Goldplat spat with Rand Refinery heats up
Goldplat announced on Monday that Rand Refinery has informed its 74%-owned subsidiary Goldplat Recovery (GPL) that it disputes an amount owed to it in relation to a binding memorandum of understanding.
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The AIM-traded company said the MoU was entered into by the two parties for GPL to process a batch of silver sulphide material (the “silver contract”).
GPL has finished the toll-treatment as specified in the contract and has issued invoices, some of which it says have been paid, but others of which Rand are disputing.
“Further to legal advice, GPL issued a demand letter to Rand Refinery for unpaid invoices for approximately ZAR 13.5m; Rand Refinery has denied the indebtedness,” Goldplat’s board said in a statement.
“GPL will institute processes forthwith to resolve the issue and, on the basis of legal advice received, the Goldplat board is confident that GPL will recover the money owed to it in full.”
Goldplat said it will keep the market informed as to progress regarding the dispute with Rand Refinery.
Further to the dispute, GPL said it has been notified that Rand Refinery will not be able to accept by-product materials for treatment in their smelter during August, for operational reasons.
“As previous issues with the Rand Refinery smelter have placed the group's companies in very difficult positions operationally, financially and with regards to their relationships with their clients, Goldplat has taken strategic steps to mitigate what the company referred to as ‘single refiner risk’,” the board said.
“Goldplat is pleased to report that alternate plans are in place to treat the bulk of the group's products.
“Whilst this will have timing and cost implications, the directors do not expect the use of alternative refiners to have a significant impact on its business.”
Goldplat said it had a very active June with its South African operations performing ahead of expectations, though it said it was not yet in a position to advise whether its annual results for the year ended 30 June will be in line with market expectations.