Wishbone Gold PLC - Interim Results
RNS Number : 2444C
Wishbone Gold PLC
16 October 2020
 

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 ("MAR")

 

 

 

 

 

 

16 October 2020

 

Wishbone Gold Plc

("Wishbone" or the "Company")

Wishbone Gold Plc / Index: AIM: WSBN / Sector: Natural Resources / AQSE: WSBN

 

Interim Results

Chairman's statement

Wishbone Gold has pleasure in announcing its interim results for the period ended 30 June 2020. Shareholders are reminded that these results are unaudited and based on the Company's management accounts.

The six months ended 30 June 2020 saw total sales of US$3.637m, showing a decrease over the same period last year (2019: US$6.562m). As previously announced this trading all took place prior to the COVID-19 lock down and the grounding of Emirates Airlines in March of this year.

On 10 January 2020, the Company passed resolutions at an EGM to consolidate the Company's shares into 28,458,790 shares consisting of 28,458,790 deferred shares and 28,458,790 new ordinary shares. The new ordinary shares were admitted to trading on AIM and AQSE on 21 January 2020. Under the terms of the resolution, the Company acquired the deferred shares on 17 February 2020 and these were returned to authorised but unissued capital.

Given the situation in the trading markets and the uncertainty of the outcome of the COVID-19 crisis the Company reviewed its strategy during the first half of 2020. We concluded that Wishbone should refocus on our exploration properties as our primary activity. This decision was based in part on their location in Australia as against our primary trading markets of Africa. We see Australia as more secure source of physical gold in the future with the uncertainty of COVID 19 continuing to have an influence in the coming years.

On 2 June 2020, the Company appointed Peterhouse Capital Limited as brokers. On the same day, we raised £856,702 consisting of £300,000 in cash and £556,702 in debt and creditor conversions into equity. This was raised at 1.35p per share.

On 20 August 2020, the Company raised £400,000 specifically to focus on expansion of our exploration programs in Australia. This fund raising was at 2p and was accompanied by warrants at 3p issued on a 1 for 2 basis.

On 24 September 2020, the Company announced that 94% of the warrants had been exercised thus raising a further £283,200 at 3p per share.

The net effect of this restructuring and funding has been to leave the Company in a strong position to complete its exploration programs and with cash to pursue additional expansion.

During the period cash increased by US$0.145m leaving a balance of US $0.163m as at 30 June 2020 (30 June 2019: US$0.036m). Taking account of the restructuring and fundraising set out above, on 30 September 2020 the company's net cash was US$0.849m.  Net assets at 30 June 2020 were US$0.89m (30 June 2019 (US$2.13m)). Again, looking at the position on 30 September 2020 net assets were US$1.582m showing the strengthening of the balance sheet post the period.  

On 5 October 2020 we announced the acquisition of an option on three properties in the Haveiron/Telfer area of Western Australia. We have 45 days from that date to exercise the option. This is a very exciting region for exploration at the moment. The Haveiron discovery led to a re-rating of the area and a realisation that there may well be large undiscovered resources remaining. All the initial indications from our due diligence so far are extremely good.

We will update the market as soon as further news is available.

END

 

For further information, please contact:

Wishbone Gold PLC

 

Richard Poulden, Chairman

Tel: +971 45 846 284

 

 

Beaumont Cornish Limited

 

(Nominated Adviser and AQUIS Exchange Corporate Adviser)

 

Roland Cornish/Rosalind Hill Abrahams

Tel: +44 20 7628 3396

 

 

Peterhouse Capital Limited

 

(Broker)

 

Lucy Williams and Duncan Vasey

Tel: +44 20 7469 0930

 

 

Wishbone Gold PLC

 

 

 

 

 

 

 

 

 

Consolidated Income Statement

 

 

 

 

for the period 1 January 2020 to 30 June 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unaudited

Six Months

Ended 30

June 2020

Unaudited

Six Months Ended 30 June 2019

Audited Year Ended 31 December 2019

 

 

US$

US$

US$

 

 

 

 

 

Sales

 

 3,637,299

 6,562,093

 10,760,770

 

 

 

 

 

Cost of sales

 

 (3,626,893)

 (6,530,233)

 (10,705,008)

 

 

 

 

 

Gross profit

 

 10,406

 31,860

 55,762

 

 

 

 

 

Administration expenses

 

  (355,264)

 (555,687)

 (939,352)

 

 

 

 

 

Operating loss

 

 (344,858)

 (523,827)

 (883,590)

 

 

 

 

 

Write-off of bad debts

 

 -  

 -  

 (598,844)

Gain on Settlement of Liabilities

 

 -  

 -  

 64,980

Impairment of goodwill

 

 -  

 -  

 (561,463)

Impairment of property, plant and equipment

 

 -  

 -  

 (150,000)

Foreign exchange gains/(loss)

 

 14,305

 (3,315)

 (9,539)

Finance costs

 

 (9,177)

 (10,595)

 (21,093)

 

 

 

 

 

Loss on ordinary activities before taxation

 

 (339,730)

 (537,737)

 (2,159,549)

 

 

 

 

 

Tax on loss

 

 -  

 -  

 -  

 

 

 

 

 

Loss for the financial year

 

 (339,730)

 (537,737)

 (2,159,549)

 

 

Wishbone Gold PLC

 

 

 

 

 

 

 

 

 

Consolidated Statement of Financial Position 

 

 

 

 

as at 30 June 2020

 

 

 

 

 

 

 

 

 

 

 

Unaudited

Six Months Ended 30

June 2020

Unaudited

Six Months Ended 30 June 2019

Audited Year Ended 31 December 2019

 

 

US$

US$

US$

 

 

 

 

 

Current assets

 

 

 

 

Trade and other receivables

 

 127,014

 555,936

 117,831

Loans

 

 -  

 199,864

 -  

Cash and cash equivalents

 

 162,539

 36,271

 17,179

 

 

 

 

 

 

 

 

 

 

 

 

 289,553

 792,071

 135,010

 

 

 

 

 

Non-current assets

 

 

 

 

Property, plant and equipment - net

 

 23,125

 193,750

 25,000

Goodwill

 

 187,154

 748,617

 187,154

Other intangible assets

 

 388,893

 393,874

 388,169

Loans

 

 -  

 -  

 -

 

 

 

 

 

 

 

 599,172

 1,336,241

 600,323

 

 

 

 

 

Total assets

 

 888,725

 2,128,312

 735,333

 

 

 

 

 

Current liabilities

 

 103,390

 555,407

 669,590

 

 

 

 

 

Equity

 

 

 

 

Share capital

 

 3,855,274

 3,791,823

 3,776,911

Share premium

 

 8,285,046

 7,370,895

 7,306,550

Share based payment reserve

 

 -  

 64,355

 -  

Accumulated losses

 

 (11,145,991)

 (9,610,478)

 (10,806,261)

Foreign exchange reserve

 

 (208,994)

 (43,690)

 (211,457)

 

 

 

 

 

Total equity and liabilities

 

 888,725

 2,128,312

 735,333

 

 

Wishbone Gold PLC

 

 

 

 

 

 

 

 

 

Consolidated Statement of Cash Flows

 

 

 

 

for the period from 1 January 2020 to 30 June 2020

 

 

 

 

 

 

 

 

 

 

Unaudited

Six Months Ended 30

June 2020

Unaudited

Six Months Ended 30 June 2019

Audited Year Ended 31 December 2019

 

 

US$

US$

US$

Cash flows from operating activities

 

 

 

 

Loss before tax

 

 (339,730)

 (537,737)

 (2,159,549)

Reconciliation to cash generated from operations:

 

 

 

 

Foreign exchange (gain)/loss

 

 (14,305)

 3,315

 9,539

Interest expense

 

 9,177

 10,595

 21,093

Impairment  of goodwill

 

 -  

 -  

 561,463

Impairment of property, plant and equipment

 -  

 -  

 150,000

Write-off of bad debts

 

 -  

 -  

 598,844

Write-off of receivables

 

 -  

 -  

 126,279

Loan converted into ordinary shares

 

 215,295

 -  

 -  

Depreciation

 

 1,875

 18,750

 37,500

Administrative expenses converted into            ordinary shares

 

 479,181

  -   

 -  

Gain on settlement of liabilities

 

 -  

  -   

 (64,980)

Operating cash flow before changes in              working capital

 

 351,493

 (505,077)

 (719,811)

Decrease/(increase) in inventory

 

 -  

 -  

 -  

Decrease/(increase) in receivables

 

 (9,183)

 27,898

 81,054

Increase/(decrease) in payables

 

 (566,200)

 (307,769)

 107,722

Cash outflow from operations

 

 (223,890)

 (784,948)

 (531,035)

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

Additions of intangible assets

 

 -  

 -  

 (16,246)

(Increase)/Decrease in Assets

 

 (724)

 (21,951)

 -  

Net cash flow from investing activities

 

 (724)

 (21,951)

 (16,246)

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

(Decrease)/Increase in loans payable

 

 9,177

 (10,595)

 -  

Issue of shares for cash

 

 362,383

 983,325

 500,680

Net cash flow from financing activities

 

 371,560

 972,730

 500,680

 

 

 

 

 

Effects of exchange rates on cash and cash equivalents

 

 (1,586)

 (153,988)

 39,352

 

 

 

 

 

Net increase/(decrease) in cash

 

 145,360

 11,843

 (7,249)

Cash at bank at 1 Jan

 

 17,179

 24,428

 24,428

Cash at bank at period end

 

 162,539

 36,271

 17,179

 

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