Shares of Goldplat Plc (GDP.L) declined around 6 percent in the morning trade on London Stock Exchange after the gold producer in Africa said it expects flat operating profits in the first half of fiscal year 2013.
In its trading update, the company said its primary business of gold recovery operations in South Africa and Ghana have performed well and continue to produce robust operating profits. The South African operation has performed particularly well in what has been a difficult period for mining companies in South Africa. . Meanwhile, plant expansion at Kilimapesa Gold Mine in Kenya delayed due to uncertainties in Kenya’s mining legislation and operational difficulties at the mine.
The company expects that the improved results from the gold recovery operations would cover the losses at Kilimapesa, leaving operating profits for first half in line with those of the comparable period in 2012.
Goldplat’s CEO Russell Lamming said, “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 shares are currently trading at 12.07 pence in London, down 0.80 pence or 6.22 percent.
To receive FREE breaking news email alerts for Goldplat plc and others in your portfolio
by RTT Staff Writer
For comments and feedback: editorial@rttnews.comBusiness News