Goldplat PLC (LON:GDP) has reported that its Kilimapesa gold mine in Kenya is now operating profitably with a processing plant upgrade also now in the commissioning stage.
A throughput of 120 tonnes per day of ore during May was on target, it said, as stockpiled fine material and a spare crusher were utilised while the new crusher and leach tanks were installed.
A decision on the next stage on Kilmapesa’s expansion will be taken once consistent planned production and profitability have been achieved but a second mill will be installed while the mine will also switch to cheaper grid power.
WATCH: 'All of our operations are now operating profitably', says Goldplat's Gerard Kisbey-Green
Goldplat is targeting an annualised production rate of about 4,500 ounces of gold following the completion of stage two.
Gerard Kisbey-Green, Goldplat’s chief executive, said: "Kilimapesa is now operating profitably and at the increased rates targeted for Stage Two. This, together with continued steady and positive progress in South America, means the overall performance of the group remains positive and in line with market expectations.”
Away from Kilimapesa, Goldplat’s core business is to extract gold and silver from used mining equipment such as rubber mill liners.
It has just won its first recurring contract in South America with initial shipments of 360 tonnes of carbon to its operations in Ghana, where it has also decided to use a second hand elution plant to expand the operation.
This will save US$1mln, or half the cost, and be running by the end of 2017 or six months ahead of its licence renewal schedule.
Goldplat’s other extraction plant is in South Africa.
Kisby-Green said he did not expect the empowerment changes proposed in the country’s new mining charter to have a significant impact on its business there, even though the Chamber of Mines, the SA mining trade body, has threatened legal action.
Broker VSA repeated its 'buy' recommendation and 12.2p target price. Shares were a little lower at 6.75p.
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