Goldplat to sell part of its Kilimapesa shareholding
Tuesday October 02 2018
Artisanal mining in western Kenya. FILE PHOTO | NMG
Goldplat Plc has said it will sell part of its equity in the loss-making Kilimapesa goldmine in Transmara sub-county in southwest Kenya.
The board of the London Stock Exchange-listed firm has approved the process to seek an investment partner.
Kilimapesa Gold Pty Ltd made a net loss of $1.1 million for the period ended June 30, down from the $1.4 million loss recorded in the previous year.
It attributed the loss to the effects of the 2017 election, and delays in getting spares and equipment through Customs.
The firm hopes to acquire new capital to turn Kilimapesa to profitability. Goldplat did not disclose the percentage of the equity to be sold or the expected proceeds.
“We are seeking an investment partner to help us realise the full potential of the mine,” said Goldplat chairman Matthew Robinson.
He said Goldplat had identified a number of operational improvements that already have been made to lower costs at Kilimapesa Gold and improve efficiencies.
KPG increased production by 50 per cent to 5,112 ounces of gold from 3,215 ounces in 2017. The output was lower than the initial forecast of 5,800 oz but good as the plant 1 processing unit stopped operating in May 2018.
Kilimapesa’s revenue increased by 54 per cent from $4.1 million to $6.3 million due to the increased processing capacity of plant 2 unit still revenue was subdued by operational losses in the year.
Goldplat chief executive officer Gerard Kisbey-Green said the new plant 2 was initially planned to have throughput to process 120 tonnes per day of gold ore; a far higher rate of 180 tonnes per day has been regularly achieved.
“This tonnage throughput is being derived from ore from the Kilimapesa Hill underground mine and purchased artisanal tailings previously processed at plant 1,” he said. KPG achieved operational profitability in the last two months of the 2018 financial year.