Aim-listed gold recovery company Goldplat still expects to report a loss from operating activities for the full-year, but the company on Thursday reported profitable production in South Africa for the second quarter and substantial savings from putting its Kenya-based Kilimapesa gold mine on care and maintenance.
“In the next quarter, we aim to accelerate the progress of growing the greater West African market. Management’s continued priority will be to maintain the established momentum of the recovery operation and improve the reliability of sourcing material,” the company said.
Although the Goldplat Recovery operations in South Africa reported good production levels in the second quarter and achieved planned margins, production during June was lower as a result of the planned trial on a stockpile batch of lower-grade strategic material, which was processed for evaluation purposes.
The company said a number of initiatives to reduce operational costs at this operation had yielded positive results so far, with improved efficiencies as an additional benefit. This will aid in the ability to source and process lower-grade material in future.
Goldplat Recovery operations in Ghana were supported by local clients during the quarter; however, production was below expectation owing to difficulties in sourcing sufficient material to process.
The Ghana operation’s sourcing initiatives in West Africa and South America continue and the company has made inroads in developing these markets, especially in Côte d’Ivoire, Mali and Burkina Faso.
Goldplat said a trial batch of material had been received for evaluation from a new client in Mali and the company was hopeful that this would result in continued future business on a larger scale.
Meanwhile, the Kilimapesa mine was put on care and maintenance in May.
Goldplat continued to engage with stakeholders of the mine and said it had received substantial support from a number of stakeholders – a high percentage of them agreed not to demand payment from the mine until at least November.
To reduce the cost of care and maintenance, Goldplat is treating remaining stockpiles and purchased artisanal tailings on site.
Goldplat noted a major positive development had been that the Kenyan Revenue Authorities started refunding the mine’s value added tax claims for the first time since incorporation.
“This action sends a strong message to potential investors about Kenya as an investment destination and for Kilimapesa it is of tremendous importance, as the funds will be applied to reduce the mine’s debt. Refunds received to date amount to around $200 000.”
The company said efforts to find an investment partner remained ongoing.