Goldplat: Delays in Kenyan gold mining project 'disappointing'

Delays in AIM-listed gold mining company Goldplat's Kenyan plant expansion programme resulted in losses in the first half of 2013, according to a trading statement issued on Friday morning.

The Africa-focussed mining company stated that its directors had delayed a planned plant expansion programme at the Kilimapesa Gold Mine due to continued uncertainty regarding mining legislation in Kenya and operational difficulties at the mine.

A lack of processing capacity and subsequent increase in operational cost due to the delay in the additional plant construction resulted in losses being incurred at Kilimapesa during the first half of the company's fiscal year.

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However, the losses are expected to be offset by strong performance at other mines owned by the company and operating profits for the six months to December 2012, representing the first half of 2013 fiscal year, are expected to be in line with the corresponding period in 2012, the trading statement disclosed.

Russell Lamming, Chief Executive Officer at Goldplat, commented: "The company's primary business of gold recovery continues to produce robust operating profits which underpin the value of Goldplat and are in line with the comparable period last year.

"In terms of our Kenyan gold mining project, the delays in the plant expansion and subsequent losses we are experiencing at Kilimapesa are disappointing however these issues are being addressed and we are confident that our continued discussions with the Kenyan government will result in a favourable outcome for all stakeholders and we look forward to a strong second half of the year."

Goldplat's assets comprise two gold recovery operations in South Africa and Ghana, a producing gold mine in Kenya and two brownfield gold development projects in Ghana and Burkina Faso.

MF