Aim-listed Goldplat has reported a significant increase in operating profit for the second quarter ended December 31, 2025, driven by higher gold prices and stable production.

The company’s two recovery operations – Gold Recovery Ghana (GRG) and Goldplat Recovery South Africa – achieved a combined operating profit of £2.7-million, up from £1.17-million in the same quarter of the previous year.

For the first half of the financial year, combined operating profit reached £4.79-million, compared with £2.5-million in the first half of the previous year, excluding listing and head office costs, finance costs and foreign exchange gains and losses.

The company reported that finance costs and foreign exchange losses incurred in the quarter mainly related to trading activities, resulting in a combined profit before tax, excluding listing and head office costs, of £2.31-million, compared with £834 000 in the second quarter of the previous year.

GRG achieved a profit before tax of £116 000, down from £555 000 in the prior year, including a foreign exchange loss of £302 000. Meanwhile, Goldplat Recovery South Africa delivered a profit before tax of £2.2-million, up from £279 000, supported by stable production, one-off batches, and increasing gold prices.

Goldplat announced an interim dividend of 0.15p a share to be paid on March 6, with a record date of February 20 and an ex-dividend date of February 19.

Overall, GRG reported a productive quarter, with a focus on maximising gold recoveries from material sourced mainly from clients in Ghana. The operation was, however, impacted by one-off losses on certain client batches where initial reports indicated higher gold content owing to changes in assay methods at a third-party laboratory.

Goldplat stated that procedures and processes had already been updated to address this.

GRG plans to invest £700 000 over the next six months to improve processes, increase recoveries and enhance environmental management. The company is also managing local beneficiation requirements, and reviewing and updating processes to reduce risks and maximise margins.

Also, GRG’s yearly environmental permit is in the process of renewal, and its gold licence is due for renewal on May 16.

Goldplat Recovery South Africa experienced growth in its share of the by-products market, which contributed to increased volumes during the quarter. The company stated that solid gold recoveries from low-grade circuits, combined with higher gold prices, supported a strong operating performance.

In the short term, the focus will remain on extracting value from current gold prices, while the longer-term goal is to improve supply visibility through diversification into other precious metals or gold resources.

Goldplat confirmed that more than 12 months of low-grade material were available for processing on site, with additional material under contract.

Regarding the company’s tailings storage facility (TSF), Goldplat noted that while a Joint Ore Reserves Committee (Jorc) resource estimate in January 2016 identified 81 959 oz in 1.43-million tonnes, no feasibility or economic assessment has been completed.

Goldplat said it was taking steps to reduce uncertainty by assuming control of aspects of the application process, involving consultants to assist with technical requirements, and gathering information to facilitate commercial discussions with DRDGOLD regarding the use of servitudes, plant and deposition capacity.

The company plans to update the current Jorc resource and conduct specific recovery analysis, with timelines to be provided by the end of March.

In South America, Gold Recovery Brazil has spent £156 000 of the planned £200 000 on a new plant, with spiral equipment delivered in January. The project is expected to be completed by the end of February.

Goldplat said that sourcing in South America had remained strong, with new agreements in place, and material continuing to be sent to Ghana and South Africa for processing.

During the quarter, the company decided to increase shipments to South Africa while reducing stock levels in Ghana through new processing methods.

Goldplat said its cash balances remained strong at £4.7-million at the end of the quarter, supporting working capital requirements, capital investments and future shareholder distributions.

“Our operations continue to deliver . . . results, albeit in an uncertain environment with numerous variables, supported by increased volumes and the increasing gold price.

The focus over the next six months will be on strengthening our control of the outcome on the TSF, maintaining and increasing market share, improving recoveries and margins in Ghana, unlocking potential in other precious metals in South Africa and maximising value from the current high gold price.

“There is still significant work to be completed but all our efforts will create a more robust business providing a niche solution to the industry it operates in,” Goldplat CEO Werner Klingenberg said.