Goldplat puts Kenyan mine on care and maintenance

London-listed Goldplat plc (LON: GDP) announced Tuesday it was placing its Kilimapesa gold mine in Kenya on a care and maintenance program.

The company said it was making the move owing to ongoing operational losses and gold price uncertainty.

Goldplat also said its full year gross earnings for 2013 would likely be lower than expected.

In March, the company said the mine's planned output had been reduced to 5,000 ounces per year which resulted in an impairment charge of £2.38 million ($3.7 million).

At its gold recovery project in Ghana, the miner said it will close down the carbon in leach section of the plant until it can source better material from major gold producers.

The South African gold recovery project is producing strong cash flows, especially from its expanded fine carbon processing,  and has signed new supply contracts with major gold producers in the country.

Image courtesy Goldplat