Goldplat (LON:GDP) expects a substantial improvement in its performance in the current year after the gold recovery specialist returned to profit in its latest six months.
Losses in the year to end June were £766,000 (£248,000), but the company made an operating profit of £115,000 in the second half as its gold refinery operations perked up.
In total, Goldplat recovered 30,524 ounces of gold (30,977oz) over the twelve months, but a lower gold price saw revenues drop to £16.6mln (£21.2mln).
Goldplat had to cope with its third party refiner Rand stopping taking by-product material, from which it extracts gold, but the stocks backlog this caused is now easing helped by a move to process more material itself.
An increase in elution capacity and throughput during 2016 will boost profitability further said chief executive Gerard Kisbey-Green, while reduced losses at gold mine Kilimapesa will produce a further benefit.
“At Kilimapesa, increasing tailings capacity is critical to the ongoing processing through the current treatment plant.
“The plans regarding potential JV partners, expanded production and the new plant and tailings facility are ongoing.”