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The Markets
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Gold & silver

Weak pound and strong gold price boost profits at Goldplat

The group, which extracts gold from mining waste, expects profits in the year to June to be around £2mln on sales of £20mln.

Gold recovery specialist Goldplat (LON:GDP) saw profits surge in the second half of its trading year due to a combination of a higher gold price and lower value of the pound.

The group, which extracts gold from mining waste, expects profits in the year to June to be around £2mln on sales of £20mln.

That compares with an interim profit and sales of £395,000 and £10.7mln and a loss of around £800,000 last year. The market consensus forecast was for profit of £560,000 on revenue of £21mln.

Last year’s result was affected by problems at its refiner Rand, and Goldplat is again in dispute with the South African refiner.

It cautioned last month that Rand would not be able to take any material for processing in August and is arguing with the refinery over £628,000.

Today, it said the final results may be subject to adjustments related to the dispute with Rand, though after the problems in 2015 it has made alternative arrangements to handle the processing of material if it is required.

The shares were up 15% at 6.3p after an hour of trading.

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