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Goldplat boosts interim operating profit to £1.6mln

Operating profits rose on the strength of the performance of the South African recovery operations and improvements at Kilimapesa

gold and cash
Goldplat has a considerable cash cushion on its balance sheet to support profits

Goldplat plc (LON:GDP) has turned in an operating profit  of £1.578mln for the six-month period to December 2017, up significantly from the £1mln in the corresponding period a year earlier.

The boost comes as the recovery operations continue to perform well and the Kilimapesa gold mine showed major improvements, despite production stoppages during the election period, and reduced substantial historical losses to near break-even.

WATCH: Goldplat 'happy on all fronts' with boost to interim operating profit

There was an expected slight drop-off at Gold Recovery Ghana, which had performed exceptionally well during the six months ended 31 December 2016, and reported lower profits in-line with forecast, not having the benefit during this period of the large clean-up performed for a major producer during 2016.

However, exchange rate fluctuations, especially on intercompany loans and receivables, took some of the shine off.  

Production of gold and gold equivalents for the six months' period under review came in at 20,246 ounces.

Goldplat has maintained a healthy cash reserve of £918,000, even after the repayment of interest bearing borrowings of £505,000 and the investment of £800,000 in precious metals raw materials stockpiles.

READ: Goldplat looking for fresh start as Rand Refinery dispute ends

Capital expenditure of £1,009,000 for the period was primarily spent on the expansion of operations in Ghana by way of the installation of an elution plant, with capital expenditure in South Africa and Kenya substantially completed for the foreseeable future.

Meanwhile, Goldplat and Rand Refinery have reached full and final settlement in the dispute between the two companies.

Quick facts: Goldplat PLC

Price: 2.7 GBX

AIM:GDP
Market: AIM
Market Cap: £4.52 m
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