A N N U A L
R E P O R T
2 0 1 5
H I G H L I G H T S
C H A I R M A N ’ S S T A T E M E N T
O P E R A T I O N S R E PO R T
F I N A N C I A L R E V I E W
T H E B O A R D
D I R EC T O R S ’ R E PO R T
S T R A T E G I C R E PO R T
I N D E P E N D E N T A U D I T O R ’ S
R E PO R T T O T H E M E MB E R S
O F G O L D P L A T P L C
3
5
9
1 9
2 4
2 6
2 9
3 2
C O N SO L I D A T E D S T A T E M E N T
O F P R O F I T O R L O S S A N D
O T H E R C O M P R E H E N S I V E I N C O M E 3 4
C O N SO L I D A T E D S T A T E M E N T
O F F I N A N C I A L P O S I T I O N
C O N SO L I D A T E D S T A T E M E N T
O F C H A N G E S I N E Q U I T Y
3 0 J U N E 2 0 1 5
C O N SO L I D A T E D S T A T E M E N T
O F C H A N G E S I N E Q U I T Y
3 0 J U N E 2 0 1 4
C O N SO L I D A T E D S T A T E M E N T
O F C A S H F L O W S
C O M P A N Y S T A T E M E N T O F
F I N A N C I A L P O S I T I O N
C O M P A N Y S T A T E M E N T O F
C H A N G E S I N E Q U I T Y
C O M P A N Y S T A T E M E N T O F
C A S H F L O W S
N O T E S T O T H E C O N SO L I D A T E D
F I N A N C I A L S T A T E M E N T S
C O M P A N Y I NF O R M A T I O N
3 5
3 6
3 7
3 8
3 9
4 0
4 1
4 2
8 0
H I G H L I G H T S
l
Focussed on growth of market-leading gold recovery
operations in South Africa and Ghana, with
additional upside available from mining and
exploration portfolio
l
Produced 30,524 ounces of gold (2014: 30,977
ounces) with 21,181 ounces sold (2014: 26,216
ounces) for own account and 3,723 ounces (2014:
1,731 ounces) transferred to client metal accounts
l
Successfully secured alternative refiners and
processors to process stock build-up and mitigate
single refiner risk following inability of Rand Refinery
to process material, which impacted operations and
cash-flow for the year
l
Elution capacity significantly increased at Gold
Recovery (Pty) Limited SA and plans to increase
capacity further at both South Africa and Ghana to
optimise recovery operations
l
Kilimapesa Gold Mine in Kenya on-track to achieve
operational break-even with plans to double
production in FY2016 following capital improvements
l
Established dedicated “strategic sourcing” team to
identify quality material for processing at gold
recovery operations
l
Trial project underway to assess opportunities to
diversify into prospective Platinum Group Metals
market
l
Focussed on expanding gold recovery operations to
build profitability
Goldplat plc – Annual Report and Accounts 2015
3
4
Goldplat plc – Annual Report and Accounts 2015
c h a i r m a n ’ s s t a t e m e n t
Goldplat plc – Annual Report and Accounts 2015
5
In my last C hairman’s Statement I noted that the
gold price during the year ended 30 June 2013
averaged approximately $1,600/oz, which had
reduced to $1,300 in the year ended 30 June
2014. During the year under review it was only
above $1,300/oz for a few we eks, and for most
of the year it was around $1,200/oz. I t is currently
below $1,150/oz. To combat these price reductions
Goldplat has instituted many cost saving initiatives,
the two most important of which are improved
utilisation of cyanide, the biggest element of our
cost, and increased elution capacity to enable us
to produce bullion from concentrates previously
processed externally.
To achieve the maximum reduction in cyanide costs,
we have changed from solid to liquid cyanide,
which in turn has required the construction of a new
liquid cyanide plant. That has now be en completed
and our first delivery of liquid cyanide was in
C H A I R M A N ’S
S T A T E M E N T
Our portfolio of assets consists of our gold
recovery operations in South Africa and Ghana,
a gold mine in Kenya and exploration projects in
Ghana and Burkina Faso.
Once again I have to report an extremely
September 2015.
challenging year for the whole of the gold mining
industry, with Goldplat suffering along with both
major and junior gold companies. I n Goldplat’s
case, the inability of Rand Refinery to process
our concentrates has substantially increased our
difficulties. Management has, however, continued
to take action to reduce costs, improve efficiency
and enable us to eliminate reliance on third party
processing. We have reached the point where I
believe that all this hard work will give improved
performance in future. Goldplat remains the
leading African company recovering gold from
by-products, and the directors intend to build on
that advantage and expand the recovery business.
Increased elution capacity in South Africa has be en
achieved by improving utilisation of the existing
plant in Benoni through installation of a new
electric boiler, with a further increase in capacity
planned once the first 4-tonne elution plant, which
was acquired during the year, is installed and
commissioned during October 2015. This will
enable us to process material which we have had
to stockpile over a long period, and is expected
to lead to a rapid improvement in cash flow. I t is
worth emphasising that the new plant described
above, and many other new and improved items of
processing plant, have be en financed from internal
6
Goldplat plc – Annual Report and Accounts 2015
resources, without recourse to new equity capital,
and without taking up loan or debt finance.
I had envisaged standing down as C hairman at the
forthcoming Annual General Me eting and handing
over to Gerard Kisbey Gre en. I n the event, Gerard
has successfully taken over the reins as Chief
Executive Officer, so that he is prevented by
corporate governance rules from also being
Chairman. I have agre ed to remain as C hairman for
up to another 12 months, and we are instituting a
formal process to identify my successor.
Finally I would like to record my thanks to the
executives, management and the whole workforce
for their efforts on behalf of Goldplat through this
difficult period.
B M
C H A I R M A N
Goldplat plc – Annual Report and Accounts 2015
7
8
Goldplat plc – Annual Report and Accounts 2015
o p e r a t i o n s r e p o r t
Goldplat plc – Annual Report and Accounts 2015
9
O P E R A T I O N S
R E P O R T
losses. During this period Goldplat has worked on
initiatives to address these issues: Firstly to securing
an alternative processor; secondly to building
relationships with alternative bullion refiners; and
thirdly, to increasing capacity and capabilities to
process as much of this material as possible in-house
and thereby to mitigate risk and retain more of the
This is my inaugural statement as Goldplat’s CEO
value chain internally.
having accepted this role in February, 2015. During
FY 2015 the C ompany has be en challenged by the
ne ed to replace or upgrade significant infrastructure
in an environment where cashflow has be en severely
hampered by low gold prices and operational
challenges with respect to refiners and processors
of certain materials. I am pleased to report that
by identifying these challenges and formulating
strategies to deal with them, FY 2015 has be en a
year during which we have laid the foundations
for a turnaround of the C ompany and a return to
operational robustness and profitability. We have
made significant progress in identifying alternative
refiners and processors, completed or made progress
on essential capital projects across our portfolio, all
funded internally and have implemented numerous
cost-cutting and efficiency initiatives which have
improved the operational and financial flexibility of
the Company.
Whilst our cash generative gold recovery businesses
remain our primary focus, having produced 28,246
ounces of gold in FY 2015 (FY 2014: 29,814 ounces)
from our South African and Ghanaian operations
(GPL and GRG respectively), we continue the
development of our Kilimapesa Gold Mine in Kenya,
which accounted for circa 2,300 ounces of gold
production in FY 2015 (FY 2014: 1,160 ounces).
S I G N I F I C A N T C H A L L E N G E S P R E S E N T E D B Y T H I R D
PA R T Y P R O C E S S I N G A N D R E F I N I N G D I F F I C U LT I E S
As noted by our Chairman, over the past twelve
months, Goldplat’s main refiner, Rand Refinery,
has be en unable to process large amounts of
material (primarily ashes, carbons and certain
concentrates) for the C ompany from our two gold
recovery operations as it had done previously.
This has led to a build-up of stocks and a cessation
of material supply from many clients and in turn
to a reduction in cash-flow and to operating
Goldplat has, through another refining company,
Aurubis Refinery in Germany, filled a five-month
pipeline with backlog material from both GPL and
GRG, which is now being processed and is cash-
flow generative. To increase internal capacity to
process material, throughput from the existing two
1-tonne elution columns at GPL has be en increased
from 3 tonnes per day to 5 tonnes per day by
the installation of a new electric boiler. To further
increase the internal elution capacity the first of
thre e 4-tonne elution columns acquired during the
year is currently being installed and is scheduled
to be commissioned during October 2015. This will
increase elution throughput capacity to over eight
tonnes per day. As of June 2015, Rand Refinery
started to process small amounts of the backlog
materials and has worked closely with Goldplat to
find mutually beneficial ways to work together, an
extremely positive development.
I am confident that with the above measures in
place we will process all of the backlog material by
December 2015 and will have significantly reduced
the single refiner risk that affected the FY 2015
operational and financial performance.
“ F Y 2 0 1 5 H A S
B E E N A Y E A R
D U R I N G
W H I C H W E
H A V E L A I D T H E
F O U N D A T I O N S
F O R A
T U R N A R O U N D
O F T H E
C O M P A N Y &
A R E T U R N T O
O P E R A T I O N A L
R O B U S T N E S S &
P R O F I T A B I L I T Y ”
10
Goldplat plc – Annual Report and Accounts 2015
G O L D P R O D U C T I O N A N D S A L E S
The table below provides a summary of gold
production and sales for FY 2015. During the year
overall production was 30,524 ounces (FY 2014:
30,977 ounces) and actual gold sales were 24,904
ounces (FY 2014: 28,216 ounces). Gold sold for own
account was 21,181 ounces (FY 2014: 26,485 ounces)
and that transferred to clients was 3,723 ounces
(FY 2014: 1,713 ounces). The difference betwe en
the gold produced and gold sold (5,621 ounces)
is locked up in concentrate stocks which gives an
indication of the build-up during the year, primarily
due to the issues relating to the inability of Rand
Refinery to accept and process certain products.
“ W H I L S T O U R C A S H
G E N E R A T I V E G O L D
R E C O V E R Y B U S I N E S S E S
R EM A I N O U R P R IM A R Y
F O C U S , H A V I N G
P R O D U C E D 2 8 , 2 4 6
O U N C E S O F G O L D
I N F Y 2 0 1 5 F Y 2 0 1 4 :
2 9 , 8 1 4 O U N C E S F R O M
O U R S O U T H A F R I C A N
A N D G H A N A I A N
O P E R A T I O N S G P L A N D
G R G R E S P E C T I V E L Y ,
W E C O N T I N U E T H E
D E V E L O PM E N T O F O U R
K I L IM A P E S A G O L D M I N E
I N K E NY A , W H I C H
A C C O U N T E D F O R C I R C A
2 , 3 0 0 O U N C E S O F G O L D
P R O D U C T I O N I N F Y 2 0 1 5
F Y 2 0 1 4 : 1 , 1 6 0 O U N C E S . ”
Go ldpla t Pl c C on so lidated
2015 Total KG
2015 Total OZ
2014 Total KG
2014 Total OZ
To tal Gold Product ion
G O L D R E C O V E R Y G H A N A
K I L I M A P E S A G O L D
G O L D P L AT R E C O V E R Y
To tal
Ow n gold s old
G O L D R E C O V E R Y G H A N A
K I L I M A P E S A G O L D
G O L D P L AT R E C O V E R Y
To tal
Meta l Tran sfe rs to C lien ts
G O L D P L AT R E C O V E R Y
To tal
To tal S old/t ran sfe rred
G O L D R E C O V E R Y G H A N A
K I L I M A P E S A G O L D
G O L D P L AT R E C O V E R Y
To tal
19 0
71
6 8 8
94 9
8 0
6 4
514
6 5 8
116
116
8 0
6 4
6 3 0
7 74
6 , 111
2 , 2 7 8
2 2 , 13 5
3 0 , 524
2 , 5 7 8
2 , 0 7 3
16 , 5 3 0
21 , 181
3 , 7 2 3
3 , 7 2 3
2 , 5 7 8
2 , 0 7 3
2 0 , 2 5 3
24 , 9 0 4
4 2 7
3 6
5 0 0
5 3 6
3 9 3
2 9
4 0 3
8 2 5
5 4
5 4
3 9 3
2 9
4 5 6
8 7 8
13 , 7 3 9
1 , 16 3
16 , 0 75
3 0 , 9 7 7
12 , 6 2 3
919
12 , 94 3
2 6 , 4 8 5
1 , 7 31
1 , 7 31 ,
12 , 6 2 3
919
14 , 6 74
2 8 , 216
Goldplat plc – Annual Report and Accounts 2015
11
O P E R A T I O N S
R E P O R T
the past year in upgrading infrastructure, reducing
costs and improving efficiencies of the recovery
business.
G O L D P L A T ’ S R E C O V E R Y
O P E R A T I O N S
Goldplat recovers precious metals (primarily gold
and silver but also Platinum Group Metals ‘PGM’s’)
from by-products of the mining industry and gains
its competitive advantage from a combination of
the diversity and flexibility of processing circuits
which make possible the recovery of metals and
concentrates from these by-product materials,
Increasing competition and difficult market
conditions dictated that increased focus be placed
on the procurement of source material for the
various work streams. A dedicated “strategic
sourcing” team was established during the year and
the benefits arising from this decision are already
apparent. A number of existing contracts have
already be en successfully re-negotiated, contracts
have be en entered into with new clients and new
business opportunities have be en identified which
will be investigated and potentially implemented in
FY 2016.
the strategic geographic locations of the Group’s
During FY 2015, for reasons already discussed,
plants and the extensive depth of knowledge and
we identified the ne ed to optimise and expand
experience of a long-standing team.
Goldplat sources by-products including course and
fine carbon, wo odchips, rubber and ste el mill liners,
grease, concentrate bags as well as coarse tailings
and rock dumps and also assists in plant clean-up
operations. These materials typically present an
environmental risk and cost to producers but can
be turned to a source of additional gold / revenue
when processed by Goldplat. Clients include most
of the significant gold producers, an increasing
number of PGM producers and a number of
refineries requiring the processing of concentrate
materials prior to final refining as bullion.
G O L D P L AT R E C O V E R Y ( P T Y) L I M I T E D -
S O U T H A F R I C A ( ‘ G P L ’ )
GPL is a well-established operation based near
Johannesburg, South Africa, serving clients within
South Africa as a Responsible Gold Producer
fulfilling the requirements as set out by the London
Bullion Market Association. The C ompany’s facilities
include wash-plants, crushing, milling, CIL, eluting
and smelting as well as spiralling and shotblasting.
During FY 2015 GPL produced a total of 22,135
ounces of gold (FY 2014: 16,075 ounces) of which
16,530 ounces (FY 2014: 12,943 ounces) was for
own account and 3,723 ounces (FY 2014: 1,731
our elution capacity to facilitate the production of
additional gold bullion, rather than concentrates,
where third party refining partners are ne eded.
As a first step we entered into a short term
toll-eluting arrangement with a third party. We then
successfully doubled the in-house elution throughput
of the existing two 1-tonne capacity columns to
process 3 tonnes of carbon per day (versus 1.5
tonne per day previously) by introducing a number
of operational and engine ering efficiencies. The
acquisition and installation of a new electric boiler
enabled a further increase in elution throughput to
5 tonnes per day. In addition to this we acquired
thre e 4-tonne elution columns and associated
ancillary equipment from DRD Gold, the first of
which is expected to be installed at GPL and
commissioned by end-October 2015. This should
allow for throughput capacity of 8 tonnes per day
at this operation. Decisions remain to be taken as
to the timing and location of the installation of the
remaining two 4-tonne elution columns with one likely
to be moved to the Ghanaian operation during
FY 2016.
During FY 2015, GPL terminated its contract with
Central Rand Gold as the risk-reward was no longer
viable. The amounts of ore produced under this
contract remained minimal and this ore has be en
replaced with ore from other sources.
ounces) was transferred to clients’ metal accounts,
A number of projects were initiated at GPL during
the balance being in unprocessed concentrates.
FY 2015, all internally funded, to improve
Considerable progress has be en made at GPL over
operational efficiencies, improve profitability and
12
Goldplat plc – Annual Report and Accounts 2015
flexibility, upgrade, repair or replace equipment and
Refinery to recover silver and gold, and in-turn
infrastructure as required and to comply with
Goldplat will be paid treatment and refining
regulatory requirements. Many of these projects
charges. The high grade circuit at GPL will be
were completed during the year under review, some
dedicated to processing the material under this
have be en completed subsequent to the FY 2015
contract for an initial two months and it will take
year end and some are ongoing.
a further four months to complete the elutions for
this project. Material previously planned to be
GPL underto ok and continues with various initiatives
processed through the high grade circuit will now
to upgrade its rotary kilns to reduce electrical
be processed through the low grade circuit. This is
consumption and improve the quality of ash
produced, which will enable enhanced gold
a positive indicator of the future potential of our
working relationship with Rand Refinery and also
recoveries and ensure ongoing environmental
demonstrates the operational flexibility of the
compliance.
The new liquid cyanide storage facility was
various circuits at GPL and the benefits of the low
grade mill replacement and other capital initiatives.
commissioned and the first delivery of liquid cyanide
In terms of new revenue streams, a trial project is
has be en made by a local South African supplier (as
underway to assess opportunities to diversify into
reported 22 September 2015). This local
prospective PGM’s. Procurement contracts with
procurement will allow us to further reduce our cost
PGM producers are being negotiated and sources
in addition to the considerable savings achieved
of material currently being investigated. We remain
since automation was implemented in 2013.
extremely optimistic about the growth opportunities
Construction of a new wo odchip wash plant which
began during FY 2015 was completed and
commissioned in August 2015. This has allowed for an
available within the platinum industry and lo ok
forward to updating shareholders on these
developments in due course.
additional 2kg of gold production per month from
Various work streams are underway with respect to
the extensive existing wo od chip stockpiles.
the current stock dam including the definition of a
JORC compliant resource, designing a process
system for the re-treatment of this resource and
establishing a new tailings facility. We expect to
appoint a consultant during the second quarter of
FY 2016 to quantify the resource. Encouraging results
have be en received from test work by a local South
African University to develop a new process to
retreat the current stock dam and improve overall
recovery. The university is undertaking further
desktop studies and we lo ok forward to updating
the market on this progress during the next
financial year. Once these work streams have be en
completed the C ompany will decide whether to
expedite an economic assessment study with a
view to potentially starting the re-treatment of this
resource during FY 2016.
The low-grade circuit mill was replaced and
commissioned in mid-September 2015. This new mill
has the same capacity as the original mill but will
enable more continuous operation by reducing the
extensive and unplanned maintenance required to
ke ep the original mill operational.
A new pumping station has be en commissioned at
the tailings retreatment carbon-in-leach (‘CIL’) plant
to increase the volume of material to be pumped
to the tailings facility. This process improvement will
have a positive impact allowing for an additional
0.5-1kg of gold production per month from the
existing residue streams.
Whilst Rand Refinery has not be en able to accept
and process certain material during FY 2015, it has
now begun accepting batches of ashes again, albeit
in limited quantities and on an ad-hoc basis.
Subsequent to FY 2015 year-end Goldplat has
entered into a contract with Rand Refinery (reported
on 4 September 2015) which will se e us toll-process
a large batch of by-product material for Rand
Goldplat plc – Annual Report and Accounts 2015
13
O P E R A T I O N S
R E P O R T
G O L D R E C O V E R Y G H A N A
L I M I T E D ( ‘ G R G ’ ) – G H A N A
GRG’s gold recovery operation, which has a tax
fre e status until 2016 and a favourable tax rate
thereafter, is located in the fre e port of Tema in
Ghana. At the start of FY 2015 processing
operations at our plant in Tema consisted of two
primary sections: one comprising spirals and an
incinerator section which recover gold from high
grade fine carbon and rubber mill liners, and the
other a CIL section, which primarily processed
artisanal tailings. An additional revenue stream
was derived from the toll treatment of material
through Endeavour Resources.
During FY 2015 GRG produced 6,111 ounces of gold
(FY 2014: 13,739 ounces) of which 2,578 ounces
were sold (FY 2014: 12,623 ounces), the balance
being unprocessed concentrates. As can be se en,
there was a significant reduction in production as
well as a large build-up of stock. During the year
the CIL operation was terminated as tailings
deposition was no longer possible on the confined
tailings facility which had run out of capacity.
Furthermore, the toll treatment contract was put on
hold to allow Endeavour and GRG to comply with
certain regulatory requirements, and the remaining
spiralling and incineration business was severely
hampered by knock-on effects of Rand Refinery
issues experienced in South Africa. As a result,
operations at GRG were reduced to a very low
level at one point during the year with backlog
material building up and little new material being
procured, resulting in a material impact on the
operation’s production and profitability in FY 2015.
De-construction of the CIL plant was started during
the year with a view to moving the plant to the
Kilimapesa Mine in Kenya during FY 2016. This will
fre e up space on the Tema site to allow for possible
expansion of the spiralling and incinerator circuits
and for the new initiatives described below.
The viability of retreatment of the tailings facility,
either by GRG or by third parties was investigated
but due to the low grade of the material this was
determined to be sub-economic. Subsequent to these
investigations work was undertaken to design the
final rehabilitation of the tailings facility which is
planned for FY 2016.
In order to improve operational efficiencies and
recoveries at GRG, and to increase the in-house
elution capacity as discussed earlier in this report,
it is planned for one of the thre e 4-tonne elution
columns acquired during FY 2015 to be moved from
GPL and installed at GRG by the end of October
2016. This will reduce the overall turnaround time
for processing of GRG’s client material and maximise
bullion production.
Significant opportunities have be en identified within
Ghana to source ste el mill liners for treatment.
Capital has be en approved and work has begun
on the procurement and construction of a shotblast
facility in South Africa which will be shipped to and
installed at GRG during the second quarter of
FY 2016.
The toll processing agre ement with Endeavour
Resources is scheduled to be reinstated during FY
2016 as a short-term source of revenue for GRG.
In spite of operational difficulties, our client base
remains stable and GRG is once again receiving
new material from its existing clients, as well as from
new sources and the strategic sourcing team remains
focussed on sourcing additional material. A
particular focus is to find more international material
that can be imported to GRG.
With processes in place to: alleviate the backlog
stock issue; increase elution capacity on-site by the
end October 2016; introduce a mill liner revenue
stream; resume the delivery of material from existing
clients; and focus on procuring new clients and
sources of material, GRG’s business should return to
operational profitability during FY 2016.
14
Goldplat plc – Annual Report and Accounts 2015
B U R KI N A FA S O : M I D A S G O L D S A R L ( ‘ M I D A S ’ )
Previously mining has taken place at a quicker rate
As part of our longer-term growth strategy for
production, a lack of flexibility and an inability to
expanding our gold recovery reach in Africa,
mine selectively. During the year a new mining
Goldplat has pursued an opportunity in Burkina
plan for Kilimapesa was put into operation which
Faso in West Africa to establish the current gold
entails primarily on-re ef development with low
than re ef development resulting in erratic
recovery business model in the region.
With this in mind, a subsidiary company called
Midas Gold SARL (‘Midas’) was created and a
potential site was acquired in Dano in west Burkina
Faso. The Environmental Study for the site in Dano
was completed at the end of August 2013 and the
Government of Burkina Faso awarded Midas an
operating licence which covers artisanal semi-
mechanised gold mining and gold reprocessing of
by-products. The Board continues to believe that
Burkina Faso has potential to expand and build
a sustainable gold recovery business but due to
the significant challenges presented across all
operations during FY 2015, no work was done to
further explore this opportunity. We will report
grade ore being stock-piled for later processing,
waste rock being hand-sorted and the remaining
high grade ore being processed. This has resulted
in an improvement in performance. During FY 2014,
the cross-cut accessed by the lowest level (Adit D),
was abandoned due to po or and unsafe ground
conditions. During the FY 2015 a new adit was
established and developed towards the cross cut.
Subsequent to FY 2015 year-end the new Adit D
intersected the cross-cut beyond the po or ground
and it is currently being made safe and prepared for
re ef access development during FY 2016. Once this
development is completed, a new mining block will
be opened up betwe en Adit Bull and Adit D levels
and will provide the production flexibility required.
on progress or developments in due course with
Teng-Teng is an area on our exploration licence
a decision regarding the future of this project
which was developed historically by previous owners
expected to be taken during FY 2016.
G O L D P L AT M I N I N G A N D E X P LO R AT I O N
Kilimapesa Gold (‘Kilimapesa’) is a small producing
gold mine in South Western Kenya. The mine is
located in the historically productive Migori
before being closed and allowed to flo od. The
decline shaft and re ef drives were de-watered
towards the end of FY 2015 and re-equipping is
being completed during FY 2016. This will allow
access to areas for on-re ef exploration of
previously reported high grade areas and potential
future mining.
Archaean Gre enstone Belt in western Kenya and it
During the year the limited capacity of the tailings
has a mineral resource of 8,715,291 tonnes at 2.40
facility became a significant constraint and a new
g/t gold for 671,446 oz gold at a cut-off of 1 g/t.
dam was excavated on the existing site to provide
Gold ore is currently mined from the Kilimapesa Hill
area with additional material being sourced from
an additional 6-9 months of capacity. This limited
capacity highlights the ne ed to move to a new site.
artisanal tailings to date. Gold production for FY
New sites for a tailings deposition facility as well as
2015 was 2,278 ounces (FY 2014: 1,163 ounces)
a new processing plant and camp were identified
with 2,073 ounces (FY 2014: 919 ounces) being sold
during FY 2015 with the tailings deposition area
during the year. Kilimapesa is currently producing at
being acquired and leases being signed for the
a rate of around 2,700 ounces of gold per annum
processing facility and camp sites. The new area is
and is working towards operational break-even. The
very well situated relative to the existing Kilimapesa
operation includes an exploration permit as well
mine, Teng-Teng, our existing borehole, as well as
as a mining licence which covers the Kilimapesa
to a well-prepared road and the grid power. The
Hill area. Mining is carried out using conventional,
Company is in the process of finalising administrative
labour-intensive methods with ore-processing
processes including all requisite permitting and
comprising crushing, milling, a CIL circuit, elution and
community forums to allow us to proce ed with the
bullion production.
project. The aim would be to double production
Goldplat plc – Annual Report and Accounts 2015
15
to around 6,000 ounces per annum with ore being
processed through a new gold plant. With access to
capital for the proposed project constrained and the
GRG CIL plant becoming available, an interim step is
likely to be the moving of this CIL plant to the site in
Kenya. Plans will be announced when finalised.
Discussions with third parties with a view to a corporate
deal are ongoing, but in the current market no discussions
have yet progressed to a significant stage. The strategy
for Kilimapesa remains that of becoming profitable and
management will continually re-assess progress towards
this goal.
O T H E R E X P LO R AT I O N P R O J E C T S
We maintain interests in two gre enfield gold exploration
projects which have a total JORC compliant exploration
mineral resource of 3,940,000 tonnes at 2.05g/t gold for
approximately 259,000 oz gold; the 29 sq km Anumso
Gold Exploration licence in the Ashanti region in Ghana
and the 246 sq km N yieme project in the Birimian
Gre enstone Belt in southern Burkina Faso. As previously
noted, no capital expenditure is being attributed to these
and we continue to evaluate opportunities to realise
value or monetise these projects either through joint
ventures of trade sales at no cost to Goldplat.
16
Goldplat plc – Annual Report and Accounts 2015
O U T LO O K
short-term basis. With strategic sourcing a priority,
we are confident of the ongoing procurement
During the course of FY 2015 Goldplat experienced
of material for these operations. The shotblast
extreme challenges to both recovery operations
plant will be moved to GRG and is planned to be
primarily as a consequence of the Rand Refinery
commissioned before December 2015 and sources of
issues. Measures have be en put into place to
mill liners have already be en identified. N umerous
mitigate the single refinery risk going forward and
high level discussions are being held with parties
to process all backlog stocks by December 2015. The
identified to assist in the expansion of business within
increase in elution throughput and planned capacity
the West African region as well as elsewhere in the
increases during FY 2016 is not only assisting in
world using GRG as a hub. Discussions are also
the processing of backlog stocks but will allow
ongoing with various parties regarding the future
significantly increased profitability through in-house
of our exploration project in Ghana, Anumso and
processing of material previously processed by third
progress is expected on this front during FY 2016.
parties. With GPL having returned to profitability
in the second half of FY 2015, and this forecast
At Kilimapesa, increasing tailings capacity is critical
to continue through FY 2016; GRG returning to
to the ongoing processing through the current
profitability at the end of FY 2015, and expected
treatment plant. The plans regarding potential JV
to improve during FY 2016; and progress towards
partners, expanded production and the new plant
eliminating losses at Kilimapesa expected to continue
and tailings facility are ongoing and the market will
during FY 2016, the outlo ok for FY 2016 is positive.
be informed as to progress during the course of the
Notwithstanding the problems experienced and the
year.
significantly constrained cash flow, GPL managed to
I would like to take this opportunity to thank our
complete numerous capital projects without the ne ed
Goldplat employe es, advisers, fellow directors and
to raise external financing. C apital projects are
shareholders for their support as we continue to
rigidly planned, strictly managed and prioritised
build Goldplat as a leading gold recovery and
to provide best returns on capital invested. Major
production company in Africa and back to
ongoing and planned projects include the
profitability in the near-term.
installation of a weighbridge on-site which should
result in significant savings; rotary kiln refurbishments
and upgrades; elution plant installation and
commissioning.
GRG is once again profitable with operations now
restricted to spiralling and incinerating with the
potential to re-commence toll treatment on a
- G E R A R D K I S B E Y - G R E E N
C H I E F E X E C U T I V E O F F I C E R
Goldplat plc – Annual Report and Accounts 2015
17
18
Goldplat plc – Annual Report and Accounts 2015
f i n a n c i a l r e v i e w
Goldplat plc – Annual Report and Accounts 2015
19
F I N A N C I A L
R E V I E W
We faced yet another year of two halves. During
the first half of the year we suffered a loss from
operating activities of £827,000 Sterling for the
Group. The second half was substantially better
We have se en a substantial deterioration in
exchange rates in operating currencies, at
subsidiary level, compared to both the US Dollar
and the British Pound. The average gold price for
the year was USD 1,229 per ounce compared to an
average price of USD 1,286 per ounce for the
previous year. In South Africa, Ghana and Kenya,
the companies benefitted from the higher average
gold price per kilogram in local currency terms.
with the South African recovery business performing
Profitability in Sterling terms were adversely affected
well and the Kenyan operation continuing to reduce
by the strong British Pound in relation to these
losses. Unfortunately the Ghana operations
operating currencies;
continued to perform po orly.
• The Ghana Cedi deteriorated from GHS 5.50 to
The Group reported an operating loss for the full
GHS 6.95/GBP
year of £711,000 (2014: Profit £153,000), which
highlights the strong recovery in the second half.
• The South African Rand from ZAR 18.06 to ZAR
The loss from operating activities after finance costs
19.78/GBP
for the year was £675,000 (2014: Loss £248,000)
Revenues declined from £21,020,000 to
£16,628,000 whilst operating at a low gold price
throughout the year. Gold sold of 24,904 ounces
compared to 28,216 ounces in 2014. C ost of sales
reduced by 18% from £19,202,000 to £15,660,000.
Administrative expenses remained substantially the
same. We continue to control cost throughout
the Group.
Considerable inventories of material were
accumulated because Rand Refinery was unable
to process large amounts of concentrate material.
This together with the fact that sales in Ghana
decreased to 2,578 ounces from 12,623 ounces in
the 2014 financial year had the most significant
impact on the Groups’ results.
The increase of our elution capability, expected to
be commissioned in October 2015, together with
the fact that an export solution has be en found will
assist to reduce inventory levels going forward, for
both the South African and the Ghana subsidiary.
Precious metals inventory for the group increased
from £3,144,000 to £6,115,000.
Dore bar sales generated sufficient cash to service
all liabilities. C ash resources decreased from
£1,455,000 as at 30 June 2014 to £630,000 for the
year under review. I t is expected that cash balances
will increase as capital projects are completed,
production increases and inventories reduced.
• The Kenyan Shilling from KES 151 to KES 158/GBP
As mentioned in the CEO’s report a decision was
made to terminate the contract with C entral Rand
Gold. As a result we had a once off write down of
development cost in the amount of £121,000.
G O L D P L AT R E C O V E R Y ( P T Y) L I M I T E D –
S O U T H A F R I C A ( “ G P L ” )
Goldplat’s recovery operation in South Africa had
another profitable year returning a nett profit of
£965,000 (2014: £654,000).
Capital expenditure of £801,000 (2014: £577,000)
was incurred.
The liquid cyanide capital project vote was closed
in June 2015. The first delivery of sodium cyanide
was made during September 2015. C onsiderable
savings will be made by purchasing liquid cyanide
versus briquettes.
The wash plant which was completed in August 2015
and the low grade mill which was completed during
September 2015, has increased production. Further
production ounces were added in September 2015
by improving the pumping system at the tailings
reprocessing plant, which scavenges residual gold
from our other CIL processes.
20
Goldplat plc – Annual Report and Accounts 2015
Additional personnel, employed
• £50,000 on refurbishing the mill
decreased to 6,111 ounces for
to complete the abovementioned
ends for the underground circuit
2015 compared to 13,739 ounces
capital projects, have be en
to maintain current operations.
in 2014.
reduced during the first part of
the 2016 financial year. In
addition we were able to reduce
the number of personnel in
G O L D R E C O V E R Y G H A N A
bullion and effectively GRG’s
Unlike the South African
Operation, GRG does not smelt
general and expect this process
L I M I T E D –
cash flow was reduced to a
to be completed by the end of
G H A N A – ( “ G R G ” )
trickle.
October 2015.
The cash position excluding cash
deposits at the end of the year
was £424,000 (2014: £640,000).
Increased elution frequencies
towards the end of the year
improved cash flow and
profitability. A 4 tonne elution
column will be completed and
commissioned in October 2015
and cash flow will return to
normality.
GRG’s gold recovery operation,
The increased elution capacity in
which has a tax fre e status until
South Africa will benefit Ghana
2016, has had a dismal year.
directly. GPL will process GRG’s
GRG reported a loss from
material to bullion in the new 4
tonne elution column. Assistance
operating activities of £641,000
rendered by GPL to GRG,
compared to an operating profit
towards the end of the year
of £813,000 in 2014. During the
under review, enabled GRG to
year under review £544,000 was
become cash positive. The cash
lost during the first half which
from material exported
illustrates a strong recovery
during the second half of the
material to Aurubis in Germany is
expected to flow through in Q2
financial year. The effects of the
2016. The company’s cash flow
Further capital expenditure
deterioration of the Ghana C edi
is expected to return to normal
planned for the South African
in relation to the British Pound
levels by December 2015.
operation at this time is
and the reduction in ounces
£532,000.
produced is the main causes for
It is expected that the CIL
their po or performance.
(Carbon-in-Leach) Plant in Tema
• £320,000 to complete the 4
Operating results for GRG
will be moved to Kilimapesa and
tonne elution project;
after finance cost resulted in a
therefore there was no reason to
• £86,000 to be expended on
£1,056,000).
year under review.
loss of £311,000 (2014: profit
write down any assets during the
finalisation of the low grade mill
upgrade and the improvements
The companies’ exit from the
to the residue section mentioned
artisanal tailings processing
before;
• £22,000 to be expended on
a new weighbridge which will
business impacted operations
negatively, however, the major
contributor to the losses incurred
was the fact that the company
save approximately £40,000 per
could not deliver its product to
annum;
• £54,000 on forklifts which
should save in excess £26,000
per annum;
Rand Refinery due to capacity
constraints at the refinery. Clients
were reluctant to deliver further
product until a remedy was found
which exacerbated the problem.
As a result produced ounces
Goldplat plc – Annual Report and Accounts 2015
21
F I N A N C I A L
R E V I E W
K I L I M A P E S A G O L D ( P T Y) L I M I T E D –
K E N YA – ( “ K I L I M A P E S A ” )
The Kilimapesa Gold project in Kenya continued to reduce its
losses and reported an operating loss of £389,000 (2014: loss of
£611,000). Losses after finance cost were £753,000 compared to
a loss £713,000 in 2014.
Kilimapesa substantially increased sold gold to 2,073 ounces for
the year under review compared to 919 ounces during the 2014
financial period.
Plant capacity constraints still continue to impact Kilimapesa growth
potential. I t is expected that the acquisition of the Ghana CIL
(Carbon-in-Leach) plant will increase the production capacity.
The capital expenditure to be incurred for the relocation and
construction of the plant will be in the region of £775,000,
which ideally should be financed by a joint venture partner.
During the year under review thre e portions of land were secured.
Two long term leases were entered into to facilitate the new plant
area and another for the new Adit D. A further £215,000 was
expended on the acquisition of 18.723 ha of land which will serve
as a final tailings deposition site for the proposed new plant facility.
C O N T I N G E N C I E S
The directors have delayed the above mentioned relocation of the
Ghana plant to Kilimapesa, mainly because of amounts claimed by
the Kenya Revenue Authority as being due. The directors believe
that, in their opinion, the claims are grossly overstated. Should these
claims not be resolved satisfactory it may affect our investment
decision regarding the Kilimapesa Project.
O U T LO O K
The outlo ok for the financial year 2016 is positive and has be en
dealt with in detail in the Chairman’s and CEO’s reports.
- I V I S A G I E
F I N A N C E D I R E C T O R
22
Goldplat plc – Annual Report and Accounts 2015
Goldplat plc – Annual Report and Accounts 2015
Goldplat plc – Annual Report and Accounts 2015
Goldplat plc – Annual Report and Accounts 2015
23
the board
b r I a N M o r I t Z
Non - e xecu tiv e Chairman
and eastern europe, the Middle east, Far east, Central asia and
North america. after returning to South africa as a Managing
director with Standard bank in 2009, Gerard left the banking
industry and joined Peterstow aquapower, a mining technology
brian is a Chartered accountant and former Senior Partner of
development company, as Ceo in 2011, before accepting a
Grant thornton, London. he formed Grant thornton’s Capital
position in 2012 with aurigin resources Inc., a privately owned
Markets team, which floated over 100 companies on aIM under
toronto-based gold exploration company with assets in ethiopia
his chairmanship. In 1995 he retired to concentrate on bringing
and tanzania, as President and Ceo.
new companies to the market as a director. he focuses on mining
companies, primarily in africa, and was formerly Chairman of
african Platinum PLC and Metal bulletin PLC as well as currently
being Chairman of several junior mining companies. brian is
I a N V I S a G I e
a member of the audit and remuneration committe es of the
Finance director
Ian is a chartered accountant who has worked in senior
positions in the mining industry since 1990. a South african
citizen he trained as a Chartered accountant with KPMG in its
Pretoria office. having gained post-qualifying experience with
KPMG he moved into a mining environment in 1990 when he
joined Consolidated Modderfontein Mines Limited as Financial
Manager, and Goldplat recovery in March 1997 as Financial
director. Ian has be en a director of Goldplat plc since listing.
Company and is responsible for corporate governance issues
and compliance with aIM.
G e r a r d
K I S b e Y - G r e e N
Chief e xe cut i ve officer
Gerard has built an expansive care er in the mining and related
financial industry, spanning over 28 years. after graduating as
a Mining engine er in South africa in 1987, he gained extensive
experience working in various management positions for a
number of the larger South african mining companies, including
rand Mines Group and the gold division of anglo american
Corporation. during this time he worked on gold, platinum and
coal mines primarily in South africa and also in Germany and
australia.
Gerard subsequently spent 17 years in the financial markets,
including five years as a mining equity analyst and 12 years
in mining corporate finance. he has worked in South africa
and the UK for banks including JPMorganChase, Investec and
Standard bank. Gerard has extensive experience in IPos,
capital raisings, M&a transactions and deals covering a great
diversity of commodities and geographic locations. he also has
experience in nomad and broker and advisory roles. he has
worked extensively in africa, particularly South africa, Western
24
Goldplat plc – Annual Report and Accounts 2015
h a N S I e
V a N V r e d e N
Chi ef o pe rating officer
an experienced metallurgist with over 15 years in the
mining industry. Prior to joining Goldplat he worked at
several angloGold ashanti (‘anglo’) operations in South
africa, including Savuka, Mponeng and Kopanang Gold
Plants, and Sunrise dam Gold Mine in Western australia.
during his time as Plant Manager and Production
Metallurgist at Kopanang Gold Plant he successfully
converted the operation from re ef to waste rock and
implemented various initiatives to increase production
capabilities and improve recoveries. In addition, at thre e
other anglo processing plants he gained certification and
re-certification of the International Cyanide Management
Institute (ICMI). during his time at anglo (1999-2013) he
was also responsible for health and safety, production
planning and execution, projects, metallurgical accounting,
security and operational staff. he holds a bachelors
degre e in engine ering (Chemical: Mineral Processing)
from the University of Stellenbosch.
N I G e L W Y a t t
N o n- exe cut ive dire ctor
Nigel is a graduate of the Camborne Scho ol of Mines.
he has held senior positions in a number of mining and
engine ering companies, primarily in Southern africa. he
was the group marketing director of a de be ers group
subsidiary supplying specialised materials, engine ering
and technology to the industrial and mining sectors, and
commercial director of dunlop Industrial Products (Pty)
Limited, South africa. In 2006, he was appointed as Ceo
of Chromex Mining Plc, an aIM company mining chrome
in South africa. after listing the company and bringing
the company to early production, he resigned in order to
se ek and develop other early stage mining projects.
t
h
e
b
o
a
r
d
25
Goldplat plc – Annual Report and Accounts 2015
dIreCtorS’ rePort
F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 1 5
the directors present their report together with the audited
P o L I t I C a L d o N a t I o N S
financial statements of the Group for the year ended
30 June 2015.
there were no political donations during the year (2014: £Nil).
a review of the business and risks and uncertainties is included
in the Strategic report.
r e S U L t S
C o r P o r a t e G o V e r N a N C e
S t a t e M e N t
the board has established an audit committe e and a
remuneration committe e with formally delegated duties and
the Group reports a pre-tax loss of £675,000 (2014: loss
responsibilities.
£248,000) and an after tax loss of £892,000 (2014: £356,000).
M a J o r e V e N t S a F t e r t h e
b a L a N C e S h e e t d a t e
the following events occurred after the balance she et date and
are further discussed in note 38 to these financial statements:
• On 22 July 2015 8 million share options were granted to
G Kisbey-Gre en and 3 million share options were granted to
h van Vreden.
d I V I d e N d S
No dividend is proposed in respect of the year ended
30 June 2015 (2014: £nil per share).
during the year the audit committe e consisted of b M Moritz
and N Wyatt. the audit committe e has responsibility for ensuring
that the financial performance, position and prospects of the
Company are properly monitored and reported on, for me eting
with the auditor and discussing their reports on the accounts
and the Company’s financial controls and for recommending the
appointment of auditors.
the remuneration and terms and conditions of appointment of
non-executive directors are set by the board. No director may
participate in any discussions or decisions regarding his own
remuneration.
d I r e C t o r S
the following directors served during the period:
G K I S b e Y - G r e e N
(Chief executive officer)
b M M o r I t Z
I V I S a G I e
N G W Yat t
(Non-executive Chairman)
(Finance director)
(Non-executive director)
J h Va N V r e d e N
(Chief operating officer)
26
Goldplat plc – Annual Report and Accounts 2015
d I r e C t o r S ’ I N t e r e S t S
the beneficial interests of the directors holding office on 30 June 2015 in the issued share capital of the Company
were as follows:
3 0 J U N e 2 015
3 0 J U N e 2 014
N U M b e r o F
P e r C e N ta G e o F
N U M b e r o F
P e r C e N ta G e o F
o r d I N a r Y S h a r e S
I S S U e d S h a r e
o r d I N a r Y S h a r e S
I S S U e d S h a r e
b M Moritz
o F 1P e a C h
2,550,000
C a P I ta L
1.51%
o F 1P e a C h
2,550,000
C a P I ta L
1.51%
Since 30 June 2015, b M Moritz has purchased a further 900,000 ordinary shares of 1p each and is now interested
in 3,450,000 ordinary shares representing 2.06% of the issued ordinary share capital. No other director had a
beneficial interest in the share capital of the Company.
d
i
r
e
c
t
o
r
s
’
r
e
p
o
r
t
d I r e C t o r S ’ r e M U N e r a t I o N a N d S e r V I C e C o N t r a C t S
details of directors’ emoluments including share based payments are disclosed in note 10 to these financial statements.
G Kisbey-Gre en
b M Moritz
I Visagie
N G Wyatt
J h Van Vreden
S a L a r I e S
£ ‘ 0 0 0
F e e S
£ ‘ 0 0 0
ot h e r
£ ‘ 0 0 0
62
-
128
-
101
291
-
40
-
25
-
65
-
-
-
-
13
13
tota L
£ ‘ 0 0 0
62
40
128
25
114
369
d I r e C t o r S ’ I N d e M N I t I e S
the Company maintains directors’ and officers’ liability insurance providing appropriate cover for any legal action
brought against its directors and/or officers.
G o I N G C o N C e r N
the directors adopt the going concern basis in preparing these financial statements. this is further explained in note 2
to the financial statements.
e M P L o Y e e S
the directors have a participative management style with frequent direct contact betwe en junior and senior
employe es. a two-way flow of information and fe edback is maintained through formal and informal me etings covering
Group performance. the Group is an equal employment opportunity employer.
27
Goldplat plc – Annual Report and Accounts 2015
S t a t e M e N t o F d I r e C t o r S ’
r e S P o N S I b I L I t I e S
S t a t e M e N t o F d I S C L o S U r e
t o a U d I t o r
the directors are responsible for preparing the directors’ report
So far as the directors are aware:
and the financial statements in accordance with applicable law
and regulations.
• there is no relevant audit information of which the Group’s and
Company’s auditor is unaware; and
Company law requires the directors to prepare financial
statements for each financial year. Under that law the directors
• all the Directors have taken steps that they ought to have
have elected to prepare the financial statements in accordance
taken to make themselves aware of any relevant audit
with International Financial reporting Standards (“IFrSs”) as
information and to establish that the auditors are aware of that
adopted by the european Union. the financial statements are
information.
required by law to give a true and fair view of the state of
affairs of the Company and the Group of the Group’s profit or
loss for that year.
a U d I t o r
In preparing these financial statements, the directors are
Chantrey Vellacott dFK LLP merged its practice with Mo ore
required to:
• select suitable accounting policies and then apply them
consistently;
Stephens LLP with effect from 1 May 2015 and now practises
under the name of Mo ore Stephens LLP. a resolution to
re-appoint Mo ore Stephens LLP as auditor will be proposed at
the annual General Me eting.
• make judgements and estimates that are reasonable and
by order of the board
prudent;
• state whether the financial statements comply with IFRS as
adopted by the european Union; and
• prepare the financial statements on the going concern basis
unless it is inappropriate to presume that the Group and
Company will continue in business
b Moritz
director
2 october 2015
the directors are responsible for ke eping adequate accounting
records that are sufficient to show and explain the Group’s
and Company’s transactions and disclose with reasonable
accuracy at any time the financial position of the Company
and enable them to ensure that the financial statements comply
with the Companies act 2006. they are also responsible for
safeguarding the assets of the Company and hence for taking
reasonable steps for the prevention and detection of fraud and
other irregularities.
the directors are responsible for the maintenance and integrity
of the corporate and financial information included on the
Company’s website. Legislation in the United Kingdom governing
the preparation and dissemination of financial statements may
differ from legislation in other jurisdictions.
28
Goldplat plc – Annual Report and Accounts 2015
StrateGIC rePort
F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 1 5
s
t
r
a
t
e
g
i
c
r
e
p
o
r
t
the directors present their Strategic report for the year
ended 30 June 2015.
r e V I e W o F b U S I N e S S a N d
F I N a N C I a L P e r F o r M a N C e
the Strategic report is a statutory requirement under the
Information on the financial position of the Group is set
Companies act 2006 (Strategic report and directors’
out in the Financial report and the annexed financial
report) regulations 2013 and is intended to provide fair
statements.
and balanced information that enables the directors to
be satisfied that they have complied with s172 of the
details of the operations are set out in the operations
Companies act 2006 which sets out the directors’ duty to
report.
promote the success of the Company.
P r I N C I P a L a C t I V I t Y
the board regularly reviews the risks to which the Group
is exposed and ensures through its me etings and regular
reporting that these risks are minimised as far as possible.
the Group’s business is based in africa and comprises
the production of gold and other precious metals, by
r I S K S a N d U N C e r t a I N t I e S
processing by-products of the mining industry as well as
mining itself.
the principal risks and uncertainties facing the Group at
this stage in its development are:
the Group’s primary operating base is situated near
benoni on the east rand goldfield in South africa. as
well as producing gold, silver and platinum group metals
P U R c H A s i N g R i s k
the main business of the Group, the recovery of gold
from the by-products of the mining industry, support for
from by-products of the mining industry, requires such by-
other Group operating subsidiary companies is provided
products to be available for purchase by the Group and
from benoni. this business is 74% owned in compliance
prices which allow profitable processing by the Group. as
with South african black economic empowerment
mining companies become more efficient both the volumes
legislation. Gold is also produced in Ghana at the
of available materials and their precious metal content
Group’s site in the fre e port of tema.
may be reduced.
the Group mines gold at the Kilimapesa mine near
Lolgorien in Kenya, and is se eking ways to expand
the Group mitigates this risk by its flexibility in the types
of material it processes. It has also be en in the forefront
production from this mine
of producing “responsible Gold” which gives it a
competitive advantage over its competitors.
the group also has exploration projects in Ghana and
burkina Faso which are not being developed at present.
29
Goldplat plc – Annual Report and Accounts 2015
P R i c E R i s k
the gold and precious metals produced by the Group are sold
E N v i R O N m E N T A l R i s k
exploration and development of a project can be adversely
at world prices which may fluctuate substantially according to
affected by environmental legislation and the unforese en results
supply and demand, and are not directly related to the cost of
of environmental studies carried out during evaluation of a
production.
project. once a project is in production unforese en events can
the Group se eks to mitigate this risk in part by adjusting the
price it pays for materials for processing.
the Group’s is responsible for rehabilitation at all its operations.
give rise to environmental liabilities.
E x P l O R A T i O N R i s k
the Group’s business includes mineral exploration and evaluation
F i N A N c i N g & l i q U i D i T Y R i s k
the Company may ne ed to finance expansion through the equity
which are speculative activities and there is no certainty that
markets and in future to obtain finance for project development.
the Group will be successful in the definition of economic mineral
there is no certainty such funds will be available when ne eded.
deposits, or that it will proce ed to the development of any of its
projects or otherwise realise their value.
this risk is mitigated for Goldplat in so far as its primary
the Group aims to mitigate this risk when evaluating new
business opportunities by targeting areas of potential where
there is at least some historical drilling or geological data
available.
activities are cash generative.
P O l i T i c A l R i s k
all countries carry political risk that can lead to interruption
of activity. Politically stable countries can have enhanced
environmental and social permitting risks, risks of strikes and
R E s O U R c E R i s k
all mineral projects have risk associated with defined grade and
changes to taxation whereas less developed countries can
have in addition, risks associated with changes to the legal
continuity. Mineral reserves and resources will be calculated by
framework, civil unrest and government expropriation of assets.
the Group in accordance with accepted industry standards and
codes but are always subject to uncertainties in the underlying
assumptions which include geological projection and commodity
price assumptions.
D E v E l O P m E N T R i s k
delays in permitting, financing and commissioning a project
P A R T N E R R i s k
In South africa, black economic empowerment legislation
requires historically disadvantaged South africans to have a
minimum 26% interest in all mining and exploration projects. the
Group can be adversely affected if joint venture partners are
unable or unwilling to perform their obligations or fund their
may result in delays to the Group me eting production targets.
share of future developments. It is possible that other countries
Changes in commodity prices can affect the economic viability
where the Group operates may introduce similar legislation.
of mining projects and affect decisions on continuing exploration
activity.
m i N i N g A N D P R O c E s s i N g
T E c H N i c A l R i s k
Notwithstanding the completion of metallurgical testwork, test
mining and pilot studies indicating the technical viability of a
mining operation, variations in mineralogy, mineral continuity,
ground stability, ground water conditions and other geological
F i N A N c i A l i N s T R U m E N T s
details of risks associated with the Group’s financial instruments
are given in Note 33 to the financial statements. the Company
does not utilise any complex financial instruments.
i N T E R N A l c O N T R O l s A N D
R i s k m A N A g E m E N T
the directors are responsible for the Group’s system of internal
conditions may still render a mining and processing operation
financial control. although no system of internal financial control
economically or technically non-viable.
can provide absolute assurance against material misstatement
or loss, the Group’s system is designed to provide reasonable
the Group has a small team of mining professionals experienced
assurance that problems are identified on a timely basis and
in geological evaluation, exploration, financing and development
dealt with appropriately.
of mining projects. to mitigate development risk the Group
supplements this from time to time with engagement of external
In carrying out their responsibilities the directors have put in
expert consultants and contractors.
place a framework of controls to ensure as far as possible that
ongoing financial performance is monitored in a timely manner,
that corrective action is taken and that risk is identified as
early as practically possible, and they have reviewed the
effectiveness of internal financial control.
30
Goldplat plc – Annual Report and Accounts 2015
the board, subject to delegated authority, reviews
regulatory issues, capital investment, property sales and
purchases, additional borrowing facilities, guarante es
and insurance arrangements.
B R i B E R Y R i s k
the Group has adopted an anti-corruption policy and
whistle blowing policy under the bribery act 2010.
Notwithstanding this, the Company may be held liable
for offences under that act committed by its employe es
or subcontractors whether or not the Company or the
directors have knowledge of the commission of such
offences.
F O R w A R D l O O k i N g
s T A T E m E N T s
this annual report contains certain forward lo oking
statements that have be en made by the directors in
go od faith based on the information available at the
time of the approval of the annual report. by their
nature, such forward lo oking statements involve risks and
uncertainties because they relate to events and depend
on circumstances that will or may occur in the future.
actual results may differ from those expressed in such
statements.
Gerard Kisbey-Gre en
Ceo
2 october 2015
s
t
r
a
t
e
g
i
c
r
e
p
o
r
t
31
Goldplat plc – Annual Report and Accounts 2015
INdePeNdeNt aUdItor’S rePort
to the MeMberS
oF GoLdPLat PLC
We have audited the financial statements of Goldplat Plc for
the year ended 30 June 2015 which comprise the consolidated
statement of profit or loss and other comprehensive income, the
S C o P e o F t h e a U d I t o F t h e
F I N a N C I a L S t a t e M e N t S
consolidated and company statements of financial position, the
a description of the scope of an audit of financial statements is
consolidated and company statements of changes in equity, the
provided on the Financial reporting Council’s web-site at
consolidated and company statements of cash flows and the
www.frc.org.uk/auditscopeukprivate.
related notes. the financial reporting framework that has be en
applied in their preparation is applicable law and International
Financial reporting Standards (IFrS) as adopted by the european
Union and, as regards the parent company financial statements,
as applied in accordance with the provisions of the Companies
o P I N I o N o N F I N a N C I a L
S t a t e M e N t S
act 2006.
In our opinion the financial statements:
this report is made solely to the company’s members, as a body,
• give a true and fair view of the state of the group’s and of the
in accordance with Chapter 3 of Part 16 of the Companies act
parent company’s affairs as at 30 June 2015 and of the group’s
2006. our audit work has be en undertaken so that we might
loss for the year then ended;
state to the, company’s members those matters we are required
to state to them in an auditors’ report and for no other purpose.
• have be en properly prepared in accordance with IFRS as
to the fullest extent permitted by law, we do not accept or
adopted by the european Union; and
assume responsibility to anyone other than the company and
the company’s members as a body, for our audit work, for this
• have be en prepared in accordance with the requirements of
report, or for the opinions we have formed.
the Companies act 2006.
r e S P e C t I V e r e S P o N S I b I L I t I e S
o F d I r e C t o r S a N d a U d I t o r S
as explained more fully in the statement of directors’
responsibilities, the directors are responsible for the preparation
of the financial statements and for being satisfied that they give
a true and fair view. our responsibility is to audit and express
an opinion on the financial statements in accordance with
applicable law and International Standards on auditing (UK and
Ireland). those standards require us to comply with the auditing
Practices board’s (aPbs) ethical Standards for auditors.
32
Goldplat plc – Annual Report and Accounts 2015
o P I N I o N o N o t h e r M a t t e r S
P r e S C r I b e d b Y
t h e C o M P a N I e S a C t 2 0 0 6
In our opinion, the information given in the strategic
report and directors’ report for the financial year for
which the financial statements are prepared is consistent
with the financial statements.
M a t t e r S o N W h I C h W e a r e
r e q U I r e d t o r e P o r t b Y
e x C e P t I o N
We have nothing to report in respect of the following
where, under the Companies act 2006 we are required
to report to you if, in our opinion:
• adequate accounting records have not be en kept by
the parent company, or returns adequate for our audit
have not be en received from branches not visited by
us; or
• the parent company financial statements are not in
agre ement with the accounting records and returns; or
• certain disclosures of directors’ remuneration specified
by law are not made; or
• we have not received all the information and
explanations we require for our audit.
Gareth JoNeS (Senior Statutory auditor)
for and on behalf of Moore StePheNS LLP
Chartered accountants and Statutory auditor
London
2 october 2015
a
u
d
i
t
o
r
’
s
r
e
p
o
r
t
33
Goldplat plc – Annual Report and Accounts 2015
ConsoliDateD statement of
profit or loss anD other
Comprehensive inCome
F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 1 5
Co ntinuing operations
rev enue
Cost of sales
gross profit
administrative expenses
results from operating aCtivities
finance income
finance costs
net fin anCe Costs
results from operating aCtivities after finanCe Costs
Write off development cost of discontinued south african mining operations
los s b efo re tax
taxation
loss for the year
los s attributable to:
owners of the Company
non-controlling interests
los s fo r the year
notes
7
11
12
13
2015
£’000
16,628
(15,660)
968
(1,679)
(711)
843
(807)
36
(675)
(121)
(796)
(96)
(892)
(1,143)
251
(892)
2014
£’000
21,020
(19,202)
1,818
(1,665)
153
429
(830)
(401)
(248)
–
(248)
(108)
(356)
(527)
171
(356)
other Comprehensive inCome
items that may be reclassified subsequently to profit or loss:
exchange translation
other Comprehensive expense for the year
(860)
(860)
(3,613)
(3,613)
total Comprehensive expense for the y ear
(1,752)
(3,969)
total Comprehensive inCome attributable to:
owners of the Company
non-controlling interests
total Comprehensive expense for the y ear
ear nin gs per share – Continuing operations
(2,003)
251
(1,752)
(4,140)
171
(3,969)
basic earnings per share (pence)
25
(0.53)
(0.21)
34
the notes on pages 42 to 79 are an integral part of these consolidated financial statements.
Goldplat plc – Annual Report and Accounts 2015
ConsoliDateD statement
of finanCial position
as sets
property, plant and equipment
intangible assets
pre-production expenditure
proce eds from sale of shares in subsidiary
non-current cash deposits
no n- Current assets
inventories
trade and other receivables
Cash and cash equivalents
Current assets
total assets
equity
share capital
share premium
exchange reserve
retained earnings
equity attributable to oWners of the Company
non-controlling interests
total eq uity
liab ilities
obligations under finance leases
interest bearing borrowings
provisions
Deferred tax liabilities
no n- Current liabilities
obligations under finance leases
interest bearing borrowings
taxation
trade and other payables
Current liabilities
total liabilities
total eq uity anD liabilities
A s A T 3 0 J U N E 2 0 1 5
notes
14
15
16
17
18
21
22
23
24
24
26
27
29
30
26
27
31
2015
£’000
4,449
7,033
2,136
1,357
233
2014
£’000
4,202
7,194
2,457
1,448
202
15,208
15,503
7,727
3,305
630
11,662
5,088
4,786
1,455
11,329
26,870
26,832
1,685
11,498
(6,707)
9,868
16,344
1,893
18,237
199
56
121
459
835
120
104
18
1,685
11,498
(5,847)
11,011
18,347
1,642
19,989
106
–
129
430
665
169
–
27
7,556
7,798
5,982
6,178
8,633
6,843
26,870
26,832
the financial statements of goldplat plc, company number 05340664, were approved by the board of Directors and
authorised for issue on 2 october 2015. they were signed on its behalf by:
ian visagie, Director
the notes on pages 42 to 79 are an integral part of these consolidated financial statements.
35
financial statementsGoldplat plc – Annual Report and Accounts 2015
ConsoliDateD statement
of Changes in equity
A s A T 3 0 J U N E 2 0 1 5
attributable to owners of the company
share
share
exchange
reta ined
non-
controlling
capital
premium
reserve
earnings
total
interests
£’000
£’000
£’000
£’000
£’000
£’000
total
equi ty
£’000
balance at 1 July 2014
1,685
11,498
(5,847)
11,011
18,347
1,642
19,989
total Comprehensive
in Com e for the year
loss
total other comprehensive
income
total Comprehensive
in Com e for the year
–
–
–
–
–
–
–
(1,143)
(1,143)
251
(892)
(860)
–
(860)
–
(860)
(860)
(1,143)
(2,003)
251
(1,752)
tran saCtions With oWners of the Company reCogniseD DireCtly in equity
Co ntributions by anD Distributions to oWners of the Company
share based payment
transactions
total Contributions
by anD Distributions
to oW ners of
the Com pany
balanCe at
30 June 2015
–
–
–
–
–
–
–
–
–
–
–
–
–
–
1,685
11,498
(6,707)
9,868
16,344
1,893
18,237
.
36
the notes on pages 42 to 79 are an integral part of these consolidated financial statements.
Goldplat plc – Annual Report and Accounts 2015
ConsoliDateD statement
of Changes in equity
( c O N T i N U E D )
attributa ble to owners of the company
share
share
exchange
reta ined
non-
controlling
Capital
premi um
reserve
earnings
total
interests
£’000
£’000
£’000
£’000
£’000
£’000
total
equi ty
£’000
balance at 1 July 2013
1,684
11,494
(2,234)
11,711
22,655
1,525
24,180
total Comprehensive
in Com e for the year
loss
total other
comprehensive income
total Comprehensive
in Com e for the year
–
–
–
–
–
–
–
(527)
(527)
171
(356)
(3,613)
–
(3,613)
–
(3,613)
(3,613)
(527)
(4,140)
171
(3,969)
tran saCtions With oWners of the Company reCogniseD DireCtly in equity
Contributions by anD Distr ibutions to oWners of the Company
issue of ordinary shares
Dividends
share based payment
transactions
total Contributions
by anD Distr ibutions
to oW ners of
the Company
1
–
–
1
4
–
–
4
Chan ges in oWnership interests in subsiDiaries
non-controlling interests
in subsidiary dividend
total transaCtions With
–
oW ners of the Company
1
–
4
–
–
–
–
–
–
–
(201)
5
(201)
28
28
(173)
(168)
–
–
–
–
5
(201)
28
(168)
–
–
(54)
(54)
(173)
(168)
(54)
(222)
balan Ce at 30 June 2014 1,685
11,498
(5,847)
11,011
18,347
1,642
19,989
the notes on pages 42 to 79 are an integral part of these consolidated financial statements.
37
financial statementsGoldplat plc – Annual Report and Accounts 2015
ConsoliDateD statement
of Cash floWs
F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 1 5
notes
2015
£’000
2014
£’000
Cash floWs from operating aCtivities
(loss)/profit for the period
adjustments for:
Depreciation
amortisation
loss on sale of property, plant and equipment
equity–settled share–based payment transactions
foreign exchange differences
Changes in:
– inventories
– trade and other receivables
– trade and other payables
– provisions
Cash generateD from operating aCtivities
finance income
finance cost
taxes paid
net Cash from operating aCtivities
Cash floWs from investing aCtivities
proce eds from sale of property, plant and equipment
enhancement of exploration and development asset
acquisition of property, plant and equipment
pre–production expenditure
non–current cash deposit
net Cash useD in investing aCtivities
Cash floWs from finanCing aCtivities
Dividends paid
proce eds from interest bearing borrowings
payment of finance lease liabilities
net Cash floWs from finanCing aCtivities
(832)
390
189
148
–
(172)
(277)
(2,639)
1,481
1,574
(8)
131
843
(679)
(76)
219
24
(92)
(909)
–
(31)
(1,008)
–
160
(196)
(36)
153
393
28
35
28
(1,238)
(601)
(651)
(27)
1,970
(5)
686
429
(832)
187
470
27
(50)
(510)
(242)
(202)
(977)
(201)
–
(199)
(400)
32.1
32.2
net DeCrease in Cash anD Cash equivalents
(825)
(907)
Cash and cash equivalents at 1 July
1,455
2,362
Cash anD Cash equivalents at 30 June
23
630
1,455
38
the notes on pages 42 to 79 are an integral part of these consolidated financial statements.
Goldplat plc – Annual Report and Accounts 2015
Company statement of
finanCial position
as sets
loans to subsidiary companies
investments
no n– Current assets
trade and other receivables
Cash and cash equivalents
Current assets
total assets
equity
share capital
share premium
retained earnings
equity attributable to oWners of the Company
non–controlling interests
total eq uity
liab ilities
trade and other payables
Current liabilities
total liabilities
A s A T 3 0 J U N E 2 0 1 5
notes
19
20
22
23
24
31
2015
£’000
4,470
9,425
13,895
420
15
435
2014
£’000
7,561
6,425
13,986
271
95
366
14,330
14,352
1,685
11,498
1,074
14,257
1,685
11,498
1,150
14,333
–
–
14,257
14,333
73
73
73
19
19
19
total eq uity anD liabilities
14,330
14,352
the financial statements of goldplat plc, company number 05340664, were approved by the board of Directors and
authorised for issue on 2 october 2015. they were signed on its behalf by:
ian visagie, Director
the notes on pages 42 to 79 are an integral part of these consolidated financial statements.
39
financial statementsGoldplat plc – Annual Report and Accounts 2015
Company statement
of Changes in equity
F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 1 5
attributa ble to owners of the Company
share
capital
£ ‘000
share
reta ined
premi um
£ ‘000
deficit
£ ‘000
total
equi ty
£ ‘000
balance at 1 July 2013
1,684
11,494
1,479
14,657
total Comprehensive inCome for the perioD
loss
total other comprehensive income
total Comprehensive inCome for the perioD
tran saCtions With oWners of the Company
reCogniseD DireCtly in equity
Co ntributions by anD Distributions to
oW ners of the Company
issue of ordinary shares
Dividends
own shares acquired
share based payment transactions
total Contributions by anD Distr ibutions
to oW ners of the Company
–
–
–
1
–
–
–
1
–
–
–
4
–
–
–
4
(156)
–
(156)
–
(201)
–
28
(173)
(156)
–
(156)
5
(201)
–
28
(168)
balanCe at 30 June 2014
1,685
11,498
1,150
14,333
balance at 1 July 2014
1,685
11,498
1,150
14,333
total Comprehensive inCome for the perioD
loss
total other comprehensive income
total Comprehensive inCome for the perioD
tran saCtions With oWners of the Company
reCogniseD DireCtly in equity
Co ntributions by anD Distr ibutions to
oWners of the Company
Dividends
own shares acquired
share based payment transactions
total Co ntributions by anD Distributions
to oWners of the Company
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(76)
–
(76)
–
–
–
–
(76)
–
(76)
–
–
–
–
balan Ce at 30 June 2015
1,685
11,498
1,074
14,257
40
the notes on pages 42 to 79 are an integral part of these consolidated financial statements.
Goldplat plc – Annual Report and Accounts 2015
Company statement of
Cash floWs
F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 1 5
notes
2015
£’000
2014
£’000
Cash floWs from operating aCtivities
loss for the period
adjustments for:
equity–settled share–based payment transactions
Changes in:
– trade and other receivables
– trade and other payables
Cash (useD in)/from operating aCtivities
interest received
interest paid
net Cash useD in operating aCtivities
Cash floWs from finanCing aCtivities
equity dividends paid
proce eds from issue of share capital
loans with subsidiary
net Cash floWs from finanCing aCtivities
net DeCrease in Cash anD Cash equivalents
Cash and cash equivalents at 1 July
Cash anD Cash equivalents at 30 June
23
(70)
–
(70)
(149)
54
(165)
–
(6)
(171)
–
–
91
91
(80)
95
15
(125)
28
(97)
(221)
(61)
(379)
–
(31)
(410)
(201)
–
365
164
(246)
341
95
the notes on pages 42 to 79 are an integral part of these consolidated financial statements.
41
financial statementsGoldplat plc – Annual Report and Accounts 2015
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
1 .
R EpO RTIN g ENTIT y
goldplat plc (the ‘Company’) is a company domiciled in England and Wales. The address of the Company’s registered
office is 55 gower Stre et, London, WC1E 6HQ. The group primarily operates as a producer of precious metals on the
African continent.
2 . gO IN g CO N CER N
The Company’s business activities, together with the factors likely to affect its future development, performance
and position are set out in the Chairman’s Statement. The financial position of the Company, its cash flows, liquidity
position and borrowing facilities are described in these financial statements. The financial statements include the
Company’s objectives, policies and processes for managing its capital; its financial risk management objectives, details
of its financial instruments and hedging activities; and its exposures to credit risk and liquidity risk.
The Company has sufficient reserves of raw materials and ongoing contracts with its current suppliers. The Company
has a secure market for its precious metal products which are sold at market related prices which are above
production costs.
The Directors believe that this performance will be sustainable for the ensuing year and therefore continue to adopt
the going concern basis of accounting in preparing the annual financial statements.
3 . BASIS O F pR EpAR ATIO N
( a ) Sta t e m e n t of co m p li a n ce
The consolidated financial statements have be en prepared in accordance with International Financial Reporting
Standards (‘IFRSs’) as issued by the International Accounting Standards Board (‘IASB’) and as adopted by the European
Union.
The Company’s individual profit and loss account has be en omitted from the group’s annual financial statements
having taken advantage of the exemption not to disclose under Section 408(3) of the Companies Act 2006. The
Company’s comprehensive loss for the year ended 30 June 2015 was £76,000 (2014: loss £156,000).
( b ) B a s i s of m e a s u re m e n t
The consolidated financial statements have be en prepared on the historical cost basis.
( c ) Fu n c t i o n a l a n d p re s e n ta t i o n a l cu r re n cy
The Company’s main functional currency is considered to be the US Dollar (“USD”). Due to operational spread of
activities the pound Sterling, South African Rand, Kenyan Shilling and ghana Cedi are also of importance. The
presentational currency is the pound Sterling.
42
FOR THE YEAR ENDED 30 JUNE 2015Goldplat plc – Annual Report and Accounts 2015 3 . BASIS O F pR EpAR ATIO N ( CO NTINUED )
( d ) U s e of e s t im a t e s a n d j u d g e m e n t s
The preparation of the consolidated financial statements in conformity with IFRSs requires management to make
judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of
assets, liabilities, income and expenses. The estimates and associated assumptions are based on historical experience
and various other factors that are believed to be reasonable under the circumstances, the results of which form the
basis of making judgements about carrying values of assets and liabilities that are not readily apparent from other
sources. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimates are revised if the revision affects only that period, or in the period of
revision and future periods of the revision if it affects both current and future periods.
Critical estimates and assumptions that have the most significant effect on the amounts recognised in the consolidated
financial statements and/or have a significant risk of resulting in a material adjustment within the next financial year
are as follows:
•
•
Carrying value of go odwill
– Notes 4(a)(i) and 15
Capitalisation of pre-production expenditure
– Notes 4(e)(iii) and 16
Accounting entries are made in accordance with the accounting policies detailed below.
4 . SIgNIFICANT ACCO UNTIN g pO LICIES
The accounting policies set out below have be en applied consistently to all periods presented in these consolidated
financial statements, and have be en applied consistently by group entities.
( a ) B a s i s of co n s o lid a t i o n
( i ) B u s in e s s co m bin a t i o n s
Business combinations are accounted for using the acquisition method as at the acquisition date, which is the date
on which control is transferred to the group. Control is the power to govern the financial and operating policies of
an entity so as to obtain benefits from its activities. In assessing control, the group takes into consideration potential
voting rights that currently are exercisable.
The group measures go odwill at the acquisition date as:
•
•
•
•
the fair value of the consideration transferred; plus
the recognised amount of any non-controlling interests in the acquire e; plus
if the business combination is achieved in stages, the fair value of the pre-existing equity interest in the acquire e;
less
the net recognised amount (generally fair value) of the identifiable assets acquired and liabilities assumed.
When the excess is negative, a bargain purchase price is recognised immediately in profit or loss.
43
financial statementsNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(CONTINUED)FOR THE YEAR ENDED 30 JUNE 2015Goldplat plc – Annual Report and Accounts 2015 4 . SIgNIFICANT ACCO UNTIN g pO LICIES ( CO NTINUED )
The consideration transferred does not include amounts related to the settlement of pre-existing relationships. Such
amounts generally are recognised in profit or loss.
Transaction costs, other than those associated with the issue of debt or equity securities, that the group incurs in
connection with a business combination are expensed as incurred.
Any contingent consideration payable is measured at fair value at the acquisition date. If the contingent consideration
is classified as equity, then it is not remeasured and settlement is accounted for within equity. Otherwise, subsequent
changes in the fair value of the contingent consideration are recognised in profit or loss.
When share-based payment awards (replacement awards) are required to be exchanged for awards held by the
acquire e’s employe es (acquire e’s awards) and relate to past services, then all or a portion of the amount of the
acquirer’s replacement awards is included in measuring the consideration transferred in the business combination. This
determination is based on the market-based value of the replacement awards compared with the market-based value
of the acquire e’s awards and the extent to which the replacement awards relate to past and/or future service.
( i i ) S u b s id i a r i e s
Subsidiaries are entities controlled by the group. The financial statements of subsidiaries are included in the
consolidated financial statements from the date that control commences until the date that control ceases.
( i i i ) Lo s s of co n t ro l
On the loss of control, the Group derecognises the assets and liabilities of the subsidiary, any non-controlling interests
and other components of equity related to the subsidiary. Any surplus or deficit arising on the loss of control is
recognised in profit or loss. If the group retains any interest in the previous subsidiary, then such interest is measured
at fair value at the date that control is lost. Subsequently it is accounted for as an equity-accounted investe e or as an
available-for-sale financial asset depending on the level of influence retained.
( i v ) Tra n s a c t i o n s e limin a t e d o n co n s o lid a t i o n
Intra-group balances and transactions, and any unrealised income and expenses arising from intra-group transactions,
are eliminated in preparing the consolidated financial statements.
( b ) Fo re i g n cu r re n cy
( i )
Fo re i g n cu r re n cy t r a n s a c t i o n s
Assets and liabilities denominated in foreign currencies are translated at the closing rate at the balance she et date.
Income and expense items are translated at an average rate for the year.
All differences are charged to the statement of profit or loss and other comprehensive income.
44
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(CONTINUED)FOR THE YEAR ENDED 30 JUNE 2015Goldplat plc – Annual Report and Accounts 2015 4 . SIgNIFICANT ACCO UNTIN g pO LICIES ( CO NTINUED )
( i i ) Fo re i g n o p e r a t i o n s
The assets and liabilities of foreign operations, including go odwill and the fair value adjustments arising on acquisition,
are translated to gBp at exchange rates at the reporting date. The income and expenses of foreign operations, are
translated to gBp at exchange rates at the dates of the transactions.
Foreign currency differences are recognised in other comprehensive income, and presented in the exchange reserve
in equity. However, if the foreign operation is a non-wholly owned subsidiary, then the relevant proportion of the
translation difference is allocated to non-controlling interests. When a foreign operation is disposed of such that
control, significant influence or joint control is lost, the cumulative amount in the translation reserve related to that
foreign operation is reclassified to profit or loss as part of the gain or loss on disposal. When the group disposes of
only part of its interest in a subsidiary that includes a foreign operation while retaining control, the relevant proportion
of the cumulative amount is reattributed to non-controlling interests.
When the settlement of a monetary item receivable from or payable to a foreign operation is neither planned nor
likely in the forese eable future, foreign currency gains and losses arising from such item are considered to form part
of a net investment in the foreign operation and are recognised in other comprehensive income, and presented in the
exchange reserve in equity.
go odwill and fair value adjustments arising on the acquisition of foreign operations are treated as assets and
liabilities of the foreign operation and translated at the closing rates.
( c ) Fin a n ci a l in s t r u m e n t s
( i ) N o n - d e r i v a t i v e fin a n ci a l a s s et s
The group initially recognises loans and receivables on the date that they are originated. All other financial assets are
recognised initially on the trade date, which is the date that the group becomes a party to the contractual provisions
of the instrument.
The group derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or
it transfers the rights to receive the contractual cash flows in a transaction in which substantially all the risks and
rewards of ownership of the financial asset are transferred. Any interest in such transferred financial assets that is
created or retained by the group is recognised as a separate asset or liability.
Financial assets and liabilities are offset and the net amount presented in the statement of financial position when, and
only when, the group has a legal right to offset the amounts and intends either to settle on a net basis or to realise
the asset and settle the liability simultaneously.
The Group’s non-derivative financial assets comprise loans and receivables.
45
financial statementsNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(CONTINUED)FOR THE YEAR ENDED 30 JUNE 2015Goldplat plc – Annual Report and Accounts 2015 4 . SIgNIFICANT ACCO UNTIN g pO LICIES ( CO NTINUED )
Lo a n s a n d re ce i v a bl e s
Loans and receivables are financial assets with fixed or determinable payments that are not quoted in an active
market. Such assets are recognised initially at fair value plus any directly attributable transaction costs. Subsequent
to initial recognition, loans and receivables are measured at amortised cost using the effective interest method, less
any impairment losses. A provision is established when there is objective evidence that the group will not be able to
collect all amounts due. The amount of any provision is recognised in the consolidated statement of profit or loss and
other comprehensive income.
Loans and receivables comprise trade and other receivables.
Ca s h a n d ca s h e q ui v a l e n t s
Cash and cash equivalents comprise cash held by the Group and short-term bank deposits with an original maturity of
thre e months or less. Bank overdrafts that are repayable on demand and form part of the group’s cash management
are included as a component of cash and cash equivalents for the purposes of the statement of cash flows.
( i i ) N o n - d e r i v a t i v e fin a n ci a l li a bili t i e s
The group initially recognises debt securities issued and subordinated liabilities on the date that they are originated.
All other financial liabilities (including liabilities designated at fair value through profit or loss) are recognised initially
on the trade date, which is the date that the group becomes a party to the contractual provisions of the instrument.
The group derecognises a financial liability when its contractual obligations are discharged, cancelled or expire.
The Group classifies non-derivative financial liabilities into the other financial liabilities category. Such financial
liabilities are recognised initially at fair value less any directly attributable transaction costs. Subsequent to initial
recognition, these financial liabilities are measured at amortised cost using the effective interest method.
Other financial liabilities comprise loans and borrowings, finance lease obligations, and trade and other payables.
Bank overdrafts that are repayable on demand and form an integral part of the group’s cash management are
included as a component of cash and cash equivalents for the purpose of the statement of cash flows.
( i i i ) Sh a re ca p i ta l
O rd in a r y s h a re s
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares are
recognised as a deduction from equity, net of any tax effects.
46
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(CONTINUED)FOR THE YEAR ENDED 30 JUNE 2015Goldplat plc – Annual Report and Accounts 2015 4 . SIgNIFICANT ACCO UNTIN g pO LICIES ( CO NTINUED )
Re p u rch a s e a n d re i s s u e of s h a re ca p i ta l ( t re a s u r y s h a re s )
When share capital recognised as equity is repurchased, the amount of consideration paid, which includes directly
attributable costs, net of any tax effects, is recognised as a deduction from equity. Repurchased shares are classified
as treasury shares. When treasury shares are sold or reissued subsequently, the amount received is recognised as an
increase in equity, and the resulting surplus or deficit on the transaction is presented in share premium.
( d ) pro p e r t y , p l a n t a n d e q uip m e n t
( i ) Re co g ni t i o n a n d m e a s u re m e n t
Items of property, plant and equipment are measured at cost less accumulated depreciation and accumulated
impairment losses. Cost includes expenditure that is directly attributable to the acquisition of the asset.
The cost of the mining asset includes the costs of dismantling and removing the items and restoring the site on which
they are located.
When parts of an item of property, plant and equipment have different useful lives, they are accounted for as
separate items (major components) of property, plant and equipment.
Any gain or loss on disposal of an item of property, plant and equipment (calculated as the difference betwe en the
net proce eds from disposal and the carrying amount of the item) is recognised in profit or loss.
( i i ) S u b s e q u e n t co s t s
Subsequent expenditure is capitalised only when it is probable that the future economic benefits associated with the
expenditure will flow to the group. Ongoing repairs and maintenance is expensed as incurred.
( i i i ) D e p re ci a t i o n
Items of property, plant and equipment are depreciated on a straight-line basis in profit or loss over the estimated
useful lives of each component. Leased assets are depreciated over the shorter of the lease term and their useful lives
unless it is reasonably certain that the group will obtain ownership by the end of the lease term. Fre ehold land is not
depreciated.
Items of property, plant and equipment are depreciated from the date that they are installed and are ready for use,
or in respect of internally constructed assets, from the date that the asset is completed and ready for use.
47
financial statementsNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(CONTINUED)FOR THE YEAR ENDED 30 JUNE 2015Goldplat plc – Annual Report and Accounts 2015 4 . SIgNIFICANT ACCO UNTIN g pO LICIES ( CO NTINUED )
The estimated useful lives for the current and comparative years of significant items of property, plant and equipment
are as follows:
•
•
•
•
•
•
•
•
leasehold land
buildings
plant and equipment
motor vehicles
office equipment
insurance spares
lease period
20 years
10 years
5 years
6 years
10 years
environmental assets
life of mine
pre-production expenditure
10 years from date of commencement of production
Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if
appropriate.
( e )
In ta n g i bl e a s s et s
( i ) g o o d w ill
go odwill that arises on the acquisition of subsidiaries is presented with intangible assets. For the measurement of
go odwill at initial recognition, se e note 4(a)(i).
S u b s e q u e n t m e a s u re m e n t
go odwill is measured at cost less accumulated impairment losses.
( i i ) M inin g r i g ht s , ex p l o ra t i o n a n d d ev e l o p m e n t
Mining rights, exploration and development includes rights in production, development and exploration phase
properties. The amount capitalised represents fair value at the time acquired, plus enhancement expenditure at cost.
Mining rights comprise production phase properties and are amortised over the estimated life of the mine.
Impairment of mining rights in production phase properties is considered based on expected future cash flows and
estimates of recoverable minerals.
Rights associated with development and exploration phase properties are not amortised until such time as the
underlying property is converted to the production phase.
Rights associated with exploration and development properties are individually evaluated for impairment based on
exploration results.
( i i i ) Pre - p ro d u c t i o n ex p e n d i t u re
Pre-production expenditure, including evaluation costs, incurred on mines to establish or expand productive capacity, or
to support and maintain that productive capacity are capitalised. Capitalisation ceases when the mine is in a condition
necessary to operate as intended by management.
48
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(CONTINUED)FOR THE YEAR ENDED 30 JUNE 2015Goldplat plc – Annual Report and Accounts 2015 4 . SIgNIFICANT ACCO UNTIN g pO LICIES ( CO NTINUED )
( i v ) S u b s e q u e n t ex p e n d i t u re
Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific
asset to which it relates. All other expenditure, including expenditure on internally generated go odwill and brands, is
recognised in profit or loss as incurred.
( v ) A m o r t i s a t i o n
Except for go odwill, intangible assets are amortised on a straight-line basis in profit or loss over their estimated useful
lives, from the date that they are available for use.
Amortisation methods, useful lives and residual values are reviewed at each reporting date and adjusted if
appropriate. Amortisation is included within administrative expenses in the statement of profit or loss and other
comprehensive income.
( f )
Le a s e d a s s et s
Leases in terms of which the group assumes substantially all of the risks and rewards of ownership are classified as
finance leases. On initial recognition, the leased asset is measured at an amount equal to the lower of its fair value
and the present value of the minimum lease payments.
Subsequent to initial recognition, the asset is accounted for in accordance with the accounting policy applicable to
that asset.
Other leases are operating leases and are not recognised in the group’s statement of financial position.
( g )
Inv e n to r i e s
Consumable stores and raw materials are measured at the lower of cost and net realisable value. The cost of
inventories is based on the weighted average basis and includes expenditure incurred in acquiring the inventories,
production or conversion costs, and other costs incurred in bringing them to their existing location and condition.
Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of
completion and selling expenses.
Bullion on hand, gold and platinum represents production on hand after the smelting process, gold contained in
the elution process, gold loaded carbon the in carbon-in-leach (“CIL”) and carbon-in-pulp (“CIP”) processes, gravity
concentrates, platinum group metals (“pgM”) concentrates and any form of precious metal in process where the
quantum of the contained metal can be accurately determined. It is valued at the average production cost for the
year, including amortisation and depreciation.
49
financial statementsNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(CONTINUED)FOR THE YEAR ENDED 30 JUNE 2015Goldplat plc – Annual Report and Accounts 2015 4 . SIgNIFICANT ACCO UNTIN g pO LICIES ( CO NTINUED )
Broken ore represents blasted ore, underground or on stockpile, and are measured at the lower of cost and net
realisable value. The cost of broken ore is based on production costs and other costs incurred in bringing them to their
existing location and condition.
( h )
Im p a ir m e n t
The carrying amounts of the Group’s non-financial assets, other than inventories and deferred tax assets, are reviewed
at each balance she et date to determine whether there is any indication of impairment. If any such indication exists,
the asset’s recoverable amount is estimated.
An impairment loss is recognised whenever the carrying amount of an asset or its cash-generating unit (“CGU”)
exce eds its recoverable amount. Impairment losses are recognised in the group statement of profit or loss and other
comprehensive income.
go odwill is assessed annually for possible impairment. Impairment losses relating to go odwill are not reversed.
( i )
Em p l oye e b e n efi t s
Sh a re - b a s e d p a y m e n t t ra n s a c t i o n s
Equity-settled share-based payments are measured at fair value (excluding the impact of any non-market vesting
conditions) at the date of grant. The fair value determined at the grant date of the equity-settled share-based
payments is expensed on a straight line basis over the vesting period, based on the group’s estimate of shares that
will eventually vest and adjusted for the effect of non market-based vesting conditions. Fair value is measured by use
of the Black Scholes model. The expected life used in the model has be en adjusted, based on management’s best
estimate, for the effects of non-transferability, exercised restrictions and behavioural considerations.
( j ) prov i s i o n s
A provision is recognised in the statement of financial position if, as a result of a past event, the group has a present
legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits
will be required to settle the obligation. If the effect is material, provisions are determined by discounting the expected
future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and, where
appropriate, the risks specific to the liability. The unwinding of the discount is recognised as finance cost.
Env iro nm e n ta l o bli g a t i o n
In accordance with the group’s environmental policy and applicable legal requirements, a provision for site restoration
in respect of contaminated land is recognised when the land is contaminated.
The estimated long-term environmental obligations, comprising rehabilitation and mine closure, are based on the
group’s environmental management plans in compliance with current environmental and regulatory requirements. The
amounts disclosed in the financial statements as environmental assets and obligations include rehabilitation.
50
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(CONTINUED)FOR THE YEAR ENDED 30 JUNE 2015Goldplat plc – Annual Report and Accounts 2015 4 . SIgNIFICANT ACCO UNTIN g pO LICIES ( CO NTINUED )
The cost of rehabilitation projects undertaken, which has be en included in the provision estimate, are charged to the
provision as incurred. The cost of current programs to prevent and control future liabilities are charged to the group
statement of profit or loss and other comprehensive income as incurred.
( k ) Rev e n u e
Revenue from the sale of precious metals is recognised in the statement of profit or loss and other comprehensive
income when the significant risks and rewards of ownership have be en transferred to the buyer excluding sales taxes.
( l )
Fin a n ce in co m e a n d fin a n ce co s t s
Interest income is accrued on a time basis, by reference to the principal outstanding and the applicable effective
interest rate.
Finance costs comprise interest payable on borrowings calculated using the effective interest rate method, interest
receivable on funds invested and foreign exchange gains and losses that are recognised in the group statement of
profit or loss and other comprehensive income.
The finance expense component of finance lease payments is recognised in the group statement of profit or loss and
other comprehensive income using the effective interest rate method.
( m ) Ta xa t i o n
Tax on the profit or loss for the year comprises current and deferred tax. Tax is recognised in the group statement of
profit or loss and other comprehensive income except to the extent that it relates to items recognised directly in equity,
in which case it is recognised in equity.
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantially
enacted at the balance she et date and any adjustment to tax payable in respect of previous years.
Deferred tax is provided using the balance she et liability method, providing for temporary differences betwe en the
carrying amount of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes.
( n ) S e g m e n t re p o r t in g
Segment results that are reported to the CEO include items directly attributable to a segment as well as those that
can be allocated on a reasonable basis.
51
financial statementsNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(CONTINUED)FOR THE YEAR ENDED 30 JUNE 2015Goldplat plc – Annual Report and Accounts 2015 5 . NEW STANDAR DS AND INTER pR ETATIO N S N OT y ET AD O pTED
Standards, Amendments to published Standards and Interpretations issued but not yet effective
Certain standards, amendments to published standards and interpretations have be en issued that are mandatory for
accounting periods beginning on or after 1 July 2014 or later periods, but which the group has not early adopted.
The directors consider that the effect of Standards, amendments to published Standards and Interpretations issued but
not yet effective, on the presentation of its financial statements will not be material.
6 . O pER ATIN g S EgM ENTS
For each segment, the group’s CEO (the chief operating decision maker) reviews internal management reports on at
least a quarterly basis. The following summary describes the operations in each of the group’s reportable segment.
•
Recovery operations. Includes the recovery of precious metals from metallurgical challenging materials and
the processing of ore, sourced from other mining operations. These products often represent an environmental
challenge to the primary producer and are processed in a responsible manner by the company.
•
Mining and exploration. Includes assets held for commercial exploitation of precious metals and exploration
assets held where the commercial viability of the ore resource has not yet be en evaluated or is in the process of
evaluation.
• Administration. Includes activities conducted by holding companies in relation to the group and its subsidiaries.
There are varying levels of integration betwe en the thre e reportable segments. This integration includes the sale of
precious metals from the ghana recovery operation to the South African recovery operation, and the supply of go ods
and services by the South African subsidiary to all group operations. Inter-segment pricing is determined on an arm’s
length basis.
Information regarding the results of each reportable segment is included below. performance is measured based on
segment profit before tax, as included in the internal management reports that are viewed by the group’s CEO.
Segment profit is used to measure performance as management believes that such information is the most relevant in
evaluating the results of certain segments relative to other entities that operate within these industries.
52
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(CONTINUED)FOR THE YEAR ENDED 30 JUNE 2015Goldplat plc – Annual Report and Accounts 2015 6 . O pER ATIN g S EgM ENTS ( CO NTINUED )
Information about reportable segments:
Fo r t h e ye a r e n d e d 3 0 J u n e 2 015
External revenues
Inter-segment revenues
TOTAL R Ev ENUES
Interest expense
Depreciation and amortisation
Reportable segment profit/(loss) before tax
Taxation
Reportable segment assets
Capital expenditure
Reportable segment liabilities
Fo r t h e ye a r e n d e d 3 0 J u n e 2 014
External revenues
Inter-segment revenues
TOTAL R Ev ENUES
Interest expense
Depreciation and amortisation
Reportable segment profit/(loss) before tax
Taxation
Reportable segment assets
Capital expenditure
Reportable segment liabilities
Re cov e r y M inin g a n d
Ad mini s -
O p e ra t i o n s ex p l o ra t i o n
£ ’ 0 0 0
£ ’ 0 0 0
t r a t i o n
£ ’ 0 0 0
Re co n cil -
i a t i o n to
Gro u p
fi g u re s
£ ’ 0 0 0
gro u p
£ ’ 0 0 0
15,037
1,805
16,842
(31)
313
873
(96)
14,546
753
8,292
1,591
–
1,591
–
266
(933)
–
6,099
488
4,515
–
–
–
–
–
(550)
–
–
16,628
(1,805)
(1,805)
–
16,628
–
–
(65)
–
(31)
579
(675)
(96)
28,542
(22,317)
26,870
–
–
4,969
(9,143)
1,241
8,633
Re cov e r y M inin g a n d
Ad mini s -
O p e ra t i o n s ex p l o ra t i o n
£ ’ 0 0 0
£ ’ 0 0 0
t r a t i o n
£ ’ 0 0 0
20,284
325
20,609
(54)
393
1,796
(82)
18,022
924
6,383
736
–
736
–
28
–
–
–
–
–
(714)
(1,330)
–
1,703
61
377
(26)
7,107
–
83
Re co n cil -
i a t i o n to
Gro u p
fi g u re s
£ ’ 0 0 0
gro u p
£ ’ 0 0 0
–
21,020
(325)
(325)
–
21,020
–
–
–
–
–
–
–
(54)
421
(248)
(108)
26,832
985
6,843
53
financial statementsNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(CONTINUED)FOR THE YEAR ENDED 30 JUNE 2015Goldplat plc – Annual Report and Accounts 2015
6 . O pER ATIN g S EgM ENTS ( CO NTINUED )
g e o g ra p hi ca l info r m a t i o n
The Recovery Operations, Mining and Exploration and Administration segments are managed on a worldwide basis,
but operate mines on the African continent.
In presenting information on the basis of geography, segment revenue is based on the geographical location of
customers and segment assets are based on the geographical location of the assets.
Rev e n u e
Revenues are primarily derived from dore bars and product delivered in concentrate form to a local South African
refinery in Johannesburg.
N o n - cu r re n t a s s et s
Non-current assets are primarily based on the African continent.
M a j o r cu s to m e r
The major customer to the group is a local South African refinery in Johannesburg. Revenues from this customer
presents 91% (2014: 97%) of the recovery operations revenues and 100% (2014: 86%) of the mining and exploration
revenues.
7 .
R Ev ENUE
Sales of precious metals – Recovery operations
Sales of precious metals – Mining and exploration
processing fe es charged to customers
8 .
Ex pEN S ES By N ATUR E
Employe e benefit expense
Depreciation and amortisation expense
Equity-settled share-based payment transactions
Auditor’s remuneration
– Audit fe e
Directors’ remuneration
Loss on disposal of property, plant and equipment
2 015
£ ’ 0 0 0
14,883
1,591
154
16,628
2 015
£ ’ 0 0 0
3,756
579
–
135
369
148
2 014
£ ’ 0 0 0
19,937
736
347
21,020
2 014
£ ’ 0 0 0
3,263
421
28
70
429
35
N o t e s
9
14 , 15 , 16
10
Auditor’s remuneration in respect of the Company amounted to £32,000 (2014: £32,000). Of this amount, £32,000
(2014: £32,000) was in relation to audit services and £nil (2014: £nil) for tax advice.
54
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(CONTINUED)FOR THE YEAR ENDED 30 JUNE 2015Goldplat plc – Annual Report and Accounts 2015
9 . pERSO NNEL Ex pEN S ES
Wages and salaries
performance based payments
National insurance and unemployment fund
Skills development levy
Medical aid contributions
group life contributions
provident funds
The average number of employe es (including directors) during the period was:
Directors
Administrative personnel
production personnel
10 . DIR ECTO RS ’ EMO LUM ENTS
2 015
Wages and salaries
Fe es
Other benefits
2 014
Wages and salaries
Fe es
Other benefits
2 015
£ ’ 0 0 0
3,454
112
40
28
27
43
52
2 014
£ ’ 0 0 0
2,915
154
20
37
43
48
46
3,756
3,263
2 015
2 014
4
32
316
352
5
27
368
400
N o n -
E x e cu t i v e
ex e cu t i v e
£ ‘ 0 0 0
£ ‘ 0 0 0
To ta l
£ ‘ 0 0 0
291
–
13
304
–
65
–
65
N o n -
291
65
13
369
E x e cu t i v e
ex e cu t i v e
£ ‘ 0 0 0
£ ‘ 0 0 0
To ta l
£ ‘ 0 0 0
354
–
14
368
–
61
–
61
354
61
14
429
55
financial statementsNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(CONTINUED)FOR THE YEAR ENDED 30 JUNE 2015Goldplat plc – Annual Report and Accounts 2015
10 . DIR ECTO RS ’ EMO LUM ENTS ( CO NTINUED )
Emoluments disclosed above include the following amounts paid to the highest director:
Emoluments for qualifying services
Key m a n a g e m e n t
2 015
£ ’ 0 0 0
2 014
£ ’ 0 0 0
128
128
Apart from the Directors, the emoluments paid to key management personnel amounted to £522,000
(2014: £637,000).
11 . FIN AN CE IN COM E AND FIN AN CE COSTS
Re co g ni s e d in p rofi t o r l o s s
Interest income on cash balances held
Foreign exchange gains
FIN AN CE IN COM E
Interest expense on utilisation of overdraft facility
Interest on finance leases
Interest on environmental liability
Foreign exchange loss
Other
FIN AN CE COSTS
NET FIN AN CE COSTS R ECO gNIS ED IN pR O FIT O R LOS S
2 015
£ ’ 0 0 0
2 014
£ ’ 0 0 0
11
832
843
(14)
(16)
–
(777)
–
(807)
36
29
400
429
(6)
(27)
2
(776)
(23)
(830)
(401)
The above finance income and finance costs include the following interest income and expense in respect of assets
(liabilities) not measured at fair value through profit or loss:
– Total interest income on financial assets
– Total interest expense on financial liabilities
11
(30)
29
(33)
56
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(CONTINUED)FOR THE YEAR ENDED 30 JUNE 2015Goldplat plc – Annual Report and Accounts 2015
12 . W R ITE O FF DEv ELO pM ENT COST O F DISCO NTINUED
SO UTH AFR ICAN M ININ g O p ER ATIO N
Write off CRg development
2 015
£ ’ 0 0 0
2 014
£ ’ 0 0 0
121
–
The contract with and the mining activity at Central Rand Gold has be en terminated as the risk-reward was no longer
viable. The development cost capitalised on the operations at Central Rand Gold were written-off. This contract
represents a discontinued activity in South Africa but the group continues gold production in that country and mining
in Kenya.
13 . TA x ATIO N
Cu r re n t ta x ex p e n s e
TA x R ECO gNIS ED IN pR O FIT O R LOS S
CUR R ENT TA x Ex p EN S E
Current period
Adjustment for prior years
Secondary tax on dividends paid from South Africa
DEFER R ED TA x Ex p EN S E
Origination and reversal of temporary differences
Increase/(Reduction) in tax rate
TOTAL TA x Ex pEN S E
Reconciliation of effective tax rate
(Loss) for the year
Total tax expense
profit excluding tax
Tax using the Company’s domestic tax rate of 20.75% (2014: 22.50%)
Effects of:
Expenses not deductible for tax purposes
Effect of lower tax levied on overseas subsidiaries
Tax losses carried forward
Secondary tax on dividends paid from South Africa
2 015
£ ’ 0 0 0
2 014
£ ’ 0 0 0
36
–
–
36
60
–
60
96
32
–
25
57
51
–
51
108
2 015
£ ’ 0 0 0
2 014
£ ’ 0 0 0
(892)
96
(796)
(165)
7
(132)
386
–
96
(356)
108
(248)
(56)
(69)
(238)
446
25
108
None of the components of other comprehensive income have a tax impact.
The tax charge arises in South Africa where group relief is not available from other jurisdictions.
57
financial statementsNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(CONTINUED)FOR THE YEAR ENDED 30 JUNE 2015Goldplat plc – Annual Report and Accounts 2015
14 . pR O p ERT y , pLANT AND EQ UIpM ENT
Fre e h o ld /
l e a s e h o ld
pl a n t a n d
M o to r
O ffi ce
l a n d
B uild in g s e q uip m e n t
v e hi cl e s e q uip m e n t
£ ‘ 0 0 0
£ ‘ 0 0 0
£ ‘ 0 0 0
£ ‘ 0 0 0
£ ‘ 0 0 0
Env iro n -
m e n ta l
a s s et
£ ‘ 0 0 0
Co s t
Balance at 1 July 2013
323
Additions
Disposals
Effect of movements in
exchange rates
–
–
(83)
BALAN CE AT 3 0 JUNE 2 014 240
Balance at 1 July 2014
Additions
Disposals
Effect of movements in
exchange rates
240
221
–
(35)
BALAN CE AT 3 0 JUNE 2 015 426
D e p re ci a t i o n
Balance at 1 July 2013
Depreciation charge for
the year
Disposals
Reversal of amortisation
Effect of movements in
exchange rates
BALAN CE AT 3 0 JUNE 2 014
Balance at 1 July 2014
Depreciation charge for
the year
Disposals
Reversal of amortisation
Effect of movements in
exchange rates
BALAN CE AT 3 0 JUNE 2 015
8
–
–
–
(3)
5
5
–
–
–
(1)
4
529
30
(4)
(115)
440
4,558
1,187
430
(40)
183
(23)
(911)
4,037
(219)
1,128
440
4,037
1,128
1
(5)
(39)
397
906
(247)
19
–
(307)
4,389
(79)
1,068
114
1,165
435
19
(1)
–
(23)
109
246
(23)
–
(236)
1,152
119
(16)
–
(81)
457
109
1,152
457
18
(2)
–
(8)
117
252
(78)
–
(88)
1,238
109
–
–
(31)
535
77
31
(21)
(13)
74
74
2
–
(7)
69
35
9
(5)
–
(7)
32
32
8
–
–
(2)
38
58
To ta l
£ ‘ 0 0 0
6,765
693
(107)
(1,356)
5,995
5,995
1,149
(252)
(472)
6,420
91
19
(19)
(15)
76
76
–
–
(5)
71
91
1,848
–
–
(38)
(15)
38
393
(45)
(38)
(365)
1,793
38
1,793
3
–
–
(2)
39
390
(80)
–
(132)
1,971
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(CONTINUED)FOR THE YEAR ENDED 30 JUNE 2015Goldplat plc – Annual Report and Accounts 2015
14 . pR O p ERT y , pLANT AND EQ UIpM ENT ( CO NTINUED )
Fre e h o ld /
l e a s e h o ld
pl a n t a n d
M o to r
O ffi ce
l a n d
B uild in g s e q uip m e n t
v e hi cl e s e q uip m e n t
£ ‘ 0 0 0
£ ‘ 0 0 0
£ ‘ 0 0 0
£ ‘ 0 0 0
£ ‘ 0 0 0
Env iro n -
m e n ta l
a s s et
£ ‘ 0 0 0
Ca r r y in g a m o u n t s
At 30 June 2013
At 30 June 2014
At 30 June 2015
Le a s e d p l a n t a n d e q uip m e n t
315
235
422
415
331
280
3,393
2,885
3,151
752
671
533
42
42
31
–
38
32
To ta l
£ ‘ 0 0 0
4,917
4,202
4,449
The group leases plant and equipment under a number of finance lease agre ements. The leased equipment secures
lease obligations. At 30 June 2015 the net carrying amount of leased plant and equipment was £314,000
(2014: £347,000). During the year, the group acquired leased assets of £240,000 (2014: £183,000)
(se e note 26 and 31.2).
59
financial statementsNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(CONTINUED)FOR THE YEAR ENDED 30 JUNE 2015Goldplat plc – Annual Report and Accounts 2015
15 . INTAN gIB LE AS S ETS
Cost
Balance at 1 July 2013
Additions
Effect of movements in exchange rates
BALAN CE AT 3 0 JUNE 2 014
COST
Balance at 1 July 2014
Additions
Effect of movements in exchange rates
BALAN CE AT 3 0 JUNE 2 015
A MO RTISATIO N AND I M pAIR M ENT LOS S ES
Balance at 1 July 2013
Amortisation for the year
Impairment transfer from pre-production
Effect of movements in exchange rates
BALAN CE AT 3 0 JUNE 2 014
A MO RTISATIO N AND I M pAIR M ENT LOS S ES
Balance at 1 July 2014
Amortisation for the year
Impairment transfer from pre-production
Effect of movements in exchange rates
BALAN CE AT 3 0 JUNE 2 015
CAR RyIN g A MO UNTS
Balance at 30 June 2013
Balance at 30 June 2014
Balance at 30 June 2015
E x p l o ra t i o n
M inin g
a n d
g o o d w ill
r i g ht s d ev e l o p m e n t
£ ‘ 0 0 0
£ ‘ 0 0 0
£ ‘ 0 0 0
5,631
–
–
5,631
5,631
–
–
5,631
–
–
–
–
–
–
–
–
–
–
918
–
(342)
576
576
–
(107)
469
–
–
–
–
–
–
–
–
–
–
2,459
50
(742)
1,767
1,767
92
(209)
1,650
270
28
806
(324)
780
780
29
–
(92)
717
To ta l
£ ‘ 0 0 0
9,008
50
(1,084)
7,974
7,974
92
(316)
7,750
270
28
806
(324)
780
780
29
–
(92)
717
5,631
5,631
5,631
918
576
469
2,189
987
933
8,738
7,194
7,033
go odwill relates to the investment held in gold Mineral Resources Limited and is supported by the ongoing gold
recovery operations in South Africa and ghana and the Kilimapesa mine in Kenya.
The exploration and development rights relate to exploration and mining licenses in Burkina Faso and ghana, and the
mining rights to the Kilimapesa mine in Kenya.
60
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(CONTINUED)FOR THE YEAR ENDED 30 JUNE 2015Goldplat plc – Annual Report and Accounts 2015
16 . PR E - PR O DU CTIO N Ex PENDITUR E
Co s t
Balance at beginning of year
Expenditure incurred
Transfers to intangible assets
Effect of movement in exchange rates
Balance at end of year
A MO RTISATIO N AND I M pAIR M ENT LOS S ES
Balance at 1 July
Amortisation for year
Impairment for the year
Impairment transfer to intangible assets
Effect of movement in exchange rates
Balance at end of year
CAR RyIN g A MO UNTS
At beginning of year
At end of year
2 015
£ ’ 0 0 0
4,172
–
–
–
2 014
£ ’ 0 0 0
3,930
242
–
–
4,172
4,172
1,715
160
–
–
161
2,036
2,457
2,136
2,317
–
–
(806)
204
1,715
1,613
2,457
The group has capitalised all expenditure incurred on the Kilimapesa gold mining project, the Nyieme gold mining
project and the Anumso gold mining project whilst the mines are in the development phase.
17 . pR O CEEDS FR OM SALE O F SH AR ES IN SUB SIDI ARy
Consideration due on sale of 15% and 11% of the issued share capital of goldplat Recovery (pty) Limited:
Balance at beginning of year
Consideration due on 11% share capital
Received from dividends
Effect of movement in exchange rates
Balance at end of year
2 015
£ ’ 0 0 0
1,448
–
–
(91)
1,357
2 014
£ ’ 0 0 0
1,960
–
(54)
(458)
1,448
The proce eds from sale of shares in goldplat Recovery (pty) Limited, in compliance with Black Economic Empowerment
legislation in South Africa, are recoverable from future dividends. They have be en included at historical cost due to
the uncertainty surrounding the variables required to calculate this asset at amortised cost. The directors consider that
this reflects the most accurate measurement of the asset.
61
financial statementsNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(CONTINUED)FOR THE YEAR ENDED 30 JUNE 2015Goldplat plc – Annual Report and Accounts 2015
18 . N O N - CUR R ENT CASH DEPOSITS
gro u p
Non-current cash deposit
19 . LOAN S TO SUB SIDI ARy COM pANIES
2 015
£ ’ 0 0 0
2 014
£ ’ 0 0 0
233
202
2 015
£ ’ 0 0 0
2 014
£ ’ 0 0 0
Funds advanced to gold Mineral Resources Limited
4,470
7,561
Interest is charged at 2% above LIBOR on the monthly outstanding balances. This interest was waived for the year
ended 30 June 2015 (2014: £Nil as waived). On 30 June 2015 £3,000,000 of the loan was capitalised as investment.
Loans to subsidiary companies are unsecured.
2 0 . IN v ESTM ENTS
Investment in gold Mineral Resources Limited
2 015
£ ’ 0 0 0
2 014
£ ’ 0 0 0
9,425
6,425
On 30 June 2015 £3,000,000 of the loan to gold Mineral Resources Limited was capitalised as an investment. Details
of the Company’s significant subsidiaries are outlined in note 37.
21 . IN v ENTO R IES
Consumable stores
Raw materials
precious metals on hand and in process
Broken ore
2 015
£ ’ 0 0 0
1,009
516
6,115
87
7,727
2 014
£ ’ 0 0 0
1,372
572
3,144
–
5,088
62
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(CONTINUED)FOR THE YEAR ENDED 30 JUNE 2015Goldplat plc – Annual Report and Accounts 2015
22 . TR ADE AND OTHER R ECEIvAB LES
gro u p
Trade receivables
Other receivables
Co m p a ny
Other receivables
The group and Company’s exposure to credit and currency risk is disclosed in note 33.
23 . CASH AND CASH EQ UIvALENTS
gro u p
Bank balances
Cash and cash equivalents in the statement of cash flows
Co m p a ny
Bank balances
Cash and cash equivalents in the statement of cash flows
2 015
£ ’ 0 0 0
2,447
858
3,305
2 015
£ ’ 0 0 0
420
420
2 015
£ ‘ 0 0 0
630
630
2 015
£ ‘ 0 0 0
15
15
2 014
£ ’ 0 0 0
3,826
960
4,786
2 014
£ ’ 0 0 0
271
271
2 014
£ ‘ 0 0 0
1,455
1,455
2 014
£ ‘ 0 0 0
95
95
63
financial statementsNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(CONTINUED)FOR THE YEAR ENDED 30 JUNE 2015Goldplat plc – Annual Report and Accounts 2015
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
(CONTINuED)
24 . CApITAL AND r ES Erv ES
Sh a re ca p i ta l a n d s h a re p re mi u m
On issue at 1 July
Issued for cash
Issued in connection with settlement of liabilities
On issue at 30 June – fully paid
Authorised – par value £0.01
N u m b e r of
o rd in a r y
Sh a re s
2 015
2 014
168,441,000 168,370,000
–
–
–
71,000
168,441,000
168,441,000
1,000,000,000 1,000,000,000
Issued share capital includes 1,000,000 (2014 : 1,000,000) ordinary shares of £0.01 each held in treasury.
Balance at 1 July
Share issues
B a l a n ce a t 3 0 J u n e
O rd in a r y s h a re s
O rd in a r y
s h a re ca p i ta l
2 015
£ ‘ 0 0 0
1,685
–
1,685
2 014
£ ‘ 0 0 0
1,684
1
1,685
All shares rank equally with regard to the Company’s residual assets.
The holders of ordinary shares are entitled to receive dividends as declared from time to time, and are entitled to one
vote per share at me etings of the Company. In respect of the Company’s shares that are held by the Group, all rights
are suspended until those shares are reissued.
Di v id e n d s
A dividend of nil per ordinary share is proposed in respect of the year ended 30 June 2015 (2014: nil).
E xch a n g e re s e r v e
The exchange reserve comprises all foreign currency differences arising from the translation of the financial statements
of foreign operations.
64
FOR THE YEAR ENDED 30 JUNE 2015Goldplat plc – Annual Report and Accounts 2015
25 . EAr NIN GS pEr SH Ar E
B a s i c e a r nin g s p e r s h a re
The calculation of basic earnings per share at 30 June 2015 was based on the loss attributable to ordinary
shareholders of £892,000 (2014: loss £356,000), and a weighted average number of ordinary shares outstanding of
168,441,000 (2014: 168,408,126), calculated as follows:
profi t a t t r i b u ta bl e to o rd in a r y s h a re h o ld e rs
2 015
2 014
Co n t in uin g
o p e ra t i o n s
Co n t in uin g
o p e ra t i o n s
£ ‘ 0 0 0
£ ‘ 0 0 0
Loss attributable to ordinary shareholders
(892)
(356)
We i g ht e d a v e ra g e n u m b e r of o rd in a r y s h a re s
Issued ordinary shares at 1 July
Effect of shares issued
2 015
2 014
168,441,000 168,370,000
–
38,126
Weighted average number of ordinary shares at 30 June
168,441,000
168,408,126
26 . O B LIGATIO N S uNDEr FIN AN CE LEAS ES
N O N - Cur r ENT LI AB ILITIES
Finance lease liabilities
Cur r ENT LI AB ILITIES
Current portion of finance lease liabilities
2 015
£ ‘ 0 0 0
2 014
£ ‘ 0 0 0
199
106
120
169
65
financial statementsNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(CONTINUED)FOR THE YEAR ENDED 30 JUNE 2015Goldplat plc – Annual Report and Accounts 2015
26 . O B LIGATIO N S uNDEr FIN AN CE LEAS ES ( CO NTINuED )
Terms and conditions of outstanding leases were as follows:
2 015
Finance lease liabilities
Total interest-bearing liabilities
2 014
Finance lease liabilities
Total interest-bearing liabilities
Fin a n ce l e a s e li a bili t i e s
Finance lease liabilities are payable as follows:
2 015
Less than one year
Betwe en one and five years
N o min a l
in t e re s t
Ye a r of
Cu r re n cy
ra t e
m a t u r i t y
ZAr
9%
2015/16
N o min a l
in t e re s t
Ye a r of
Cu r re n cy
ra t e
m a t u r i t y
ZAr
9%
2015/16
Fa ce
Ca r r y in g
v a lu e
£ ’ 0 0 0
a m o u n t
£ ‘ 0 0 0
319
319
319
319
Fa ce
Ca r r y in g
v a lu e
£ ’ 0 0 0
a m o u n t
£ ‘ 0 0 0
275
275
275
275
Fu t u re
minim u m
l e a s e
p a y m e n t s
£ ’ 0 0 0
127
200
327
pre s e n t
v a lu e of
minim u m
l e a s e
In t e re s t
£ ’ 0 0 0
p a y m e n t s
£ ’ 0 0 0
7
1
8
120
199
319
66
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(CONTINUED)FOR THE YEAR ENDED 30 JUNE 2015Goldplat plc – Annual Report and Accounts 2015
26 . O B LIGATIO N S uNDEr FIN AN CE LEAS ES ( CO NTINuED )
2 014
Less than one year
Betwe en one and five years
Fu t u re
minim u m
l e a s e
pre s e n t
v a lu e of
minim u m
l e a s e
p a y m e n t s
In t e re s t
p a y m e n t s
£ ’ 0 0 0
£ ’ 0 0 0
£ ’ 0 0 0
187
114
301
18
8
26
169
106
275
The average lease term is 2 years. For the year ended 30 June 2015, the average effective borrowing rate was 9%
(2014: 9%). Interest rates are variable over the lease term and vary according to the South African prime interest rate.
The Group’s obligations under finance leases are secured over the leased assets.
27 . INTEr EST B EAr IN G B O r r OW IN GS
N O N - Cur r ENT LI AB ILITIES
Interest bearing borrowings
Cur r ENT LI AB ILITIES
Interest bearing borrowings
2 015
£ ‘ 0 0 0
2 014
£ ‘ 0 0 0
56
104
–
–
Terms and conditions of outstanding borrowings were as follows:
2 015
Interest bearing borrowings
Total interest-bearing liabilities
N o min a l
in t e re s t
Ye a r of
Cu r re n cy
ra t e
m a t u r i t y
ZAr
9.25%
2015/16
Fa ce
Ca r r y in g
v a lu e
£ ’ 0 0 0
a m o u n t
£ ‘ 0 0 0
160
160
160
160
67
financial statementsNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(CONTINUED)FOR THE YEAR ENDED 30 JUNE 2015Goldplat plc – Annual Report and Accounts 2015
27 . INTEr EST B EAr IN G B O r r OW IN GS ( CO NTINuED )
Interest bearing borrowings are payable as follows:
2 015
Less than one year
Betwe en one and five years
28 . SH Ar E O pTIO N S
re co n cili a t i o n of o u t s ta n d in g s h a re o p t i o n s
Outstanding at 1 July
Granted during the year
Lapsed – will not vest
Exercised during the year
Outstanding at 30 June
Fu t u re
minim u m
l e a s e
pre s e n t
v a lu e of
minim u m
l e a s e
p a y m e n t s
In t e re s t
p a y m e n t s
£ ’ 0 0 0
£ ’ 0 0 0
£ ’ 0 0 0
114
57
171
10
1
11
104
56
160
2 015
2 014
N u m b e r of
E x e rci s e N u m b e r of
E x e rci s e
o p t i o n s
p r i ce
o p t i o n s
p r i ce
7,500,000
1,000,000
21,200,000
6p
–
–
–
10p (13,700,000)
10p
–
8,500,000
7,500,000
The weighted average exercise price of the exercisable options is £0.1103 (2014: £0.1135).
On 1 September 2014 the Company issued 1,000,000 share options to key management. The fair value of these
options has be en independently calculated using the Black Scholes model using the following assumptions:
risk fre e interest rate
Expected volatility
– 1.51%
– 58.61%
Expected dividend yield
– 0%
Life of the option
– 4 years
The weighted average remaining contractual life of the options outstanding at the balance she et date is 3 years
45 days.
68
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(CONTINUED)FOR THE YEAR ENDED 30 JUNE 2015Goldplat plc – Annual Report and Accounts 2015
2 9 . pr Ov ISIO N S
Env iro nm e n ta l o bli g a t i o n
Balance at 1 July
provisions made during the year
unwind of discount
Effect of foreign exchange movements
Non-current
Current
2 015
£ ‘ 0 0 0
2 014
£ ‘ 0 0 0
129
–
–
(8)
121
121
–
121
134
19
(2)
(22)
129
129
–
129
The provision relates to a requirement to rehabilitate the land owned in South Africa upon cessation of the mining lease.
3 0 . DEFEr r ED TA x ATIO N
Balance at 1 July
Current charge
– temporary difference
– change in tax rate
Effect of foreign exchange movements
Comprising:
Capital allowances
prepayments
2 015
£ ‘ 0 0 0
2 014
£ ‘ 0 0 0
430
60
–
(31)
459
533
(74)
459
459
48
–
(77)
430
495
(65)
430
69
financial statementsNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(CONTINUED)FOR THE YEAR ENDED 30 JUNE 2015Goldplat plc – Annual Report and Accounts 2015
31 . Tr ADE AND OTHEr pAYAB LES
Gro u p
Trade payables
Accrued expenses
Co m p a ny
Trade payables
Accrued expenses
2 015
£ ‘ 0 0 0
1,860
5,696
7,556
2 014
£ ‘ 0 0 0
2,248
3,734
5,982
2 015
£ ‘ 0 0 0
2 014
£ ‘ 0 0 0
73
–
73
19
–
19
Accrued expenses substantially relate to precious metals on hand and in process (note 21).
The Group’s and Company’s exposure to currency and liquidity risk related to trade and other payables is disclosed in
note 33.
32 . N OTES TO THE CASH FLOW STATEM ENT
32 . 1
Fin a n cin g co s t
As per statement of profit or loss and other comprehensive income
Adjust for: Interest on environmental liability (note 29)
Adjust for: unrealised exchange loss
32 . 2
Acq ui s i t i o n of p ro p e r t y , p l a n t a n d e q uip m e n t
Additions for the year
Adjust for: Additions acquired on hire purchase (note 14)
70
2 015
£ ‘ 0 0 0
2 014
£ ‘ 0 0 0
(807)
–
128
(679)
2 015
£ ‘ 0 0 0
(1,149)
240
(909)
(830)
(2)
–
(832)
2 014
£ ‘ 0 0 0
(693)
183
(510)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(CONTINUED)FOR THE YEAR ENDED 30 JUNE 2015Goldplat plc – Annual Report and Accounts 2015
33 . FIN AN CI AL IN STr uM ENTS
Fin a n ci a l r i s k m a n a g e m e n t
The Group’s and Company’s operations expose it to a variety of financial risks. Exposure to credit, interest rate and
currency risks arises in the normal course of the Group’s and Company’s business. The Group and Company has in
place a risk management programme that se eks to limit the adverse effect of such risks on its financial performance
which is provided below.
Cre d i t r i s k
Credit risk is the risk of financial loss to the Group or Company if a customer or counterparty to a financial instrument
fails to me et its contractual obligations.
Management has a credit policy in place of and the exposure to credit risk is monitored on an ongoing basis. The
Group primarily deals with reputable mining houses and is unlikely to suffer any losses from this risk.
E x p o s u re to cre d i t r i s k
The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk at
the reporting date was as follows.
Gro u p
Trade and other receivables
Cash and cash equivalents
Co m p a ny
Cash and cash equivalents
Li q uid i t y r i s k
Ca r r y in g a m o u n t
2 015
£ ‘ 0 0 0
3,305
863
4,168
2 014
£ ‘ 0 0 0
4,786
1,657
6,443
Ca r r y in g a m o u n t
2 014
2 015
£ ‘ 0 0 0
£ ‘ 0 0 0
15
95
Liquidity risk is the risk that the Group or Company will encounter difficulty in me eting the obligations associated with
its financial liabilities that are settled by delivering cash or another financial asset.
The Group reviews its facilities regularly to ensure it has adequate funds for operations and expansion plans.
71
financial statementsNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(CONTINUED)FOR THE YEAR ENDED 30 JUNE 2015Goldplat plc – Annual Report and Accounts 2015
33 . FIN AN CI AL IN STr uM ENTS ( CO NTINuED )
The following are the contractual maturities of financial liabilities, including estimated interest payments and excluding
the impact of netting agre ements.
Tr a d e p a ya bl e s a n d a ccr u e d ex p e n s e s
2 015
Ca r r y in g Co n t ra c t u a l
2 m o n t h s
a m o u n t ca s h fl ow s
£ ’ 0 0 0
£ ’ 0 0 0
o r l e s s
£ ’ 0 0 0
2 - 12
m o n t h s
£ ’ 0 0 0
1 - 2
ye a rs
£ ’ 0 0 0
N o n - d e r i v a t i v e fin a n ci a l li a bili t i e s
Finance lease liabilities
Interest bearing borrowings
319
160
(327)
(171)
(20)
(17)
(100)
(87)
Trade payables and accrued expenses
7,556
(7,556)
(2,680)
(4,876)
Bank overdraft
–
–
–
–
(207)
(67)
–
–
8,035
(8,054)
(2,717)
(5,063)
(274)
2 014
N o n - d e r i v a t i v e fin a n ci a l li a bili t i e s
Finance lease liabilities
Trade payables and accrued expenses
Bank overdraft
Ca r r y in g Co n t ra c t u a l
2 m o n t h s
a m o u n t ca s h fl ow s
£ ’ 0 0 0
£ ’ 0 0 0
o r l e s s
£ ’ 0 0 0
2 - 12
m o n t h s
£ ’ 0 0 0
1 - 2
ye a rs
£ ’ 0 0 0
275
5,982
–
(301)
(5,982)
–
(31)
(156)
(114)
(2,948)
(3,034)
–
–
–
–
6,257
(6,283)
(2,979)
(3,190)
(114)
72
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(CONTINUED)FOR THE YEAR ENDED 30 JUNE 2015Goldplat plc – Annual Report and Accounts 2015
33 . FIN AN CI AL IN STr uM ENTS ( CO NTINuED )
Co m p a ny
2 015
N o n - d e r i v a t i v e fin a n ci a l li a bili t i e s
Trade payables
2 014
N o n - d e r i v a t i v e fin a n ci a l li a bili t i e s
Trade payables
M a r ket r i s k
Ca r r y in g Co n t ra c t u a l
2 m o n t h s
a m o u n t ca s h fl ow s
£ ’ 0 0 0
£ ’ 0 0 0
o r l e s s
£ ’ 0 0 0
2 - 12
m o n t h s
£ ’ 0 0 0
1 - 2
ye a rs
£ ’ 0 0 0
73
73
(73)
(73)
(73)
(73)
–
–
–
–
Ca r r y in g Co n t ra c t u a l
2 m o n t h s
a m o u n t ca s h fl ow s
£ ’ 0 0 0
£ ’ 0 0 0
o r l e s s
£ ’ 0 0 0
2 - 12
m o n t h s
£ ’ 0 0 0
1 - 2
ye a rs
£ ’ 0 0 0
19
19
(19)
(19)
(19)
(19)
–
–
–
–
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices
will affect the Group’s and Company’s income or the value of its holdings of financial instruments. The objective
of market risk management is to manage and control market risk exposures within acceptable parameters, while
optimising the return.
Due to the nature of the Group’s operations, it is mainly exposed to the following risks:
•
•
fluctuations in the price of gold; and
exchange rate risk at its operations
73
financial statementsNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(CONTINUED)FOR THE YEAR ENDED 30 JUNE 2015Goldplat plc – Annual Report and Accounts 2015
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
(CONTINUED)
33 . FIN AN CI AL IN STr UM ENTS ( CO NTINUED )
The following applied to the financial years presented in these financial statements:
2015
Gold price – USD/oz
rand/USD exchange rate
GBP/USD exchange rate
GHC/USD exchange rate
Kshs/USD exchange rate
2014
Gold price – USD/oz
rand/USD exchange rate
GBP/USD exchange rate
GHC/USD exchange rate
Kshs/USD exchange rate
Sensitivity analysis
The Group has applied the following assumptions in its sensitivity analysis:
2015
Gold price – USD/oz
rand/USD exchange rate
GBP/USD exchange rate
GHC/USD exchange rate
Kshs/USD exchange rate
Equivalent rand price per kilogram
Equivalent GBP price per kilogram
Equivalent GHC price per kilogram
Equivalent Kshs price per kilogram
High
Low
Average
1,342
12.60
1.46
4.45
100.87
1,144
10.52
1.72
3.20
87.75
1,229
11.40
1.58
3.54
92.49
High
Low
Average
1,420
11.39
1.71
3.20
87.95
1,195
9.54
1.48
1.99
82.25
1,286
10.39
1.63
2.46
88.03
High case
Low case
scenari o
scenario
1,342
13.00
1.50
4.50
105.00
560,797
28,759
194,122
1,144
10.00
1.80
3.00
83.00
367,683
20,427
110,305
4,529,511
3,051,773
74
FOR THE YEAR ENDED 30 JUNE 2015Goldplat plc – Annual Report and Accounts 2015
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
(CONTINUED)
33 . FIN AN CI AL IN STr UM ENTS ( CO NTINUED )
2014
Gold price – USD/oz
rand/USD exchange rate
GBP/USD exchange rate
GHC/USD exchange rate
Kshs/USD exchange rate
Equivalent rand price per kilogram
Equivalent GBP price per kilogram
Equivalent GHC price per kilogram
Equivalent Kshs price per kilogram
The Group’s sensitivity to market risk
High case
Low case
scenari o
scenario
1,400
11.50
1.80
4.20
92.00
517,626
26,477
189,046
1,200
9.50
1.50
3.00
83.00
366,518
25,721
115,743
4,141,010
3,202,210
The following tables illustrate the Group’s sensitivity to these risks based on the above assumptions:
2015
Effect on the results and equity for the year
based on these assumptions would have be en:
- Gold recovery Ghana Limited
- Goldplat recovery (Pty) Limited
- Kilimapesa Gold (Pty) Limited
2014
Effect on the results and equity for the year
based on these assumptions would have be en:
- Gold recovery Ghana Limited
- Goldplat recovery (Pty) Limited
- Kilimapesa Gold (Pty) Limited
Currency risk
High case
scenari o
£’000
Low case
scenario
£’000
1,083
3,411
382
(586)
(2,551)
(262)
High case
scenari o
£’000
Low case
scenario
£’000
8,082
2,229
101
(1,306)
(1,595)
(884)
The Group is exposed to foreign currency risk on sales and purchases that are denominated in a currency other
than GBP. The currencies giving rise to this risk are primarily the US Dollar (“USD”), South African rand (“rAND”),
Ghanaian Cedi (“GHC”), CFA Franc and the Kenyan Shilling.
75
financial statementsFOR THE YEAR ENDED 30 JUNE 2015Goldplat plc – Annual Report and Accounts 2015
33 . FIN AN CI AL IN STr UM ENTS ( CO NTINUED )
Interest rate risk
The Group generally adopts a policy of ensuring that its exposure to changes in interest rates is on a floating rate
basis.
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.
Capital management
The Group’s objective when managing capital is to safeguard its accumulated capital in order to provide an adequate
return to shareholders by maintaining a sufficient level of funds, in order to support continued production and
maintenance at the processing plants and to acquire, explore and develop other precious and base metal deposits in
Africa.
The Group considers its capital to be shareholders’ equity which comprises share capital and retained earnings, which
at 30 June 2015 totalled £23,051,000 (2014 £24,194,000).
34 . CAPITAL COM M ITM ENTS
There were no capital commitments as at 30 June 2015 (2014: £nil).
35 . CO NTIN GEN CIES
The Kenyan revenue Authority has conducted a preliminary enquiry on the tax affairs of Kilimapesa Gold (Pty) Limited
which may result in additional tax liabilities.
Her Majesty’s revenue and Customs in the UK have raised a VAT assessment on the parent company of £147,762. The
company is in the process of an appeal against this.
In both cases the directors remain confident of a favourable outcome.
76
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(CONTINUED)FOR THE YEAR ENDED 30 JUNE 2015Goldplat plc – Annual Report and Accounts 2015 3 6 . r ELATED PArTIES
Other than the waiver of intercompany interest, transactions with related parties take place on terms no more
favourable than transactions with unrelated parties.
Other related party transactions
Transactions with Group companies
The Group’s subsidiary Gold Mineral resources Limited had the following related party transactions and balances:
GOLDPLAT PLC
– Loans and borrowings
– Trade and other payables
KILIM APESA GOLD (PTy) LIMITED
– Loans and borrowings
NyIEM E GOLD SArL
– Loans and borrowings
ANUMSO GOLD
– Loans and borrowings
M IDAS GOLD
– Loans and borrowings
GOLDPLAT rECOVEry (PTy)
– Loans and borrowings
2015
£’000
(4,470)
(336)
2014
£’000
(7,561)
–
2,153
2,570
1,022
1,042
67
62
356
402
(34)
(34)
77
financial statementsNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(CONTINUED)FOR THE YEAR ENDED 30 JUNE 2015Goldplat plc – Annual Report and Accounts 2015
3 6 . r ELATED PArTIES ( CO NTINUED )
The Group’s subsidiary Goldplat recovery (Pty) Limited had the following related party transactions and balances:
KILIM APESA GOLD (PTy) LIMITED
– Trade and other receivables
– Go ods, equipment and services supplied
GOLD rECOVEry GHANA LIMITED
– Trade and other receivables
– Go ods, equipment and services supplied
– Purchase of precious metals
– Trade and other payables
GOLD M INErAL rESOUrCES LIMITED
– Trade and other receivables
ANUMSO GOLD LIMITED
– Trade and other receivables
– Go ods, equipment and services supplied
2015
£’000
464
330
231
196
(1,805)
(1)
–
34
4
4
2014
£’000
169
397
25
144
(338)
(1)
15
34
–
5
The carrying value of these assets approximates to their fair value and require no impairment.
The Group’s subsidiary, Gold recovery Ghana Limited had the following related party transactions and balances in
addition to those already noted:
NyIEM E GOLD SAr L
– Trade and other receivables
– Go ods, equipment and services supplied
KILIM APESA GOLD (PTy) LIMITED
– Trade and other receivables
2015
£’000
2014
£’000
28
34
1
–
–
–
The Group’s subsidiary Anumso Gold Limited had the following related party transactions and balances in addition to
those already noted:
GOLD rECOVEry GHANA LIMITED
– Trade and other receivables
– Trade and other payables
78
2015
£’000
2014
£’000
–
3
–
–
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(CONTINUED)FOR THE YEAR ENDED 30 JUNE 2015Goldplat plc – Annual Report and Accounts 2015
3 6 . r ELATED PArTIES ( CO NTINUED )
The Group’s subsidiary Midas Gold had the following related party transactions and balances in addition to those
already noted:
NyIEM E GOLD SArL
– Trade and other receivables
– Trade and other payables
Other transactions
2015
£’000
2014
£’000
8
(8)
–
–
The Group’s subsidiary Gold Mineral resources had the following related party transactions and balances in addition
to those already noted:
DIrECTO rS
– Trade and other payables
37 . Gr O UP ENTITIES
Significant subsidiaries
DIrECTLy
2015
£’000
2014
£’000
(90)
–
Activity
incorporation
2015
2014
Country of
Ow nership interest
Gold Mineral resources Limited
Holding company
Guernsey
100%
100%
INDIrECTLy
Gold recovery Ghana Limited
Kilimapesa Gold (Pty) Limited
Anumso Gold Limited
Nyieme Gold SArL
Goldplat recovery (Pty) Limited
Midas Gold
38. SUBS EqUENT EVENTS
Gold recovery
Mining minerals
Mining minerals
Mining minerals
Gold recovery
Gold recovery
Ghana
Kenya
Ghana
Burkina Faso
South Africa
Burkina Faso
100%
100%
100%
100%
74%
100%
100%
100%
100%
100%
74%
100%
On 22 July 2015, 8 million share options were granted to Gerard Kisbey-Gre en, Chief Executive Officer and 3 million
share options to Hansie van Vreden, Chief Operating Officer of the Company to subscribe for new ordinary shares of
1p each in the Company (the “Options”).
The Options have an exercise price of 3.125p per share representing a premium of approximately 67% to the closing
mid-market price of 1.875p on 22 July 2015. The Options will vest as to one third immediately, one third on 1 July 2016
and one third on 1 July 2017. The exercise period of the Options is betwe en 1 and 5 years from the vesting date.
79
financial statementsNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(CONTINUED)FOR THE YEAR ENDED 30 JUNE 2015Goldplat plc – Annual Report and Accounts 2015
COMPANY
INFORMATION
DIReCTO Rs :
Gerard Kisbey-Gre en Chief executive Officer
Brian Moritz
Ian Visagie
Hansie Van Vreden
Nigel Wyatt
Non-executive Chairman
Finance Director
Chief Operating Officer
Non-executive Director
COM PANY seCReTARY
stephen Ronaldson
55 Gower stre et
London WC1e 6HQ
COM PANY NuMBeR:
05340664
ReGIsTeReD OFFICe:
55 Gower stre et
London WC1e 6HQ
NOM INATeD ADVIseR AND
jO INT B ROK eR:
s P Angel Corporate Finance LLP
Prince Frederick House
35-39 Maddox stre et
London W1s 2PP
jO INT B ROK eR:
sO LICITO Rs:
ReGIsTR ARs:
FINANCIAL PuBLIC ReLATIONs:
AuDITORs :
VsA Capital Limited
New Liverpo ol House
15-17 eldon stre et
London eC2M 7LD
Ronaldsons solicitors
55 Gower stre et
London WC1e 6HQ
share Registrars Limited
suite e, First Flo or
9 Lion and Lamb Yard
Farnham
surrey Gu9 7LL
st. Brides Partners Limited
3 st Michael’s Alley
London eC3V 9Ds
Mo ore stephens LLP
150 Aldersgate stre et
London eC1A 4AB
WeBsITe:
www.goldplat.com
80
Goldplat plc – Annual Report and Accounts 2015
FOR THE YEAR ENDED 30 JUNE 2015
Goldplat plc – Annual Report and Accounts 2015
81
d e s i g n e d b y s t . b r i d e s p a r t n e r s
A
N
N
U
A
L
R
E
P
O
R
T
2
0
1
5
W W W . G O L D P L A T . C O M