Hi there, S.P Angel have issued a BUY recommendation for AIM listed Goldplat plc, with a price target of 12p (current share price 5p).

The Company, which has gold recovery and mining operations in Africa, today announced its interim results, which have been impacted by a weak gold price.

Nonetheless, with cost control measures now in place, revenues are expected to improve for H2 FY 2014. I have included the full note from S.P Angel, who act as broker to Goldplat, and the announcement below. Kind regards, Charlotte S.P.

Angel - Flash Note - Goldplat- Interims Goldplat (GDP LN)* 5pence, Mkt Cap �8.4m - Interim Results Weak with better Second Half Expected Buy - Target Price 12 pence * Group Revenues were �9.645m down from �15.48m in the same period last year. * The company made a gross profit of �251,000 against a gross profit of �2.965m in the same period last year. * The company reported a net loss of �912,000 against a net profit of �1.559m (before impairment charges). * The fall in revenues and losses resulted from weak trading conditions highlighted in the companys recent trading update against a lower gold price. * Cash and cash equivalents were �634,000 at the end of the period. * Recovery Operations * Revenues for the recovery operations were �9.45m down 37% on the same period last year. * Gross Profits were �270,000 and operating * Gross Profit and net profits were down significantly reflecting difficult trading conditions at GPL (SA recovery operations). * This was against a weaker back drop for the gold price with gold prices down 23% over the same period last year. * South Africa (GPL) is likely to have reported a small net loss for the period against a profit at Ghana (GRG). * As highlighted previously in their trading statement South African recovery operations have had a difficult first half. * Operations have been impacted by the fall in the gold price as material bought in through contracts was struck at high prices against prices actually realised at the time of sale due the fall and volatility in the gold price. * In addition, processing of by products through Rand Refinery was temporarily held up in the first half as the company achieved its accreditation status. * By products constitute a third of their South African profits - this has been a temporary stop to the processing of by products which has since been normalised. * Now that Goldplat has achieved the accreditation status, they are now well positioned relative to other "secondary" producers to send material to the Rand Refinery offering scope for future business opportunities. * By products acquired over the first half were of lower grade and higher price making it difficult to process profitability. * A number of initiatives have been introduced by Hansie van Vreden who took over as the Managing Director of the South African operations last year which should partially mitigate a fall off in profits in the operations. * Contracts are being renegotiated so that customers receive the gold price achieved at point of sale. * By products which are currently stockpiled will be processed over a 24 hour shift improving returns. * Costs are being saved through the introduction of liquid cyanide in the CIL circuits which will result in cost savings as this is much cheaper than granulated cyanide. * GRG (Gold Recovery In Ghana) - GRG restarted operations at Tema through the treatment of stockpiles on site. * The procurement of artisanal tailings at more commercial rates is slowly being achieved - these form part of the material being treated through the Adamus toll treatment plant. * GRGs targeting of the higher value carbon business is continuing. * Kilimapesa: The mine continues to run on care and maintenance with losses likely to continue but at a lower pace than last year. * Kilimapesa reported net revenues of �271,000 with net losses of �415,000 for mining and exploration 70% of this likely to be at Kilimapesa. * The board is currently reviewing options for Kilimapesa. Gold Recovery Operations to recover in the second half * We expect both GPL and GRG to perform better in the second half. * At GPL by products held up in the first half can now be sent on to Rand Refinery. * In addition, the company is implementing a 24 hour treatment process for by products building up at the plant. * The company are also restructuring contracts on more commercial terms and while we do not expect these to come through all in the second half, we expect less of an impact from the gold price. * South Africa is expected to recover in the second half, we do not expect this division to regain the same level of profitability achieved last year against a lower gold price environment and less flexibility in the stock price. * Ghana has held up better with operations resuming at Tema and the currency offering a better hedge against lower gold prices. * Artisanal tailings which constitute part of the business at Adamus is being bought at more commercial prices. * We expect a full year gross profit of �2.58m at the recovery operations and a net contribution from the recovery operations of �1.79m after G&A cost at the operations. Kilimapesa remains on care and maintenance while options are being sought The company continue to look at options for Kilimapesa but based on the small scale of production at the mine and high royalties at the state and community level, the mine is expected to be loss making. * Losses are likely to be reduced significantly from last year but are still expected to be around �461,000 for the full year. * The company is in discussions with the government to improve the terms of running the mine including participation rules in the new Mining Act. * The company is in discussions with JV partners to invest in capital in a larger plant which would improve the profitability of the mine. Next year should be a better year but will be one of bedding down existing initiatives * We expect the initiatives being put into place by the new team to lead to increased profitability being re-established at the recovery operations. * Initiatives are being introduced to improve margins and the profitability of the company through the introduction of a more disciplined approach to sourcing of material, structuring of contracts and improvements in costs. * Profits are likely to recover at both South African and Ghana but are unlikely to achieve the levels reached last year against a more muted gold price environment. * Options being considered for Kilimapesa could also provide a respite from losses and potential for value. * We expect the operations to be close to cash neutral for this year, retaining most of the cash balance from last year with scope to build this up in the following year. June Year End
2010 2011 2012 2013 2014E Revenue �000s 10,663 19,620 26,225 28,904 23,500 Operating Costs �000s 8,604 16,566 20,178 24,338 21,000 Operating Profit �000s 2,059 3,054 4,727 2,394 516 Post Tax Profit �000s 1,346 2,531 4,644 1,729 416 Cash �000s 918 2,488 4,573 2,360 2,067 EPS pence 1.1 1.6 2.9 1.3 0.2 P/E
4.5x 3.2x
1.7x 5.2x 25x Dividend pence 0.6 0.12 0 Dividend Yield %
12% 2.4% 0.0%
SP Angel Acts as Nomad and Broker to Goldplat
Goldplat plc / Ticker: GDP / Index: AIM / Sector: Mining & Exploration 10 March 2014 Goldplat plc (Goldplat or the Company) Interim Results Goldplat plc, the AIM listed gold producer, announces its interim results for the six months ended 31 December 2013 (H1 2014). Overview * Focussed on restructuring Goldplats gold recovery and mining business in Africa to be profitable in the changed economic environment * Weak gold prices impacted revenues for the period, but cost control measures across operations expected to improve revenues for H2 FY 2014 * First secondary gold producer in South Africa to obtain accreditation as a Responsible Gold producer - opportunity for competitive advantage * Examining Joint Venture opportunities to redevelop Kilimapesa gold mine in Kenya subject to proposed Kenyan legislation Chairmans Statement Our portfolio of assets consist of our primary market leading gold recovery operations in South Africa and Ghana, and three gold exploration and development mining assets in Kenya, Ghana and Burkina Faso. This has been a difficult period for the Company as we have adapted to the substantial reduction in the gold price experienced during the period under review.

Goldplats income is dominated by the sale of gold.

The gold price for the six months ended 31 December 2012 averaged almost US$1,700/oz and for the whole of the year ended 30 June 2013 approximately US$1,600/oz.

For the six months ended 31 December 2013 however the price averaged some US$1,300/oz.

It follows that the same volume of gold sales would result in income of some US$300/oz less than for FY 2013. Goldplats exposure to the gold price is mitigated by the fact that it can, and does, adjust the price of gold bearing material it purchases, thus putting it at an advantage compared with a mine reliant on a finite orebody.

However, this mitigation is not immediate in effect, as the Group tends to be processing stockpiles purchased some time previously.

Furthermore the major part of Goldplats costs are processing costs which do not vary with the gold price, rather tending to increase with inflation.

In South Africa and Ghana the reduction in the local currencies has helped, but the main factors in the improving trading position are the cost control measures introduced by management. Coupled with the recent strengthening in the gold price, these measures reinforce the statement contained in the last annual report, that, while the first half was a difficult trading period, we expect improvements to show in H2 2014. We have implemented a number of initiatives to improve processing costs and efficiencies, and in turn profitability.

We obtained certification as a Responsible Gold producer at our South African recovery operation, a major achievement which gives us an advantage over our competitors and which, we believe, will lead to increased business.

During the accreditation process, however, our ability to produce gold from by-products was impacted by deliveries from major suppliers awaiting the completion of the accreditation process, and this reduced production for the first half year. In addition, in line with our longer-term growth strategy we continue to evaluate opportunities for expanding our gold recovery operations in Africa and more specifically in Burkina Faso; however in the near-term we remain focussed on the operational profitability and success of our South African and Ghanaian operation before making such expansion moves. We are also reviewing different options to monetise our gold exploration and development mining assets in Kenya, Ghana and Burkina Faso, be it through sale, development or joint venture opportunities.

These projects were de-prioritised last year in order to stem losses and allow us to focus on building our revenue generating recovery operations. With the above developments in mind, our first half results are below those of the six months ended 31 December 2012, resulting in an operating loss of �694,000 (2012: profit �2,057,000) and a loss before tax of �912,000 (2012: loss after impairment charge �814,000.) However, as noted, the second half of the year is already performing more strongly and we expect, in line with market expectations, to return to profitability by the year end. Gold Recovery Operations Our market leading gold recovery operations in South Africa and Ghana recover gold from by-products of the mining process, such as woodchips, mill liners, fine carbon, slags, sludges and waste grease.

In addition to generating revenues from gold sales from concentrates produced for the Company, our recovery services also provide an economic method for mines to dispose of waste materials while at the same time adhering to a mines environmental obligations.

Our operations boast a substantial blue-chip supplier base from which we purchase mining by-products from which to recover gold, and also includes a mix of local producers and artisanal (primarily) in Ghana, West Africa where there is an active presence. Goldplat Recovery (Pty) Limited - South Africa (GPL) We were delighted to announce in December 2013 that we had been accredited as a Responsible Gold depositor in line with international guidelines.

The accreditation was a major achievement for the Company and accounts for gold produced, which follows the Chain of Custody requirements consistent with the Organisation of Economic Co-operation and also adheres to the London Bullion Market Associations Responsible Gold Guidance and the World Gold Council certification of Conflict-Free gold.

Notably, we are the first secondary gold producer in South Africa to obtain this status, and we believe that with this accreditation in hand we offer a unique selling position that significantly differentiates us from competitors.

We believe that as a responsible gold depositor and gold recovery services business, our business offering is enhanced and has the potential to positively impact future contracts, profits and cash flows for GPL.

During the due diligence period for gaining Responsible Gold accreditation, Goldplat was limited in accepting by-products from suppliers nor could concentrates be sent for further processing until accreditation was achieved, which resulted in a reduction of gold sales during H1 2014.

By-products and concentrates are now being delivered and revenues from by-product sources are expected to return to its usual levels in second half of FY 2014.
As previously highlighted, we have implemented a number of changes at GPL focussed on adapting to the current suppressed gold price environment.

To help mitigate the decrease in the gold price and boost operating margins, we have focussed on revising our by-product procurement contracts and cancelling lower grade by-product contracts with existing suppliers.
Additionally, as previously announced, we have agreed to purchase cyanide direct from local suppliers in liquid form rather than importing in briquette form, and to automate the dosing system in order to reduce costs.

Since October 2013, we have achieved major cost savings in cyanide consumption and will increase these savings further by converting the plant to liquid cyanide supply during H2 2014.

These actions have improved margins and will result in an increased overall yield going forward.
We are also looking to increase our by-product processing throughput at GPL to help increase production.

In line with this, small sections of the plant, previously run on a single shift system for security reasons, will be run on 24 hour shifts to increase production, and additional security measures will be taken.

This will be effective from April 2014.
To provide a source of high grade material for processing at our main plant in Benoni, Johannesburg, we obtained the right to mine ore from Central Rand Golds (CRG) Crown East No 4 shaft.

Mining is undertaken by a third party contractor.

This small scale operation has been operating profitably for the reporting period under review and we intend to continue the development and opening up of this project.
This constant investment in our recovery operations underpins our commitment to ensuring we maintain a competitive service offering and stronghold on gold recovery in the area at GPL.

The current depreciation in the South African Rand versus the US Dollar we believe will help to mitigate against the lower gold price environment in the H2 2014.

Nonetheless, with more favourable exchange rates, renegotiated and more cost-effective contracts, and more streamlined operations, we are confident that the operational and trading outlook for the second half of FY 2014 looks much stronger. Gold Recovery Ghana Limited - Ghana (GRG) GRGs gold recovery operation, which enjoys a tax free status until 2016, is located in the free port of Tema in Ghana.

Our GRG recovery operation is similar to our mature South African recovery plant as it processes by-products from the primary mining process.

However, it has additional upside potential through processing artisanal tailings that it processes due to West Africas active artisanal mining presence.

Whilst GRG benefitted from a reduction in the value of the Ghana Cedi, which has helped offset the recent lower gold price environment, it still sustained marginal pressures, which impacted profitability during H1 2014.

However, in line with actions undertaken by the Board, during the latter part of H1 2014 and the second half of the year to date GRG has been performing well.
As we have previously defined, GRG has three main profit centres.

The first of these is GRGs agreement with Endeavour Resources (Endeavour) where tailings purchased by GRG from artisanal and small scale miners are processed by Endeavour.

As highlighted in our operational and trading update on 17 January 2014, we had experienced difficulties in procuring tailings at a commercial rate from artisanal and small scale miners due to high material prices and an increase in transport costs.

However we introduced measures to mitigate these factors by sourcing higher grade material closer to Endeavours Nzema plant to reduce the transport costs, and by engaging with the Ghana Small Scale Mining Association to assist in our procurement programme and ensure that acceptable practices are adhered to.

The Government has also acted to curtail unlawful trading activities that have been sustained during the period.
While challenges remain, procurement prices have substantially improved and tonnage production has increased, which should help to significantly enhance trading in the second half of the financial year (H2 2014).
GRGs second profit centre is the carbon-in-leach section (CIL) at Tema.

After the initial decision to close the CIL section in FY 2013, due to margin pressures sustained from procurement of sustainable by-products, GRG has begun to re-treat the tailings dam on site through the CIL circuit and is currently running at a profit.
Goldplats third profit centre at GRG is its incinerator section, which recovers high-grade gold from fine carbon and rubber mill liners from blue-chip mining clients.

It is our intention to significantly grow this profit centre.

During the first half of FY 2014 (H1 2014), several new clients were successfully contracted to procure fine-carbon and rubber mill liner by-products, and existing contracts were renewed on more favourable terms.

As a result we have managed to increase our fine carbon business at GRG, which we expect to maximise production and profitability with the commissioning of an additional incinerator plant in H2 2014.
We also remain confident that we can expand the benefits gained from GRGs tax free status by acquiring material from the rest of Africa and even outside Africa, and this process has already commenced. Burkina Faso: Midas Gold SARL (Midas) The Company intends to extend its gold reprocessing operations into Burkina Faso under the name of Midas.

The Environmental Study for the site in Dano was completed at the end of August 2013, and the operating licence, expected to be in place by the end of 2013, has not yet been granted by the Government. Mining and Exploration A strategic review was undertaken during 2013, which analysed Goldplats main value drivers, growth potential and centres of profitability.

As a result of this we have de-prioritised our exploration and development assets, in order to stem losses and focus in the near-term on our growing, cash generative, niche gold recovery business. In regards to our two greenfield gold exploration projects, which include the 29 sq km Anumso Gold Exploration licence located in the Amansie East and Asante Akim South Districts of the Ashanti Region in Ghana, and the 246 sq km Nyieme project in the prospective Birimian Greenstone Belt in southern Burkina Faso, we are continuing to evaluate opportunities to realise value or monetise these projects either through joint ventures or trade sales.

We will update the market on these developments in due course. Kilimapesa Gold - Kenya Goldplats wholly owned Kilimapesa gold mine is located in the historically productive Migori Archaean Greenstone Belt in western Kenya.

Kilimapesa has a mineral resource of 8,715,291 tonnes at 2.40 g/t Au for 671,446 oz Au at a cut-off of 1 g/t. The Kilimapesa mine is still operating at reduced levels to defray costs.

Kilimapesa continues to suffer losses, but, despite the lower gold price, the losses are at a much reduced rate. The Board is currently evaluating its options for the future of Kilimapesa.

New Kenyan legislation, which is expected to be published soon, will clarify rules for local participation.

A recovery plan, which takes into account the expected local participation rules, has been submitted to the Government.

The Company is talking to potential joint venture partners to carry the capital costs for expansion.

The Government has been supportive and has been willing to assist in this process. Board Changes The half year to 31 December 2013 saw substantial changes to the constitution of the board of directors.

On 16 September 2013 it was announced that Russell Lamming had stepped down from his position as CEO and that Ian Visagie take over with immediate effect. In December 2013 the management in Johannesburg was strengthened by the appointment of Hansie van Vreden as an Executive Director.

Hansie is a metallurgist who has already brought a new enthusiasm to the reprocessing business. Also in September Nigel Wyatt joined the board as a non-executive director.

Nigel is a mining engineer who has a wealth of experience in African mining.

Finally, on 31 December Bob Pitts Smith reached his planned retirement date and stepped down from the Board, and Hansie van Vreden was appointed Chief Operating Officer. Share Options On 1 July 2013 there were 21,200,000 share options outstanding.

Of those, 4,500,000 were held by Russell Lamming, part of a grant of 13,500,000 exercisable at 12.825p per share.

The arrangements under which Mr Lamming stepped down as a director provided for him to retain the 4,500,000 options which had already vested, but cancelled the balance of 9,000,000 options. The other 16,700,000 were exercisable up to 31 December 2013.

Of those options 3,000,000 were held by key personnel at subsidiary level and, at the request of the holders, the date for exercise was extended to expire on 30 August 2018.

The 13,700,000 options held by directors and former directors lapsed Outlook Our recovery operations in both South Africa and Ghana are currently trading profitably and at a rate which should more than eliminate the first half trading loss.

We also expect to be in a position to continue paying dividends. Brian Moritz Chairman 10 March 2014
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE SIX MONTHES ENDED 31 DECEMBER 2013
Notes
6 months 31-Dec-13 (unaudited) �000
6 months 31-Dec-12 (unaudited) �000
12 months 30-Jun-13 (audited) �000
Continuing operations
Revenue
9,645
15,481
28,904
Cost of sales
(9,394)
(12,516)
(24,338)
Gross profit
251
2,965
4,566
Administrative expenses
(945)
(908)
(1,927) Results from operating activities
(694)
2,057
2,639
Share based payments
-
(155)
-
Finance income
217
61
300
Finance costs
(435)
(404)
(359)
Net finance cost
(218)
(343)
(59)
Impairment of assets
-
(2,373)
(2,373)
(Loss)/Profit before tax
(912)
(814)
207
Taxation
6
-
(419)
(606)
(Loss) for the period
(912)
(1,233)
(399)
Other comprehensive income
Exchange translation
(2,040)
(394)
(792)
Other comprehensive (loss) for the period, net of tax
(2,040)
(394)
(792)
Total comprehensive (loss) for the period
(2,952)
(1,627)
(1,191)
(Loss)/Profit attributable to:
Owners of the Company
(889)
(1,460)
(795)
Non-controlling interests
(23)
227
396
(Loss)/Profit for the period
(912)
(1,233)
(399)
Total comprehensive (loss) attributable to:
Owners of the Company
(2,929)
(1,854)
(1,587)
Non-controlling interests
(23)
227
396
Total comprehensive (loss) for the period
(2,952)
(1,627)
(1,191)
Earnings per share - continuing operations
Basic earnings per share (pence)
(0.54)
(0.73)
(0.24)
Diluted earnings per share (pence)
(0.54)
(0.73)
(0.21)
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2013
Notes
31-Dec-13 (unaudited) �000
31-Dec-12 (unaudited) �000
30-Jun-13 (audited) �000 Assets
Property, plant and equipment
7
4,602
4,482
4,917 Intangible assets
8
7,726
8,639
8,738 Pre-production expenditure
9
2,266
1,407
1,613 Proceeds from sale of shares in subsidiary
1,511
76
1,960 Non-current assets
16,105
14,604
17,228
Inventories
4,417
3,306
4,437 Trade and other receivables
4,297
7,131
4,759 Taxation
150
-
297 Cash and cash equivalents
10
634
1,951
2,362 Current assets
9,498
12,388
11,855
Total assets
25,603
26,992
29,083
Equity
Share capital
11
1,684
1,684
1,684 Share premium
11,494
11,494
11,494 Exchange reserve
(4,274)
(1,836)
(2,234) Retained earnings
10,553
9,720
11,711 Equity attributable to owners of the Company
19,457
21,062
22,655
Non-controlling interests
1,445
837
1,525 Total equity
20,902
21,899
24,180
Liabilities
Obligations under finance leases
12
197
16
140 Provisions
13
134
172
134 Deferred tax liabilities
397
460
459 Non-current liabilities
728
648
733
Taxation
-
34
- Obligations under finance leases
12
204
107
151 Trade and other payables
3,769
4,304
4,019 Current liabilities
3,973
4,445
4,170
Total liabilities
4,701
5,093
4,903
Total equity and liabilities
25,603
26,992
29,083
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED 31 DECEMBER 2012 Attributable to owners of the Company
Share capital �000
Share premium �000
Exchange reserve �000
Retained earnings �000
Total � 000 Non-controlling interests �000
Total equity �000 Balance at 1 July 2012, as previously reported
1,679
11,449
(1,442)
12,035
23,721
742
24,463
Total comprehensive income for the period
Loss for the period
-
-
-
(1,460)
(1,460)
227
(1,233) Total other comprehensive income
-
-
(394)
-
(394)
-
(394) Total comprehensive income for the period
-
-
(394)
(1,460)
(1,854)
227
(1,627)
Transactions with owners of the Company, recognised directly in equity
Dividends to owners of the Company
-
-
-
(1,010)
(1,010)
-
(1,010) Share based payments transactions
-
-
-
155
155
-
155
Contributions by and distributions to owners of the Company
Issue of ordinary shares
5
45
-
-
50
-
50 Total contributions by and distributions to owners of the Company
5
45
-
-
50
-
50
Changes in ownership interests in subsidiaries
Non-controlling interests in subsidiary dividend
-
-
-
-
-
(132)
(132) Total changes in ownership interests in subsidiaries
-
-
-
-
-
(132)
(132)
Total transactions with owners of the Company
5
45
-
-
50
(132)
(82)
Balance at 31 December 2012 (unaudited)
1,684
11,494
(1,836)
9,720
21,062
837
21,899
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED 30 JUNE 2013 Attributable to owners of the Company
Share capital �000
Share premium �000
Exchange reserve �000
Retained earnings �000
Total � 000 Non-controlling interests �000
Total equity �000 Balance at 1 January 2013
1,684
11,494
(1,836)
9,720
21,062
837
21,899 Total comprehensive income for the year
Loss for the period
-
-
-
665
665
169
834 Total other comprehensive income
-
-
(398)
-
(398)
-
(398) Total comprehensive income for the year
-
-
(398)
665
267
169
436
Transactions with owners of the Company recognised directly in equity
Contributions by and distributions to owners of the Company
Issue of ordinary shares
-
-
-
-
-
-
- Investment by minorities
-
-
-
-
-
627
627 Dividends
-
-
-
-
-
-
- Own shares acquired
-
-
-
(68)
(68)
-
(68) Share based payment transactions
-
-
-
(14)
(14)
-
(14) Total contributions by and distributions to owners of the Company
-
-
-
(82)
(82)
627
545
Changes in ownership interests in subsidiaries
Disposal of interest in subsidiary with no change in control
-
-
-
1,408
1,408
-
1,408 Non-controlling interests in subsidiary dividend
-
-
-
-
-
(108)
(108) Total transactions with owners of the Company
-
-
-
1,326
1,326
519
1,845
Balance at 30 June 2013 (audited)
1,684
11,494
(2,234)
11,711
22,655
1,525
24,180
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED 31 DECEMBER 2013 Attributable to owners of the Company
Share capital �000
Share premium �000
Exchange reserve �000
Retained earnings �000
Total � 000 Non-controlling interests �000
Total equity �000 Balance at 1 July 2013
1,684
11,494
(2,234)
11,711
22,655
1,525
24,180 Total comprehensive income for the year
Loss
-
-
-
(889)
(889)
(23)
(912) Total other comprehensive income
-
-
(2,040)
-
(2,040)
-
(2,040) Total comprehensive income for the year
-
-
(2,040)
(889)
(2,929)
(23)
(2,952)
Transactions with owners of the Company recognised directly in equity
Contributions by and distributions to owners of the Company
Dividends
-
-
-
(201)
(201)
-
(201) Share based payment transactions
-
-
-
14
14
-
14 Total contributions by and distributions to owners of the Company
-
-
-
(187)
(187)
-
(187)
Changes in ownership interests in subsidiaries
Disposal of interest in subsidiary with no change in control
-
-
-
(82)
(82)
-
(82) Non-controlling interests in subsidiary dividend
-
-
-
-
-
(57)
(57) Total transactions with owners of the Company
-
-
-
(269)
(269)
(57)
(326)
Balance at 31 December 2013 (unaudited) 1,684
11,494
(4,274)
10,553
19,457
1,445
20,902
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE SIX MONTHS ENDED 31 DECEMBER 2013
Notes
6 months 31-Dec-13 (unaudited) �000
6 months 31-Dec-12 (unaudited) �000
12 months 30-Jun-13 (audited) �000 Cash flows from operating activities
Results from operating activities
(694)
2,057
2,639 Adjustments for:
- Depreciation
170
175
361 - Amortisation of intangible assets
14
(48)
43 - Loss on sale of property, plant and equipment
-
-
29 - Equity-settled share-based payment transactions
14
-
141
- Loss on disposal of mining rights
-
190
- - Foreign exchange differences
(459)
(216)
(253)
(955)
2,158
2,960 Changes in:
- inventories
20
1,218
87 - trade and other receivables
462
(1,268)
1,104 - trade and other payables
(250)
(1,889)
(2,170) - provisions
-
(9)
(47) Cash generated from operating activities
(723)
210
1,934
Interest received
217
61
300 Interest paid
(435)
(390)
(349) Taxes paid
-
(359)
(878) Net cash from operating activities
(941)
(478)
1,007
Cash flows from investing activities
Proceeds from sale of property, plant and equipment
13
12
83 Acquisition of mining rights
-
(366)
(247) Acquisition of property, plant and equipment
(318)
(673)
(1,329) Pre-production expenditure
(173)
(65)
(583) Net cash used in investing activities
(478)
(1,092)
(2,076)
Cash flows from financing activities
Proceeds from issue of share capital
-
50
50 Own shares purchased
-
-
(68) Dividends paid
(201)
(1,010)
(1,010) Payment of finance lease liabilities 12
(108)
(92)
(114) Net cash flows (used in) financing activities
(309)
(1,052)
(1,142)
Net (decrease) in cash and cash equivalents
(1,728)
(2,622)
(2,211)
Cash and cash equivalents at beginning of period
2,362
4,573
4,573 Cash and cash equivalents at end of period
10
634
1,951
2,362
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL REPORT FOR THE SIX MONTHS ENDED 31 DECEMBER 2013
1.

General information The information for the year ended 30 June 2013 does not constitute statutory accounts as defined in section 434 of the Companies Act 2006.

A copy of the statutory accounts for that year has been delivered to the Registrar of Companies.

The auditors reported 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
(a) Statement of compliance The annual financial statements of Goldplat plc (the Company) are prepared in accordance with IFRSs as adopted by the European Union.

The condensed financial statements included in this half-yearly financial report has been prepared in accordance with International Accounting Standard 34 Interim Financial Reporting, as adopted by the European Union.
(b) Going concern The directors are satisfied that the Company has sufficient resources to continue in operation for the foreseeable future, a period of not less than 12 months from the date of this report.

Accordingly, they continue to adopt a going concern basis in preparing the consolidated financial statements.
3.

Significant accounting policies The accounting policies applied by the Group in this condensed consolidated interim financial report are the same as those applied by the Group in its consolidated financial statements as at and for the year ended 30 June 2013.
4.

Operating segments
Information about reportable segments
For the six months ended 31 December 2013 (unaudited)
Recovery operations �000
Mining and exploration �000
Adminis-tration �000 External revenues
9,374
271
- Inter-segment revenues
76
-
- Total revenues
9,450
271
-
Reportable segment profit/(loss) before tax
270
(323)
(859)
Segment assets
12,085
3,437
10,079
For the six months ended 31 December 2012 (unaudited)
Recovery operations �000
Mining and exploration �000
Adminis-tration �000 External revenues
15,153
328
- Inter-segment revenues
6
-
- Total revenues
15,159
328
-
Reportable segment profit/(loss) before tax
2,826
(415)
(852)
Segment assets
14,578
6,360
6,054
For the twelve months ended 30 June 2013 (audited)
Recovery operations �000
Mining and exploration �000
Adminis-tration �000 External revenues
28,105
799
- Inter-segment revenues
462
-
- Total revenues
28,567
799
-
Reportable segment profit/(loss) before tax
4,716
(3,493)
(1,016)
Segment assets
14,179
6,906
7,998
Reconciliation of reportable segment profit or loss
6 months 31-Dec-13 (unaudited) �000
6 months 31-Dec-12 (unaudited) �000
12 months 30-Jun-13 (audited) �000 Total profit/(loss) for reportable segments before tax
(912)
(814)
207 Elimination of inter-segment profits
-
-
- Profit before tax
(912)
(814)
207
5.

Seasonality of operations The Group is not considered to be subject to seasonal fluctuations.
6.

Income tax expense Income tax expense is recognised based on managements 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 Groups consolidated effective tax rate in respect of continuing operations for the six months ended 31 December 2013 was 23% (six months ended 31 December 2012: 24%; twelve months ended 30 June 2013: 23.75%).
7.

Property, plant and equipment
Acquisitions and disposals During the six months ended 31 December 2013, the Group acquired assets with a cost, excluding capitalised borrowing costs of �536,000 (six months ended 31 December 2012: �740,000; twelve months ended 30 June 2013: �1,586,000).
Assets with a carrying amount of �13,000 were disposed of during the six months ended 31 December 2013 (six months ended 31 December 2012: �12,000; twelve months ended 30 June 2013: �112,000), resulting in a loss on disposal of �nil (six months ended 31 December 2012: �nil; twelve months ended 30 June 2013: �29,000), which is included in administrative expenses in the condensed consolidated statement of comprehensive income.
8.

Intangible assets and goodwill
6 months 31 Dec 13 (unaudited) �000
6 months 31 Dec 12 (unaudited) �000
12 months 30 Jun 13 (audited) �000 Cost
Balance at beginning of period
9,008
8,943
8,943 Additions
-
366
247 Disposals
-
(202)
- Transfers from property , plant and equipment
-
-
3 Transfers to pre-production expenditure
-
(360)
5 Part disposal of subsidiary company
-
-
(149) Foreign exchange translation
(197)
(57)
(41) Balance at end of period
8,811
8,690
9,008
Amortisation and impairment losses
Balance at beginning of period
270
34
34 Amortisation
14
29
43 Amortisation on disposals
-
(12)
(18) Impairment for the year
-
-
211 Impairment transferred from pre-production expenditure 806
-
- Foreign exchange translation
(5)
-
- Balance at end of period
1,085
51
270
Carrying amounts
Balance at end of period
7,726
8,639
8,738 Balance at beginning of period
8,738
8,909
8,909
9.

Pre-production expenditure
6 months 31-Dec-13 (unaudited) �000
6 months 31-Dec-12 (unaudited) �000
12 months 30-Jun-13 (audited) �000 Cost
Balance at beginning of period
3,930
3,282
3,282 Expenditure incurred
173
65
583 Transfers from intangible assets
-
360
(5) Effect of movements in exchange rates
(326)
73
70
3,777
3,780
3,930
Amortisation and impairment losses
Balance at beginning of period
2,317
77
77 Amortisation reversed
-
(77)
(77) Impairment
-
2,373
2,257 Impairment transferred to exploration and development
(806)
-
- Effect of movement in exchange rates
-
-
60
1,511
2,373
2,317 Carrying amounts
Balance at end of period
2,266
1,407
1,613 Balance at beginning of period
1,613
3,205
3,205
10.

Cash and cash equivalents
6 months 31-Dec-13 (unaudited) �000
6 months 31-Dec-12 (unaudited) �000
12 months 30-Jun-12 (audited) �000 Bank balances
598
1,908
2,322 Short term bank deposits
36
43
40
634
1,951
2,362 Bank overdrafts used for cash management purposes
-
-
- Cash and cash equivalents in the statement of cash flows
634
1,951
2,362
11.

Capital and reserves Issue of ordinary shares
Number of ordinary shares
6 months 31-Dec-13 (unaudited)
6 months 31-Dec-12 (unaudited)
12 months 30-Jun-13 (audited)
On issue at beginning of period
168,370,000
167,870,000
167,870,000 Issued for cash
-
500,000
500,000 On issue at end of period
168,370,000
168,370,000
168,370,000 Authorised - par value �0.01
1,000,000,000
1,000,000,000
1,000,000,000
Issue of ordinary shares
Ordinary share capital
6 months 31-Dec-13 (unaudited)
6 months 31-Dec-12 (unaudited)
12 months 30-Jun-13 (audited) �000 On issue at beginning of period
1,684
1,679
1,679 Issued for cash
-
5
5 On issue at end of period
1,684
1,684
1,684
Dividends The following dividends were declared and paid by the Company:
6 months 31-Dec-13 (unaudited) �000
6 months 31-Dec-12 (unaudited) �000
12 months 30-Jun-13 (audited) �000 0.12 pence per qualifying ordinary share (six months ended 31 December 2012: 0.60 pence; twelve months ended 30 June 2013: 0.60 pence)
201
1,010
1,010
12.

Loans and borrowings
Six months ended 31 December 2013 (unaudited)
Currency Interest rate nominal
Face value �000 Carrying amount �000
Year of maturity
Balance at 1 July 2013
291
New issues
218
Repayments
Finance lease liabilities
ZAR
9%
(108)
(108)
-
Balance at 31 December 2013
401
Six months ended 31 December 2012 (unaudited)
Currency Interest rate nominal
Face value �000 Carrying amount �000
Year of maturity
Balance at 1 July 2012
150
New issues
-
Repayments
Unsecured bank facility
ZAR
9%
(2)
(2)
- Finance lease liabilities
ZAR
9%
(25)
(25)
-
Balance at 31 December 2012
123
Currency Interest rate nominal
Face value �000 Carrying amount �000
Year of maturity
Balance at 1 July 2012
150
New issues
257
Repayments
Unsecured bank facility
ZAR
9%
(2)
(2)
Finance lease liabilities
ZAR
9%
(114)
(114)
Balance at 30 June 2013
291
13.

Provisions
6 months 31 Dec 13 (unaudited) �000
6 months 31 Dec 12 (unaudited) �000
12 months 30 Jun 13 (audited) �000 Environmental obligation
Balance at beginning of period
134
181
181 Provisions made during the period
-
(5)
(32) Unwind of discount
-
6
10 Foreign exchange translation
-
(10)
(25)
134
172
134
The provision relates to a requirement to rehabilitate the land owned in South Africa upon cessation of the mining lease.
14.

Share options and warrants As at 31 December 2013, the Group had the following share options and warrants in issue. Share options (equity-settled) Reconciliation of outstanding share options
6 months ended 31-Dec-13 (unaudited) 6 months ended 31-Dec-12 (unaudited)
Number of options Exercise price Number of options
Exercise price Outstanding and exercisable at beginning of period
21,200,000
10.00p
17,200,000
10.00p Exercised in period - 10.00p (500,000)
10.00p Option grant to R Lamming 1 September 2012
-
12.825p
13,500,000
12.825p Lapsed in period (13,700,000)
Outstanding and exercisable at end of period
7,500,000
30,200,000
12 months ended 30-Jun-13 (audited)
Number of options
Exercise price Outstanding and exercisable at beginning of period
17,200,000
10.00p Granted during the year
13,500,000
12.825p Lapsed - will not vest
(9,000,000)
12.825p Exercised during the year
(500,000)
10.00p Outstanding and exercisable at end of period
21,200,000
The weighted average remaining contractual life of the options outstanding as at 31 December 2013 is 4 years 244 days (31 December 2012: 1 year 55 days; 30 June 2013: 1 year 181 days). Reconciliation of outstanding share warrants
6 months ended 31-Dec-13 (unaudited) 6 months ended 31-Dec-12 (unaudited)
Number of warrants Exercise price Number of warrants
Exercise price Outstanding and exercisable at beginning of period
1,671,200
10.00p
-
Granted in period
1,671,200
10.00p Lapsed in period (1,671,200)
Outstanding and exercisable at end of period
-
1,671,200
12 months ended 30-Jun-13 (audited)
Number of warrants
Exercise price Outstanding and exercisable at beginning of period
1,671,200
10.00p Outstanding and exercisable at end of period
1,671,200
The weighted average remaining contractual life of the warrants outstanding as at 31 December 2013 is 0 days (31 December 2012: 1 years 0 days; 30 June 2013: 184 days).
15.

Fair values The fair values of financial instruments such as interest-bearing loans and borrowings, finance lease liabilities, trade and other receivables/payables are substantially identical to carrying amounts reflected in the statement of financial position.
16.

Subsequent events On 7 January 2014 the Company issued 71,000 ordinary shares of 1p each at 7.04p per share as part of its arrangement with its joint broker VSA Capital Limited.
For further information visit www.goldplat.com or contact: Ian Visagie, CEO Goldplat plc Tel: +27 (82) 671 2078 Ewan Leggat/Katy Birkin SP Angel Corporate Finance LLP Tel: +44 (0) 20 3463 2260 Andrew Raca/Justin McKeegan VSA Capital Tel: + 44 (0)20 3005 5000 Felicity Edwards/ Charlotte Heap St Brides Media & Finance Ltd Tel: +44 (0) 20 7236 1177
Notes: Goldplat plc, is an AIM-listed cash generative, debt free gold recovery services company with two market leading operations in South Africa and Ghana.

The Companys strategy is focussed on utilising its robust cash flow generated from flagship gold recovery operations in Africa to self-fund sustainable growth and expansion of niche gold recovery business model.

The Company also has a small gold mining and exploration portfolio in Kenya, Burkina Faso and Ghana and is evaluating various opportunities to create value or monetise these assets.
**ENDS**
[cid:image002.png@01CECBDD.61F8A860] Charlotte Heap St Brides Media & Finance Ltd 3 St Michaels Alley, London, EC3V 9DS www.stbridesmedia.co.uk Tel: 0207 236 1177 | Mob: 07771862283 | Twitter: @StBrides1