Aim-listed Goldplat has reported that its two recovery operations have achieved a strong combined operating profit of £3.2-million for the quarter ended June 30.

The company’s net finance cost and foreign exchange profits during the fourth quarter ended June 30 resulted in a combined profit before tax of £3.4-million.

Goldplat’s South African and Ghanaian operations achieved gross profits of £2.6-million and £830 000, respectively.

Despite the high gold price, the company notes that fourth-quarter orders dropped by 16%, thereby impacting on the company’s profit margins.

“Our cash balances in the group were stronger than usual at £8.8-million at the end of [the fourth quarter], owing to balances payable to suppliers.

“The current cash balance remains strong at about £6-million. The cash balances will mainly be used to manage working capital requirements in the group, other capital requirements and shareholder distributions,” says Goldplat CEO Werner Klingenberg.

Gold Recovery Ghana (GRG) had a productive fourth quarter, with the focus remaining on maximising gold recoveries and the local beneficiation requirement has impacted all aspects of the business.

The company has invested a further £351 000 during the fourth quarter ended June 30, bringing the total capital spend for the financial year to £720 000.

Goldplat notes that this capital was incurred to improve processes, increase recoveries and improve environmental management, which could increase its ability to recover gold from material received during the 2027 financial year.

Meanwhile, for Goldplat Recovery South Africa, the continued focus on sourcing and building client relationships has resulted in an increase in by-products market share with good volumes seen during the fourth quarter ended June 30.

In the short term, the company says, the focus will be on extracting value from the high gold price, with the aim of finding better visibility through diversifying into other precious metals or other types of gold resources.

Sourcing in South America remains ongoing with the focus being on retaining and increasing material received from Goldplat’s current clients and to increase market share.

Additionally, Goldplat says progress has been made towards the water-use license application for the company’s tailings storage facility (TSF), with geotechnical studies set to start in September and run to the end of this year.

“The focus continues to be on strengthening our control over the outcome on the TSF, maintaining and increasing market share, improving recoveries and margins in Ghana, unlocking potential in other precious metals in South Africa and maximising value from the current high gold price.

“There is still significant work to be completed but all our efforts are focused to create a more robust business providing a niche solution to the industry it operates in,” Klingenberg comments.

Goldplat has also confirmed the appointment of Prasad Jayakody as the company’s new CFO following the resignation of Brent Doster earlier this year.

An interim dividend of £400 000 will be paid to shareholders on September 15, at a rate of 0.23p a share, and the board intends to continue assessing and distributing of value to shareholders on a quarterly basis.