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Goldplat PLC resumed trading on AIM in London on Monday after it released results for the financial year that ended on June 30, posting growth in profit and revenue.
Goldplat also released operating results for the second quarter of financial year 2023, with operating profit in South Africa plummeting due to ongoing electricity cuts.
Goldplat shares were down 9.3% at 9.25 pence each in London on Monday morning.
The South Africa and Ghana-focused mining services company said pretax profit in the financial year that ended on June 30, 2022 grew 60% to £5.8 million from £3.7 million in 2021. Revenue climbed 22% to £43.2 million from £35.4 million. Cost of sales increased 14% to £33.2 million from £29.2 million, while administrative expenses rose 38% to £2.3 million from £1.7 million.
Looking ahead, Goldplat said it plans to extend its asset portfolio to Brazil and it continues to focus on investing into research & development to identify different processing methods.
Chair Gerard Kemp said the threat posed by Covid ‘diminished significantly’ during the past year but Russia’s war in Ukraine ‘is posing a significant challenge to global supply chains and whilst Goldplat has no activities directly connected with Russia or Ukraine, the long-term effect of the conflict on the group is uncertain.’
Goldplat also on Monday released operating results for the three months that ended December 31, the second quarter of financial year 2023. Operating profit at its Ghanaian operation increased slightly to £1.03 million from £1.01 million a year before.
However, operating profit in South Africa plummeted to £356,000 from £1.3 million due to electricity cuts by state-own power provider Eskom Holdings SOC Ltd.
Goldplat cautioned: ‘Whilst we cannot predict the level of electricity supply for the rest of the year, should the electricity cuts in South Africa continue at the current level, although we still expect to generate operating profits over the third quarter and the fourth quarter, we believe it is unlikely that we will be able to meet market expectations for the current financial year. We will keep the market updated with regard to the impact of the electricity supply and on the progress of our business generally.’
Goldplat Chief Executive Officer Werner Klingenberg said: ‘Our solutions have always been flexible and unique, and I believe that the team will find a way to handle the impact of electricity cuts in South Africa, whilst reducing their impact on our results.’
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