Goldplat (GDP) , said in an update on Wednesday that it returned to profitability, and expects full year results to exceed current market expectations.
The AIM-listed gold miner said that its African operations delivered a £2,601,000 profit for the six months to December 2019, up 246% compared to the prior year’s £752,028.
The company also benefited from higher gold spot prices in the 6 months to December 2019, which jumped from $1276 in June 2019 to $1500 levels during the period.
Goldplat also said in the update that it will be announcing the outcome of discussions with a potential buyer for the Anumso gold project.
Shares in Goldplat were trading 42.59% higher at 3.85p on Wednesday
Werner Klingenberg, CEO of Goldplat commented: "I am pleased to report that the team delivered on our initial focus of returning the business back to profitability after losses incurred during the previous FY and that the outlook for the third quarter remains positive.”
He added: “The strong performance from South Africa and the successful sourcing initiatives in Ghana provides a strong basis from where we can invest into the key initiatives for long-term visibility in supply and earnings.”
The firm’s Ghana operation delivered an operating profit of £148,000 for the six months to December 2019, up from a £241,449 loss, and reduced losses at Kilimapesa to £295,000 from a £686,845 loss in the prior period.
Goldplat also said £523,000 of VAT reclaims have been paid by the Kenyan Revenue Authorities, while the operation remains on care and maintenance.
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