Goldplat
www.goldplat.com
www.goldplat.com
Goldplat plc is an AIM-listed gold company with production and advanced exploration assets across Africa. Its strategy is to consolidate its position as a gold producer in Africa and build itself into a mid-tier gold company.
Bullish Goldplat "easily" expects to outstrip last year's gold production - UPDATE
- adds broker comment
Shares in Africa-focused gold miner Goldplat (LON:GDP) jumped 13% today as it said it easily expected to beat the previous year’s gold production in the current twelve months.
Better than expected output from its gold recovery operations in South Africa and Ghana that produced 9,995 oz in 2011 are behind the bullish forecast.
The group also poured its first gold from Kilimapesa earlier this month and expects to raise annual production from the Kenyan mine towards 10,000 ounces by the end of this year.
Goldplat chief executive Demetri Manolis said, "With the commencement of production of mining at Kilimapesa and gold recovery performing strongly in South Africa and ahead of management's expectations in Ghana, we expect to easily exceed our production of 28,185 ounces gold last year.”
More exploration drilling has started or soon will at Kilimapesa, Anumso in Ghana and Nyieme in Burkina Faso. The company is aiming to expand its total resource base towards 1 million ounces in the first half of 2012.
“We were delighted to report our first gold pour and sales at our high grade quartz vein project at Kilimapesa earlier this month, and we look forward to continuing underground and surface development to bring the resource to in excess of circa 500,000 ounces of gold,“ said Manolis.
“Additionally, we are making excellent progress at our two other highly prospective gold projects: Anumso in Ghana and Nyieme in Burkina Faso. All three gold mining projects are being developed through the implementation of extensive drilling programmes with the aim of delineating in excess of 1 million ounces of resources this year,” he added.
Research house Edison said last week: "If Goldplat increases its JORC-compliant resource to 500,000 oz at Kilimapesa, it would manifest between 3.5-8.1p per share in value. If Goldplat also defines a JORC resource of 250,000oz at Anumso , it would crystallise between 1.9-3.8p/share on an attributable basis."
Manolis added: “We are a highly cash generative and profitable business with three production/revenue streams and a cash balance in excess of £4.59 million as at 31 December 2011. This is against a current market cap of circa £19 million.”
Broker Fairfax said it was a very positive update for Goldplat. The gold recovery operations generated pre-tax profits of £3.1m in 2011, a 40% increase after the Ghanaian operation doubled its output.
Profits for this year to June 2012 will be boosted by the continuing performance of the gold recovery business (particularly Ghana) as well as the gold production coming through from Kilimapesa.
"Operating profits for the financial year 2012 could go up by 32% just from inclusion of gold production from Kilimapesa without taking into consideration the increase from the gold recovery business being indicated by the company.
"The company’s cash position of £4.59 m and internally generated cash flow should place the company well to exploit is current projects."
The broker added: "Based on the potential for profits to increase from here, the current share price is too low and has significant scope for upside from current levels."
