AIM-listed gold producer Goldplat has returned to profitability, the company announced in its preliminary results for the year ended 30 June 2014.
Goldplat reported operating profits of £153 000 from £2.64 million in 2013, returning to profitability in H2 2014. The company’s loss before tax is at £248 000 with a net cash position of £1.66 million as at 30 June 2014.
Goldplat has focused on growth of market-leading gold recovery operations in Africa. Its South African gold recovery operation became the first secondary gold producer to be accredited as a “Responsible Gold” depositor, significantly enhancing competitive advantage. This certification is already positively impacting contracts, profits and cash flow.
Furthermore, significant cost saving initiatives have been implemented across all operations through renegotiated contracts, upgraded infrastructure and improved efficiencies to mitigate effects of lower gold prices during the period.
Additional revenue streams have been identified in South Africa, including potential diversification into highly prospective recovery opportunities in Platinum Group Metals.
Goldplat is also evaluating a new site location for Ghanaian CIL operations following decommissioning of previous site. There is an opportunity to increase Ghanaian’s client reach and internationalise fine carbon operations, with the first consignment of material received from North Africa and opportunities identified in Australia and South America.
The company also announced continued progression of discussions with Joint Venture partners to advance the development of the Kilimapesa Gold Mine in Kenya.
“The year ended 30 June 2014 has been a challenging period for Goldplat, but one from which it has emerged strongly, having cemented its position as the leading gold recovery company in Africa,” said Goldplat CEO Ian Visagie.
“In particular Goldplat has obtained certification in South Africa as a producer of ‘Responsible Gold,’ a status not achieved by its competitors and one which has enhanced its competitive advantage. The strong performances from the recovery operations in H2 2014 are expected to continue into the future.”
Goldplat’s two market leading gold recovery businesses will remain the company’s core focus as it continues to unlock the economic value of these operations. “In spite of the difficulties experienced during the period, we are now making positive progress to ensure the group’s profitability for FY 2015 and beyond,” Visagie added.
“We have implemented a number of cost saving initiatives across our gold recovery operations in South Africa and Ghana, which have already proven to be successful, with the second half of the year (H2 2014) eliminating the H1 2014 operating loss, resulting in an overall operating profit for FY 2014.
“Going forward we remain focused on seeking the most cost efficient and sustainable operational methods to maximise our profitability and will work with the respective Governments and regulatory bodies to ensure a standardised high level of compliance with all regulatory, legislative and environmental commitments.”