In a quarterly operational update for the three months to end September, 2019, the AIM-listed gold producer said its performance improved during the quarter as continued production in South Africa was supported by an increase in the gold price, and as production levels in Ghana rose due to an increase in material sourced.
For its core Goldplat Recovery business, the firm said sales were up by almost a third to £4.5mln, compared to £3.4mln in the same period last year, thanks to ramped-up production levels supported by higher gold prices.
The producer also said that it intends to increase the life of its near-capacity tailings storage facility by 12 to 18 months at a cost of £250,000, as well as 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 its Ghana operations bounced back to a small £23,000 profit in the last three months, 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.
It also revealed that it has agreed with its joint venture partner at Anumso Gold Corp, Desert Gold - which was formed by a merger of Ashanti Gold and Desert Gold at the end of September 2019 - to seek a buyer for the gold project and said it has had initial early-stage discussions of possible terms with some interested parties.
In morning trading, shares in Goldplat were 18.5% higher at 3.20p.