Goldplat records strong operating profit in December quarter
Aim-listed Goldplat, with international gold recovery operations in South Africa and Ghana, achieved a combined operating profit of £2.4-million from both operations for the quarter ended December 31, a 52% increase from that reported for the comparative period in 2020.
The Ghana operations continued to perform well, with a steady supply of material, and achieved an operating profit for the quarter of £1.01-million.
The South African operations achieved an operating profit of £1.3-million for the quarter.
The combined operating profit for the six months to December 31, increased by 27% year-on-year to £3.76-million, compared with £2.96-million in the six months ended December 31, 2020, as a result of the strong second-quarter performance.
The company notes that a number of events contributed to the strong operating results for the period.
In Ghana, the continued supply from current clients in West Africa and South America ensured a lower cost of production and a good sales performance, driving operating profits for the six months to £1.9-million.
Goldplat says its engagement with mine management and government officials on different levels has continued, with the aim of increasing its footprint to ensure regular supply. It foresees that the various coup d’états in West African countries might impact deliveries in the short term; however, it does have different sources of supply to ensure continued production.
A decision was made to expand the opportunities in South America by establishing a processing and storage site in Brazil, at an initial cost of $300 000. Goldplat is currently ensuring it secures all licences required, specifically environmental.
Further, the company continues to evaluate options for the processing of artisanal tailings material in Ghana, including the possibility of finding a partner in-country.
In South Africa, it notes that the operational profits increased on the back of an improvement in the cost of production, as well as a 7% increase in the rand gold price.
Goldplat is also seeing profits being supported by services in and production of platinum group metals (PGMs).
This resulted in operating profit of £1.9-million for the South African operations for the six months under review.
The company has built its strategic PGMs material to a level to warrant capital expenditure of $300 000 on a plant to extract its value. This new plant will also enable it to further develop its PGMs recovery business and should be completed by April, it notes.
Goldplat’s application for a water-use licence was submitted in October 2021 and it still expects feedback by the end of the next quarter.
A further £270 000 of capital expenditure was incurred during the six months, mainly on the company’s tailing’s deposition.
Towards the end of October 2021, an application was made for environmental approval for the installation of a pipeline to a process facility in the area and the approval process should be completed by the end of this calendar year.
Goldplat’s cash balances remained strong at £1.5-million at the end of the period, with a considerable balance invested in inventory and debtors at the end of the period.