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Goldplat production back at planned levels

Gold processor Goldplat (AIM:GDP) saw output return to planned production levels in the December quarter, which were 57% higher than the previous three months.
Goldplat production back at planned levels Goldplat production back at planned levels Goldplat production back at planned levels Goldplat production back at planned levels Goldplat production back at planned levels

Goldplat has seen production returned to planned levels

It produced 9,648oz of gold-equivalent during the quarter, 4% lower than a year ago, despite the increase from the September quarter.

Gold-equivalent sales for the three-month period rose 16% year-on-year to 10,178oz.

Goldplat said that, as forecast, production levels at Goldplat Recovery in South Africa were returning to normal levels with the by-product sections and the carbon-in-leach circuits both exceeding planned production.

"This was due to the sourcing of material from clients returning to normal as well as the focus on processing built-up inventory in the plant during the period," it said.

Goldplat saw improved production at Gold Recovery Ghana due to the processing of a number of local Ghanaian contracts, including two re-initiated contracts, and increased sourcing of small batched of material from South America, including one once-off small but high-grade batch.

"During the quarter, a major West African client with substantial material available from a number of operations agreed to send trial a batch of material to Gold Recovery Ghana and this is expected to be processed during the current quarter, as soon as export logistics and legalities have been finalised," the company said.

Goldplat reduced output at Kilimapesa in Kenya during the quarter as planned, but it avoided putting the operation on care and maintenance, as it made progress towards securing funding.

CEO Gerard Kisbey-Green said the operation continued to report poor results and the company hoped to progress financing discussions at Kilimapesa. He also wasn't optimistic about Kilimapesa's impact on the company's financials for the quarter.

"Whereas we reported very positive production and sales numbers for the quarter, unfortunately we don't expect this to be sufficient to make up financially for the continued losses at Kilimapesa and poor first quarter of the financial year- this will be reflected in the Interim announcement," Kisbey-Green said.

Goldplat's shares dropped 2.78% to 3.5p (US4.57c) Monday.