Shares in Africa-focused Goldplat (LON:GDP) were up almost 6% in London Tuesday morning after the firm announced it had received a three year renewal for its gold recovery licence in Ghana.
The permit grants Goldplat’s GRG subsidiary rights to buy and process by-products and export any gold recovered.
The licence renewal enables a small inventory of by-products that require further processing outside of Ghana to be shipped, which will positively impact earnings, analysts say.
As part of the renewal, GRG will have to pay the Ghanaian government a 5% royalty on all minerals obtained from its operations. It must also continue with its plans to install an elution plant by June 2018.
The company, which extracts gold from mining waste, said the international diversification of sourcing of material for import into and processing at the Ghanaian recovery business was a major pillar of the company’s growth strategy.
The receipt of the licence enables a small inventory of by-products that require further processing outside of Ghana to be shipped, which will positively impact earnings, VSA Capital said in a note to investors.
Despite the recent weakness in the gold price, Goldplat’s shares have remained supported. They were trading at 5.55p at 10:57AM GMT, or 5.71% than they closing price on Monday.(source:mining.com)