Shares in Goldplat PLC (AIM:GDP) rose 6% to 16.7p after the AIM-listed gold recovery services group said profits for the year to 30 June would materially exceed market expectations.
The company pointed to sustained high gold prices and strong processing volumes, though it cautioned the guidance remained subject to year-end adjustments.
Goldplat recovers gold from the by-products of the mining process, such as woodchips, fine carbon and waste grease, rather than mining ore directly.
It runs two operations, a mature and profitable plant in South Africa and a junior operation in Ghana.
The South African business sits near the East Rand goldfield and draws feedstock from major producers, including AngloGold Ashanti (ASX:AGG), Gold Fields and Harmony.
The Ghanaian plant, in the free port of Tema, gives it access to material from across the West African gold belt, including Mali, Guinea, Burkina Faso and Côte d'Ivoire.
The model is cash-generative and leaves the group exposed to the gold price without the capital intensity of conventional mining, an advantage as bullion has traded at elevated levels.
The update gave no specific figures for revenue or profit ahead of the full results.