Gold recovery specialist Goldplat PLC’s (LON:GDP) hard work over the past 18 months has paid off as it swung to a profit in its latest financial year.
Production was up 23% to 37,666 ounces (oz) in the year to the end of June, with most of that (35,661oz) coming from the company’s recovery operations in South Africa and Ghana.
The firm managed to move on more than it produced during the year as well, digging into its stockpiles to post sales of 40,763oz during the 12 months, a significant increase on the 24,904oz sold last year.
As a result of the strong production and sales, as well as “multiple cost improvement initiatives”, Goldplat posted a net profit of £1.9mln for the 12 months (2015: £796,000 loss), on revenues of £20.2mln (2015: £16.6mln).
“I am confident that Goldplat is well positioned for growth and sustained financial profitability, with the recovery operations back on track and profitable, plans in place to return Kilimapesa to profitability during the FY 2017, and exciting growth prospects in the pipeline,” said chief executive Gerard Kisbey-Green.
This increased profitability and positive cash-flow generation allowed Goldplat to strengthen its balance sheet during the period.
As of the end of June this year, Goldplat had a net cash position of just over £2mln, compared to the £630,000 held at the end of last year.
This extra money meant work could get underway to expand the Kilimapesa gold mine in Kenya which the firm hopes will return it to profitability.
The company’s only mine posted a net loss of £711,000 for the year (2015: £753,000 loss) as production fell slightly to a touch over 2,000oz.
One sour point for the period was the dispute with Rand Refinery, although Goldplat insists that discussions are ongoing to “resolve this issue amicably”.