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(Alliance News) - Goldplat PLC on Monday said it swung to interim profit in the first half of its financial year due to an increase in the price of gold and improved performance of some of its operations.
For the six months to the end of December, the gold producer posted pretax profit of GBP1.6 million compared to a loss of GBP837,000 the year prior.
Revenue was reported at GBP12.5 million, down 3.2% year-on-year from GBP12.8 million.
Goldplat attributed the swing to profit to a "strong" performance of its South African operation and an improvement in the performance of its Ghana operation.
The company reported reduced losses at its Kilimapesa mine, largely due to the Kenyan Revenue Authorities paying GBP523,000 in VAT reclaims. It also said that the performance was aided by improved gold recovery and a higher gold price.
The company said that during the six-month period, its USD2 million loan facility was renewed, adding that USD1.2 million has already been drawn to "provide increased flexibility in sourcing initiatives in West Africa and further abroad". As at the end of December, its cash stood at GBP2.1 million.
Looking ahead, it said that although monthly production levels are still dependent on sourcing of quality material, it is confident that it will remain profitable for remainder of the year due to higher hold prices.
Goldplat shares were trading 9.9% lower at 6.42 pence each on Monday morning in London.
By Ife Taiwo; ifetaiwo@alliancenews.com
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