LONDON (ShareCast) - (Sharecast News) - Goldplat reported a strong start to its financial year on Friday, posting higher operating profit in the first quarter ended 30 September and declaring an interim dividend, as improved material supply and a higher gold price lifted performance across its recovery operations in South Africa and Ghana.
The AIM-traded gold recovery group said its two operating units generated a combined first quarter operating profit of £2.09m, up from £1.84m a year earlier, excluding listing, head office, finance and FX items.

Profit before tax on the same basis rose to £2.37m from £1.45m.

Group cash at the end of the quarter was £2.2m.

The Ghanaian business delivered a £1.13m profit before tax, supported by the stronger gold price and a £282,000 foreign-exchange gain as the cedi weakened against the US dollar.

The South African operation recorded £1.25m profit before tax, up sharply from £0.55m a year earlier, helped by increased material shipments from South America, a one-off supply transaction with a local partner, cost-control measures and higher gold prices.

Goldplat's board declared an interim dividend of 0.1171p per share, payable on 19 December to shareholders on the register on 5 December.

Goldplat said it intended to assess dividends on a quarterly basis, alongside potential share buybacks.

In Ghana, Goldplat said its switch to a locally focused beneficiation model - supported by £1.25m of prior-year investment - continues to shape operations.

The company said it was refining processes to manage regulatory changes while exploring ways to offer niche, onsite solutions to clients outside Ghana affected by export restrictions.

In South Africa, the group was pursuing market-share gains in by-products amid expectations of declining feed from primary gold producers.

Work on the planned retreatment of the company's tailings storage facility continued, with progress dependent on approval of a water-use licence and pipeline access to DRDGOLD's Ergo plant.

Goldplat said timelines remained difficult to estimate and capital would be required for pipeline installation and facility upgrades, but the TSF project "remains a key focus and priority".

At its emerging Brazilian operation, the group said it had spent around £0.1m of its planned £0.2m investment on a new plant, with equipment due to arrive in November and completion expected in December.

The company said sourcing in South America remained strong.

"The group had a strong operating quarter supported by the high gold price and good supply from South America and once off supply in South Africa," said chief executive Werner Klingenberg.

He added that, despite supply uncertainties linked to West African export restrictions and changes in South African mining output, "we are confident that we will increase our market share in South Africa as well as the supply of by-products in the next financial period".

Klingenberg said the company aimed to provide "a steady and regular return to shareholders" and was focused on strengthening long-term performance.

"The board remains confident in the fundamentals of the business and continues to progress strategic initiatives to improve long-term performance and enhance shareholder value," he said.

At 1354 GMT, shares in Goldplat were up 0.54% at 9.3p.

Reporting by Josh White for Sharecast.com.

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