Goldplat plc (LON:GDP) produced just under 43,000 ounces of gold in the full year to June 2017.
The company continues to produce more from its Kilimapesa gold mine in Kenya too. This operation has now turned profitable, meaning that all of Goldplat's divisions - its recovery and its mining operations - are now profitable.
The mine is slated to produce over 5,000 ounces of gold in the current financial year.
Phase two of the expansion is complete.
Financials look sound
The company increased operating profit to £2.9 mln from £1.2 mln, and delivered a 43% increase in profit before tax to £2.84 mln.
The recovery operations in South Africa boosted profits to £2.4 mln from £1.77 mln, while the recovery operations in Ghana boosted operations by 169% to £1.18 mln.
Kilimapesa was still loss-making, as the benefits of the turnaround there haven't yet fully made it onto the profit and loss account.
Net cash rose to £2.65 mln, from £2 mln in the corresponding period a year ago/
South America could take Goldplat to the next level
Although those figures represent a decent year-on-year improvement, they’re still relatively small fry in the lucrative world of gold mining and recovery.
To try and take itself to the next level, Goldplat has been working on securing more gold-containing material from producers in South America.
In fact, Goldplat Recovery Ghana has signed its first agreement with a South American miner and shipments are now underway
With a few more similar agreements from producers dotted around South America, it isn’t crazy to think that overall gold production could edge towards 100,000oz – typically the entry point into the mid-tier ranks.
‘Good results all-round for Goldplat,’ says CEO Kisbey-Green
“The final quarter of the financial year produced good resutls all round for Goldplat, with a particular highlight being the continued record gold production and the first operational profitability at our Kilimapesa operation,” said chief executive Gerard Kisbey-Green.
“Alongside this we have identified new sourcing opportunities within West Africa and are also exploring opportunities in North America..”
Rand Refinery dispute
Goldplat is in disput with Rand Refinery and has now commenced legal proceedings in the High Court of South Africa.
The specific details are a little vague given that legal proceedings are now in process.
To protect itself in future from has now been identified as ‘single refiner risk’, Goldplat has been shipping concentrate to another refinery in Germany as well, while it has also identified another refiner with which it is finalising a new contract.