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.

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.

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

Recommended

Share tips of the week – 22 October
Share tips

Share tips of the week – 22 October

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
22 Oct 2021
Three dividend stocks from the dynamic Asia/Pacific region
Share tips

Three dividend stocks from the dynamic Asia/Pacific region

Professional investor Sat Duhra of the Henderson Far East Income investment trust highlights three of his favourite stocks.
18 Oct 2021
Share tips of the week – 15 October
Share tips

Share tips of the week – 15 October

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
15 Oct 2021
Trading: stash the family cash in this cheap wealth management firm
Trading

Trading: stash the family cash in this cheap wealth management firm

Wealth management is a growth market. Rathbone Brothers should be a prime beneficiary – and looks cheap. Matthew Partridge explains the best way to pl…
12 Oct 2021

Most Popular

How to invest as we move to a hydrogen economy
Energy

How to invest as we move to a hydrogen economy

The government has started to roll out its plans for switching us over from fossil fuels to hydrogen and renewable energy. Should investors buy in? St…
8 Oct 2021
How to invest in SMRs – the future of green energy
Energy

How to invest in SMRs – the future of green energy

The UK’s electricity supply needs to be more robust for days when the wind doesn’t blow. We need nuclear power, says Dominic Frisby. And the future of…
6 Oct 2021
The after effects of the gas-price shock
Economy

The after effects of the gas-price shock

In the wake of the recent spike in the natural gas price, we can expect slower growth, an industrial recession – and a newly assertive Russia, says Ma…
17 Oct 2021