Goldplat (LON:GDP) moved back into profit in its latest six months as its gold recovery businesses recovered.
Net profits for the six months to December were £395,000, a £796,000 turnaround from the loss at the same time in 2014. At the operating level the improvement was more than £1mln.
Last year’s results were affected by problems at its third party refiner Rand that meant stocks building up, but Goldplat has now set up an agreement with a German smelter company and is processing more of its own material.
Goldplat extracts gold from mining by-products and overall gold production for the six month period was 17,457 oz, with 17,875 ounces sold.
Both the primary gold recovery operations in South Africa and Ghana were cash flow positive.
The Kilimapesa gold mine in Kenya still ran at a loss, but expansion and development plans are behind considered to alleviate this.
Brian Moritz, chairman, said elution throughput capacity at its South African operation had risen to in excess of eight tonnes per day and the backlog of stocks had largely been processed.
The problems relating to Rand Refinery, which hit cashflow, new deliveries from numerous clients, and a significant reduction in cashflow and profitability, are now behind the company he added.
“For the rest of the current year we expect production and sales to continue at current rates, and for the recovery operations to build on the success of the first half.
“Capital projects during the period to June 2016 will be restricted to high priority projects including, but not limited to, the stage 1 expansion at Kilimapesa and the installation of an elution column at GRG.
“The major challenge ahead is to return Kilimapesa to profitability or to find a corporate solution to alleviate the losses from this operation.”