Goldplat plc, the AIM listed gold producer in Africa, announces a trading update on its gold mining and gold recovery operations in Africa.
- Operating profits for the six months to December 2012 (H1 2013) expected to be in line with H1 2012
- Gold recovery operations in South Africa and Ghana have performed well and continue to produce robust operating profits, underpinning the value of Goldplat
- Plant expansion at Kilimapesa Gold Mine in Kenya delayed due to uncertainties in Kenya’s mining legislation and operational difficulties at the mine
Goldplat’s CEO Russell Lamming said, “The Company’s primary business of gold recovery continues to produce robust operating profits, which underpin the value of Goldplat, and are in line with the comparable period last year. In terms of our Kenyan gold mining project, the delays in the plant expansion and subsequent losses we are experiencing at Kilimapesa are disappointing; however these issues are being addressed and we are confident that our continued discussions with the Kenyan government will result in a favourable outcome for all stakeholders, and we look forward to a strong second half of the year.”
Goldplat’s gold recovery operations in South Africa and Ghana continue to produce robust operating profits. The South African operation has performed particularly well in what has been a difficult period for mining companies in South Africa. The operational flexibility derived from the significant stockpiles of raw materials located at the South African operation reduced the negative impact of the transport and mine strikes during the period. Goldplat’s second recovery operation located at the free port of Tema in Ghana (‘GRG’) has performed strongly in H1 2013, although margins have been squeezed through the increase in procurement costs related to the Company’s toll treatment contract it has in place, where some materials purchased by GRG are processed off-site.
In Kenya, the directors have delayed the plant expansion programme at the Kilimapesa Gold Mine due to the continued uncertainty regarding mining legislation in Kenya and operational difficulties at the mine. The lack of processing capacity and subsequent increase in operational cost due to the delay in the additional plant construction has resulted in losses being incurred at Kilimapesa during H1 2013. The Company has engaged with and continues to have strong relations with the Kenyan Government and are confident of a favourable outcome for all stakeholders, enabling the planned plant expansion at Kilimapesa to commence and restore operations to profitability.
It must be noted that the improved results from the gold recovery operations are expected to cover the losses at Kilimapesa, leaving operating profits for H1 2013 in line with those of the comparable period in 2012.
For further information visit www.goldplat.com or contact:
|Russell Lamming, CEO||Goldplat plc||Tel: +44 (0) 781 0870 587|
|Ewan Leggat/Katy Birkin||SP Angel Corporate Finance LLP||Tel: +44 (0) 20 3463 2260|
|Felicity Edwards||St Brides Media & Finance Ltd||Tel: +44 (0)20 7236 1177|
Goldplat plc, which has a market cap of circa £21 million, is an AIM-listed profitable, debt free gold producer and mine development company focused in Africa, which has a strong cash position of £4.57 million as at 30 June 2012. The Company has a solid portfolio of assets including two gold recovery operations in South Africa and Ghana, which recover precious metal from by-products of the mining process such as woodchips, fine carbon and waste grease. For the FY 2012 these operations produced circa 31,354 ounces of gold. Goldplat also has a producing gold mine in Kenya and two brownfield gold development projects in Ghana and Burkina Faso.
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