Interim Results

RNS Number : 6925Q

Wishbone Gold PLC

14 September 2017

 

14 September 2017

Wishbone Gold Plc

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

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

Interim Results

Wishbone Gold Plc has pleasure in announcing the interim results for the group for the six months ended 30 June 2017. We remind shareholders that these are unaudited results and extracted from the Company's management accounts. The highlights are set out below. These results include the results from Precious Metals International Ltd, Black Sand FZE, Wishbone Gold Honduras Ltd and Wishbone Gold Pty Ltd.

Highlights

o  A successful first half of the year which saw the trading figures for the half year fall just short of last year's full year total

o  Turnover of £3.98 million (2016: £0.00 million); gross profit of £0.02 million (2016: £0.00 million; and net loss before taxation of £0.33 million (2016: £0.19 million loss)

o  Results impacted by funds being diverted to finance our investment in Honduras.

o  The Honduras roll out is the maiden project in the Company's strategy to fund, from the ground up, artisanal miners making them more efficient and productive by providing equipment and expertise. The mines thus funded are then locked into supply agreements, for the life of the mine, with Black Sand FZE.

o Discussions are underway in two African countries for similar structures to the Honduras investment.   

Cash Position

Wishbone Gold saw a better net cash position than the same time last year, $2.6million compared to $1.4million in 2016, and had an operating loss of $258k for the period. Black Sand FZE's separate trading results will be disclosed at end of the year.

Honduras Operations

The focus for the Company in recent months has been to bring the inaugural Honduran mining operation on stream. Delays with permits required to install the equipment saw the project get off to a slow start but all equipment is now installed. Images and videos of the installation and tuning of the equipment are on our website here.

Unfortunately, the weather has hampered the final commissioning of the plant due to the delays caused from the worst hurricane season on record. This has also lead to the washing out and flooding of roads in the region meaning that all mines are currently closed. The project will be operational once weather conditions improve but this will probably result in a three-month delay in going into production.

Richard Poulden, CEO of Wishbone Gold said:

"It's a promising start for the roll out of Wishbone Gold's strategy and we are looking forward to having the Honduras model operational. This model will enable smaller miners to provide a long term, stable and profitable source of gold that can be replicated easily both within Honduras and globally. The supply agreements produce much higher margins than general trading which will provide higher average margins overall. Hurricanes are a fact of life in that region and we are extremely thankful that our engineers and partners have suffered no injuries as a result of the extreme conditions.

I am pleased to announce that discussions are currently underway with two African nations to set up similar programs within their respective countries."

ENDS

For further information, please contact:

Wishbone Gold Plc
Richard Poulden, Chairman and CEO      Tel: [phone]

Allenby Capital
Nick Naylor / Nick Harriss / James Thomas          Tel: [phone]

Damson Communications
Abigail Stuart-Menteth / Amelia Hubert    Tel: [phone]

Wishbone Gold PLC
Consolidated Income Statement
for the period from 1 January 2017 to 30 June 2017
	Unaudited Six Months Ended 30 June 2017	Unaudited Six Months Ended 30 June 2016	Audited Year Ended 31 December 2016
	$	$	$
Sales	3,977,139	-	4,261,446
Cost of sales	(3,955,630)	-	(4,241,020)
Gross Profit	21,509	-	20,426
Abortive acquisition costs	-	-	-
Administration expenses	(352,544)	(167,762)	(944,865)
Operating loss	(331,034)	(167,762)	(924,439)
Impairment of investments	-	(29,046)	(370)
Foreign exchange gains	-	31,429	-
Finance Costs	-	(19,868)	(33,311)
Loss on ordinary activities before taxation	(331,034)	(185,247)	(958,120)
Tax on loss on ordinary activities	-	-	-
Loss for the financial year	(331,034)	(185,247)	(958,120)

Wishbone Gold PLC
Consolidated Statement of Financial Position
as at 30 June 2017
	Unaudited Six Months Ended 30 June 2017	Unaudited Six Months Ended 30 June 2016	Audited Year Ended 31 December 2016
	$	$	$
Fixed assets
Equipment	249,987	-	-
Depreciation	-	-	-
	249,987	-	-
Current assets
Trade and other receivables	26,111	218,376	4,339,341
Cash and cash equivalents	447,925	417,874	1,065,161
Inventory	27,391	-	2,662
	501,427	636,250	5,407,164
Non-current assets
Intangible assets	1,369,540	421,994	1,088,958
Loans	504,600	-	99,281
Investments	-	82,381	1,108
	1,874,140	504,375	1,189,347
Total assets	2,625,554	1,140,625	6,596,511
Current liabilities	305,769	375,896	4,251,663
Non-current liabilites	632,227	400,000	607,792
Capital and reserves
Share capital	1,691,824	1,128,351	1,448,632
Share premium	5,912,988	4,569,658	5,611,582
Share based payment reserve	61,898	70,165	58,743
Accumulated losses	(6,600,591)	(5,496,684)	(6,269,557)
Foreign exchange reserve	621,439	93,239	887,656
Total equity and liabilities	2,625,554	1,140,625	6,596,511

Wishbone Gold PLC
Consolidated Statement of Cash Flows
for the period from 1 January 2017 to 30 June 2017
	Unaudited Six Months Ended 30 June 2017	Unaudited Six Months Ended 30 June 2016	Audited Year Ended 31 December 2016
	$	$	$
Cash flows from operating activities
Loss before tax	(331,034)	(185,247)	(958,120)
Reconciliation to cash generated from operations:
Foreign exchange (gain)/loss	(9,146)	(31,429)	64,313
Interest expense	6,055	29,046	33,310
Impairment losses	-	-	370
Administrative expenses converted into ordinary shares	-	-	257,432
Operating cash flow before changes in working capital	(334,126)	(187,630)	(602,695)
Increase in inventory	24,729	-	(2,662)
Decrease/(increase) in receivables	4,313,230	(201,699)	(4,322,664)
Increase/(decrease) in payables	(3,945,894)	175,235	4,051,002
Increase/(decrease) in fixed assets	249,987	-	-
Cash outflow from operations	307,926	(214,094)	(877,019)
Cash flows from investing activities
Decrease in Investments	1,108	8,771	90,044
(Increase)/Decrease in Intangible Assets	(280,582)	(17,815)	(748,617)
(Increase)/Decrease in Loans	(405,319)	-	(99,281)
Net cash flow from investing activities	(684,793)	(9,044)	(757,854)
Cash flows from financing activities
(Decrease)/Increase in loans from Sanderson Capital Partners Limited	24,435	400,000	607,792
Interest paid	1,414	-	-
Issue of shares for cash	-	-	1,059,196
Net cash flow from financing activities	25,849	400,000	1,666,988
Effects of exchange rates on cash and cash equivalents	(266,217)	(22,729)	769,305
Net increase/(decrease) in cash	(617,236)	154,133	801,420
Cash at bank at 1 January	1,065,161	263,741	263,741
Cash at bank at period end	447,925	417,874	1,065,161

 

END

 

 

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