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Goldplat FY18 financials expected to be in line with market expectations

30th July 2018

By: Simone Liedtke

Creamer Media Social Media Editor & Senior Writer

     

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Aim-listed gold producer Goldplat expects its consolidated profit, before tax, for the financial year ended June 30, to be in line with market expectations, despite Kilimapesa Gold (KPG) having experienced a poor final quarter financially.

While Kilimapesa Plant 1 was shut down during the final quarter of the financial year, current operational and financial indicators show that the mine, in Kenya, is now operating at close to breakeven at an operational level.

However, the gold producer on Monday lamented that substantial losses were incurred during April and May, owing to operational and processing issues.

Meanwhile, the Goldplat board has approved a process to seek an investment partner for KPG so as to enable existing shareholders to realise value from the operation without having to invest any more capital.

Although discussions in this regard have begun with a number of interested parties, Goldplat averred that the focus remains on getting Kilimapesa to produce profitably in the short term.  

Further, Goldplat’s operations in South Africa, Ghana and Kenya produced 35 431 gold-equivalent ounces in the year under review, representing a 17% decrease over the previous year.

Production at both Goldplat Recovery (GPL) and Gold Recovery Ghana (GRG) were lower, whereas production at Kilimapesa increased by roughly 50%, when compared with the 2017 financial year.

Thirty-nine thousand, four hundred (39 400) gold-equivalent ounces were sold and transferred during the financial year under review.

Overall production of 8 219 oz of gold and gold equivalents were achieved during the final quarter.

Gold production at GPL during the fourth quarter of 5 066 oz of gold equivalent was in line with expectations for the operation in the absence of any one-off large contracts being sourced.

Focus continues on optimising the recovery of gold from the tailings storage facility, the company said, adding that it contains a total of 81 959 oz of gold, earmarked for future reprocessing.

GRG, meanwhile, produced 1 963 oz of gold equivalent during the fourth quarter, which included a consignment from a long-standing client in East Africa, Goldplat pointed out.

During the quarter, Ashanti Gold continued the extensive soil sampling programme across Anumso to test the strike extent of the Banka conglomerate.

In addition, adit sampling was undertaken to investigate mineralisation beneath the known surface anomalies.

Ashanti’s planned work for the next period includes the completion of assaying of soil and adit samples, as well as beginning a trenching programme ahead of the next drilling campaign.

CEO Gerard Kisbey-Green on Monday noted that while the financial results for the year are expected to be in line with market expectations, this result is not a fair reflection of the company’s performance during the first nine months and the hard work done by the team on all fronts.

“We continue to operate a strategic portfolio of producing gold assets and, apart from the absence of a large contract from outside South Africa, we are pleased with the result of the GPL operation,” he said.

During the final quarter of the financial year, the strong performance of this operation was arguably overshadowed by Kilimapesa and GRG, but work is already well under way to resolve these issues, Kisbey-Green pointed out.

“I am confident that the work being done in Ghana, wider West Africa and South America to source quality material for processing will have a positive impact on production and profitability during the current financial year. I look forward to sharing comprehensive results with the market in September,” he concluded.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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