Aim-listed Goldplat’s two gold recovery operations, located in South Africa and Ghana, delivered another strong combined operating performance and achieved a combined operating profit for the quarter ended June 30 of almost £2-million, which represents an 83% increase compared with the quarter ended June 30, 2021.
The combined operating profit for the operating entities for the 12 months ended June 30 increased by 51% to almost £8-million.
This quarter’s strong numbers were supported by an improved operating performance in South Africa, delivering an operating profit of £1.2-million, while Ghana achieved steady operational results and an operating profit of £728 000.
Goldplat says the strong operational profits for South Africa during the quarter continue to be supported by good production through its circuits, specifically gravity concentrators, and a higher gross profit realised on the sales of material processed during the previous quarters.
It is also seeing profits being supported by services in and production of platinum group metals (PGMs).
The construction of Goldplat’s PGMs plant was completed during the quarter at a cost of £300 000, and it has continued production of PGMs, while the commissioning of the flotation plant has been ongoing.
This is expected to increase the flexibility in material Goldplat can process and will enable the company to further develop its PGMs recovery business.
As announced in June, South Africa’s Department of Water and Sanitation (DWS) has authorised the company’s water use licence in South Africa, which includes the disposal of tailings in a new tailings storage facility (TSF).
The company is engaging with the DWS on certain conditions stipulated in the licence, but on current indications, it estimates that the TSF will cost a further £650 000 - £300 000 more than originally planned. Of the £650 000, £300 000 has been incurred during the period under review.
Once commissioned, tailings will be deposited in the new TSF. Subject to approvals and the installation of a pipeline, tailings held in the old TSF will be reprocessed at a third-party facility to recover an estimated 82 000 oz of gold.
In Ghana, Goldplat remained focused on increasing its value offering to clients in the processing of other types of by-products and has increased its client base in the country as a result. This, together with good volumes from existing clients, supported the operating results for the period.
Goldplat also maintains its engagement with governments and mines in the Economic Community of West African States region to agree processes and controls on the export of gold-bearing products, and says it remains encouraged by the value the company has identified that it can offer in these countries.
Further, Goldplat continues its expansion into South America on a measured basis, with limited capital allocated as yet.
The group’s cash balances remained strong at £3.7-million at the end of the period.
“I am pleased to see the continued year-on-year strong operational numbers produced by the recovery operations, with this being the third year it has produced, at fluctuating gold prices, a combined operating profit above £5-million.
“We continue to invest time into identifying different methods to process materials containing various elements and building relationships in different jurisdictions, which has broadened the pipeline of potential projects going forward, including the processing of the tailings facility which should add a further revenue stream to the business in future,” comments CEO Werner Klingenberg.