Goldplat PLC (GDP)

(Alliance News) - Goldplat PLC on Wednesday reported a decline in first half operating profit, partly as a result of disrupted gold exports in Ghana.

Shares in the gold miner and producer with recovery operations in Ghana and South Africa closed down 13% at 6.64 pence in London on Wednesday.

Goldplat said its two recovery operations achieved a combined operating profit of GBP1.2 million for the second quarter ended December 31, down 22% from GBP1.5 million the year before.

For the six months to December 31, combined operating profit fell 31% to GBP2.5 million from GBP3.4 million a year prior.

The group added that despite notably finance costs and foreign exchange losses incurred during the second quarter, it achieved pretax profit growth of 15% to GBP834,000 from GBP716,000.

Chief Executive Officer Werner Klingenberg said: "In Ghana, the team continued its implementation and management of several new processes and procedures to focus the business on local beneficiation and manage engagement with authorities with regard to new changes and requirements. In South Africa, we continue streamlining the operations to respond to lower visibility of supply of material."

The Ghanian operation delivered GBP555,000 in pretax profit, halving from GBP1.2 million last year. The South African operation swung to a pretax profit of GBP279,000 from a loss of GBP476,000.

Goldplat added that operations at the Precious Metals Marketing Co, the legally-authorised body that manages the export of dore gold bars in Ghana, were disrupted in December by "an outside mob".

Gold export was delayed, as a result, for "certain producers of material until they felt more comfortable with their security position".

The issue has since been resolved, Goldplat said, but noted it meant that dore bars produced during the second half of December in Ghana were instead exported in January, reducing December revenue by around GBP2 million.

Klingenberg continued: "The activity in South America remains encouraging and I am excited to see the acquisition of the land being finalised. This will increase our ability to service local clients by enabling us to process lower grade materials that are not economically viable to ship. It also provides flexibility in terms of jurisdictions we can process in.

"There is still significant work to be completed but all our efforts will create a more robust business providing a niche solution to the industry it operates in.

"The focus remains to reduce inventory levels in Ghana, whilst increasing cash on hand, improve the local beneficiation solution in Ghana to ensure consistent margins, progress the approval of the TSF pipeline, continue cost management efforts in South Africa and increase market share in South Africa."

By Emily Parsons, Alliance News reporter

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