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Gold producer Goldplat announced in its interim results ended 31 December 2012 that its recovery operations in South Africa, Goldplat Recovery South Africa Limited (GPL) and Goldplat Recovery Ghana Limited (GRG) have been prioritised following solid performances.

Due to earnings visibility and profitability, and following a review of all our operations since I took over the role as CEO in September 2012, we have prioritised the recovery business where we see the potential for continued strong revenue growth and stable margins, said Goldplat CEO Russell Lamming.

The company revealed that gold production for the period under review totalled 9 097 ozs from the South African operation and that GPL also has operational flexibility derived from building significant stockpiles of raw materials on site, which reduced any impact of the transport and mine strikes prevalent in South Africa during the period.

Further, Goldplat revealed that over the past six months the company invested in new processing capacity at GPL, including a new tailings retreatment carbon in leach (CIL) plant and an additional rotary kiln.

The CIL plant will reprocess selected tailings from GPL’s own operation, estimated to comprise five years of production, while the rotary kiln will process the significant stockpile of high-grade woodchips, currently estimated at seven years of installed capacity.

Construction of the CIL plant is complete and commissioning is expected during March 2013, with the additional woodchip processing capacity expected to come on line in July 2013. These initiatives will increase processing capacity and positively impact GRLs bottom line.

In addition to the increased capacity at GRL, the company said that it had approved the development of Central Rand Gold‘s Crown East No. 4 shaft as a supply of high-grade material to supplement the underground CIL plant at GPL.

The operation has initially been designed to produce 200 tpm of material grading at approximately 15 g/t. This operation will be undertaken by a third party mining contractor and CRG will be paid a 5% net smelter return on all gold produced from the operation.

Meanwhile, following an announcement that a 25% increase in JORC-compliant mineral resources from 742 392 oz of gold to 931 071 oz of gold across its Kenyan, Ghanaian and Burkina Faso gold mining and development portfolio (the mining and exploration portfolio within the Goldplat group), the Goldplat said that it had taken the decision to reassess the exploration portfolio in terms of strategic direction.

The poor performance of the Kilimapesa gold mine and disappointing exploration results in Ghana (Anumso) and Burkina Faso (Nyieme), prompted a review of Goldplat‘s activities, led by our new CEO Russell Lamming, said Goldplat chairperson Brian Moritz.

The company reported that its gross profit increased by 13% to 2.97 million compared to 2.62 million in the first half of 2012, operating profit increased 3% to 2.06 million compared to 2 million, and gold sales increased by 38% to 15.48 million compared to 11.18 million. Gold production increased 16% to 17 918 oz, profit before tax, however, decreased by 34% to 1.56 million.

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