Goldplat appoints COO, adds generators in South Africa
By Josh White
Date: Wednesday 31 May 2023
(Sharecast News) - Goldplat updated the market on its management team, licence renewal in Ghana, and electricity supply in South Africa on Wednesday.
The AIM-traded firm said that in a bid to strengthen its current operations, it had appointed Douglas Davidson as its chief operating officer.
It said that with more than 26 years of experience in the mining industry, including 23 years in the diamond sector, Davidson was bringing a wealth of knowledge and expertise to the role.
He previously held various senior positions in prominent companies including De Beers, Namdeb, and Namakwa Diamonds.
It said Davidson's extensive operational experience and ability to lead teams to enhance business performance would be key to its growth.
In Ghana, meanwhile, Goldplat said it had successfully finalised the renewal of the gold licence for its subsidiary Gold Recovery Ghana (GRG).
The company had started the export of gold products, but due to logistical factors, most of those materials would only reach customers in July.
As a result, the sales generated from the exports would only be recognised in the next financial period.
Elsewhere, Goldplat was continuing to face electricity shortages in South Africa, noting that during the first two months of its fourth quarter, it experienced a loss of 28% of available hours, compared to 20% in the prior three months.
In response to the increased uncertainty surrounding power supply in the medium term, Goldplat said it had decided to invest in diesel generators.
The generators would ensure uninterrupted operations during electricity cuts, safeguarding the company's production capabilities.
Its investment would total £0.75m, and would be financed over 36 months through a local bank.
The delivery and installation of the generators was estimated to take 12 to 14 weeks, with Goldplat expecting to recover the capital cost within 24 months, considering an estimated 25% loss of available hours over the next two years.
Goldplat added that it remained committed to securing a stable electricity supply in South Africa, and was exploring alternative options including additional connections to the local Municipality Grid, or a new direct connection to Eskom, the South African electricity generator and supplier.
However, the timelines for those options remained uncertain.
"I am pleased with the appointment of Douglas as COO and believe that his operational strength will be extremely valuable in securing the current operations and production whilst we continue to look to investigate diversification and growth opportunities," said chief executive officer Werner Klingenberg.
"The delay in the gold licence in Ghana impacted our ability to export and although we've experienced good production in Ghana, the margins will only be realised during the last four months of the year.
"The diesel generators will not just reduce impact of electricity cuts, but also give control back to operational teams to improve efficiencies and maximise gold production and provide a sense of normality which we believe is important for the morale of our employees."
At 1232 BST, shares in Goldplat were up 0.06% at 7.76p.
Reporting by Josh White for Sharecast.com.
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