Goldplat (LON:GDP) has released a trading update for the three months ended 30 September 2016.
Key highlights:
Overall production of 9,129oz of gold and gold equivalents (5,418oz in South Africa, 3,088oz in Ghana, 623oz at Kilimapesa)
Group operating profit of £974k for the quarter, with £769k of this from its South African gold recovery operations
Improvement in operating profitability at the recovery operations and continued reduction in losses at Kilimapesa
GDP has delivered robust results for Q1 FY 2017, with production in line with our full year estimates. Operating profit was strong despite headwinds from a Rand appreciation versus Sterling.
Particularly pleasing in our view is the work at Kilimapesa, which remains on track, with the ongoing plant expansion due to be fully completed in February 2017. We expect the expansion at Kilimapesa to drive a return to profitability and unlock significant value for the wider group.
We maintain our BUY recommendation and target price of 11.2p.