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Goldplat back to break-even after mothballing Kilimapesa

Published: 17:07 08 Aug 2019 AEST

Goldplat plc -
Goldplat recovers gold from used mining equipment

Goldplat plc (LON:GDP) steadied in the second half of year just ended after cost-cutting and the mothballing of the Kilimapesa gold mine.

The gold recovery business will still make an operating loss for the twelve months to June, but broke even in the second half.

Goldplat's core business is to extract gold from used mining equipment and there were good production levels in South Africa, though sourcing issues continued to affect the Ghana operation.

A source of new material from Mali is being evaluated and the focus is switching to other sources in West Africa.  

Kilimapesa went on to care and maintenance in May though Goldplat says Kenya has now started refunding the mine’s VAT claims for the first time.

Refunds to date amount to US$200,000.

“This action sends a strong message to potential investors about Kenya as an investment destination and for Kilimapesa it is of tremendous importance as the funds will be applied to reduce the KPG’s debt.“

Partnership talks are ongoing with a number of parties about Kilimapesa, while costs savings from halting production and actions elsewhere are expected to amount to £500,000 a year.

Cash holdings were £2.1mln at the end of June.

Werner Klingenberg, chief executive, said: “We delivered continued profitable production in South Africa during the quarter and achieved substantial savings by putting Kilimapesa under care and maintenance.

“In the next quarter we aim to accelerate the progress of growing the greater West African market."

 

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