Goldplat plc (LSE:GDP) delivered a strong improvement in third-quarter trading, with combined operating profit from its South African and Ghanaian gold recovery businesses rising to £3.86 million. Profit before tax for the period reached £3.43 million.
The Ghana operation produced stable earnings, supported by process improvement investments and higher gold prices, while the South African business benefited from stronger sourcing of by-products, additional once-off processing batches and solid recoveries from its low-grade circuit.
Strategic development projects progress
Goldplat continued advancing a number of strategic initiatives during the quarter, including updated JORC resource work and technical studies relating to its South African tailings storage facility. Management said the work is aimed at reducing development risk around future processing opportunities and supporting commercial discussions with DRDGOLD Limited.
The company also commissioned equipment at its newly licensed Brazilian operation as part of its broader expansion plans in South America.
Goldplat maintained a strong cash position across the group and declared an interim dividend of £300,000. The board indicated it intends to continue making regular shareholder distributions while balancing working capital requirements and future capital investment needs.
Outlook and market considerations
The company’s outlook remains supported by healthy cash generation and a strong balance sheet. However, declining revenue levels and pressure on profit margins continue to present challenges.
From a technical perspective, market momentum remains positive, although indicators such as RSI and stochastic measures suggest the shares may be approaching overbought territory. Valuation metrics are viewed as broadly balanced in light of recent operational and financial pressures.
More about Goldplat
Goldplat plc is an AIM-listed mining services and gold recovery group specialising in the treatment of mining by-products. The company operates primarily in South Africa and Ghana, while also sourcing material from South America.
Goldplat serves mining clients across Africa and South America and is expanding its presence in Brazil while evaluating opportunities in additional precious metals markets to diversify supply sources and strengthen long-term resilience.
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