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Market:	AIM
Sector:	Gold Mining
EPIC:	GDP
Latest Price:	14.63 (-0.85% )
52-week High:	15.00
52-week Low:	9.88
Market Cap:	24.55M

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Goldplat Full Goldplat profile here

Goldplat is focused on building a mid-tier gold mining and production vehicle in Africa, partially financed by an established gold and platinum group metals recovery business with blue-chip clients and strong revenues.

Edison Investment Research sees upside in Goldplat with gold production at Kilimapesa looming

Friday, July 30, 2010

Broker Edison Investment Research has published a note on Goldplat (LON:GDP) in response to the company’s securing of the mining lease for its Kilimapesa Hill gold project in Kenya, leaving the issuance of a mining right number from the director of survey the only remaining formality on its way to commencing commercial production.

Kilimapesa has been poised, ready to commence Stage I commercial production, since early 2009. Once the number is issued, it will be permitted to make commercial gold sales, including sales of gold currently held in stock.

In the project’s first JORC-compliant estimate, in October 2009, Goldplat reported a Measured and Indicated resource of 401,000 tonnes graded at 2.39g/t (grammes per tonne) of gold for 31,416 oz and 1.24 Mt (million tonnes) at 2.43 g/t gold for 98,000oz, with an additional Measured and Indicated resource of 41,000 tonnes at 2.56 g/t gold for 3,400oz for a total underground resource of1.65million tonnes at 2.44g/t gold at 2.44 g/t for 129,000 oz.

Production is forecast to be 1,914 oz in FY11 from the treatment of 12,750 tonnes of ore, yielding 4.67 g/t. This is then expected to rise to 6,369 oz pa from the treatment of 46,500 tonnes of ore, yielding 4.26 g/t.

Edison has calculated Goldplat’s value at 15.05 pence per share, assuming the commencement of mining at Kilimapesa during 2011 and assuming a gold price of US$1,100/oz and that the company would not replenish its stockpiles. With a long-term price of US$1,177/oz and with Goldplat replenishing stockpiles until 2032, Edison’s value estimate goes up to 25.75 pence.

Edison’s revenue estimates for Goldplat stand at £16.7 million in 2011 following £12.78 million in 2010 and nearly £17 million in 2012.

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