LONDON (Alliance News) - Goldplat PLC Friday said it is talking to potential new customers for its gold recovery project in South Africa and is expecting talks with possible joint venture partners for its Kilimapesa mine to be finalised before the end of the year.
The company's gold recovery project in South Africa, run under its subsidiary Gold Recovery Pty Ltd SA, which recovers metals and gold from by-products from mining operations, began generating an operating profit during the first quarter ended September 30, following initiatives implemented in the last financial year, it said in a statement.
Goldplat also said the gold recovery project is to commence trials for potential new customers who are interested in purchasing by-products from the company before the end of 2014. Goldplat said it will not need any capital expenditure for the trials.
Gold recovery in South Africa is due to increase further in the second quarter of 2015, as Goldplat have began initiating a metallurgical efficiency project on its leaching circuits, it added.
Goldplat said the cash position of its subsidiary Goldplat Recovery deteriorated during the recent quarter, despite a stronger performance, as deliveries of concentrates were not made to the company's third-party refinery due to temporary industrial strike action in September, but Goldplat said the business believes its cash position will normalise during the next quarter.
At Goldplat's gold recovery project in Ghana, run by its Gold Recovery Ghana Ltd subsidiary, strike action also was taken by employees during September which meant it failed to deliver any concentrate produced by the company during the month. Goldplat said it does not expect the strike action to affect its first half results.
At its Kilimapesa gold mine in Kenya, Goldplat said it is continuing conversations with potential joint venture partners to advance the development of the project. Goldplat is expecting to find a partner before the end of 2014.
The Kilimapesa mine has needed no further cash injections during the last quarter as increased gold production has allowed it to become self-sufficient, it added.
Goldplat shares were down 8.1% to 3.56 pence per share Friday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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GoldPlat (GDP)