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(Alliance News) - Goldplat PLC on Tuesday said it experienced severe operational difficulties in its fourth quarter, but that it delivered a strong operating profit and expects to surpass market expectations for its latest financial year.
The London-based gold miner and producer, which has recovery operations in Ghana and South Africa and serves clients in Africa and South America, reported a reduced operating performance for the fourth quarter of the year ended June 30.
Goldplat said its South African operation, Goldplat Recovery (Pty) Ltd, lost 23 operating days - 25% of the total days available in the period - due to infrastructure problems and electricity cuts. Operating profit decreased 39% to GBP750,000 from GBP1.2 million the previous year.
The company previously announced that it would invest in new diesel generators to get around the electricity cuts, but does not expect these to be operational until the end of October.
On a more positive note, Goldplat said construction of its new tailings storage facility was completed earlier this month. Commissioning has started and is expected to take about nine months.
"The completion of the new TSF in South Africa is a big milestone for the group from a business continuity perspective, but it also opens up opportunities for the processing of the old TSF and other potential projects," commented Chief Executive Officer Werner Klingenberg.
Meanwhile, in Ghana, Goldplat said its Gold Recovery Ghana operation was unable to capitalise on its "continued strong production profile" due to having insufficient time to sell and realise margins in inventory, resulting in "minimal" sales. Its operating profit was GBP438,000, down 76% from GBP1.8 million.
However, the company added: "The supply of material from South America and Ghana has remained steady and we continue to have positive engagements with clients in South America and West Africa."
Goldplat also said its operating entities delivered a combined operating profit of GBP1.2 million for the quarter, down from GBP3.0 million the prior year. Its annual operating profit meanwhile fell 34% to GBP6.0 million in financial 2023 from GBP9.1 million in financial 2022.
Goldplat expects its pretax profit for financial 2023 to exceed market expectations. Additionally, in Ghana, it expects "higher than usual" sales for the first quarter of the current financial year.
"I am pleased with the operating results achieved by the group during [the fourth quarter] and the for the year as a whole, considering some of the difficult circumstances we faced, and we look forward, particularly to improved operating results in Ghana," commented Klingenberg.
Goldplat shares were down 1.9% at 7.70 pence in London on Tuesday.
By Emma Curzon, Alliance News reporter
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