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

How to profit from pampered pets beyond the pandemic
Share tips

How to profit from pampered pets beyond the pandemic

Covid-19 has greatly boosted ownership. But the market had been expanding for years, and demographic, cultural and medical trends all point to long-te…
30 Jul 2021
Share tips of the week – 30 July
Share tips

Share tips of the week – 30 July

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
30 Jul 2021
Robinhood is going public – should you invest?
US stockmarkets

Robinhood is going public – should you invest?

Online stockbroking app Robinhood is going public on the US stock exchange. Saloni Sardana looks at whether it's worth a punt.
29 Jul 2021
Three sustainable stocks that are doing well by doing good
Share tips

Three sustainable stocks that are doing well by doing good

Professional investor Peter Michaelis of the Liontrust Sustainable Investment Team picks three stocks to buy that are helping to create a cleaner, saf…
26 Jul 2021

Most Popular

Why the UK's 2.5% inflation is a big deal
Inflation

Why the UK's 2.5% inflation is a big deal

After years of inflation being a financial-assets problem, it is now an “ordinary things” problem too, says Merryn Somerset Webb. But central banks st…
16 Jul 2021
The MoneyWeek Podcast: Asia, financial repression and the nature of capitalism
Economy

The MoneyWeek Podcast: Asia, financial repression and the nature of capitalism

Russell Napier talks to Merryn about financial repression – or "stealing money from old people slowly" – plus how Asian capitalism is taking over in t…
16 Jul 2021
Three companies that are reaping the rewards of investment
Share tips

Three companies that are reaping the rewards of investment

Professional investor Edward Wielechowski of the Odyssean Investment Trust highlights three stocks that have have invested well – and are able to deal…
19 Jul 2021