LONDON (Alliance News) - Goldplat PLC Friday warned that, despite achieving an overall operating profit in its full year, levels of operating profit will be materially below market expectations due to suspension of operations, continuing losses from its Kilimapesa gold mine in Kenya, and a delay of sales in its fourth quarter.
The gold recovery and production company in Africa, which is currently in its fourth quarter, said it continues to operate profitably in its second half, with substantial improvements on its first half figures to December 31, when the company was hit by an operating loss of GBP694,000.
However, the company warned its figures would not reach market expectations due to short-term and temporary suspensions of toll treatment activities, continuing losses from its Kilimapesa gold mine in Kenya as the company searches for a joint venture partner to increase milling capacity, and a delay of the sale of fine carbon contracts at the company's gold recovery operation in Ghana.
"Our primary gold recovery operations in South Africa and Ghana continue to trade profitably, and as a result we remain highly confident that our final results for the year ended 30 June 2014 will still report an overall operating profit," Chief Executive Ian Visagie said in a statement.
"Whilst temporary problems incurred at Ghana have impacted anticipated profit levels during H2 2014, I am confident that growth in our recovery operations will continue in the near term, and believe our ability to remain profitable in these circumstances underpins the strength and robustness of our diverse mining service offering," Visagie added.
The company said in May that it made an operating and net profit in its third quarter as a result of strong performance at its gold recovery operations in South Africa and Ghana.
Goldplat also said in May that it is also working towards potential diversification into platinum group metals and has a trial project set up to start in the middle of the fourth quarter to take advantage of platinum mining by-products. On Friday, the company didn't comment further on its platinum mining by-products project.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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GoldPlat (GDP)