Corporate Presentation
March 2018
Gold Recovery & Primary Mining
March 2018 DISCLAIMER These presentation materials (the Presentation - - PowerPoint PPT Presentation
Gold Recovery & Primary Mining Corporate Presentation March 2018 DISCLAIMER These presentation materials (the Presentation Materials) are being distributed in the UK only to persons having professional experience in matters relating
Corporate Presentation
March 2018
Gold Recovery & Primary Mining
DISCLAIMER
These presentation materials (the “Presentation Materials”) are being distributed in the UK only to persons having professional experience in matters relating to investments and who are investment professionals as specified in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Financial Promotion Order”), or high net worth companies, unincorporated associations etc. as specified in Article 49(2) of the Financial Promotion Order, and in each case who are qualified investors within the meaning of section 86(1)(a) of the Financial Services and Markets Act 2000, or to other persons who may lawfully receive the Presentation Materials. Any investment to which this document relates is available to (and any investment activity to which it relates will be engaged with) only those persons described above. Persons who do not fall within this category of investor should not take any action upon this document, but should return it immediately to Goldplat plc, 52-53 Conduit Street, London, W1S 2YX. It is a condition of your receiving this document that you fall within, and you warrant to Goldplat plc (“or “the Company”) that you fall within, the category of person described above. The Presentation Materials do not constitute or form any part of any offer or invitation to sell or issue or purchase or subscribe for any shares in the Company nor shall they or any part of them,
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Corporate Presentation - March 2018
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PRIMARY MINING
Environmental solution to dispose of by- products from mining activities
Corporate Presentation - March 2018
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GOLDPLAT AT A GLANCE
‘Green’ Gold Profitable
EBITDA for FY 2017 of
£3.8m
Growing
Price target of 15.3p* – a
106% premium to
the current share price
GOLD RECOVERY
*Price target by WH Ireland as at 26.02.18
Corporate Presentation - March 2018
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KEY DATA
Market AIM Ticker GDP Share price* 7.425p Shares in issue 167 million Market Cap* £12.55 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 26.02.18
5 5.5 6 6.5 7 7.5 8 8.5 9
Corporate Presentation - March 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 - March 2018
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Gold Recovery Ghana Limited
GHANA
Produced 10,031 oz Au FY 2017 (FY 2016: 6,883oz Au) Produced 3,597 oz Au H1 FY 2018 (H1 FY 2017: 7,588 oz Au)
Goldplat Recovery (Pty) Limited SA
SOUTH AFRICA
Produced 29,418 oz Au FY 2017 (FY 2016: 28,778oz Au) Produced 13,968 oz Au H1 FY 2018 (H1 FY 2017: 12,539 oz Au)
SOURCING MATERIALS FROM:
Corporate Presentation - March 2018
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GOLD RECOVERY: THE VALUE PROCESS
CLIENTS
producers
metal producers
clean-ups
PROCESSES
Goldplat process the material through various processing circuits to maximise recovery:
PRODUCTION
Revenues generated out of:
concentrates
MATERIALS
Includes:
Mill liners Rotary Kiln Wood chips Wash Plant Elution Column
Corporate Presentation - March 2018
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GOLD RECOVERY: GREEN GOLD PRODUCER
Environmental solution for by- products from mines:
from by-products
harmful elements
friendly deposition
Artisanal Tailings/ Mining Clean-Up
artisanal tailings
commissioned in Ghana to remove hazardous mercury and cyanide
a decommissioned gold operation in South Africa
“Responsible Gold” Accreditation
certified
supply chain of all sourced material
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)
reduce the harmful impact of mercury pollution
Low Energy Footprint
into pyrolysis to further reduce energy consumption
per gold production
Platinum Group Metals
elsewhere in Africa
undertaken on TSF JORC compliant resource of 81,959oz Au, 216,094oz Ag and 193,276 lb uranium oxide
refurbishment and configuration
test work programme - first results expected in Q3 FY 2018. Corporate Presentation - March 2018
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GOLD RECOVERY PTY LTD, SOUTH AFRICA (‘GPL’)
MAINTAINING MATURE MARKET POSITION: RETAIN PRODUCTION AT ~29,000oz p.a
quantity of quality material – particularly for the Carbon-in- Leach (‘CIL’) circuit
material stock now exceeds 1,000 kg (in excess of 32,000 oz) of gold for the first time since 2013
decommissioned gold operation for a large South African gold mining producer - due to be completed by the end of FY 2018
MONETISE TAILINGS STORAGE FACILITY RESOURCE DIVERSIFY
In February 2018 Goldplat Recovery (Pty) Limited and Rand Refinery signed a Settlement Agreement in which Rand Refinery agreed to pay GPL an undisclosed amount in full and final settlement of the dispute between the two parties
committee set up to manage discussions underway with Ghanaian government to clean up artisanal mining tailings
including mercury and cyanide – test work underway
secured in West Africa elsewhere in Africa, and further discussions underway
sustainable shipments are now being received from three different South American producers
Corporate Presentation - March 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
to ~20,000oz Au within 2-3 years
infrastructure currently being commissioned and commercial production is imminent
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 - March 2018
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Assessing a number of producing / near term production projects Kilimapesa Gold, Kenya: JORC resource of 671,446oz Au
in 2018 (2017: 3,408oz Au)
commissioned in 2017
permit
Kilimapesa Gold Mine KENYA
Produced 3,408 oz Au FY 2017 (FY 2016: 2,005oz Au) Produced 2,681 oz Au H1 FY 2018 (H1 FY 2017: 1,190oz Au)
Corporate Presentation - March 2018
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years
PRIMARY MINING EXPANSION STRATEGY
RAPIDLY GROW PRIMARY MINING PRODUCTION:
Kilimapesa Gold Mine New gold mines
50,000oz Au p.a
Corporate Presentation - March 2018
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GOLD PRODUCTION AND SALES H1 2018
Increase in total gold equivalent
Increase in ounces produced at Kilimapesa Gold Mine through increased production at Plant 2
lower ounces produced during the period under review, in-line with forecast, not having the windfall of the clean-up during the 31 December 2016 period 6 months 6 months Year ending December 2017 December 2016 June 2017 Equivalent Gold Equivalent Gold Equivalent Gold
Oz Oz Gold Equivalent Ounces Produced Goldplat Recovery 13,968 12,539 29,418 Gold Recovery Ghana 3,597 7,588 10,031 Kilimapesa Gold 2,681 1,190 3,408 Total 20,246 21,317 42,857 Gold Equivalent Sold Goldplat Recovery 11,420 9,838 22,570 Gold Recovery Ghana 4,693 2,443 8,327 Kilimapesa Gold 2,720 1,093 3,215 Total 18,833 13,374 34,112 Gold Equivalent Transferred Goldplat Recovery 2,950 3,279 6,173 Total 2,950 3,279 6,173 Gold Equivalent Sold and Transferred Goldplat Recovery 14,370 13,117 28,743 Gold Recovery Ghana 4,693 2,443 8,327 Kilimapesa Gold 2,720 1,093 3,215 Total 21,783 16,653 40,285
Corporate Presentation - March 2018
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FINANCIAL RESULTS H1 FY 2018
6 months 31 Dec 2017 (unaudited) £’000 6 months 31 Dec 2016 (unaudited) £’000 12 months 30 Jun 2017 £’000 Revenue 18,270 14,415 31,650 Cost of sales (15,117) (12,293) (26,454) Gross profit 3,153 2,122 5,196 Administration expenses (1,575) (1,113) (2,286) Results from operating activities of continued operations 1,578 1,009 2,910 Profit before tax 832 1,354 2,836 Profit for the period 473 933 964 Earnings per share – Basic 0.11 0.44 0.20 Earnings per share – Diluted 0.11 0.40 0.19 Net asset value 22,146 22,230 21,901 Cash and cash equivalents 918 835 2,650
Increase in revenues
Increase in operating profit
Decrease in profit before tax - negatively impacted by exchange rate fluctuations and consequent finance costs.
10.0 15.0 20.0 25.0 30.0 35.0 40.0 45.0 2016A 2017A 2018E 2019E 2020E
Corporate Presentation - March 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
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 - March 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 - March 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 - March 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 - March 2018
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CONTACT US
PUBLIC RELATIONS St Brides Partners Ltd Charlotte Page / Susie Geliher
BROKER WH Ireland Limited James Joyce / Jessica Cave
NOMAD Grant Thornton UK LLP Colin Aaronson / Jen Clarke t: +44 (0) 20 7383 5100
WWW.GOLDPLAT.COM