JOHANNESBURG (miningweekly.com) – Aim-listed gold producer Goldplat expects to see increased revenues at its Ghanaian gold recovery business, going forward, chairperson Brian Moritz said on Tuesday.

He noted in a statement to shareholders that the future for both the company’s Ghanaian and South African recovery businesses looked good, as it had a steady flow of materials for processing, given the growing number of contracts being signed with major mining companies.

Output at both recovery plants had declined in the six months ended December 31, 2009, with the South African business having produced 6 369 oz of gold, compared with the 7 814 oz produced the year before.

Goldplat noted that the South African business had performed in line with its expectations, overcoming the challenges it was facing as a result of the stronger rand.

This was, in part, as a result of the company’s decision to increase the South African plant’s capacity and economic capabilities.

The new intensive cyanidation plant, being installed in the east of Gauteng to leach gold concentrates and load gold onto carbon for elution, was expected to come on line shortly. The plant was expected to result in significant cost savings and improved cash flows.

Output by the Ghanaian recovery business, however, fell drastically to 1 940 oz for the six months, compared with the 4 720 oz produced in the first half of the previous financial year.

The company highlighted that there had been delays in the delivery of concentrates to the refiners, but added that production had, once again increased.

An intensive cyanidation plant was also being installed in Ghana.

Meanwhile, CEO Demetri Manolis stated that the company continued to “bolster” its position as a gold producer in Africa.

“With the mining licence allowing us to make commercial gold sales at our Kilimapesa gold mine close to finalisation, and a new gold-mining project in Burkina Faso, an emerging gold district, we are realising our strategy of building a portfolio of production and exploration properties to become a midtier gold producer,” he commented.

Moritz added that Goldplat was excited about the prospects for the Kilimapesa mine, in Kenya, where it hoped to start commercial production in the near future.

Further, Goldplat planned to undertake a drilling campaign at its new joint-venture Nyieme gold project, in Burkina Faso, this year, in order to establish a Joint Ore Reserve Committee-compliant resource.

Goldplat’s net profit declined by 15% to £763 000 in the six months, compared with the £903 000 recorded the year before.

To subscribe to Mining Weekly's print magazine email subscriptions@creamermedia.co.za or buy now.