Aim-listed Goldplat’s South African gold recovery operations posted a profit of £2-million for the fourth quarter ended June 30, despite 25 production days being lost owing to the Covid-19 lockdown.

This brought profit for the full year for the company to £5.51-million, compared with a profit of £2.6-million posted for the financial year ended June 30, 2019.

Goldplat says the volume of by-products received from various mines during the fourth quarter was above expectations and contributed to the overall profitability of the South African operations.

The company’s application to extend its current tailings storage facility is currently with the relevant authorities and Goldplat expects approval within the next 12 months.

Goldplat has also initiated an extensive exploration and testing campaign to secure more long-term feed material for its carbon-in-leach circuits.

The company’s Ghanaian operation, meanwhile, maintained improved production levels during the first three quarters of the year and achieved an operating profit for the fourth quarter of £280 000, adding to a full-year profit of £638 000, compared with a loss of £536 000 from these operations in the prior financial year.

The company’s application for a licence to procure and toll treat tailings material in Ghana has been delayed by Covid-19 restrictions.

Meanwhile, Goldplat continues discussions with interested parties to buy the Kilimapesa project, in Kenya. The processing of tailings at the Kilimapesa gold plant stopped on March 27, as a result of measures implemented by the Kenyan government in response to Covid-19.

Operating losses at the Kilimapesa operation were therefore £96 000 in the fourth quarter of the financial year, increasing the loss for the full year to £554 000. This is still an improvement on the operating loss of £1.6-million reported in the prior financial year.

“The recovery businesses performed extremely well on an operating level during the year, while we reduced operating losses by more than £1-million year-on-year at Kilimapesa. I am pleased with the improved visibility of earnings in the recovery businesses and multiple parties showing interest in the exploration and mining properties, enabling us to now focus on growth in the recovery business.

“With the Covid-19 pandemic now considered a normal business risk, we are adjusting our procedures to ensure the safety of our people and continuity of the business, while limiting the impact that this might have on production and profitability,” says CEO Werner Klingenberg.