Goldplat shares jump as profits revealed in third quarter

Goldplat PLC (LON: GDP) have seen their shares soar as a trading update showed strong profit figures in the third quarter period.

Sales were up by almost a third to £4.5 million at its main Goldpat Recovery business after a tough 2018 trading year

In the trading update provided, profits up to 30th September were strong and managed to suffice shareholder appetite.

The AIM listed gold manufacturer said its performance had improved during the period as operations in South Africa was supported by the rise in the price of gold.

Additionally, production levels in Ghana rose due to increases in materials sourced.

For one of its significant operations, Goldplat Recovery business, the firm said sales were up by almost a third to £4.5 million, compared to £3.4 million in the same period last year.

The producer also unveiled plans to increase the life of its near-capacity tailings storage facility by 12 to 18 months at a cost of £250,000.

Alongside this plans were confirmed to start building a new storage facility to be approved, constructed and commissioned during the next year, set to cost between £500,000 to £700,000.

The group said that operations in Ghana had increased to £23,000 profit in the third quarter, while Kilimapesa Gold halved its losses from the previous quarter to £127,000 due to a reduction in costs after it was put on care and maintenance.

Goldplat gave insight for investors into reasons why performance had solidified saying the following:

The following events have contributed to the improved performance during the Quarter –

  • The continued production in South Africa was supported by the increase in gold price;
  • Increase in production levels in Ghana due to increase in material sourced;
  • Reduction in losses at Kilimapesa due to the mine being on care and maintenance, with only artisanal tailings being processed to contribute towards the costs of care and maintenance;
  • Cost reductions and improved operational efficiencies throughout the Group over the past year are contributing to profitability, including cost reductions on central group overheads;
  • Improvement in certain plant operational efficiencies have not only reduced costs but improved gold recovery;
  • Some of the cost savings have been invested into material sourcing initiatives and increasing physical security in South Africa.

Interestingly, this seems to have given investors renewed optimism for Goldplat who faced a tough 2018 financial year.

Currently, shares of Goldplat are trading at 3.27p per share, seeing a 21.11% rise. 29/10/19 11:40BST.

In the mining sector, Centamin (LON: CEY) have experienced a output decline, Serabi Gold Plc (LON: SRB) have shown strong production figures in their third quarter, Antofagasta (LON: ANTO) have faced tough political conditions and Hochschild Mining (LON: HOC) have remained confident after a cloudy trading update.

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