Goldplat plc (LON:GDP) chief executive Gerard Kisbey-Green has said the firm remains confident its strategic initiatives will yield “improved results” going forward despite a “very difficult quarter”.
The gold miner said it had made “good progress” in terms of plans to secure funding for an expansion of its Kilimapesa mine in an update for the first quarter.
A strategy had also been implemented to put the mine on care and maintenance by the end of November 2018 should a transaction to secure funding not be in progress.
Goldplat also said previously reported problems with sourcing sufficient material for processing at gold recovery Ghana had continued into the first quarter of the new financial year as expected.
However, the expected turnaround began in the second quarter and management was confident of its outlook for the year.
Improvements at the Goldplat recovery in South Africa toward the end of September had also continued into the second quarter, with the company foreseeing a return to normalised production through the CIL circuits following a challenging environment during the quarter.
Gold production from the comparative period in the previous financial year and against annual targets had fallen due to the planned production decrease at the Kilimapesa mine, affected by the closure of Plant 1, and by a decrease in volumes and grade of materials sourced for the two recovery operations.
Production for the quarter was 6,138 ounces of gold equivalent, a 40% decrease from the same period a year ago.
There had also been a decrease in gold equivalent ounces sold and transferred during the quarter from the comparative period in the previous financial year due to reduced production and the sales from the first quarter of 2017 being augmented by a carry-over from a large contract produced during 2016.
Gold equivalent ounces sold and transferred during the quarter fell 62% to 5,407 ounces.