Goldplat Remains on Track To Deliver an Operating Profit

By Alex MacDonald

LONDON--African gold producer Goldplat PLC (GDP.LN) said Friday that it remains on track to report an operating profit for its 2015 financial year ending June 30 2015.

The U.K.-listed miner, which operates gold recovery businesses in South Africa and Ghana and has a gold project in Kenya, said its South African operations generated an operating profit during the first financial quarter ended Sept. 30 following initiatives announced in its previous financial year.

Goldplat said it's increasing its focus on processing platinum group metals in South Africa with trials to be held by end of this calendar year. This should require no material increase in capital expenditure, the company said.

Goldplat also said its Ghana operations were unable to deliver gold concentrate in the first financial quarter due to a temporary strike by refiners. The strike, however, isn't expected to negatively impact the company's financial results from Ghana during the first financial half of this year since the company is seeking to remedy future delays at the refinery in order to rapidly increase cash balances.

Lastly, Goldplat is accelerating discussions with potential joint venture partners at its Kilimapesa Gold Project in Kenya with a view to identifying a joint venture partner before the end of the calendar year. The project didn't need any additional funding during the first financial quarter since an increase in gold output helped sustain the project's cash balance.

Goldplat shares are down 40% since the beginning of the year at 3.9 pence a share, resulting in a market capitalization of 6.5 million pounds ($10.4 million).

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