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Goldplat reports healthy operating profit for March quarter

Aim-listed Goldplat’s South African gold recovery operations maintained profitability during the quarter ended March 31, recording an operating profit of £843 000.

This contributed to an operating profit of £3.4-million for the South African operations for the nine months ended March 31, which is a considerable increase on the £1.5-million operating profit achieved in the nine months ended March 31, 2019.

However, the company’s South African gold recovery operations were placed on care and maintenance five days before quarter-end, owing to the national lockdown that was imposed to curb the spread of Covid-19.

Meanwhile, Goldplat says its Ghanaian operation maintained its improved production levels during the quarter. These operations achieved an operating profit of £210 000 for the quarter ended March 31.

This contributed to the operation achieving an operating profit of £358 000 for the nine months ended March 31, compared with an operating loss of £669 000 for the nine months ended March 31, 2019.

The company says the Ghana operation was not required to close owing to the Covid-19 pandemic; however, not all circuits could be operated at full capacity towards the end of March and in April.

Goldplat expects the operation in Ghana to return to normal capacity during May and that it will make up for most lost production in those two months.

In Kenya, the company had to stop its Kilimapesa gold plant, as a result of government measures imposed in response to Covid-19. The operation remains under care and maintenance.

Operating losses at Kilimapesa for the quarter under review amounted to £190 000, increasing the loss for the nine months ended March 31 to £485 000, compared with an operating loss of £1.1-million in the prior comparable nine months.

Goldplat continues to seek a buyer for its Anumso gold project, in Ghana. “The Covid-19 pandemic has changed the world as we know it. While we are pleased that our South African operation could restart on a reduced basis, with plans to increase production to full capacity shortly, the health and safety of our employees remains our highest priority.

“While in operation, in whichever jurisdiction, we will continue to protect the business, employees, and the general population by complying with heightened hygiene measures, restrictions on site visits and travel in general, amongst others during this challenging period the world is experiencing,” says Goldplat CEO Werner Klingenberg.

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