The operating profit of Aim-listed mining services group Goldplat, which owns and operates gold recovery operations in South Africa and Ghana, decreased to £1.19-million for the fourth quarter of its financial year ended June 30.

The group’s operating profit for the financial year also decreased to £6.03-million, from £9.07-million in the 2022 financial year.

The group’s Goldplat Recovery operation, in South Africa, posted an operating profit of £750 000 for the fourth quarter, down from £1.24-million in the fourth quarter of the 2022 financial year, as a result of power supply challenges and infrastructure-related issues.

Goldplat points out that the operation lost 23 operating days – 25% of the total days available in the quarter – as a result of electricity cuts and infrastructure-related issues during the quarter.

The group is investing in diesel generators to keep the operation running during power cuts and expects these to be operational by the end of October.

The Gold Recovery Ghana (GRG) operation, meanwhile, posted an operating profit of £438 000, compared with £1.81-million in the prior comparable quarter.

During the 2023 financial year, GRG applied to the Minerals Commission of Ghana to renew its gold licence, which is needed to export gold from the country. The finalisation of the renewal had, however, taken longer than expected, but was finally approved during the fourth quarter.

This, however, did not provide GRG with sufficient time to sell and realise margins locked up in inventory at the end of the year.

Nevertheless, Goldplat expects GRG’s sales volumes for the quarter to September 30 to be higher than usual.

“I am pleased with the operating results achieved by the group during the fourth quarter and for the year as a whole, considering some of the difficult circumstances we faced, and we look forward particularly to improved operating results in Ghana during the first quarter of the 2024 financial year,” CEO Werner Klingenberg says.

NEW TSF

He adds that the completion of a new tailings storage facility (TSF) in South Africa is “a big milestone for the group from a business continuity perspective”, noting that it also opens up opportunities for the processing of the old TSF material and other potential projects.

Construction of the new TSF was completed in early August, with commissioning under way. The commissioning is expected to take nine months to complete.

Once commissioned, Goldplat can start processing the material in its old TSF, which has a Joint Ore Reserve Committee-compliant resource of 81 959 oz, at a processing facility owned by fellow South African gold producer DRDGold.

“The processing of our old TSF remains dependent on the approval of the water-use licence over certain areas for the installation of a pipeline to the DRDGold process facility and finalising commercial agreements with DRDGold in this regard,” the company notes.

Goldplat estimates that it will require a further £1.15-million, excluding the £750 000 investment on generators, over the next 18 months to repair and maintain its current operations, complete the TSF and improve the environmental impacts of its current operations.