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  AUPLATA company press release from 02/05/2018

  02/05/2018 - 10:15

2017 Annual Results


Auplata (Euronext Growth - FR0010397760 - ALAUP), the leading exchange-listed French gold producer, has published its 2017 annual financial statements, approved by the Board of Administrators during its meeting on April 26th, 2018. The audit procedures have been carried out. The 2017 annual financial report, which includes the consolidated financial statements, the management report, the corporate governance report and the auditors' reports on the annual financial statements, will become available on the Auplata website, in the Investor Relations section under the Documents heading, on April 30, 2018. 

 

Key events of the 2017 financial year

Revaluation of mining assets

In response to the various experts' reports and studies carried out during the year, Auplata has revaluated its mining assets in its 2017 consolidated accounts.

The Group's strategic desire to position itself, for a portion of its activities, as a “junior mining company” and thus possibly arbitrage its mining assets and/or claim new mining concessions, led it to the realization that valuating these assets using the revaluation model, rather than the cost model, would provide more relevant information with regard to its operations and ambition.

The financial expertise on which the revaluation of the mining assets is based follows from a study carried out by the consulting and engineering firm SOFRECO. This study took the form of a “scoping study” whose preparation methodology complies with the JORC (Joint Ore Reserve Committee) Code, an international standard primarily used to estimate and report the mineral resources and reserves, including mining studies and ore processing studies. This study was based on Auplata's document database. It served to estimate, based on an inferred resource level, the potential gold production of the Yaou and Dorlin sites, the related operating costs and the initial investment required to develop future gold production plants.

This revaluation in the company's accounts only concerns the consolidated accounts, prepared according to the IFRS standard. It is based on a valuation of €80.6m adopted by the expert for the mining concessions of Yaou, Dorlin and Dieu Merci (including the building of the plant for €9m and a revaluation of the mining assets for €71.5m). It has a positive impact on the equity, of €35.3m.

During the 2018 financial year, the company intends to continue to develop its mining assets, with the aim of increasing the level of confidence of the resource estimate, conducting a pre-feasibility assessment and reporting reserves.

 

External growth

In the 3rd quarter of 2017, Auplata strengthened its presence in the precious metals sector by acquiring a 4.82% stake in Osead Maroc Mining (OMM), with an option, once Auplata holds at least 5% of OMM, to gradually purchase 100% of OMM, which holds a 38% stake in Compagnie Minière de Touissit (CMT), a company listed on the Casablanca stock exchange. CMT is the Moroccan leader in the production of high-quality argentiferous lead concentrates.

Auplata could therefore become the main shareholder, through OMM, of CMT.

The company intends to continue its external growth strategy throughout the 2018 financial year.

 

Construction of the dieu merci cyanidation plant

Following the obtention of administrative authorization in 2015 for the Dieu Merci site and the Board of Directors' decision in 2016, Auplata began the construction of the cyanidation plant to process the waste generated from gravimetric processing that is stored on the Dieu Merci site.

The plant modules were delivered in the first quarter of 2018. Construction is underway, and the plant should begin operation in the 3rd quarter of 2018. It will continue for several years, processing the gravimetric waste generated on Dieu Merci as well as that generated by ore mining on neighbouring concessions.

 

Consolidated key figures for 2017

Balance sheet

Consolidated accounts in K€ - IFRS Standards
Audited data - Assets
31/12/2017 31/12/2016
Non-current assets 91,338 29,165
Current assets 19,858 19,346
Total assets 111,196 48,512
     
Consolidated accounts in K€ - IFRS Standards
Audited data - Liabilities
31/12/2017 31/12/2016
Equity (group share) 65,728 30,302
Minority stakes (116) (69)
Non-current liabilities 30,825 9,708
Current liabilities 14,759 8,571
Total liabilities 111,196 48,512

 

Profit and loss account

Consolidated accounts in K€ - IFRS Standards
Audited data
31/12/2017 31/12/2016
Turnover 4,973 9,658
Recurring operating result (9,260) (8,605)
Operating result (11,191) (11,427)
Net result, group share (12,093) (12,895)

Auplata's consolidated turnover for the 2017 financial year totals €5.0m, a 51% decrease from that of the 2016 financial year (€9.7m). Gold sales represent €3.6m in 2017, compared with €7.7m in 2016. The decrease in turnover is the result of the closing down of all gravimetric production, reflecting a change in the company's strategy, now focused on developing the ore cyanidation processing plant, and a reduction in the number of subcontractors.

Service provisions remain stable compared to the turnover. They total €1.3m for 2017, compared with €1.9m for 2016.

The recurring operating result was a €9.3m loss in 2017, compared with an €8.6m loss in 2016, due to the decrease in turnover, non-capitalized expenses related to the construction of the plant, and financial expenses related to equity transactions.

The operating result for the 2017 financial year is an €11.2m loss, compared with an €11.4m loss in 2016.

Adjusted for the share of income from associates, Auplata's consolidated net result is a €12.1m loss, compared with a €12.9m loss in 2016.

 


About Auplata
Based in French Guiana, Auplata is the largest French, stock-market listed gold producer. The Company has more than 700 sq km of mining permits and titles in French Guyana. Auplata operates an innovative industrial and financial strategy, aimed at developing and exploiting Guianese gold resources with the strong involvement of local players. The Company's objective is to offer sustainable exploitation for the Guianese mining industry. Since June 2015, Auplata is a shareholder in the Côte d'Ivoire mining company OMCI, which owns two mining projects in Côte d'Ivoire.
Auplata's share are listed on the Euronext Growth market in Paris (Euronext). ISIN: FR0010397760 – ALAUP; ICB: 1777 – Gold Mining.
For more information about Auplata, go to www.auplata.fr.

Contact information
ACTUS FINANCE

Mathieu Omnes Investor relations momnes@actus.fr +33 (0)1 53 67 36 92
Nicolas Bouchez Press relations nbouchez@actus.fr +33 (0)1 53 67 36 74