London Global Mining Investment Conference

Stationers Hall, LondonWednesday 30th September 2009

www.ObjectiveCapitalConferences.com

9.55 Gold

Brian MoritzChairmanGoldplat plc

 

 

Global Mining Investment ConferenceJunior Gold Company focussed on Africa

Presentation by Goldplat plc Chairman, Brian Moritz30 September 2009

 

 

 

 

 

Goldplat Overview

AIM quoted profitable and highly cash generative gold producer in Africa

Strategy to create a mid-tier mining house focussed on gold production, leveraged through revenues generated from its gold recovery operations

Three primary assets: South Africa - gold recovery plant Ghana - gold recovery plant Kenya - Kilimapesa Gold mining project

£0£2,000,000£4,000,000£6,000,000£8,000,000

£10,000,000£12,000,000

Year Ended30/06/07

Year ended30/06/08

Year ended30/06/09

Revenues PBT

production totalled 21,068 oz Au for FY2009

“Goldplat is profitable, therefore development is predominantly financed through its recovery

operations”

 

 

 

 

 

Goldplat Recovery (Pty) Limited – SA

Market leader in precious metal recovery from by-products of the mining process such as woodchips, fine carbon and waste grease

Provides an economic method for mines to dispose of waste materials while meeting environmental obligations

Produced 13,960 oz Au for FY2009 - generating significant cash flow and profit

Stocks of materials for processing increased to record levels of circa 53,000 oz Au

Continual upgrading of machinery enabling materials to be processed more efficiently - enhances economies of scale

Compliant with South Africa’s Black Economic Empowerment (‘BEE’) rules

 

 

 

 

 

Gold Recovery Ghana Limited

Gold recovery plant at the free port of Tema, Ghana (Free Zone Status with accompanying tax benefits)

Strategic location provides access to raw materials from mines in Mali, Guinea, Burkina Faso, Benin, Cote D’Ivoire, Senegal, DRC and Mauritania

Gold production increased 42% to 7,108 oz Au (2008: 4,083 oz Au)

Further improvements scheduled to maximise the plant’s efficiency and production - a new fluidised bed carbon incinerator was installed July 2009

89,000 tonnes of artisanal tailings stockpiled estimated to contain up to 35,000 oz Au - further stockpiles being evaluated

Strong relationships with major mining houses

 

 

 

 

 

Kilimapesa Gold Ltd, Kenya

Project located within historically producing Migori Archaean Greenstone Belt in south west Kenya – now 100% owned

Commenced processing development ore in January 2009

First sales due Q4 2009 - the mine will be developed using revenues from gold sales

Targeting high grade veins reached through adits at Kilimapesa Hill

Currently defining a JORC compliant resource – planning to expand production in stages with target of 20,000 oz per annum

Investigating other known high grade areas within the licence area with surface mining potential

 

 

 

 

 

The Increasing Gold Price

As we all know, the gold price goes from strength to strength!

Gold price is currently consolidating near the psychologically important US$1,000 barrier

 

 

 

 

 

The Decreasing Gold Price

Strengthening South African Rand against the Dollar: R7.45 = $1

Viewed from Johannesburg the graph is not the same

 

 

 

 

 

Falling Gold Production

The output of the world’s gold mines fell by 3.6% last year

More than half the 88-tonne fall in production was accounted for by a slump in gold mining in Indonesia

Supply from South Africa, recently the world’s largest producer, fell by 14% partly due power shortages

Australia’s output also fell by 14% amid reports that some fledgling mining firms faced closure because of scarce credit

Of the world’s six big producers, China, Russia and Peru all increased output

Investment taking over from jewellery as main user of gold

 

 

 

 

 

African Gold Production

Africa contributes over 20% of world gold production South Africa remains dominant in production, as well as finance and expertise for the

whole continent Ghana has cemented its position as the continent’s second largest producer

 

 

 

 

 

Factors of Operating in Africa

The investment climate – are governments pro foreign direct investment?

Are all countries the same – political, economic and social factors to consider, including corruption?

Mining codes – improvements over the last few years

Security of tenure – is the mining right secure?

Infrastructure – roads, water supply, power grids, telecommunications

Artisanal miners - “Go where the gold is”

 

 

 

 

 

Operating in South Africa

Positive

Long history of mining

World class design and construction facilities

Skilled labour available at all levels

Low operating costs by European standards

Good infrastructure

Sophisticated banking system with

availability of mining finance

Equity investment available through JSE and

AltX

A great climate, good hotels and restaurants!

Negative

Exchange control

Bureaucracy

Over-valued Rand

Inflation

Power and water problems

Crime

 

 

 

 

 

South African Mining Law

The Minerals and Petroleum Resources Developments Act – effective 1 May 2004

Surface rights and mineral rights

“Old Order” and “New Order” rights

Prospecting rights

Mining rights

Changes of control over mineral rights

Black Economic Empowerment

 

 

 

 

 

Corporate Issues for Junior Miners

Fund raising

Professional advisers

Liquidity

The share price

Corporate governance

IFRS

Why do we do it?

 

 

 

 

 

Contact

Brian MoritzGoldplat plc

Tel: +44 (0) 20 7318 0459Mobile: +44 (0) 7976 994300

Email: brian@36doverstreet.co.uk

London Global Mining Investment Conference

Stationers Hall, LondonWednesday 30th September 2009

www.ObjectiveCapitalConferences.com

Brian MoritzChairmanGoldplat plc

Brian Moritz is a former Senior Partner of the London office of Grant Thornton, the 5th biggest accounting firm worldwide.In the late 1990s Mr Moritz initiated Grant Thornton’s move into the junior PLC area by forming a new Capital Markets division and registering as a Nominated Adviser for AIM companies. While Mr Moritz chaired that division, Grant Thornton floated more than 100 companies on AIM, of whom the majority were his personal contacts, concentrating on the natural resources sector.Mr Moritz was previously Chairman of Metal Bulletin PLC and African Platinum PLC before they were acquired by Euromoney and Impala Platinum respectively. Mr Moritz is currently Chairman or Non Executive Director of a number of smaller public companies, most of which are listed on the AIM and operate in mining and exploration in Africa.