Diesel generators arrive for Goldplat's South Africa operations

19th Apr 2024 08:25

(Sharecast News) - South Africa and Ghana-focussed Goldplat announced the arrival of diesel generators at its South African operations on Friday.

The AIM-traded firm said commissioning was expected to be completed by the end of April.

During the third quarter, its operations experienced a 6% loss of total operating hours due to electricity supply cuts and infrastructure-related issues - a decrease from the prior year's loss of over 20%.

The board said the generators, acquired at a cost of £0.8m, were financed through a local South African bank and would be repaid over three years.

It said the generators would be deployed to mitigate operational downtime caused by electricity supply issues, subject to ongoing economic viability assessments.

The investment was designed to enhance operational resilience and optimise productivity amidst challenges related to electricity supply.

"We are delighted to have received the generators on site and look forward to the finalisation of the commissioning of the generators," said chief executive officer Werner Klingenberg.

"They will provide us with the ability to curtail the impact that electricity cuts have had on our operations as well as mitigate potential supply challenges in the future."

At 0901 BST, shares in Goldplat were up 1.43% at 7.81p.

Reporting by Josh White for Sharecast.com.