Aim-listed Goldplat, with gold recovery operations in South Africa and Ghana, continued to achieve profitable results for the six months ended December 31, 2023, despite some of the difficult circumstances experienced in South Africa, CEO Werner Klingenberg says in unaudited interim results statement.

The company reported a strong operating profit of £2.97-million for the period under review, compared with an operating profit of £2.81-million reported for the six months ended December 31, 2022.

This was notable especially considering that revenue had increased by 82% to £37.40-million from £20.6-million in the prior comparable period, with the Ghanaian recovery operations having recorded an increase in revenue of 167% and the South African operations a decrease in revenue of 9%.

The increase in revenue in Ghana was mainly owing to the quantity of high-grade, low-margin material sold during the period which had either built up because of delays in the company’s exports while its export licence was finalised during the second half of the previous financial period or material only supplied during the period.

Revenue in South Africa decreased owing to production being impacted on by electricity cuts, as well as a reduction in by-products received from current mining operations because of changes in their production profile.

As a result of delays experienced at a smelter in Europe in the previous financial year, the South African operation’s half-year results were further materially impacted on as an unusually large quantity of material for processing through gravity circuits was held in stock at the end of June 2023.

This material contained a lower percentage of gold than estimated.

While the percentage of contained gold varies from month to month, the unusually large quantity of material held in inventory meant that there was a disproportionate effect on the half-year period, with a significantly lower quantity of gold than expected being recovered from Goldplat’s gravity circuits.

Apart from the about £600 000 shortfall experienced on the gravities, the company continued to see a reduction in by-products received from current mining operations.

The focus, therefore, remains to increase its by-product market share in South Africa and to gain access to neighbouring countries.

For the period, there was a net profit from continued operations attributable to owners of the company of £1.17-million.

Fully diluted earnings a share for the six-month period were 0.70p.

The group’s net cash balance remained strong at £1.69-million.

During the period under review, the company spent £793 000 on capital expenditure, mainly on the construction of a new tailings storage facility in South Africa and the refurbishment of one of the circuits.

Owing to the continuing uncertainty of electricity supply in the medium term, Goldplat decided to invest in diesel generators which will be able to sustain operations in South Africa during electricity cuts.

During January, it became apparent that, owing to miscommunication between the supplier of the generators and the manufacturer, the shipping of the generators has been delayed and the project will only be completed in the fourth quarter of the current financial year.