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(Alliance News) - Shares in Goldplat PLC surged on Wednesday as the firm said both interim and annual results are set to top market expectations.
Shares were 44% higher in morning trade in London at a price of 3.90 pence each.
The Benoni, South Africa-based gold recovery firm reported a "strong" performance in South Africa in the six months to December, its first half, as well as improved operations in Ghana.
In South Africa, Goldplat achieved an operating profit of GBP2.6 million, nearly quadruple the figure a year before. In Ghana, it posted an operating profit of GBP148,000 after a loss of GBP241,449 a year prior.
South African sales rose by 5.7% to GBP9.3 million, while Ghana sales were up 21% to GBP2.3 million.
Goldplat was boosted by a higher gold price, it said, as well as cost reductions and better operational efficiency.
The company also has operations at Kilimapesa in Kenya, but these are currently on care & maintenance as Goldplat looks for a partner. The Anumso gold project in Ghana is up for sale as well.
Chief Executive Werner Klingenberg said: "I am pleased to report the team delivered on our initial focus of returning the business back to profitability after losses incurred during the previous financial year and that the outlook for the third quarter remains positive.
"The strong performance from South Africa and the successful sourcing initiatives in Ghana provides a strong basis from where we can invest into the key initiatives for long-term visibility in supply and earnings."
By George Collard; georgecollard@alliancenews.com
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