Goldplat’s Migori gold mine posts loss in year ended June

Goldplat KPG Migori mine
A worker in a gold mine in Migori. PHOTO/COURTESY: NMG

UK listed Goldplat Plc’s local subsidiary Kilimapesa Gold (KPG), the firm running the company’s gold mines in Migori, has posted a Ksh. 209.8 million loss in the year ended June, up from Ksh. 125.9 million registered a year earlier, a trading update from the English company has revealed.

Gold sales at Kilimapesa Gold have similarly dropped by 36.5 percent to stand at 391.7 million which is Ksh. 225.6 million lower than sales registered in a similar period last year. The dip in performance has been attributed to reduced production at the mines after the company failed to raise enough capital to run the business.

The lack of capital advertently led to the mines being put under care and administration with only a few workers being retained by the company. To this effect, Kilimapesa Gold is looking for new investors to provide funds to run the Migori goldmine.

“Goldplat is seeking an investment partner for the mine to enable the group realise value from the operation without having to invest additional capital. A positive development has been the fact that the Kenya Revenue Authority has started refunding some of the company’s VAT claims after the year-end, which had remained unpaid since the time of incorporation,” the trading update reads in part.

KPG had in March issued a statement saying that it was open to selling its Migori mine after failing to secure adequate capital injection to facilitate the efficient running of the mineshaft.  KPG sought funds to facilitate the establishment of a new plant in Migori and the acquisition of equipment to boost the firm’s production to a level that would allow it to make profit.

“I believe that putting Kilimapesa on care and maintenance, until the required external funding can be raised, is best for all stakeholders involved,” Goldplat Chief Executive Werner Klingenberg said in a trading update then.

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