Aim-listed gold producer Goldplat has increased its operating profit by 28% year-on-year to £3.3-million for the six months ended December 31, 2021.

The group said on March 18 that its net profit from continued operations had doubled to about £2-million for the period under review, compared with net profit of about £1-million reported for the six months ended December 31, 2020.

As a result of this performance, fully diluted earnings a share for the six-month period doubled to 1.19p a share compared with 0.59p in the prior comparable period.

“I am pleased with the continued strong operating results achieved by the group, but even more so, how this is translating into increased profits and earnings for the owners,” Goldplat CEO Werner Klingenberg said.

The group’s portfolio of core assets consists of two gold recovery operations, one in South Africa and the other in Ghana, with plans to expand operations into Brazil.

“To increase our ability to capture lower-grade material, which is not feasible to export to our other operations, and also to improve services we can provide in South America, we aim to establish a processing and storage site in Brazil, at an initial cost of $300 000.

“We are currently ensuring we secure all licences required, specifically environmental,” Goldplat chairperson Matthew Robinson said.

Goldplat’s operations focus on recovering gold and platinum group metals (PGMs) from by-products of current and historical mining processing, thereby providing an environment-friendly and cost-efficient way of removing waste material.

The profit from these gold recovery operations for the half-year under review increased to £2.2-million, up from £1.5-million reported for the first half of 2020.

The revenues from continued operations increased by 69% to £21.3-million, compared with £12.6-million in the prior comparable period.

The Ghanaian recovery operation achieved a revenue increase of 146% owing to a good and steady supply of material, Robinson said.

“Our engagement with mine management and government officials on different levels has continued, with the aim of increasing our footprint to ensure regular supply.

“By achieving a larger geographical spread with more clients, our objective is to have a steady supply from the mines’ current production, rather than ad hoc supplies from stockpiles,” Robinson noted.

He said the group would continue to evaluate its options for the processing of artisanal tailings material in Ghana, including the possibility of finding a partner in the country.

Meanwhile, in South Africa, a 29% revenue increase to £10.6-million was achieved as a result of continuous research and investments made into the operation.

Goldplat said the production of PGMs had contributed to its interim results, adding that it had built its strategic PGMs material to such a level as to warrant capital expenditure of $300 000 on a plant to extract its value.

This new plant would enable Goldplat to further develop its PGMs recovery business, Robinson said, noting that the group aimed to complete the project by the fourth quarter.

“We continue to experience an increase in operating costs. These included the increase in refinery charges, treatment charges, electricity costs, machinery hire and security costs,” Robinson said.

He added that the impact of the Russian invasion of Ukraine was posing a significant challenge to the global supply chain industry. While Goldplat had no activities directly connected with Russia or Ukraine, the long-term effect of the conflict on the group was uncertain, Robinson said.

Meanwhile, the group’s application for a water-use licence for its South African operation was submitted in October last year, with feedback expected by the end of the third quarter.

Robinson said it was continuing to manage and extend the deposit of material within its current tailings storage facility (TSF) with the help of consulting engineers. Goldplat said it had spent £203 000 on establishing a new TSF during the period.

The establishment of the new TSF is the first step towards the reprocessing of Goldplat’s existing TSF, which contains a Joint Ore Reserves Committee-compliant resource of about 82 000 oz of gold.

The second step towards the reprocessing of the TSF material is the approval of a pipeline application to a third-party processor, which is ongoing. Robinson said Goldplat expected the result of this application towards the end of the year.