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(Sharecast News) - Goldplat reported a sharp fall in profit for the year ended 30 June on Monday, after changes to its operating model in Ghana reduced volumes, though the AIM-traded precious metals recovery group said it maintained profitable trading and increased cash generation.
Revenue fell 22% to 56.7m from 72.7m, while operating profit slid 61.8% to 3.7m from 9.8m.
Adjusted profit before tax, which excluded a 0.71m impairment at Kilimapesa, declined 55.2% to 2.7m from 6.0m.
Profit for the year dropped 73.2% to 1.2m from 4.3m and earnings per share fell to 0.60p from 2.51p.
Despite the lower earnings, Goldplat reported net cash flows from operating activities of 6.0m, up from 3.9m, with cash and cash equivalents rising to 6.1m from 3.9m.
The company said the year's performance came against "operational challenges", particularly the shift in Ghana where authorities' preference for local beneficiation required additional plant to process gold-bearing material on site.
"Considering the operational challenges during the year, specifically business model changes required in Ghana, I am pleased with the trading results achieved by the group this year and the board are confident in the foundational work which continues to be done," said chief executive Werner Klingenberg.
"Looking forward to the next financial year, I believe Goldplat can build on current operational performances, through increase of supply and progressing processing of the TSF and we look forward to reporting on our progress throughout 2026."
Chairman Gerard Kisbey-Green said the drop in profit was mainly driven by the changes in Ghana, where the group altered its business model to meet requirements for in-country processing, and was also affected by the 0.71m impairment of a receivable related to the sale of Kilimapesa.
He said the group's resilience was supported by diversification, with weaker supply in South Africa and the shift in Ghana offset by strong supply out of South America, while the average gold price rose to $2,812 an ounce from $2,076 an ounce.
Goldplat operates two recovery facilities in South Africa and Ghana, processing mining by-products and waste material to recover gold and platinum group metals.
It highlighted ongoing work to improve earnings visibility by strengthening supply partnerships and processing methods, and said it is positioning itself as a service provider aligned with miners' environmental, social and governance priorities.
The group said it was also pursuing plans to expand recovery operations into Brazil and invested 78,000 toward initial plant capacity in South America, with the first phase expected to be completed by December, subject to required licences.
Kisbey-Green said the group started returning cash to shareholders after the period through dividends, and intended to continue distributing surplus cash, with the board assessing the position quarterly and using dividends or share buybacks as appropriate.
At 1326 GMT, shares in Goldplat were down 7.89% at 8.75p.
Reporting by Josh White for Sharecast.com.