Wishbone Gold PLC - Interim Results
RNS Number : 2371C
Wishbone Gold PLC
28 September 2018
 

 

 

28th  September 2018

Wishbone Gold Plc ("Wishbone Gold" or the "Company")

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

Interim results

Chairman's statement

Wishbone Gold has pleasure in announcing its interim results for the period ended 30th June 2018. Shareholders are reminded that these results are unaudited and based on the Company's management accounts.

The six months ended saw total sales of $3.908m, showing a small decline over the same period last year (2017: $3.977m). Volumes processed by the Company during this period were mainly from Thailand and supplemented from further African trading. The Company's volumes were constrained by a shortage of trading capital and the board are in the process of resolving this challenge.  Gross margins remained thin at 0.91%, an improvement on the same period last year (0.54%), but a slight decline from the last full year (1.02%).  The Board believes that its strategy of working with artisanal/small-scale miners will improve these margins.

As previously announced Wishbone Gold suffered delays in its Honduras operation coming online due to the failure of our partners to obtain the correct licenses. We moved to remedy this failure earlier in the year and expect the operation to be on stream by the end of the calendar year. Once the Honduras operation is on stream the Board anticipates that its output will significantly boost the Company's profitability. While waiting for the permits to be granted additional equipment is being installed on the site to boost production and improve the percentage of recovered gold to make up for lost time. Once the permits are in place local miners will be able to process more ore, no longer require the use of mercury, and be able to recover more gold.

Videos are available on the Wishbone website showing the progress on the Honduras site.

The rise in administration expenses is due to the expansion of Wishbone's presence in Africa. Discussions to implement artisanal/small scale mining strategies are continuing and will be reported on in due course.

In addition, expenditure has been incurred on Wishbone's new online gold trading initiative which will be announced shortly.

During the period cash reduced by $0.2m (period ended 30 June 2017: reduction of $0.617m) and at 30 June 2018 the Company had net cash of $0.054m (30 June 2017: $0.448m).  Net assets at 30 June 2018 were $2.88m (30 June 2017 ($2.63m).

The major changes in the last few months are moving Honduras to final completion and continued expansion in Africa. The move to a stable government in Zimbabwe is particularly significant as we have been in discussions there since before the elections. We will make announcements shortly.

Many thanks to all our shareholders for their continuing support.

ENDS

For further information, please contact:

Wishbone Gold Plc
Richard Poulden, Chairman and CEO           Tel: +44 207 812 0645

Allenby Capital Limited (Nominated adviser and broker)
Nick Naylor / Nick Harriss                              Tel: +44 20 3328 5656

Damson Communications
Abigail Stuart-Menteth / Amelia Hubert    Tel: +44 207 812 0645

 

 

Wishbone Gold PLC

 

 

 

 

 

 

 

 

 

Consolidated Income Statement

 

 

 

 

for the period 1 January 2018 to 30 June 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unaudited Six Months Ended 30 June 2018

Unaudited Six Months Ended 30 June 2017

Audited Year Ended 31 December 2017

 

 

US$

US$

US$

 

 

 

 

 

Sales

 

 3,908,979

 3,977,139

 8,240,821

 

 

 

 

 

Cost of sales

 

 (3,873,223)

 (3,955,630)

 (8,156,937)

 

 

 

 

 

Gross profit

 

 35,755

 21,509

 83,884

 

 

 

 

 

Administration expenses

 

 (497,834)

 (352,544)

 (884,602)

 

 

 

 

 

Operating loss

 

 (462,079)

 (331,035)

 (800,718)

 

 

 

 

 

Impairment of investments

 

 -  

 -  

 (1,568)

Foreign exchange gains

 

 (6,746)

 -  

 (31,730)

Finance costs

 

 (58,603)

 -  

 (79,001)

 

 

 

 

 

Loss on ordinary activities before taxation

 

 (527,428)

 (331,035)

 (913,017)

 

 

 

 

 

Tax on loss on ordinary activities

 

 -  

 

 -  

 

 

 

 

 

Loss for the financial year

 

 (527,428)

 (331,035)

 (913,017)

 

 

 

Wishbone Gold PLC

 

 

 

 

 

 

 

 

 

Consolidated Statement of Financial Position

 

 

 

 

as at 30 June 2018

 

 

 

 

 

 

 

 

 

 

 

Unaudited Six Months Ended 30 June 2018

Unaudited Six Months Ended 30 June 2017

Audited Year Ended 31 December 2017

 

 

US$

US$

US$

 

 

 

 

 

Current assets

 

 

 

 

Trade and other receivables

 

 545,843

 26,111

 568,396

Cash and cash equivalents

 

 54,102

 447,925

 256,857

Inventory

 

 27,751

 27,391

 27,755

Loans

 

 306,183

 308,656

 308,656

 

 

 

 

 

 

 

 

 

 

 

 

 933,879

 810,083

 1,161,664

 

 

 

 

 

Non-current assets

 

 

 

 

Property, plant and equipment

 

 250,024

 249,987

 250,058

Goodwill

 

 748,625

 748,617

 748,617

Intangible assets

 

 377,672

 312,267

 387,162

Loans

 

 572,278

 504,600

 680,476

 

 

 

 

 

 

 

 1,948,599

 1,815,471

 2,066,313

 

 

 

 

 

Total assets

 

 2,882,478

 2,625,554

 3,227,977

 

 

 

 

 

Current liabilities

 

 1,397,345

 937,996

 1,198,188

 

 

 

 

 

Non-current liabilities

 

 -  

 -  

 -  

 

 

 

 

 

Equity

 

 

 

 

Share capital

 

 1,730,590

 1,691,824

 1,770,406

Share premium

 

 7,115,052

 5,912,988

 7,278,748

Share based payment reserve

 

 62,908

 61,898

 64,355

Accumulated losses

 

 (7,710,000)

 (6,600,591)

 (7,182,574)

Foreign exchange reserve

 

 286,583

 621,439

 98,854

 

 

 

 

 

Total equity and liabilities

 

 2,882,478

 2,625,554

 3,227,977

 

 

 

Wishbone Gold PLC

 

 

 

 

 

 

 

 

 

Consolidated Statement of Cash Flows

 

 

 

 

for the period from 1 January 2018 to 30 June 2018

 

 

 

 

 

 

 

 

 

 

 

Unaudited Six Months Ended 30 June 2018

Unaudited Six Months Ended 30 June 2017

Audited Year Ended 31 December 2017

 

 

US$

US$

US$

Cash flows from operating activities

 

 

 

 

Loss before tax

 

 (527,428)

 (331,035)

 (913,017)

Reconciliation to cash generated from operations:

 

 

 

 

Foreign exchange (gain)/loss

 

 6,745

 (9,146)

 31,730

Interest expense

 

 58,603

 6,055

 79,001

Impairment losses

 

 -  

 

 1,108

Administrative expenses converted into ordinary shares

 

 -  

 -  

 204,399

Operating cash flow before changes in working capital

 

 (462,080)

 (334,126)

 (596,779)

Increase in inventory

 

 4

 24,729

 (25,093)

Decrease/(increase) in receivables

 

 22,553

 4,313,230

 3,571,645

Increase/(decrease) in payables

 

 178,036

 (3,945,894)

 (3,853,477)

Cash outflow from operations

 

 (261,487)

 57,939

 (903,704)

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

Increase/(decrease) in fixed assets

 

 34

 249,987

 (250,058)

Net movement in investments

 

 -  

 1,108

 -  

(Increase)/Decrease in Intangible Assets

 

 9,490

 (280,582)

 (46,821)

(Increase)/Decrease in Loans

 

 27

 (405,319)

 (9,375)

Other investing activities

 

 108,198

 -  

 (680,476)

 

 

 

 

 

Net cash flow from investing activities

 

 117,749

 (434,806)

 (986,730)

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

(Decrease)/Increase in loans payable

 

 (389,276)

 24,435

 (192,210)

Issue of shares for cash

 

 -  

 -  

 1,080,824

Interest Paid

 

 -  

 1,413

 -  

 

 

 

 

 

Net cash flow from financing activities

 

 (389,276)

 25,848

 888,614

 

 

 

 

 

Effects of exchange rates on cash and cash equivalents

 

 330,260

 (266,217)

 193,516

 

 

 

 

 

Net increase/(decrease) in cash

 

 (202,755)

 (617,236)

 (808,304)

Cash at bank at 1 January

 

 256,857

 1,065,161

 1,065,161

Cash at bank at period end

 

 54,102

 447,925

 256,857

 


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