Aim-listed Goldplat has achieved an operating profit of £1.4-million for the quarter ended September 30 – a similar level to the operating profit posted for the quarter ended September 30, 2020.

Notably, this was despite the average gold price in dollar terms having decreased by 6.7% year-on-year.

Goldplat says its South African production units continue to perform well, leaving the company well-placed for longer-term profitable gold recovery streams, while the Ghana operations are benefitting from a steady supply of material and contributing the majority of profits at the moment.

Particularly, the company points out that it has made progress with engagements to increase its footprint to secure regular supply for the Ghana operations, specifically from Côte d'Ivoire.

Moreover, Goldplat has announced it will establish a processing and storage site for gold in Brazil, at an initial cost of $300 000, as part of its strategy to capture market share in the South American lower-grade material market.

The company also continues to evaluate operations for processing of artisanal tailings material in Ghana, including the possibility of finding a partner in the country.

SOUTH AFRICAN OPERATIONS

Although gold produced and sold from Goldplat’s South African operations was similar over the two comparing quarters, the average gold price in rand was 19.3% lower year-on-year, in the quarter ended September 30, resulting in a 50% lower operating profit.

To create longer-term visibility of supply of materials and associated earnings, Goldplat has partnered with ASX-listed West Wits Mining to process material from its early mine programme through Goldplat’s plant on a toll treatment basis. The initial programme will run for about six months, with an option to extend.

Goldplat has continued building up its precious metals material to such a level that it warrants an investment of $300 000 on a plant that will extract the value, which the company will announce in due course.

The company, towards the end of October, submitted an application to garner environmental approval for the installation of a pipeline to a process facility in the area around its existing operations, in Benoni. This will allow for additional processing capacity, considering that the company has about 82 000 oz of gold in tailings.