
refurbishment and configuration
- f flotation circuit for pilot plant
test work programme - first results expected in Q3 FY 2018 Corporate Presentation - April 2018
8
GOLD RECOVERY PTY LTD, SOUTH AFRICA (‘GPL’)
MAINTAINING MATURE MARKET POSITION: RETAIN PRODUCTION AT ~29,000oz p.a
- Focused on sourcing sufficient
quantity of quality material – particularly for the Carbon-in- Leach (‘CIL’) circuit
- New contract to clean-up a
decommissioned gold operation for a large South African gold mining producer - due to be completed by the end of FY 2018
- By-product contract renewals for
the major South African gold producers are currently underway
MONETISE TAILINGS STORAGE FACILITY RESOURCE DIVERSIFY
In February 2018 the dispute between Rand Refinery and GPL was concluded, with all legal agreements completed and Rand Refinery paying an undisclosed amount to GPL. Business between the two parties has since resumed.
- Mining “clean-up” – steering
committee set up to manage discussions underway with Ghanaian government to clean up artisanal mining tailings
- Process harmful contaminants
including mercury and cyanide – test work underway
- Wider Africa: contracts already
secured in West Africa elsewhere in Africa, and further discussions underway
- South America: regular and
sustainable shipments are now being received from three different South American producers
- North America: exploring
- pportunities
Corporate Presentation - April 2018
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GOLD RECOVERY GHANA LTD, GHANA (‘GRG’)
TARGETING VOLUME GROWTH TO BECOME A HUB FOR GLOBAL RECOVERY EXPANSION TARGETING ~20,000oz p.a
- Intention to double production
- utput from current ~10,000oz Au
to ~20,000oz Au within 2-3 years
- Elution plant and ancillary
infrastructure completed Q3 - allows further beneficiation of a lot of the material to Dore bars with first gold pour completed
- Additional Fluidised Bed
Incinerator to be installed to increase incinerator throughput by circa 33%
INTERNATIONAL EXPANSION EXPAND ENVIRONMENTAL SERVICES
Building profitability and scale as a primary gold miner
PRIMARY GOLD PRODUCTION
Corporate Presentation - April 2018
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Assessing a number of producing / near term production projects Kilimapesa Gold, Kenya: JORC resource of 671,446oz Au
- Targeted production of
5,800oz Au in 2018 (2017: 3,408oz Au)
- Two gold processing plants
- Plant 2 installed and
commissioned in 2017
- Mining licence and
exploration permit
Kilimapesa Gold Mine KENYA
Produced 3,408 oz Au FY 2017 (FY 2016: 2,005oz Au)
- Production for Q3 below plan due to lower than expected grades
from the underground mine as well as problems with the crushing circuit at Plant 2
- Cost optimisation is ongoing and plans underway to install grid
power at Plant 2, the underground mine and Teng Teng
- Kempe drill is now operational at Kilimapesa Hill underground mine –
this should assist in the forward planning of mining layouts with a consequent improvement of grades and costs
- Further optimisation of the metallurgical recovery is underway
Corporate Presentation - April 2018
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- Increase production to 50,000 ounces in two-three
years
- Brownfield growth at Kilimapesa
- Focussed on acquiring production or near-production
- unces
PRIMARY MINING EXPANSION STRATEGY
RAPIDLY GROW PRIMARY MINING PRODUCTION:
Kilimapesa Gold Mine New gold mines
50,000oz Au p.a
- Overall production at GPL was
slightly below plan but overall targets for the year remain on track
- Sourcing of material for GRG
was slower than anticipated, however several batches
- f
new material are in the final stages of contract completion
- Production at Kilimapesa for
the Quarter was below plan due to lower than expected grades from the underground mine as well as problems experienced with the crushing circuit at Plant 2
12
GOLD PRODUCTION AND SALES
Corporate Presentation - April 2018
Gold Equivalent Ounces for the (month period ending 31 March 2018) Goldplat Plc - Group 3rd Qtr Actual Mar-18 Equivalent Gold
- z
9 Months Actual Mar-18 Equivalent Gold
- z
9 Months Actual Mar-17 Equivalent Gold
- z
Year ending 12 Months Previous Jun-17 Equivalent Gold
- z
Gold Equivalent Production Goldplat Recovery (Pty) Ltd
4,533 18,501
17,518 29,418 Gold Recovery Ghana Ltd
1,192 4,789
8,391 10,031 Kilimapesa Gold (Pty) Ltd
1,241 3,922
2,154 3,408 Total
6,966 27,212
28,063 42,857 Gold Equivalent Sold Goldplat Recovery (Pty) Ltd
3,852 15,272
12,732 22,570 Gold Recovery Ghana Ltd
339 5,032
7,909 8,327 Kilimapesa Gold (Pty) Ltd
1,380 4,100
1,993 3,215 Total
5,571 24,404
22,634 34,112 Gold Equivalent Transferred Goldplat Recovery (Pty) Ltd 1,180 4,130 5,080 6,173 Total 1,180 4,130 5,080 6,173 Gold Equivalent Sold and Transferred Goldplat Recovery (Pty) Ltd
5,032 19,402
17,812 28,743 Gold Recovery Ghana Ltd
339 5,032
7,909 8,327 Kilimapesa Gold (Pty) Ltd
1,380 4,100
1,993 3,215 Total
6,751 28,534
27,714 40,285
- 5.0
10.0 15.0 20.0 25.0 30.0 35.0 40.0 45.0 2016A 2017A 2018E 2019E 2020E
Corporate Presentation - April 2018
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FINANCIAL TRENDS DATA FOR YEAR ENDED 30 JUNE
REVENUE
Source: Company filings and WH Ireland forecasts
GROSS PROFIT EV/EBITDA EPS
6.1 2.6 1.9 1.1 0.3
- 1.0
2.0 3.0 4.0 5.0 6.0 7.0 2016A 2017A 2018E 2019E 2020E
EBITDA (£m)
0.80 0.60 0.80 1.80 2.00 0.00 0.50 1.00 1.50 2.00 2.50 2016A 2017A 2018E 2019E 2020E
EPS
20.0 31.7 36.3 38.2 40.1
Revenue
3008 5196 5449 5735 6019 1000 2000 3000 4000 5000 6000 7000 2016A 2017A 2018E 2019E 2020E
Gross Profit (£000)
Corporate Presentation - April 2018
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GROWING GOLD PRODUCTION DATA FOR YEAR ENDED 30 JUNE
GOLD AND GOLD EQUIVALENTS PRODUCED
Source: Company filings, WH Ireland Note: Forward forecasts based on broker research by WH Ireland
GPL, South Africa Ghana Minister of Mines at GRG Kilimapesa Gold Mine, Kenya
10,000 20,000 30,000 40,000 50,000 60,000
2013a 2014a 2015a 2016a 2017a 2018e 2019e 2020e
Gold equivalent production oz
South Africa Ghana Kilimapesa
Corporate Presentation - April 2018
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GOLDPLAT IS UNDERVALUED – EV/EBITDA
2 4 6 8 10 12 14 16
London-listed support services Tailings/dump peers AIM gold producers
Average: 5.7
3.7 Source: Company filings and WH Ireland forecasts
Corporate Presentation - April 2018
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INVESTMENT CASE
Cash generative and profitable with a clear development path to build production Global import and material diversification opportunities being targeted for gold recovery Primary mining to be expanded organically and via strategic acquisitions / corporate deals Undervalued relative to peers with a price target of 15.3p Targeting 50,000oz Au p.a from gold recovery and 50,000oz Au p.a from primary mining in next 2- 3 years Underleveraged with a capacity to raise non-dilutionary capital for growth projects
Gerard Kisbey-Green, CEO Email: gkisbeygreen@goldplat.com Tel: +27 (071) 8915775
Corporate Presentation - April 2018
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CONTACT US
PUBLIC RELATIONS St Brides Partners Ltd Charlotte Page / Susie Geliher
- t. +44 (0) 20 7236 1177
BROKER WH Ireland Limited James Joyce / Jessica Cave
- t. +44 (0) 207 220 1666
NOMAD Grant Thornton UK LLP Colin Aaronson / Jen Clarke t: +44 (0) 20 7383 5100