Gold production increased, but profits fell, as Goldplat (GDP) was hit with a £2.4m impairment charge and foreign exchange loss at the half-year stage.
Goldplat's gold recovery businesses in South Africa and Ghana performed strongly with gold output up 16 per cent year on year to 17,918 ounces. But the company's maiden mining operation, Kilimapesa in Kenya, ran into severe problems - management blamed an overly ambitious mine plan. Originally expected to produce 10,000 ounces per year, the mine is now forecast to churn out 5,000 ounces a year - but only when fully operational, which won't be for at least another year. Moreover, exploration from similar projects in Ghana and Burkina Faso failed to turn up any deposits worth mining.
New chief executive Russell Lamming, who took over from Demetri Manolis in the summer, says Goldplat will now place renewed focus on the more profitable gold recovery operations in which it has developed something of a niche.
Broker SP Angel forecasts full-year EPS of 1.9p (from 2.3p in 2012).
GOLDPLAT (GDP) | ||||
|---|---|---|---|---|
| ORD PRICE: | 10.9p | MARKET VALUE: | £18.4m | |
| TOUCH: | 10.75-11p | 12-MONTH HIGH: | 17.4p | LOW: 10.9p |
| DIVIDEND YIELD: | 5.5% | PE RATIO: | 12 | |
| NET ASSET VALUE: | 12.5p* | NET CASH: | £1.95m | |
| Half-year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 11.2 | 2.37 | 1.15 | nil |
| 2012 | 15.5 | 1.56 | -0.73 | nil |
| % change | +38 | -34 | - | - |
*Includes intangible assets of £8.6m, or 5.1p a share | ||||
