Goldplat plc (LON:GDP) has announced an update in relation to Q2 FY 2018 with production marginally lower QoQ by 2% and 18% lower YoY to 10,022oz. Production was impacted in Kenya by disruptions related to the recent elections whilst production in South Africa and Ghana was lower following particularly strong performance in the prior period. Gold sold and transferred of 8,794oz was down 5% YoY and 32% QoQ in part owing to the timing of sales.
In South Africa production of 6,380oz was down 10% YoY and 13% QoQ indicating 13,698oz produced for the first 6 months, up 9% YoY. The outlook for H2 FY 2018 appears robust since GDP has been appointed to process a decommissioned gold operation for a large South Africa gold miner. This is expected to benefit H2 FY 2018 production. Furthermore the operation’s stockpile is now in excess of 32koz contained gold demonstrating the success of the company’s sourcing efforts. Looking to the medium term, GDP has made further progress for the processing of the c80koz contained gold tailing facility in terms of metallurgical testwork and securing an additional site suitable for final deposition.
Ghana production of 2,408oz was down 46% YoY although up 102% QoQ. Commissioning of the additional elution column began in the period while the South American initiative is now operating successfully with regular shipments being received from three different producers. We note that the project to process Ghanaian artisanal tailings has been delayed as the
Government wish to formalise the process fully, however, this continues to be an attractive source of future potential production in our view which strengthens the company’s local relations.
Production at Kilimapesa of 1,234oz was down 15% QoQ although up 118% YoY. The continued ramp up at the mine was disrupted owing to the elections which affected delivery of fuel supplies, however, we expect this to be made up during the year and the company has reiterated its guidance of 5,800oz for FY2018.
