Home » Goldplat Reports Strong Q3, Boosted by Ghana Operations

Goldplat Reports Strong Q3, Boosted by Ghana Operations

Goldplat Profits Surge Despite Challenges in South Africa and Ghana

by Ikeoluwa Ogungbangbe

Powered mainly by positive outcomes from its Ghanaian operations, Goldplat, an AIM-listed gold recovery firm, reported a solid third quarter performance that concluded on March 31. A 10% gain over the same time last year was reported by the company, which runs gold recovery facilities in Ghana and South Africa, with a combined operating profit of £1.6 million, excluding foreign exchange losses, head office costs, and listing.

Including £430,000 in interest costs and £350,000 in foreign exchange losses mostly from trading, the two enterprises’ combined profit before tax for the quarter was £890,000. Goldplat Recovery South Africa was able to turn a £119,000 operating profit in spite of several obstacles, such as a smaller supply from mining operations and regular power supply outages. Due to changes in production profiles, the company has noticed a decline in the by-products obtained from mining activities. This has led to a strategic shift aimed at growing market share in South Africa and expanding into neighboring countries.

While they still had an impact on operations, infrastructural problems and power outages appeared to be improving. The number of days lost during these disruptions throughout the quarter was just 6%, which is a considerable decrease from the prior quarters. The organization is now in a better position to handle any future power outages thanks to the implementation and commissioning of a generator project by the end of April.

Reduced recoveries from low-grade soils, a decline in by-products, and rising costs caused Goldplat to experience financial difficulties. The corporation plans to review and adjust certain cost components soon in an effort to save money. During the quarter, capital costs for a tailings storage facility (TSF), generators, and other equipment came to £490,000 in total. The fourth quarter is when the additional £750,000 for generators is expected to be capitalized.

Looking ahead, Goldplat expects additional expenditure of £450,000 to be met by internally produced cash flow for operational repair and maintenance as well as improved environmental controls. Along with celebrating the opening of a new TSF, the company is getting ready to process material from its previous TSF at a facility owned by DRDGOLD.

Another Goldplat company, Gold Recovery Ghana (GRG), reported a “astonishing quarter” with an operating profit of £1.5 million. Significant material consignments treated from locations such Ghana, Côte d’Ivoire, and South America during the first part of the quarter contributed to this performance. Strong supply from these regions were also a major factor.

In order to maximize value from massive amounts of lower-grade fine carbon material, the Ghanaian operation also started producing gold from lower-grade milling, gravity, and flotation circuits throughout the quarter. Nonetheless, the corporation faces difficulties since certain West African nations uphold export bans on gold concentrates that are not in dore or bullion form.

Thanks mostly to higher sales in Ghana, Goldplat’s group cash holdings experienced a good increase from £1.7 million to £2.4 million in the second quarter. These funds are generally intended to satisfy normal working capital and capital requirements, reduce trade financing demands, and settle intercompany loan liabilities.

CEO Werner Klingenberg emphasized the company’s continuous efforts to grow into South America and West Africa, despite regulatory obstacles pertaining to the export of by-products from some places that include gold. “As the South African gold market declines, the requirements and acceptance of the water usage license for the building of a pipeline to DRDGOLD remain a primary emphasis for the group,” Klingenberg continued. This demonstrated the company’s ongoing dedication to forging stronger bonds and gaining market dominance.

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