Goldplat on track to meet market expectations

Despite decreasing gold recovery rates, Goldplat expects full-year profits to be in line with market expectations.

Goldplat recovered 35,431 gold equivalent ounces in its last trading year, a 17% year-on-year drop as production at its South Africa and Ghana operations came in lower.

However, a 50% increase in production at its Kilimapesa mine and improving margins has the company confident it will be able to keep investors on side when it turns in its fully audited results in September.

Goldplat sold and transferred 39,400 gold equivalent ounces in the year ended 30 June, down from the 40,285 ounces the firm moved twelve months earlier due to sales of stock carried over from the previous year.

The firm stated that its Kilimapesa project was now operating at close to breakeven at an operational level, but warned that significant losses were incurred during April and May 2018 due to operational and processing issues.

Goldplat also revealed that it was seeking an investment partner in order to help existing shareholders realise value from the operation without having to invest any more capital.

Gerard Kisbey-Green, Goldplat's chief executive, said, "Whilst the financial results for the year are expected to be in line with market expectations, I do not believe this result is a fair reflection of the company's performance during the first nine months and the hard work done by the team on all fronts."

"The board of Goldplat is committed to realising value at Kilimapesa in the best possible way for existing shareholders, with discussions with potential investment partners progressing in support of this."

As of 1250 BST, Goldplat shares had dropped 10.64% to 5.25p.