This archive report was first published on 30 September 2019.
Goldplat, a London-based multinational, has made a significant loss in its Migori goldmine, with a Sh209.8 million loss before finance costs in the year ended June.
This loss is a two-thirds increase from the Sh125.9 million loss recorded a year earlier.
The company attributed the bigger loss to reduced production and the subsequent shutdown of the mine after failing to raise new capital needed to run the operation.
Goldplat's local subsidiary, Kilimapesa Gold Limited, saw sales drop by 36.5 percent to Sh391.7 million from Sh617.3 million.
The company is still seeking an outside investor to provide new 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," the company said.
Goldplat also received Sh20 million from the Kenya Revenue Authority as part of VAT refunds.
The Migori gold mine was put under care and maintenance effective June 1, with production stopping and only a few employees retained to ensure the site remains safe and stable.
The plan is to resume production quickly and efficiently in the future.
Gold output at the Migori mine stood at 569 ounces in the three months ended March, down from 1,241 ounces a year earlier.
Prices of gold have jumped more than 25 percent over the past 12 months to reach highs of $1,528 (Sh157,000) per ounce.
