LONDON (ShareCast) - (Sharecast News) - South Africa and Ghana-focussed Goldplat reported operational results for its first quarter on Friday, with a combined operating profit of £1.87m excluding certain costs and financial factors, down slightly from £1.94m a year earlier.
The AIM-traded firm put the performance down to operating profits of £0.76m in South Africa, down from £0.98m in the first quarter of 2022, and £1.11m in Ghana, up from £0.97m.

In Ghana, Goldplat saw a substantial supply of material during the quarter, including a consignment from Côte d'Ivoire, marking its first shipment from Côte d'Ivoire.

Capital expenditure of £0.21m was invested in a lower-grade milling, gravity, and flotation circuit to enhance value extraction from low-grade fine carbon material in Ghana, with partial commissioning set for the second quarter and full commissioning expected in the third quarter.

In South Africa, operational challenges arose due to electricity cuts and infrastructure issues, causing a loss of 21 operating days during the period.

Goldplat said it had implemented measures to maximise production during available electricity supply hours.

To mitigate future electricity disruptions, the firm said it decided to invest in diesel generators, initially expected to be operational by October but now delayed to January due to shipping delays.

While by-products from current mining operations had reduced, Goldplat said it maintained strong visibility on the supply of low-grade soils for its milling circuits.

The focus remained on increasing by-product market share in South Africa and gaining access to neighbouring countries.

Additionally, a new tailings storage facility was constructed in August, with a nine-month commissioning period.

Goldplat said it was also planning to process its old tailings facility, dependent on receiving approval for a water use licence and evaluations by DRD Gold and Goldplat on various variables.

An estimated £1.3m would be spent on current operations, completing the tailings storage facility, and improving environmental impacts.

The company said it was continuing to evaluate the economic and environmental feasibility of its investment in a fine coal recovery technology company, aligning with its strategy to diversify recovery operations into other commodities.

Goldplat reported a strong cash balance of £1.35m, with significant investments in debtors primarily linked to a new smelter in Europe and South Africa.

Delays in receiving a gold licence in Ghana during the previous period led to inventory sales only occurring in the first quarter.

"I am pleased with the operating results achieved by the group during the first quarter, and results we are seeing from continued efforts, specifically consignment from Côte d'Ivoire, the improved turnaround of material being delivered to a different smelter, securing of low-grade carbon in leach (CIL) material in South Africa and the momentum we are seeing on engagement around the reprocessing of our old TSF," said chief executive officer Werner Klingenberg.

"Our focus will remain on strengthening relationships and continued engagements in West Africa and South America, increasing market share in a declining gold market in South Africa and neighbouring countries, reprocessing of the old tailings facility and leveraging our strength and capabilities through partnership into other precious metals and commodities."

At 0913 GMT, shares in Goldplat were down 4.64% at 6.29p.

Reporting by Josh White for Sharecast.com.

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