By: Creamer media

The company expects to report an adjusted profit before tax of about £2.6-million, compared with an adjusted profit before tax of £5.9-million in the prior year, owing to changes in the Ghana operations’ business model during the year and foreign exchange (forex) losses.

Goldplat will be paying an interim dividend of 0.88p apiece by the end of August. The board intends to assess the distribution of dividends on a quarterly basis going forward.

The group had a cash balance of £6-million at the end of June, which will be used to pay the £150 000 interim dividend, towards working capital and for capital expenditure.

Meanwhile, Goldplat’s Ghana and South Africa operations achieved a combined operating profit of £1.6-million in the fourth quarter of the year, compared with £694 000 in the preceding quarter. This excludes listing and head office costs, finance costs and foreign exchange losses.

Including net interest costs and foreign exchange losses, the two operations achieved a combined profit before tax of £766 000. Owing to a 40% weakening of the Ghanaian cedi against the dollar since April, forex losses amounted to £931 000 in Ghana in the quarter under review.

Meanwhile, the Ghana operations had the first normalised operational quarter under a new business model in the quarter under review, with the new business model including the site becoming a preliminary processor and smelter of bullion rather than an exporter of gold-bearing concentrates.

This has allowed for more clarity with regard to regulatory expectations and a reduction in working capital requirements and interest costs, albeit at reduced turnover in line with production and smelting capacity.

With the new business model in place, Goldplat will be able to implement additional measures to ensure sustainable profitability from the Ghana operations’ client base.

Goldplat CEO Werner Klingenberg says the group had a strong operating quarter supported by good supply from South America and the gold price.

However, the group’s operations remain sensitive to continuous supply of gold-bearing material, which has been impacted on by a decree on the export of gold-bearing by-products in some West African countries.

In South Africa, Klingenberg is seeing positive results from gold and platinum group metal sourcing activities and says Goldplat continues to streamline the operations to respond to lower visibility of supply material.

He is confident Goldplat can increase its market share in South Africa and deliver more by-products in the next financial year.

Goldplat remains confident in the fundamentals of its business and continues to progress strategic initiatives to improve long-term performance and enhance shareholder value.