March 2018 DISCLAIMER These presentation materials (the Presentation - - PowerPoint PPT Presentation

march 2018 disclaimer
SMART_READER_LITE
LIVE PREVIEW

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


slide-1
SLIDE 1

Corporate Presentation

March 2018

Gold Recovery & Primary Mining

slide-2
SLIDE 2

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,

  • r the fact of their distribution, form the basis of, or be relied on in connection with, any contract with the Company relating to any securities.

The Presentation Materials are not intended to be distributed or passed on, directly or indirectly, or to any other class of persons. They are being supplied to you solely for your information and may not be reproduced, forwarded to any other person or published, in whole or in part, for any

  • ther purpose. The Presentation Materials do not purport to contain all information that a prospective investor may require and are subject to

updating, revision and amendment. In furnishing the Presentation Materials, the Company does not undertake or agree to any obligation to provide access to any additional information or to update such Presentation Materials or to correct any inaccuracies in, or omissions from, the Presentation Materials which may become apparent. The information and opinions contained in the Presentation Materials are provided as at the date of the presentation and are subject to change without notice. No reliance may be placed for any purpose whatsoever on the information contained in this document or on its completeness. Any reliance on this communication could potentially expose you to a significant risk of losing all of the property invested by you or the incurring by you of additional liability. No representation or warranty, express or implied, is given by the Company, its Directors or employees, or their professional advisers as to the accuracy, fairness, sufficiency or completeness of the information, opinions or beliefs contained in this document. Save in the case of fraud, no liability is accepted for any loss, cost or damage suffered or incurred as a result of the reliance on such information, opinions or beliefs. The Presentation Materials have been prepared by and are the sole responsibility of the Directors and the Company. If you are in any doubt about the investment to which these Presentation Materials relate, you should consult a person authorised by the Financial Conduct Authority who specialises in advising on securities

  • f the kind described in this document. The Presentation Materials are confidential and are being supplied to you for your own information. They

may not (directly or indirectly) be reproduced, further distributed to any person or published, in whole or in part, for any purpose whatsoever. Neither this document, nor any copy of it, may be taken or transmitted into the United States, Canada, Australia, Ireland, South Africa or Japan

  • r into any jurisdiction where it would be unlawful to do so. Any failure to comply with this restriction may constitute a violation of relevant local

securities laws.

Corporate Presentation - March 2018

1

slide-3
SLIDE 3

PRIMARY MINING

Environmental solution to dispose of by- products from mining activities

Corporate Presentation - March 2018

2

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

slide-4
SLIDE 4

Corporate Presentation - March 2018

3

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

slide-5
SLIDE 5

Corporate Presentation - March 2018

4

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

slide-6
SLIDE 6

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

5

  • Africa
  • South America
  • North America

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:

  • AFRICA
  • SOUTH AMERICA
  • NORTH AMERICA
slide-7
SLIDE 7

Corporate Presentation - March 2018

6

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

slide-8
SLIDE 8

Corporate Presentation - March 2018

7

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
slide-9
SLIDE 9
  • 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 - March 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

  • Gold content of current raw

material stock now exceeds 1,000 kg (in excess of 32,000 oz) of gold for the first time since 2013

  • 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

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

slide-10
SLIDE 10
  • 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 - March 2018

9

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 currently being commissioned and commercial production is imminent

  • Additional Fluidised Bed

Incinerator to be installed to increase incinerator throughput by circa 33%

INTERNATIONAL EXPANSION EXPAND ENVIRONMENTAL SERVICES

slide-11
SLIDE 11

Building profitability and scale as a primary gold miner

PRIMARY GOLD PRODUCTION

Corporate Presentation - March 2018

10

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) Produced 2,681 oz Au H1 FY 2018 (H1 FY 2017: 1,190oz Au)

slide-12
SLIDE 12

Corporate Presentation - March 2018

11

  • 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

slide-13
SLIDE 13

Corporate Presentation - March 2018

12

GOLD PRODUCTION AND SALES H1 2018

125%

Increase in total gold equivalent

  • unces sold and transferred

31%

Increase in ounces produced at Kilimapesa Gold Mine through increased production at Plant 2

53%

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

  • z

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

slide-14
SLIDE 14

Corporate Presentation - March 2018

13

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

25%

Increase in revenues

56%

Increase in operating profit

39%

Decrease in profit before tax - negatively impacted by exchange rate fluctuations and consequent finance costs.

slide-15
SLIDE 15
  • 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 - March 2018

14

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)

slide-16
SLIDE 16

Corporate Presentation - March 2018

15

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

slide-17
SLIDE 17

Corporate Presentation - March 2018

16

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

slide-18
SLIDE 18

Corporate Presentation - March 2018

17

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

slide-19
SLIDE 19

Gerard Kisbey-Green, CEO Email: gkisbeygreen@goldplat.com Tel: +27 (071) 8915775

Corporate Presentation - March 2018

18

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

slide-20
SLIDE 20

WWW.GOLDPLAT.COM